The aim of this study was to assess the impact of uncertainty on private investment
in the Democratic Republic of Congo (DRC). We conducted an econometric analysis
based on a flexible accelerator model of investment spending. The results showed that
both macroeconomic uncertainty, as measured by the conditional variance of inflation,
and political uncertainty had a negative impact on investment rates. The two main
policy implications of these results are: First, stabilization policies, and especially
their credibility, are essential to promote private investment in DRC; and second, the
government should adopt policies which help to reduce the risk of reverting to conflict.