Download INVESTING IN THE GREAT LAKES REGION: AN INVESTMENT

INVESTING IN THE
GREAT LAKES REGION:
AN INVESTMENT
OPPORTUNITIES BRIEF (IOB)
Volume 2
Country Profiles of the
Expanded Great Lakes Region:
The 13 Peace, Security and
Cooperation Framework
Signatories
October 2014
WORKING DOCUMENT
The United Nations Office of the Special Envoy of the Secretary-General for the Great Lakes Region
The establishment of the United Nations Office of the Special Envoy of the Secretary-General for the Great Lakes Region
(OSESG) represents the most recent effort by the United Nations to bring peace and stability to Africa’s Great Lakes sub-region which has been
plagued by decades of political instability and armed conflicts, porous borders and humanitarian crisis, along with tensions over natural resources
and other potentially destabilising factors. A key step in recent efforts has been the adoption, in February 2013, of a UN-brokered accord aimed at
stabilising the Democratic Republic of the Congo and the region. The Peace, Security and Cooperation Framework – signed by Angola, Burundi, Central
African Republic, the Republic of the Congo, the Democratic Republic of the Congo, Kenya, Rwanda, South Africa, South Sudan, Sudan, Uganda,
Tanzania and Zambia – encompasses commitments at the national, regional and international levels to bring peace and stability to the eastern DRC
and the region. The OSE-GL has been especially tasked with supporting the implementation of this “Framework of Hope”.
The International Conference on the Great Lakes Region
The International Conference on the Great Lakes Region (ICGLR) is an inter-governmental organisation of the countries in the African Great Lakes
Region. Its founding history began in 2000 when the United Nations Security Council, as stated in its resolutions 1291 and 1304, called for an
International Conference of peace, security, democracy and development in the Great Lakes region. Later that year, the Secretariat of the International
Conference was established in Nairobi, Kenya, under the umbrella of the United Nations and the African Union. The ICGLR Executive Secretariat
celebrated its inauguration in May 2007 at its headquarters in Bujumbura, Burundi. Its responsibility is to coordinate, facilitate, monitor and thereby
ensure the implementation of the Pact in order to attain peace, security, political stability and development in the Great Lakes Region. The organisation
is composed of twelve member states, namely: Angola, Burundi, Central African Republic, Republic of Congo, Democratic Republic of Congo, Kenya,
Uganda, Rwanda, Republic of South Sudan, Sudan, Tanzania and Zambia.
Investing in the Great Lakes Region: An Investment Opportunities Brief, Volume 2: Country Profiles of the Expanded Great Lakes Region: The
13 Peace, Security and Cooperation Framework Signatories is part of a three volume set of documents and should be read in conjunction “An
Overview of the Investment Opportunities Brief (IOB) Consultative Process, Lessons Learned and Key Findings” and “Volume 1: Promoting
Increased Private Sector Investment in the Great Lakes Region”.
Acknowledgments
OSESG and ICGLR would like to acknowledge all of those who contributed to the development of this Investment Opportunities Brief (IOB)
compendium of documents that are intended to illustrate and promote the investment opportunities that exist and that are emerging in the
Democratic Republic of the Congo and the Great Lakes Region.
Particular appreciation is given for the overall project stewardship of the process of compilation of this Investment Opportunities Brief. Special
recognition from the Office of the Special Envoy of the Secretary General for the Great Lakes Region (OSESG-GL): Assistant Secretary General Modibo
Toure and his colleagues Aniefiok Johnson, Anna Stoyanova, Luc Ngowet, and Allan Mukungu of the UN; from the International Conference on the
Great Lakes Region (ICGLR): Ambassador Vicente Muanda and his colleagues Mohamed Bouabdalli and Evelyne Mbata; from the UNDP Regional
Bureau for Africa: Director Abdoulaye Mar Dieye; from the UNDP Regional Service Centre for Africa: Regional Director Lebogang Motlana, and his
colleagues from the African Facilities for Inclusive Markets Tomas Sales, Juergen Nagler, Pascale Bonzom, Priscilla Chimwele, Olivia Dooley, Yonathan
Workineh and Gemechu Berhanu.
Special gratitude for the technical contributions from Director Catherine Masinde, Maria Miller, Sarah Ruth Ochieng and Julian Haarmann of the
International Finance Corporation (IFC) and Gabriel Negatu and Rafael Jabba of the African Development Bank (AfDB), Herman Tuyaga Director and
Joseph Lititiyo Deputy Executive Secretary of the Economic Community of the Great Lakes Countries (CEPGL); Andrew Luzze Kagwa Executive Director
of the East African Business Council (EABC); and the consulting team of Africa Business Group (ABG), including Michael Sudarkasa, Ernest Fausther,
Mignonne Karugu, Stefan Engels, Aisha Jackson, Michel Kahasha, and Denan Kuni.
Also duly appreciated is the UNDP Regional Bureau for Africa’s funding and especially its Private Sector Regional Project, the African Facility for Inclusive
Markets (AFIM), for the provision of management, technical and operational support to the entire IOB process.
Thanks also go to the colleagues from the IFC, World Bank, European Union and African Development Bank who contributed to this work.
Two technical review meetings were held in preparation of the IOB documents. In addition to the valuable technical inputs received from colleagues
from the institutions noted above, subject matter experts from the RECs such as CEPGL, COMESA, SADC, and the East African Business Council, and
UNDP Country Economists in DRC, Angola, Burundi, Rwanda and Uganda, also provided insights and ideas. All of their contributions were very helpful
and are noted.
Lastly, we would like to acknowledge the various stakeholders who took the time to meet with the expert consulting firm Africa Business Group (ABG)
in the respective country consultations.
Disclaimer
The United Nations makes no representation concerning, and do not guarantee, the source, originality, accuracy, completeness or reliability of any
statement, information, data, finding, interpretation, advice or opinion contained within this publication. The inclusion of company examples does not
in any way constitute an endorsement of these organizations by the UN. The material in this publication may be quoted and used provided there is
proper attribution.
The material in this publication is copyrighted. The UN encourages the dissemination of the content for educational purposes. Content from this
publication may be used freely without prior permission, provided that clear attribution is given to the UN and that content is not used for commercial
purposes.
© United Nations 2014
INVESTING IN THE
GREAT LAKES REGION:
AN INVESTMENT
OPPORTUNITIES BRIEF (IOB)
Volume 2
Country Profiles of the
Expanded Great Lakes Region:
The 13 Peace, Security and
Cooperation Framework
Signatories
October 2014
WORKING DOCUMENT
Contents
Abbreviations and Acronyms
Figures and Tables
Country Profiles and Investment Incentives
2
4
8
Angola
8
Burundi
13
Central African Republic
16
Republic of Congo
20
The Democratic Republic of the Congo
23
Kenya
27
Rwanda
31
South Africa
34
South Sudan
38
Sudan
41
Tanzania
45
Uganda
49
Zambia
53
References
57
2
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Abbreviations and Acronyms
AA
ACTED
AECF
AT
AFD
AFDB
AHA
AI
AGRA
ANIP
API
ASAREC
AWEPA
BMG
BOT
CAR
CDF
CENSAD
CES
CF
CEPGL
CIDA
CIPA
CLSP
COMESA
CORAID
COU-PDR
COU-KDPA
CPAR
CRS
CWR
DANIDA
DCA
DDAG
DDRO
DFID
DRC
EAC
ECCAS
DWB
ECGLC
EU
EC
FTA
GDP
GF
GIF
GIZ
GLR
GLRPSIC
GOA
GOZ
HBF
ICGLR
ICT
ICRC
IEE
IF
IFAD
Action Aid
Agency for Technical Cooperation and Development
Africa Enterprise Challenge Fund
AEGI Trust
French Agency for Development
African Development Bank
Africa Humanitarian Action
Amnesty International
Alliance for Green Revolution in Africa
National Agency for Private Investment (Angola)
Angola Partnership Initiative
Association for Strengthening Agricultural Research in Eastern and Central Africa
Association of European Parliamentarians with Africa
Bill and Melinda Gates Foundation
Build - Operate - Transfer
Central African Republic
Community Development Fund
Community of Sahel Saharan States
Cooperatione e Sviluppo
Clinton Foundation
Communauté Économique des Pays des Grand Lacs
Canadian International Development Agency
Community Initiative for Prevention of HIV/AIDS
Strategic Framework for Growth and Poverty Reduction (Cadre de Croissance et Lutte contre la Pauvreté)
Common Market for Eastern and Southern Africa
Catholic Organization for Relief and Development Aid
Church of Uganda – Program Development and Relief
Church of Uganda – Karamoja Diocese Development Services
Canadian Physicians for Aid and Relief
Catholic Relief Services
Concern Worldwide Foundation
Denmark Embassy
Dan Church Aid
Darfur Development Advisory Group
Darfur Development
UK Department for International Development
Democratic Republic of the Congo
East African Community
Economic Commission of Central Africa States
Doctors without Borders
Economic Community of the Great Lakes Countries
European Union
European Union Commission
Free Trade Agreement
Gross Domestic Product
Global Fund
Global Integrity
German Development Agency
Great Lakes Region
Great Lakes Region Private Sector Investment Conference
Government of Angola
Government of Zambia
Howard Buffet Foundation
International Conference on the Great Lakes Region
Information, Communications and Technology
International Committee of the Red Cross
International Education Exchange
Imbutu Foundation
International Fund for Agricultural Development
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
3
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
IFC
IGAD
ILO
IMF
IOB
IPP
Irish AID
ISS Africa
IWPR
JRF
KPA
KSI
LWF
MONUSCO
MONARLIP
MSF
MV
NGO
NORAD
OCHA
OHADA
ONE
OSESG
PMI
PPP
PEMR
PSCF
RAKAI
RACOBAO
REACH
RF
R2P
RISD
SADC
SDC
SEZs
SIDA
SNV
SOCAIDO
SSD
SuWEP
TPO
TSC
UCAA
UDN
UJCC
ULA
UN
UNDP
UNIDO
USAID
UWONET
WB
WFE
WFP
WHO
WV
WVI
WWF
International Finance Corporation
Intergovernmental Authority on Development
International Labor Organization
International Monetary Fund
Investment Opportunities Brief
Independent Power Producer
Irish Agency for International AID
Institute for Security Studies Africa
Institute for War and Peace Reporting - Netherlands
Jesuit Refugee Foundation
Kenya Ports Authority
Kickstart International
Lutheran World Federation
United Nations Organization Stabilization Mission in the Democratic Republic of the Congo
Moroto Nakapiripirh Religious Leaders Initiatives for Peace
Medecin Sans Frontieres
Millennium Village
Non-Governmental Organization
Norwegian Agency for Development
Office for the Coordination of Humanitarian Affairs
Organization for the Harmonization of Business Law in Africa
One Acre Fund
The Office of the Special Envoy of the Secretary General for the Great Lakes Region
President’s Malaria Initiative
Public Private Partnership
Public Expenditures Management Review
Peace, Security and Cooperation Framework
Rakai Counsellors Association
Rakai Community Based AIDS Organization
Reproductive Educative and Community Health Program
Rockefeller Foundation
Right to Play
Rwanda Initiative for Sustainable Development
Southern African Development Community
Swiss Development Cooperation
Special Economic Zones
Swedish International Development Agency
Netherlands Development Agency
Soroti Catholic Diocese Integrated Development Organization
Caritias Moroto Social Services and Development
Sudanese Women Empowerment for Peace
Transcultural Psychosocial Organization
Technical Support Committee
Uganda Change Agent Association
Uganda Debt Network
Uganda Joint Christian Council
Uganda Land Association
United Nations
United Nations Development Program
United Nations Industrial Development Organization
United States Agency for International Development
Uganda Women Network
World Bank
Wellspring Foundation for Education
World Food Programme
World Health Organization
World Vision
World Vision International
World Wildlife Foundation
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
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Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Figures and Tables
FIGURES
Page
8
8
13
13
16
16
20
20
23
23
27
27
31
31
34
34
38
41
41
41
45
45
49
49
53
53
TABLES
Page
8
9
9
9
9
9
10
10
11
11
12
12
12
12
12
12
13
14
14
14
14
14
14
15
15
15
Figure 1: Map of Angola
Figure 2: Angola Real GDP Growth
Figure 3: Map of Burundi
Figure 4: Burundi Real GDP Growth
Figure 5: Map of Central African Republic
Figure 6: Central African Republic Real GDP Growth
Figure 7: Map of the Republic of Congo
Figure 8: The Republic of Congo Real GDP Growth
Figure 9: Map of the Democratic Republic of Congo
Figure 10: The Democratic Republic of Congo Real GDP Growth
Figure 11: Map of Kenya
Figure 12: Kenya Real GDP Growth
Figure 13: Map of Rwanda
Figure 14: Rwanda Real GDP Growth
Figure 15: Map of South Africa
Figure 16: South Africa Real GDP Growth
Figure 17: Map of South Sudan
Figure 18: Location of Key Industrial Activity, South Sudan
Figure 19: Map of Sudan
Figure 20: Sudan Real GDP Growth
Figure 21: Map of Tanzania
Figure 22: Tanzania Real GDP Growth
Figure 23: Map of Uganda
Figure 24: Uganda Real GDP Growth
Figure 25: Map of Zambia
Figure 26: Zambia Real GDP Growth
Table 1: Angola Quick Facts
Table 2: Angola Key Industries
Table 3: Angola Natural Resources
Table 4: Angola GDP by Sector
Table 5: Angola Trade
Table 6: Angola Foreign Direct Investment
Table 7: Angola Selected Investment Priorities
Table 8: Angola Investment Incentives
Table 9: Angola Tax Incentives
Table 10: Angola Selected Priority Projects
Table 11: Angola Membership in Regional Economic Community (ies)
Table 12: Active Development Partners in Angola
Table 13: NGO’s Charitable Initiatives in Angola
Table 14: Angola’s Global Value Chain Linkages
Table 15: Angola’s Unemployment
Table 16: Angola References and Resources
Table 17: Burundi Quick Facts
Table 18: Burundi Key Industries
Table 19: Burundi Natural Resources
Table 20: Burundi GDP by Sector
Table 21: Burundi Trade
Table 22: Burundi Foreign Direct Investment
Table 23: Burundi Selected Investment Priorities
Table 24: Burundi Investment Incentives
Table 25: Burundi Selected Priority Projects
Table 26: Burundi Membership in Regional Economic Community (ies)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
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Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 27: Active Development Partners in Burundi
Table 28: NGO’s Charitable Initiatives in Burundi
Table 29: Burundi’s Global Value Chain Linkages
Table 30: Burundi’s Unemployment
Table 31: Burundi References and Resources
Table 32: CAR Quick Facts
Table 33: CAR Key Industries
Table 34: CAR Natural Resources
Table 35: CAR GDP by Sector
Table 36: CAR Trade
Table 37: CAR Foreign Direct Investment
Table 38: CAR Selected Investment Priorities
Table 39: CAR Investment Incentives
Table 40: CAR Membership in Regional Economic Community (ies)
Table 41: Active Development Partners in CAR
Table 42: NGO’s Charitable Initiatives in CAR
Table 43: CAR’s Global Value Chain Linkages
Table 44: CAR References and Resources
Table 45: The Republic of Congo Quick Facts
Table 46: The Republic of Congo Key Industries
Table 47: The Republic of Congo Natural Resources
Table 48: The Republic of Congo GDP by Sector
Table 49: The Republic of Congo Trade
Table 50: The Republic of Congo Foreign Direct Investment
Table 51: The Republic of Congo Selected Investment Priorities
Table 52: The Republic of Congo Investment Incentives
Table 53: The Republic of Congo Selected Priority Projects
Table 54: The Republic of Congo Membership in Regional Economic Community (ies)
Table 55: Active Development Partners in The Republic of Congo
Table 56: NGO’s Charitable Initiatives in The Republic of Congo
Table 57: The Republic of Congo’s Unemployment
Table 58: The Republic of Congo‘s Global Value Chain Linkages
Table 59: The Republic of Congo References and Resources
Table 60: DRC Quick Facts
Table 61: DRC Key Industries
Table 62: DRC Natural Resources
Table 63: DRC GDP by Sector
Table 64: DRC Trade
Table 65: DRC Foreign Direct Investment
Table 66: DRC Selected Investment Priorities
Table 67: DRC Investment Incentives
Table 68: DRCSelected Priority Projects
Table 69: DRC Membership in Regional Economic Community (ies)
Table 70: DRC Active Development Partners in DRC
Table 71: DRC NGO’s Charitable Initiatives in DRC
Table 72: DRCs Unemployment
Table 73: DRC‘s Global Value Chain Linkages
Table 74: DRC References and Resources
Table 75: Kenya Quick Facts
Table 76: Kenya Key Industries
Table 77: Kenya Natural Resources
Table 78: Kenya GDP by Sector
Table 79: Kenya Trade
Table 80: Kenya Foreign Direct Investment
Table 81: Kenya Selected Investment Priorities
Table 82: Kenya Investment Incentives
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Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
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Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 83: KenyaSelected Priority Projects
Table 84: Kenya Membership in Regional Economic Community (ies)
Table 85: Kenya Active Development Partners in Kenya
Table 86: Kenya NGO’s Charitable Initiatives in Kenya
Table 87: Kenyas Unemployment
Table 88: Kenya‘s Global Value Chain Linkages
Table 89: Kenya References and Resources
Table 90: Rwanda Quick Facts
Table 91: Rwanda Key Industries
Table 92: Rwanda Natural Resources
Table 93: Rwanda GDP by Sector
Table 94: Rwanda Trade
Table 95: Rwanda Foreign Direct Investment
Table 96: Rwanda Selected Investment Priorities
Table 97: Rwanda Investment Incentives
Table 98: RwandaSelected Peace Dividend Projects
Table 99: Rwanda Membership in Regional Economic Community (ies)
Table 100: Rwanda Active Development Partners in Rwanda
Table 101: Rwanda NGO’s Charitable Initiatives in Rwanda
Table 102: Rwandas Unemployment
Table 103: Rwanda‘s Global Value Chain Linkages
Table 104: Rwanda References and Resources
Table 105: South Africa Quick Facts
Table 106: South Africa Key Industries
Table 107: South Africa Natural Resources
Table 108: South Africa GDP by Sector
Table 109: South Africa Trade
Table 110: South Africa Foreign Direct Investment
Table 111: South Africa Selected Investment Priorities
Table 112: South Africa Investment Incentives
Table 113: South Africa Membership in Regional Economic Community (ies)
Table 114: South Africa Active Development Partners in South Africa
Table 115: South Africa NGO’s Charitable Initiatives in South Africa
Table 116: South Africas Unemployment
Table 117: South Africa‘s Global Value Chain Linkages
Table 118: South Africa References and Resources
Table 119: South Sudan Quick Facts
Table 120: South Sudan Key Industries
Table 121: South Sudan Natural Resources
Table 122: South Sudan Trade
Table 123: South Sudan Foreign Direct Investment
Table 124: South Sudan Selected Investment Priorities
Table 125: South Sudan Investment Incentives
Table 126: South Sudan Membership in Regional Economic Community (ies)
Table 127: South Sudan Active Development Partners in South Sudan
Table 128: South Sudan NGO’s Charitable Initiatives in South Sudan
Table 129: South SudanSelected Peace Dividend Projects
Table 130: South Sudans Unemployment
Table 131: South Sudan‘s Global Value Chain Linkages
Table 132: South Sudan References and Resources
Table133: Sudan Quick Facts
Table134: Sudan Key Industries
Table135: Sudan Natural Resources
Table136: Sudan GDP by Sector
Table137: Sudan Trade
Table138: Sudan Foreign Direct Investment
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
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Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table139: Sudan Selected Investment Priorities
Table140: Sudan Investment Incentives
Table141: Sudan Membership in Regional Economic Community (ies)
Table142: Sudan Active Development Partners in Sudan
Table143: Sudan NGO’s Charitable Initiatives in Sudan
Table144: SudanSelected Peace Dividend Projects
Table145: Sudans Unemployment
Table146: Sudan‘s Global Value Chain Linkages
Table147: Sudan References and Resources
Table148: Tanzania Quick Facts
Table149: Tanzania Key Industries
Table150: Tanzania Natural Resources
Table151: Tanzania GDP by Sector
Table152: Tanzania Trade
Table153: Tanzania Foreign Direct Investment
Table154: Tanzania Selected Investment Priorities
Table155: Tanzania Investment Incentives
Table156: Tanzania Membership in Regional Economic Community (ies)
Table157: Tanzania Active Development Partners in Tanzania
Table158: Tanzania NGO’s Charitable Initiatives in Tanzania
Table159: TanzaniaSelected Priority Projects
Table160: Tanzanias Unemployment
Table161: Tanzania‘s Global Value Chain Linkages
Table162: Tanzania References and Resources
Table163: Uganda Quick Facts
Table164: Uganda Key Industries
Table165: Uganda Natural Resources
Table166: Uganda GDP by Sector
Table167: Uganda Trade
Table168: Uganda Foreign Direct Investment
Table169: Uganda Selected Investment Priorities
Table170: Uganda Investment Incentives
Table171: UgandaSelected Priority Projects
Table172: Uganda Membership in Regional Economic Community (ies)
Table173: Uganda Active Development Partners in Uganda
Table174: Uganda NGO’s Charitable Initiatives in Uganda
Table175: Ugandas Unemployment
Table176: Uganda‘s Global Value Chain Linkages
Table177: Uganda References and Resources
Table178: Zambia Quick Facts
Table179: Zambia Key Industries
Table180: Zambia Natural Resources
Table181: Zambia GDP by Sector
Table182: Zambia Trade
Table183: Zambia Foreign Direct Investment
Table184: Zambia Selected Investment Priorities
Table185: Zambia Investment Incentives
Table186: ZambiaSelected Priority Projects
Table187: Zambia Membership in Regional Economic Community (ies)
Table188: Zambia Active Development Partners in Zambia
Table189: Zambia NGO’s Charitable Initiatives in Zambia
Table190: Zambias Unemployment
Table191: Zambia‘s Global Value Chain Linkages
Table192: Zambia References and Resources
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Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
CA
Angola
N
BI
DEMOCRATIC
REPUBLIC
OF THE
Cabinda
Kikwit
Table 1: ANGOLA QUICK FACTS
CONGO
Nóqui
M'banza Congo
ZAIRE
Quimb le
Damba
UÍGE
Bembe
Bun
Uíge
Caxito
NG
O
Luanda
KUANZA
NORTE
N'dalatando
Cuango
LUNDA
NORTE
B
KUANZA
M ALA
NJ
E
Ca olo
DEMOCRATIC
REPUBLIC
OF THE
LUNDA
SUL
Sumbe
OCEAN
Luena
HUAMBO
Benguela
BENGUELA
Kuito
Huambo
BIÉ
MOXICO
Chitembo
NAMIBE
Cubango
HU ÍLA
HUÍ
LA
Menongue
Lubango
Namibe
Chiume
Chibia
ZAMBIA
Chiange
Cahama
Area:
1,246,700 sq. km
Capital:
Luanda (5.068 million inhabitants
– 2011)
Main Cities:
Luanda, Benguela, Lobito,
Lubango, Namibe and Cabinda
Ports:
Luanda, Lobito, Namibe
GDP:
US$127 billion (2014)
Population:
24 million (2014 census)
Language:
Portuguese (official)
Urban Population:
59.2% of total population (2011)
Rate of Urbanization:
3.97% annual change
Currency:
Angolan Kwanza (Kz)
Climate:
Tropical climate, semiarid in South
and alongside coast to Luanda
CONGO
SUL
ATLANTIC
Jose Eduardo dos Santos
Malanje
Dondo
E
LUANDA
Nega e
Camabatel
President:
CUNENE
KUANDO-KUBANGO
Ondjiva
NAMIBIA
BOTSWANA
Figure 1: Map of Angola
ECONOMIC BRIEF
The economy of Africa’s second biggest oil producer grew by 6.8% in 2013, below the hoped for 7.1%. Angola’s extra gross
domestic product (GDP) came mostly from the non-oil energy, agriculture, fisheries, manufacturing, and construction sectors.
Growth is projected to reach 4.4% in 2014 and 9.7% in 2015 as major public infrastructure investment kicks in.
Social indicators have not kept pace with the strong economy though. About 36% of the population live below the poverty
line and unemployment remains high at 22%. The government has taken steps to improve living conditions. Major investment
is being made to expand access to electricity, water and transport. To boost business, financial sector policies are being
modernized with the introduction of a new foreign exchange currency law for the oil sector and a mining law. Though the
structural policies are positive, Angola needs to accelerate economic diversification and reduce the dependence on oil, which
accounts for about 46% of GDP, 80% of government revenues and 95% of Angola’s exports.
Subsistence agriculture provides the main livelihood for most people, but half of the country’s food is still imported. Increased
oil production supported growth averaging more than 17% per year from 2004 to 2008. A postwar reconstruction boom and
resettlement of displaced persons led to high rates of growth in construction and agriculture as well. The government has used
the Petroleum Activity Law and local content decrees to advance national interests in the oil sector. This legal framework also
serves to promote the creation of local skills through the “Angolanization” of human resources and boost the participation of
local companies by giving preferential treatment to national firms in the supply of goods and services.
Figure 2: Angola Real GDP Growth
%
25
Real GDP growth (%)
Southern Africa (%)
Africa (%)
20
15
10
5
0
-5
2004
2005
2006
2007
2008
2009
Source: AfDB, Statistics Department AEO. Estimates (e); projections (p).
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
2010
2011
2012
2013(e)
2014(p)
2015(p)
9
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 2: ANGOLA KEY INDUSTRIES
GDP 2013:
Agriculture
10.2%
Industry
61.4%
Services
28.4%
Agriculture
Bananas, sugarcane, coffee, sisal, corn,
cassava, tobacco, vegetables, plantains;
livestock; forest products; fish.
Industries
Petroleum; diamonds, iron ore, phosphates,
feldspar, bauxite, uranium, gold; cement;
basic metal products; fish processing; food
processing, brewing, tobacco products,
sugar; textiles; ship repair.
Table 3: ANGOLA NATURAL RESOURCES
t &OPSNPVTSFTFSWFTPGPJMHBTBOEEJBNPOET
t .JOFSBMSFTPVSDFTPG
QFUSPMFVNEJBNPOETJSPOPSF
phosphates, copper, feldspar, gold, bauxite, and uranium.
t -POH"UMBOUJDDPBTUMJOFEFOTFFRVBUPSJBMGPSFTUTSJWFSTUIJDL
with mangroves, vast desert expanses, rolling savannah
grasslands and high-altitude rocky outcrops, rivers,
waterfalls and scenic coastline.
t "HSJDVMUVSFBOEmTIJOHTVQQPSUUIFQPQVMBUJPOCVUBMTP
threatens the existence of a number of species.
t %JWFSTJUZPGXJMEMJGFOBUJPOBMQBSLTBOEXBUFSGBMMT
Table 5: ANGOLA TRADE
Exports
$71.09 billion (2012)
Commodities
Crude oil, diamonds, refined petroleum
products, coffee, sisal, fish and fish
products, timber, cotton
Partners
China 46.3%, US 13.9%, India 10.1%, South
Africa 4.2% (2012)
Imports
$26.09 billion (2013)
Table 4: ANGOLA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
6.8
10.2
-
-
Mining
59.0
47.0
of which oil
57.9
46.0
Manufacturing
5.0
6.6.0
-
-
Construction
5.2
7.8.0
Wholesale and retail trade, hotels and
restaurants
14.2
16.0
-
-
3.7
4.3
-
-
6.1
8.1
of which fishing
Electricity, gas and water
of which hotels and restaurants
Transport, storage and communication
Finance, real estate and business services
Public administration, education, health and
social work, community, social and personal
services
Other services
Gross domestic product at basic prices /
factor cost
$70.84 billion (2013)
$23.72 billion (2012
Commodities
Machinery and electrical equipment,
vehicles and spare parts; medicines, food,
textiles, military goods
Partners
China 20.9%, Portugal 19.5%, US 7.7%,
South Africa 7.1%, Brazil 5.9% (2012)
Table 6: ANGOLA FOREIGN DIRECT INVESTMENT
Stock of Direct Foreign Investment – at home:
$17.15 billion (31 December 2012)
Stock of Direct Foreign Investment – at home:
$12.15 billion (31 December 2011)
Stock of Direct Foreign Investment – abroad:
$12.87 billion (31 December 2013)
-
-
100
100
Stock of Direct Foreign Investment – abroad:
$9.88 billion (31 December 2012)
Foreign Exchange and Gold Reserves:
$37.94 billion (31 December 2013)
Foreign Exchange and Gold Reserves:
$33.41 billion (31 December 2012)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
10
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 7: ANGOLA SELECTED INVESTMENT
PRIORITIES
Angola’s Investment Strategy is aligned to Angola Visão 2025,
the long-term development strategy aimed at eradicating
poverty. According to ANIP, the Angolan National Private
Investment Agency, the government is focused on the
following priority sectors: agriculture, manufacturing/industry,
infrastructure, water and energy, hospitality and tourism, ICT,
social housing, and education and health.
Agriculture
Livestock; fishing; food production in big
scale
Manufacturing
/Industry
Machinery production, packing production,
equipment tools & accessories, recycling;
textiles production, clothing and shoes
industry; building materials, wood
processing; and food industries
Infrastructure
Railway, road and maritime transportation;
aeronautical and maritime infrastructure;
social housing; tourism; and information
technology
Water & Energy Distribution of electricity; private-public
partnerships (PPP); independent power
producers (IPP); and water generation and
distribution networks
Hospitality &
Tourism
Lodging, showcasing natural resources
ICT
Telecommunications and information
technology
Social Housing
Low income housing
Education &
Health
Schools; eradicating HIV, TB, malaria
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 8: ANGOLA INVESTMENT INCENTIVES
How to Invest:
I. The Investment must be from USD 1 million
II. ANIP application form
III. Approval of Contractual Scheme
a.
ANIP: up to USD 10 million = 60 days maximum
b. Cabinet: over USD 10 million = 75 days maximum
Tax Incentives:
I. Incentives are allowed in the following areas:
a. Infrastructure (roads, railroads, highways, ports and
airports)
b. Industry (civil construction, manufacturing, tools,
recycling, textiles, information and communications
technologies, and social housing)
c. Transportation
d. Agriculture and cattle breeding
e. Energy and water
f. Telecommunications
g. Fishing (boats, nets)
h. Industrial hubs
i. Free zones
II. Incentives are also granted to:
a. Enhance the capacity of national productivity
b. Encourage partnership between national and foreign
investors
c. Transfer technology and improve productivity
d. Job creation
e. Increase the country’s Exports – and decrease its
Imports to improve foreign currency reserves
f. Help supply the Internal Market with goods and
services under competitive conditions
g. Promote incorporation of national raw materials and
add value to national products
h. Rehabilitation, expansion and modernization of basic
infrastructure.
III. Must be noted:
a. Reduction or exemption incentives are not automatic The Corporate Tax System Exemption Rate is 35%.
11
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 9: ANGOLA TAX INCENTIVES
Economic
Zones
Corporate Capital
Tax (years) Gains Tax
(years)
Zone A:
1-5
Up to 3
Zone B:
1-8
Up to 6
Zone C:
1-10
Up to 9
Property
Transfer Tax
Criteria for Applying Max
Limits
For the
acquisition
of land and
real estate
connected
to the
project
Investments > USD 50
million; Investments
which generate > 500
jobs
Investments > USD 20
million; Investments
which generate > 500
jobs
Zone A: Luanda, main municipalities of Benguela, Lobito, Huila and Cabinda
Zone B: Remaining municipalities of Benguela, Cabinda, Huila, Kwanza Norte, Kwana Sul,
Bengo, Uige, Luanda Norte and Luanda Sul
Zone C: Huambo, Bié, Moxico, Kuando Kubango, Cunene, Namibe, Malange and Zaire
Note: In Zone C, the subcontract could also be eligible for tax exemption and reduction.
The tax incentive is granted after the implementation of the project and at least 90% of
the estimated work force being in place. The reduction in the percentage of the rate of
tax may not exceed 50%.
Dividends:
I. Zone A
a. From USD 50 million – Transfer of Dividends upon 1st
year
b. From USD 10 million up to USD 50 million – Transfer of
Dividends upon 2nd year
II. Zone B
a. From USD 5 million – Transfer of Dividends upon 1st
year
b. From USD 1 million up to USD 5 million – Transfer of
Dividends upon 2nd year
III. Zone C
a. To be negotiated
IV. Repatriation of Dividends depends on:
a. Investment amount
b. Period of investment concession
c. Fiscal and customs incentive rate percentages
d. Duration of investment
e. Socio-economic impact of the investment on reducing
poverty
Investor Protection:
t "DDFTTUPDPVSUTBOESJHIUUPEFGFOTF
t .POFUBSZSFTUJUVUJPOJOFWFOUPGFYQSPQSJBUJPO
t 1SJWBUFJOWFTUNFOUTBSFOPUOBUJPOBMJ[FECVUTIPVMEUIJT
occur, the Government guarantees all investors rights
t 5IFMBXHVBSBOUFFTQSPGFTTJPOBMJTNQSJWBDZBOE
confidentiality
t 3FDJQSPDBM1SPUFDUJPOPG*OWFTUNFOU"HSFFNFOUTCBTFEPO
Bilateral Cooperation Agreements).
Investment Areas exclusively reserved for the Angolan
Government:
t 1SPEVDUJPOEJTUSJCVUJPOBOETBMFPGNJMJUBSZNBUFSJBM
t $FOUSBM#BOLBOEOBUJPOBMDVSSFODZSFMBUFENBUUFST
t 0XOFSTIJQPGTFBQPSUTBOEBJSQPSUT
t #BTJDJOGSBTUSVDUVSFGPSUIFOBUJPOBMUFMFDPNNVOJDBUJPOT
network
Sectors in which the Government must be a Majority or
Senior Partner:
t -PDBMJOGSBTUSVDUVSFXIFOQBSUPGUIFCBTJD
telecommunications system
t 1PTUBM4FSWJDF
Table 10: ANGOLA SELECTED PRIORITY PROJECTS
I. Lobito Corridor: The railway link between Caminho
de Ferro de Benguela (CFB) and Zambia along the
Lobito Corridor is of important significance to both the
Government of Angola (GOA) and the Government of
Zambia (GOZ). It plays an important role for regional
integration as one of the SADC corridors. It already
connects to the DRC. Stakeholders: AFDB, GOA, and GOZ.
II. Water & Sanitation Project: Although AFDB has ongoing
projects in water supply and sanitation; this project
will improve the management of public utilities in the
municipalities. Stakeholders: AFDB ($100 million) and GOA.
III. Power Project: AFDB will assist the GOA to improve
access to electricity. There is a need for policy reform
for efficiency and reduction in the Energy sector. Public
finance management and procurement systems will be
put in place, like PEMR (Public Expenditure Management
Review). The private sector involvement is necessary
in the form of Independent Power Producer (IPP) and
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
12
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
distribution. Stakeholders: AFDB ($1 million), GOA, and
private sector.
IV. Capacity Building: The GOA’s Ministry of Economy needs
technical assistance and capacity building to monitor and
support SMMEs and large companies. Stakeholders: AFDB
and GOA.
V. Petro-Chemical Pipeline Project: Angola imports 80% of
its petrol; however, the government is moving to build
a refinery. In order to transform intra-African trade, the
logistical system needs rehabilitation through a pipeline.
A pipeline through central Africa could supply petrol and
fertilizer to other African countries. Stakeholders: AIA and
GOA.
Table 11: ANGOLA MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t 4"%$o4PVUIFSO"GSJDBO%FWFMPQNFOU$PNNVOJUZ
t &$$"4o&DPOPNJD$PNNVOJUZPG$FOUSBM"GSJDBO4UBUFT
t 5SJQBSUJUF'5"'SFF5SBEF"HSFFNFOU
4"%$&"$&BTU
African Community) and COMESA (Common Market for
Eastern and Southern Africa)
Table 12: ACTIVE DEVELOPMENT PARTNERS IN
ANGOLA
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
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(FSNBO%FWFMPQNFOU"HFODZ(*;
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
8PSME)FBMUI0SHBOJ[BUJPO8)0
6/4ZTUFN6/
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 13: NGOS/ CHARITABLE INITIATIVES IN
ANGOLA
t
t
t
t
"OHPMB1BSUOFSTIJQ*OJUJBUJWF"1*
$"3&*OUFSOBUJPOBM$"3&
1SFTJEFOUT.BMBSJB*OJUJBUJWF1.*
8PSME7JTJPO"OHPMB87
Table 14: ANGOLA’S GLOBAL VALUE CHAIN
LINKAGES
t 0JMBOEHBT
t 1PUFOUJBM
- Liquified natural gas
- Methanol
- Power gas transmission
- Gas-to-liquids
Table 15: ANGOLA’S UNEMPLOYMENT
t Table 16: ANGOLA REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. ANIP – How to Invest in Angola, ANIP 2014 - http://www.
anip.co.ao/ficheiros/How_to_Invest_Mar2014_Low_1.pdf
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. AFDB – www.afdb.org
e. KPMG - https://www.kpmg.com/Africa/en/KPMG-in-Africa/
Documents/angola.pdf
13
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Burundi
Table 17: BURUNDI QUICK FACTS
RWANDA
Kirundo
KIRUNDO
CIBITOKE
MUYINGA
NGOZI
Cibitoke
TANZANIA
Muyinga
President:
Pierre Nkurunziza
Area:
27,830 sq. km.
Capital:
Bujumbura (605,000 inhabitants –
2011)
Main Cities:
Bujumbura
Ports:
Port Bujumbura
GDP:
US$5.75 billion (2013)
Population:
10.4 million (July 2014)
Language:
French (official)
Urban Population:
10.9% of total population (2011);
Rate of Urbanization:
4.12% annual change
Currency:
Burundian Franc
Climate:
Equatorial
Ngozi
Kayanza
KAYANZA
DEMOCRATIC
REPUBLIC
OF THE
Bubanza
Karuzi
BUBANZA
CANKUZO
KARUZI
CONGO
Cankuzo
Muramvya
Bujumbura
MURAMVYA
BUJUMBURA
Mutambu
Gitega
MWARO
Mwaro
Ruyiga
RUYIGI
GITEGA
BURURI
RUTANA
Rutana
Bururi
Makamba
MAKAMBA
Figure 3: Map of Burundi
ECONOMIC BRIEF
Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing sector. The economy is predominately
agricultural. Agriculture accounts for just over 30% of GDP and employs more than 90% of the population. Burundi’s primary
exports are coffee and tea, which accounts for 90% of the foreign exchange earnings, though exports are a relatively small share
of GDP. Burundi’s export earnings – and its ability to pay for imports – rests primarily on weather conditions and international
coffee and tea prices.
A series of exogenous shocks (a rise in world oil and food prices and a decline in revenue) struck economic activity in 2013.
Growth in GDP accelerated slightly from 4.2% in 2012 to 4.6% in 2013, inflation dropped from 18.2% to 7.8%, the fiscal deficit
narrowed from 9.1% to 2% and the Burundian Franc (BIF) depreciated by 5% against the US dollar (USD) from January to
December.
The primary sector contracted by 2% in 2013, mainly due to the effects of rainfall on coffee production. The economy has
slowly recovered over the past two years as services and the secondary sectors have expanded, the latter having benefited from
investment in industry, construction and public works.
Despite the tough economic climate, Burundi’s economic policy aims to provide the country with the necessary infrastructure
and promote rapid, sustained growth in line with the strategic framework for growth and poverty reduction (Cadre stratégique
de croissance et de lutte contre la pauvreté, CSLP II) adopted in February 2012. Major energy, transport, water, electricity and
telecommunications projects began in 2013, and new programs were presented to technical and financial partners at industry
conferences in July and October 2013.
Figure 4: Burundi Real GDP Growth
%
10
Real GDP growth (%)
Eastern Africa (%)
Africa (%)
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
14
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 18: BURUNDI KEY INDUSTRIES
Table 21: BURUNDI TRADE
GDP 2013:
Exports
Agriculture
34.4%
Industry
18.4%
Services
47.2%
$122.8 million (2013)
$134.7 million (2012)
Agriculture
Coffee, cotton, tea, corn, sorghum, sweet
potatoes, bananas, cassava; beef, milk, hides
Industries
Light consumer goods such as blankets,
shoes, soap, and beer; assembly of
imported components; public works
construction; food processing.
t 1MBUJOVN
t /JPCJVN
t 6SBOJVN
t 7BOBEJVN
t (PME
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t 5BOUBMVN
t 5VOHTUFO
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t -JNFTUPOF
Switzerland 23.9%, UK 12.9%, Belgium 7.4%,
Pakistan 7.4% DRC 7.4% Uganda 5.6%,
Germany 5.2%, China 4.9%, Egypt 4.7%
(2012)
Imports
$867.2 million (2013)
Commodities
Capital goods, petroleum products,
foodstuffs
Partners
Saudi Arabia 11.3%, Belgium 10.1%, China
9.1%, India 7.9%, Tanzania 6.5%, Kenya 6%,
Uganda 5.7%, Zambia 4.6%, US 4.1% (2012)
Stock of Direct Foreign Investment – at home:
$1 million (2012)
2008 2012
Agriculture, hunting, forestry, fishing
41.4
39.4
of which fishing
0.6
0.3
Mining
0.7
0.6
-
-
Manufacturing
11.7
11.0
Electricity, gas and water
0.9
0.4
Construction
3.5
3.9
Wholesale and retail trade, hotels and
restaurants
6.7
8.3
-
-
Transport, storage and communication
3.5
4.5
Finance, real estate and business services
16.0
15.5
Public administration, education, health and
social work, community, social and personal
services
7.3
8.0
Other services
8.3
8.4
Gross domestic product at basic prices /
factor cost
100
100
of which hotels and restaurants
Partners
Table 22: BURUNDI FOREIGN DIRECT INVESTMENT
Table 20: BURUNDI GDP BY SECTOR
of which oil
Coffee, tea, sugar, cotton, hides
$886.2 million (2012)
Table 19: BURUNDI NATURAL RESOURCES
t /JDLFM
Commodities
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Stock of Direct Foreign Investment – at home:
$3 million (2011)
Stock of Direct Foreign Investment – abroad:
$9 million (2012)
Stock of Direct Foreign Investment – abroad:
$8.4 million (2011)
Foreign Exchange and Gold Reserves:
$314.6 million (31 December 2013)
Foreign Exchange and Gold Reserves:
$308.8 million (31 December 2012)
Table 23: BURUNDI SELECTED INVESTMENT
PRIORITIES
The Government of Burundi’s priority sectors are:
t 5PVSJTNQBSUJDVMBSMZSFMBUFEUP-BLF5BOHBOZJLBXBUFSGSPOU
property and the fostering of business tourism through the
development of a planned International Convention Centre,
hotels, restaurants)
t "HSJDVMUVSFoDPõFFUFBKVJDFGSVJUWFHFUBCMFTEBJSZ
t .BOVGBDUVSJOHoGPPEBOEUFYUJMFT
t .JOJOHoOJDLFMDPMUBO
t 4FSWJDFToCBOLJOHJOTVSBODFUFMFDPNNVOJDBUJPOT
15
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 24: BURUNDI INVESTMENT INCENTIVES
Tax Incentives:
The Government of Burundi provides a tax credit of 37% of
the amount invested in new or used assets. It is available to
investors provided the amount invested is at least 100 million
BIF and the business assets are held for at least 5 tax periods.
The investment allowance is 50% for investment in rural
areas and specified activities as provided by the Investment
Authority.
Table 26: BURUNDI MEMBERSHIP IN REGIONAL
Tax Discount and Exemption Investment:
A registered investment entity that operates in a Free Trade
Zone (FTZ), foreign companies that have their headquarters in
Burundi, and entities that fullfill the requirements stipulated in
the Burundian law on investment promotion are entitled to:
t
t
t
t
t
t
t
Exemption from corporate income tax for its first
10 years of business:
t DPSQPSBUFJODPNFUBYGSPNZFBSBOEVQXBSET
t DPSQPSBUFJODPNFUBYJGUIFJOWFTUPSFNQMPZTNPSF
than 100 Burundians
t &YFNQUJPOGSPN8)5POEJWJEFOET
t 5BYGSFFSFQBUSJBUJPOPGQSPmUT
t 'SFFUSBOTGFSPOQVSDIBTFPSTBMFPGCVJMEJOHT
t %PVCMF5BYBUJPO5SFBUJFT
Burundi has no reciprocal tax treaty with any country other
than Kenya, Uganda, Rwanda, and Tanzania. There is a desire
to conclude an agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income.
Table 25: BURUNDI SELECTED PRIORITY PROJECTS
Export Promotion and Diversification Program
This program has several components:
a) Update the commercial and industrial national strategy;
b) Prepare a national strategy for the diversification and
promotion of exports and prepare an action plan for the
short and medium-term;
c) Prepare a national strategy for logistics focusing on
finding solutions to high transport and transit costs and
facilitating commerce;
d) Revise the law on the Free Trade Zone;
e) Support artisanal production for export and tourism;
f ) Implement a pilot project on fruits, vegetables and flowers
using women micro-entreprises and extend the culture to
villages;
g) Build a cold storage place at the airport.
ECONOMIC COMMUNITY (IES
t
t
t
t
t
$&1(-o&DPOPNJD$PNNVOJUZPGUIF(SFBU-BLFT$PVOUSJFT
$0.&4"o$PNNPO.BSLFUGPS&BTUFSOBOE4PVUIFSO"GSJDB
&"$o&BTU"GSJDBO$PNNVOJUZ
&$$"4o&DPOPNJD$PNNVOJUZPG$FOUSBM"GSJDBO4UBUFT
*/#o*OJUJBUJWFPGUIF/JMF#BTJO
Table 27: ACTIVE DEVELOPMENT PARTNERS IN
BURINDI
"GSJDBO%FWFMPQNFOU#BOL"G%#
&VSPQFBO6OJPO$PNNJTTJPO&6
(FSNBO%FWFMPQNFOU"HFODZ(*;
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
6/%FWFMPQNFOU1SPHSBN6/%1
6/4ZTUFN6/
8PSME#BOL8#
Table 28: NGOS/ CHARITABLE INITIATIVES IN
BURUNDI
t
t
t
t
t
t
"OUJDPSSVQUJPOBOE&DPOPNJD.BMQSBDUJDF0CTFSWBUPSZ
$BUIPMJD3FMJFG4FSWJDFT
"TTPDJBUJPOGPS4PMJEBSJUZBOE4PDJPTBOJUBSZ"TTJTUBODF
#VSVOEJBO"MMJBODFGPS"*%4
$POTDJFODFBOE%FWFMPQNFOU'PSVN
5BMLBOE"DUJPOGPSUIF"XBLFOJOHPG$POTDJFODFTBOE
Evolution of Mentalities
Table 29: BURUNDI’S GLOBAL VALUE CHAIN
LINKAGES
t 5FB
t $PõFF
t 1PUFOUJBM
- Nickel
- Coltan
Table 30: BURUNDI’S UNEMPLOYMENT
Youth unemployment – 50%
Table 29: BURUNDI REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. UN Data – http://data.un.org/CountryProfile.
aspx?crName=burundi
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. Wikipedia – www.wikipedia.org
The program is currently benefitting from US$ 4 million
from USAID, NORAD, CIR and is looking to mobilize US$ 14.6
million. The potential project areas include: Horticulture,
Coffee for Specialized Use, Artisanal Products, Livestock, and
Fisheries Products.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
16
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Central African Republic (CAR)
Table 32: CAR QUICK FACTS
Am Timan
SUDAN
Birao
Al Fifi
VAKAGA
CHAD
B AM I NGUI -B ANGOR AN
SOUTH
SUDAN
Ndélé
H A U T E - K O T T O
Kaga Bandoro
O U H A M
NANA GRÉBIZI
OUHAM-PENDÉ
Bozoum
Bouar
O U A K A
Bossangoa
KÉMOGRIBINGUI
Sibut
N A N A- MAMBÉRÉ
Djéma
Bakouma
M
LOBAYE
Gamboula
S A N G H A
Tomori Nola
M B A E R E
B
O
M
Obo
O U
Mingala
BASSE
K O T T O Bangassou
OMBELLA-MPOKO
Berberati
HAUTMBOMOU
Yalinga
Bambari
Grimari
M AMBER E-KADE I
Yokadouma
Bria
Ippy
Mobaye Ouango
Bangui
Mbaïki
Businga
DEMOCRATIC REPUBLIC
OF THE CONGO
CAMEROON
Titule
Buta
President:
Catherine Samba-Panza (Interim)
Area:
622,984 sq. km
Capital:
Bangui (740,000 inhabitants –
2011)
Main Cities:
Bangui
GDP:
US$3.336 billion (2013)
Population:
5.28 million (July 2014)
Language:
French (official)
Urban Population:
39.1% of total population (2011)
Rate of Urbanization:
2.6% annual change
Currency:
Central African Franc (CFA)
Climate:
Tropical climate – hot, dry winters;
mild to hot, wet summers
C ON GO
Figure 5: Map of Central African Republic
ECONOMIC BRIEF
Subsistence agriculture, together with forestry and mining, remains the backbone of the economy of the Central African
Republic (CAR), with about 60% of the population living in outlying areas. The agricultural sector generates more than half of the
GDP. Timber and diamonds account for most export earnings, followed by cotton, but some gold, iron and uranium exploitation
exists. Important constraints to economic development include the CAR’s landlocked position, a poor transportation system,
and a largely unskilled work force. CAR is believed to have petroleum deposits along its border with Chad, which is currently
being explored, but likely many years away from any potential exploitation. It also has hydroelectric potential that could be
developed for export to neighboring countries that have power shortages.
Factional fighting between the government and its opponents remains a drag on economic vitalization. Armed groups
overthrew President Francois Bozizé, who had been in power since 2003, on 24 March 2013, plunging Central African Republic
into the most serious crisis in its history. The rebellion groups known as Seleka, meaning “alliance” in the Sango language, have
been condemned by the international community and the conflict has caused a massive human tragedy. Under an accord
brokered by the Economic Community of Central African States (ECCAS) a transitional executive has been in place since April
2013 aiming to bring the country through the crisis.
The challenge for 2014 and 2015 will be to restore security, facilitate access to humanitarian assistance and organize elections.
The crisis has jeopardized all prospects of economic development, economic structural transformation or sustainable
development.
Figure 6: Central African Republic Real GDP Growth
%
20
Real GDP growth (%)
Central Africa (%)
Africa (%)
10
0
-10
-20
-30
-40
2004
2005
2006
2007
2008
2009
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
2010
2011
2012
2013(e)
2014(p)
2015(p)
17
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 33: CAR KEY INDUSTRIES
GDP 2013:
Agriculture
56.6%
Industry
14.5%
Services
28.9%
Agriculture
Cotton, coffee, tobacco, cassava (manioc,
tapioca), yams, millet, corn, bananas; timber
Industries
Gold and diamond mining, logging,
brewing, sugar refining
Table 34: CAR NATURAL RESOURCES
t %JBNPOET
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Located in the basin of the River Congo, with forests covering
about 34 million hectares, the Central African Republic has
major forestry potential and the country’s forests contribute
to global efforts to contain carbon and reduce harmful
greenhouse gases.
Table 36: CAR TRADE
Table 35: CAR GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
55.7
53.2
of which fishing
5.6
5.9
Mining
1.7
1.8
of which oil
-
-
Manufacturing
6.7
6.3
Electricity, gas and water
0.7
0.6
Construction
4.3
4.5
Wholesale and retail trade, hotels and
restaurants
12.9
14.1
of which hotels and restaurants
-
-
Transport, storage and communication
5.6
6.1
Finance, real estate and business services
6.5
7.0
Public administration, education, health and
social work, community, social and personal
services
4.4
5.2
Other services
1.5
1.1
Gross domestic product at basic prices /
factor cost
100
100
Exports
$138.9 million (2013)
$207.7 million (2012)
Commodities
Diamonds, timber, cotton, coffee
Partners
Belgium 31.7%, China 27.9%, DRC 7.8%,
Indonesia 5.2%, France 4.5% (2012)
Imports
$218.6 million (2013)
$333.7 million (2012)
Commodities
Food, textiles, petroleum products,
machinery, electrical equipment, motor
vehicles, chemicals, pharmaceuticals
Partners
Netherlands 20.3%, France 9.7%, Cameroon
9.1%, South Korea 9.1% (2012)
Table 37: CAR FOREIGN DIRECT INVESTMENT
Excessive public sector bureaucracy is an obstacle to foreign
direct investment in the CAR.
No numerical information available.
Table 38: CAR SELECTED INVESTMENT PRIORITIES
The government is looking to strong, sustainable and propoor growth to reverse the perverse effects of poverty at
the national and regional levels. With the gradual restoration
of security, the reconstruction and diversification of the
economy will focus on the development of production,
especially in rural areas where most of the poor are
concentrated. Programs and projects are targeted broadly at
the following areas:
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
18
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Agriculture:
Modernizing agriculture and developing
livestock production
Forestry:
Making better use of forest resources
Mining:
Developing the mining sector
Arts:
Promoting cultural industries and arts
Tourism:
Promoting tourism
Infrastructure:
Developing transport infrastructure
Energy:
Developing energy resources
ICT:
Developing telecommunications and ICT
Public
Services:
Developing basic public services
The Investment Charter is not applicable to the mining,
forestry and tourism sectors, which have their own investment
code, or to the usual trading activities that do not generate
value add such as retail.
I.
Table 39: CAR INVESTMENT INCENTIVES
II.
Openness to Foreign Investment:
In 2001, the government created the Central African
Investment Charter to stimulate private sector development
by attracting domestic and international private investment.
The charter, common to the six member-states of the Central
African Economic and Monetary Community (CEMAC)
comprising of Cameroon, CAR, Congo Brazzaville, Gabon,
Equatorial Guinea and Chad, focuses on export-generating
activities and is designed to open up the country to foreign
investors, while still complying with the CEMAC treaty. The
Investment Charter created a fiscal and customs framework
that involves notable changes, including:
t &OGPSDFNFOUPGNPSFNPEFSBUFBOEIBSNPOJ[FEDVTUPNT
taxes and external tariffs more in line with CEMAC;
t 4VTQFOTJPOPGUFNQPSBSZBENJTTJPOUBYFT
t /P7"5BQQMJFEUPFYQPSUFEHPPET
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and
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environment protection through tax reduction program.
III.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
IV.
V.
Due to political instability and insecurity in large parts
of the countryside, the Charter has not succeeded in
attracting significant investment. The Central African
Republic Government (CARG) adopted a new mining code
in March 2009, which intended to modernize the law and
facilitate greater investment in the sector. However, there
are several controversial provisions of this mining code,
which combined with the effects of the 2009 international
financial crisis, led to the closure of 8 of 11 diamond
buying houses in the country.
There is no single sector/matter in which foreign investors
are denied equal treatment in this country.
Real estate: Foreign investors can acquire real estate in the
CAR.
Local stock exchange: There is no stock exchange in
the CAR. There is a regional stock exchange in Libreville,
Gabon (BVMAC) for the six CEMAC state members. Foreign
investors are able to buy shares on this stock exchange on
the same basis as local investors.
There is no screening of foreign investments in the
CAR. There are no closed/screen sectors in the CAR. All
economic sectors are open to foreign investments.
19
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Performance Requirement/Incentives:
Performance requirements or incentives are applied uniformly
to both domestic and foreign investors in CAR.
Investment incentives: The minimum investment required is
USD 1 – 20,000. For any investment of USD 200,000, the tax
benefits are reduced 100% during the three years following
the investment date. After 3 years, taxes are restored as
follows:
t UIZFBS
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t UIZFBS
Investment incentives are also influenced by geographic
location. Investment in areas outside the capital benefits from
additional tax exemption periods as follows:
t LNGSPN#BOHVJBEEJUJPOBMZFBS
t LNoLNGSPN#BOHVJBEEJUJPOBMZFBST
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Performance requirements are imposed to access tax
exemption and investment incentives.
Table 40: CAR MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t $&/4"%o5IF$PNNVOJUZPG4BIFM4BIBSBO4UBUFT
t &$$"4o&DPOPNJD$PNNVOJUZPG$FOUSBM"GSJDBO4UBUFT
t #JMBUFSBM5SBEF"HSFFNFOUTXJUI64.PSPDDP$IJOB4VEBO
Egypt, France, Nigeria, Libya, Iraq, Germany, South Korea
and Romania
Table 41: ACTIVE DEVELOPMENT PARTNERS IN
CAR
t
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*OUFSOBUJPOBM.POFUBSZ'VOE*.'
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(USAID)
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8PSME'PPE1SPHSBN8'1
Table 43: GLOBAL VALUE CHAIN LINKAGES
t 1PUFOUJBM
- 15 million hectares of arable land
- Wood production
- Diamonds
- Gold
- Oil
- Uranium
- Iron
Table 44: REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. US Government 2012 Investment Climate Statement –
CAR: http://www.state.gov/e/eb/rls/othr/ics/2012/191125.
htm#
e. CAR: Poverty Reduction Strategy Paper July 2009 - http://
www.imf.org/external/pubs/ft/scr/2009/cr09240.pdf
f. World Bank Group - https://www.wbginvestmentclimate.
org/publications/upload/CAR_A4-2.pdf
Table 42: NGOS/ CHARITABLE INITIATIVES IN CAR
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(ACTED)
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t *OUFSOBUJPOBM$PNNJUUFFPGUIF3FE$SPTT*$3$
t .FEFDJOTTBOT'SPOUJFSFT.4'
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
20
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
The Republic of Congo
CENTRAL
AFRICAN REPUBLIC
Table 45: THE REPUBLIC OF CONGO
QUICK FACTS
CAMEROON
LIKOUALA
EQUATORIAL
GUINEA
Ouésso
Impfondo
SANGHA
WESTERN
CUVETTE
GABON
CUVETTE
Owando
Ewo
DEMOCRATIC REPUBLIC OF
PLATEAUX
THE CONGO
Mayumba
Komono
LÉKO
Makabana
U
Djambala
NIARI
UM
O
POOL
Sibiti
KOUILOU
Madingou
Dolisie
Brazzaville
BOUENZA
Kinkala
AN
Pointe-Noire
ATLANTIC
G
O
Kinshasa
LA
DEMOCRATIC REPUBLIC OF
THE CONGO
OCEAN
President:
Denis Sassou-Nguesso
Area:
342,000 sq. km
Capital:
Brazzaville (1.611 million
inhabitants – 2011)
Main Cities:
Brazzaville, Pointe-Noire
Ports:
Pointe-Noire
GDP:
US$20.26 billion (2013)
Population:
4.66 million (July 2014)
Language:
French (official)
Urban Population:
63.7% of total population (2011)
Rate of Urbanization:
2.84% annual change
Currency:
Central African Franc (CFA)
Climate:
Tropical climate, High and Humid
temperatures
Figure 7: Map of the Republic of Congo
ANGOLA
ECONOMIC BRIEF
Congo’s economy is a mixture of subsistence hunting and agriculture; an industrial sector based largely on oil and support
services; and government spending. Oil has supplanted forestry as the mainstay of the economy, providing a major share of
government revenues and exports. Natural gas is increasingly being converted to electricity rather than being flared, greatly
improving energy prospects. New mining projects, particularly iron ore that entered production in late 2013, may add as much
as $1 billion to annual government revenue.
Congo’s performance and economic outlook remain generally satisfactory, but structural change is still a major challenge. Real
gross domestic product (GPD) growth fell to 3.4% in 2013, compared to 3.8% in 2012, as a result of falling oil production due to
ageing oil wells. Even so, GDP growth ought to be 6.1% in 2014 and 6.5% in 2015. This macroeconomic outlook is supported
by continuing state investment, the entry into production of mines, and the vigor of the non-oil sector. Inflation, thought to be
2.9% in 2013, should stay below the regional convergence level of 3% until 2015, thanks to a careful monetary and fiscal policy.
Economic reform efforts have been undertaken with the support of international organizations, notably the World Bank and IMF,
including recently concluded Article IV consultations. The government, through its National Development Plan (NDP) 2012-16, is
also aiming at:
i) Increasing infrastructure investment and skills acquisition
ii) Improving the business climate
iii) Improving access to credit for SMEs
iv) Setting up special economic zones (SEZs)
v) Strengthening regional integration
Figure 8: The Republic of Congo Real GDP Growth
%
12
Central Africa (%)
Real GDP growth (%)
Africa (%)
8
4
0
-4
2004
2005
2006
2007
2008
2009
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
2010
2011
2012
2013(e)
2014(p)
2015(p)
21
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 46: THE REPUBLIC OF CONGO KEY
INDUSTRIES
GDP 2013:
Agriculture
3.3%
Industry
73.9%
Services
22.9%
Agriculture
Cassava, sugar, rice, corn, peanuts,
vegetables, coffee, cocoa; forest products
Industries
Petroleum extraction, cement, lumber,
brewing, sugar, palm oil, soap, flour,
cigarettes
Table 47: THE REPUBLIC OF CONGO NATURAL
RESOURCES
t1FUSPMFVN
t-FBE
t$PQQFS
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t(PME
t)ZESPQPXFS
Table 48: THE REPUBLIC OF CONGO GDP BY
SECTOR
Table 49: THE REPUBLIC OF CONGO TRADE
2008 2012
Agriculture, hunting, forestry, fishing
4.3
4.5
of which fishing
0.4
0.4
Mining
67.6
64.6
of which oil
67.6
64.6
Manufacturing
4.1
4.4
Electricity, gas and water
0.7
0.7
Construction
3.1
3.8
Wholesale and retail trade, hotels and
restaurants
6.0
6.9
-
-
Transport, storage and communication
4.5
5.1
Finance, real estate and business services
5.4
5.4
Public administration, education, health and
social work, community, social and personal
services
4.3
4.6
of which hotels and restaurants
Other services
Gross domestic product at basic prices /
factor cost
Exports
$9.912 billion (2013)
$10.53 billion (2012)
Commodities
Petroleum, lumber, plywood, sugar, cocoa,
coffee, diamonds
Partners
China 39%, US 13%, France 9.5%, Australia
8.8%, Netherlands 6.8%, Spain 5.3%, India
5.2% (2012)
Imports
$4.297 billion (2013)
$4.45 billion (2012)
Commodities
Capital equipment, construction materials,
foodstuffs
Partners
France 19.5%, China 13.5%, Brazil 9.1%, US
6.1%, India 5.8%, Italy 4.8%, Belgium 4.4%
(2012)
Table 50: THE REPUBLIC OF CONGO FOREIGN
DIRECT INVESTMENT
-
-
100
100
Stock of Direct Foreign Investment: $5.239 billion (December
2013)
Note: Congo’s economy relies primarily on exploitation of
natural resources rather than industrial production. FDI is
concentrated in the oil and forestry sector and increasingly in
the mining sector.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
22
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 51: THE REPUBLIC OF CONGO SELECTED
human security engendering economic projects for conflict
resolutions, while at the same time building capacity for the
realization of security generating border economic zones.
INVESTMENT PRIORITIES
t
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.JOJOH
'PSFTUSZ
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Table 52: THE REPUBLIC OF CONGO INVESTMENT
INCENTIVES
There are four types of incentives offered to promote
investment in the Congo:
I. Incentives to export
II. Incentives to reinvest the company’s profit in the Congo
III. Incentives for businesses in remote areas or areas that are
difficult to access
IV. Incentive for social and cultural investment
t 4PNFJODFOUJWFTIBWFJODMVEFEEJNJOJTIJOHBOEFYFNQUFE
taxes, (company tax was 38% in 2012) and customs duties
over a 5-10 year period, reduction by 50% of registration
fees, and accelerated depreciation under the general tax
structure.
t 'PSDPNQBOJFTPXOFECZBUMFBTUQFSDFOUPGSFTJEFOU
companies, other incentives include minimized exposure
to dividend taxes (10%), capital gains tax reductions,
deduction for business expenditures, reduced rents and
deductible remunerations.
t 0UIFSJODFOUJWFTBSFBWBJMBCMFCZOFHPUJBUJPOEVSJOHUIF
incorporation process. The Investment Charter provides
tax reductions for companies exercising a new activity;
and the tax code gives tax reduction for farm businesses
and specific codes such as the Mining Code, the Forestry
Code, and the Hydrocarbon Code also provide various
taxes reductions.
Table 53: THE REPUBLIC OF CONGO SELECTED
PRIORITY PROJECTS
I. Development Triangle Micro-Finance Project: There is
no easy access to credit from conventional banks, or cope
with the population strive to access resources through
informal associations, savings and credit cooperatives or
micro-enterprises. This project aims at building capacity to
enhance micro-finance facilities, and increase their financial
resources in order to turn them into efficient instruments
in the fight against poverty. For the period 2007 – 2011 the
budget of the project was USD 1,021,680.
II. Development of Border Zones and Promotion of Human
Security: The overall objective of the project is to enhance
state, community and regional security through economic
activities in the Great Lakes Zones and Triangles through
local-regional development efforts. The project seeks to
explore border zones for state, regional, and human security
and specifically to initiate and implement regional, state and
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 54: THE REPUBLIC OF CONGO MEMBERSHIP
IN REGIONAL ECONOMIC COMMUNITY (IES)
t &$$"4o&DPOPNJD$PNNVOJUZPG$FOUSBM"GSJDBO4UBUFT
Table 55: ACTIVE DEVELOPMENT PARTNERS IN
THE REPUBLIC OF CONGO
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
&VSPQFBO6OJPO&6
'SFODI%FWFMPQNFOU"HFODZ"'%
6/4ZTUFN6/
8PSME#BOL8#
Table 56: NGO’S CHARITABLE INITIATIVES IN
THE REPUBLIC OF CONGO
t 3BJOGPSFTU'PVOEBUJPO
t 5SBmHVSB'PVOEBUJPO
t 5SJBOHMF()'PVOEBUJPO
Table 57: THE REPUBLIC OF CONGO‘S
UNEMPLOYMENT
t Table 58: THE REPUBLIC OF CONGO‘S GLOBAL
VALUE CHAIN LINKAGES
t
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t
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5JNCFS
-PHT
4VHBS
1PUFOUJBM
- Refined oil products
- Mining
- Power gas transmission
- Gas-to-liquids
Table 59: THE REPUBLIC OF CONGO REFERENCES
AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
c. Congo Plan National de Development- http://www.
nationalplanningcycles.org/sites/default/files/country_
docs/Congo/ndp_congo.pdf
23
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
The Democratic Republic of Congo
Table 60: DRC QUICK FACTS
C E N T R A L AFRICAN RE PUB L I C
SOUT H SUDA N
PROVINCE
ORIENTALE
Joseph Kabila
Area:
2,344,858 sq. km
Capital:
Kinshasa (8.8 million inhabitants –
2011)
Main Cities:
Kinshasa, Lubumbashi, Mbuji-Mayi,
Kananga, Kisangani, Bukavu, Goma
Ports:
Port Matadi
GDP:
US$29.39 billion (2013)
Population:
77.43 million (July 2014)
Language:
French (official)
Urban Population:
34.3% of total population (2011)
Rate of Urbanization:
4.19% annual change
Currency:
Congolese Franc
Climate:
Tropical climate, hot and humid,
cooler and drier in Southern
highlands, wetter in eastern
highlands
UGAND A
Kisangani
EQUATEUR
C O N GO
President:
NORD-
Mbandaka
KIVU
Goma
RWANDA
Bukavu
KASAI
Bandundu
Kindu
ORIENTAL
Kinshasa
Cabinda
(ANGOLA)
BAS-CONGO
Matadi
H
KINS
BURUNDI
MANIEMA
KASAI
A
AS
SUDKIVU
OCCIDENTAL
BANDUNDU
Kananga
Mbuji-Mayi
TANZANI A
KATANGA
A N G OL A
ZAMBI A
MALAW
Lubumbashi
I
Figure 9: Map of the Democratic Republic of Congo
ECONOMIC BRIEF
The economy of the Democratic Republic of the Congo – a nation endowed with vast natural resource wealth – is slowly
recovering after decades of decline. The economy remained strong in 2013 with growth in gross domestic product (GDP) of
8.1% (against 7.2% in 2012), thanks to mining, trade, construction and agriculture. Growth has benefited from the improvement
in some aspects of the business environment, the reconstruction of infrastructure and strong demand. Mining has been the
main driver of growth, and several mining companies have developed from exploration to production since 2013.
Since independence in 1960, countrywide instability and conflict that began in the mid-90s has dramatically reduced national
output and government revenue and increased external debt. An uncertain legal framework, and lack of transparency in
government policy are long-term problems for the mining sector and for the economy as a whole. Much economic activity still
occurs in the informal sector and is not reflected in GDP data.
With the installation of a transitional government in 2003 after peace accords, economic conditions slowly began to improve as
the transitional government reopened relations with international financial institutions and international donors, and President
Kabila began implementing reforms. Progress has been slow to reach the interior of the country although clear changes are
evident in Kinshasa and Lubumbashi. In 2012, the DRC updated its business laws by adhering to OHADA, the Organization for
the Harmonization of Business Law in Africa. The country marked its 10th consecutive year of positive economic expansion in
2012.
Figure 10: The Democratic Republic of Congo Real GDP Growth
%
12
Real GDP growth (%)
Central Africa (%)
Africa (%)
8
4
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
24
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 61: DRC KEY INDUSTRIES
Table 64: DRC TRADE
GDP 2013:
Exports
Agriculture
Industries
Agriculture
44.3%
Industry
21.7%
Services
34.0%
$8.872 billion (2012)
Coffee, sugar, palm oil, rubber, tea, cotton,
cocoa, quinine, cassava, bananas, plantains,
peanuts, root crops, corn, fruits; wood
products
Mining (copper, cobalt, gold, diamonds,
coltan, zinc, tin, tungsten), mineral
processing consumer products (textiles,
plastics, footwear, cigarettes), metal
products, processed foods and beverages,
timber, cement, commercial ship repair
Table 62: DRC NATURAL RESOURCES
t $PCBMU
t $PQQFS
t /JPCJVN
t 5BOUBMVN
t 1FUSPMFVN
t ;JOD
t (PME
t 4JMWFS
t 5JNCFS
t .BOHBOFTF
t 5JO
t 6SBOJVN
t $PBM
t )ZESPQPXFS
t *OEVTUSJBMBOEHFNEJBNPOET
Commodities
Diamonds, copper, gold, cobalt, coltan,
wood products, crude oil, and coffee
Partners
China 54.3%, Zambia 22.6%, Belgium 5.7%
(2012)
Imports
$8.924 billion (2013)
$8.187 billion (2012)
Commodities
Foodstuffs, mining and other machinery,
transport equipment, fuels
Partners
South Africa 22.3%, China 15.3%, Belgium
8%, Zambia 6.9%, Zimbabwe 5.6%, France
4.9%, Kenya 4.7% (2012)
Table 65: DRC FOREIGN DIRECT INVESTMENT
Foreign Exchange and Gold Reserves:
$1.582 billion (31 December 2013 est.)
Foreign Exchange and Gold Reserves:
$1.633 billion (31 December 2012 est.)
t .PSFUIBOTVCTUBODFTJODMVEJOHTUSBUFHJDPSFTo
the world’s second biggest reserves of copper, 25 percent
of its gold reserves, 30 percent of its diamonds reserves and
over 80 percent of its cobalt and coltan reserves.
t NJMMJPOIBPGMBOETVJUBCMFGPSGBSNJOH
Table 63: DRC GDP BY SECTOR
Agriculture, hunting, forestry, fishing
of which fishing
Mining
of which oil
Manufacturing
Electricity, gas and water
Construction
Wholesale and retail trade, hotels and
restaurants
of which hotels and restaurants
Transport, storage and communication
Finance, real estate and business services
Public administration, education, health and
social work, community, social and personal
services
Other services
Gross domestic product at basic prices /
factor cost
$9.936 billion (2013)
2008
24.2
6.4
23.4
1.4
4.3
11.3
2012
20.6
4.6
27.4
1.4
4.6
14.0
13.7
7.2
7.9
14.4
6.6
4.1
0.3
100
2.3
100
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 66: DRC SELECTED INVESTMENT PRIORITIES
DRC’s ANAPI, the National Agency for Promotions and
Investments, and the government have identified investment
opportunities and encourage investments in the following
sectors:
t .JOJOHBOE)ZESPDBSCPOT
t "HSJDVMUVSF'PSFTUSZ'BSNJOHBOE'JTIJOH
t *OEVTUSZ.BOVGBDUVSJOHBOE#BTJD.FUBMMVSHJD*OEVTUSJFT
t &MFDUSJDJUZBOE1PUBCMF8BUFS
t #BOLJOH
t *OGSBTUSVDUVSF
t 5PVSJTN
t 5SBOTQPSU)BSCPST
t 5FMFDPNNVOJDBUJPOT
t #VJMEJOH1VCMJD8PSLTBOE)BCJUBUDJWJMFOHJOFFSJOH
Table 67: DRC INVESTMENT INCENTIVES
An investor has to file an application for authorization
with ANAPI in order to benefit from the Investment Code.
The Investment Code defines 3 priority regions that have
been classified according to their degree of economic
development:
Region A: Kinshasa
Region B: Bas Congo, Lubumbashi, Likasi and Kolwezi
Region C: Bandundu, Equator, Kasai, Maniema, North and
South Kivu, Katanga
25
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Investments accepted will qualify and benefit from the
Investment Code advantages referred to below for a period of:
t 5ISFF
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in economic
Region A
t 'PVS
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if in economic
Region B
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if in economic
Region C
The Government grants various customs and tax advantages
when investment projects are approved according to the
Investment Code. Customs advantages are stated in Articles
10-12 of the Investment Code:
t 8JUIUIFFYDFQUJPOPGUIFBENJOJTUSBUJWFUBY
BGVMM
exemption from duties and taxes on import for machinery,
new tools and equipment, new spare parts not exceeding
10 % of CIF value of the said equipment for public utility
investments;
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part of finished products, carved or semi-carved in good
conditions for the balance of payment;
t 4FDPOEIBOEIFBWZFOHJOFTTIJQTBOEBJSDSBGUBSFBMMPXFEB
total exemption.
Exemption from fees and taxes at importation can only be
granted if one of the following conditions is fulfilled:
t 5IFDPODFSOFEHPPETBSFOPUNBOVGBDUVSFEJOUIF%3$
t 5IFQSJDFCFGPSFUBYPGUIFMPDBMQSPEVDUJTIJHIFSUIBO
the price of the same imported product.
Approved investments, which envisage the exportation of all
or part of their finished products, processed or semi processed
goods under conditions that are favorable for the balance of
payment shall benefit from exemption from fees and tax at
exportations. This exemption applies from the first exportation
with exportation documents proving so. (Article 12)
Summary of Customs regime on imports:
Equipment, machinery,
plant, tools, heavy
vehicles
Agricultural and
breeding inputs
Raw Materials
Pharmaceutical inputs
Spare parts
Other inputs and
intermediate products
Common Investment Code
Law
8%
Exemption (5%
administrative charge
not exempted)
5%
5%
5%
5%
10%
10%
5%
5%
Exempted
10%
In order to facilitate the implementation of new investments
in the DRC, a “one-stop shop” called Guichet Unique, was
created within the ANAPI to provide several services to
investors and thus investors are now able to fulfill, at one
central agency, all requirements for creating a new company
or business.
Specific and varying procedures are required to invest in these
sectors:
t $FNFOU
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prospection, and gold and diamond trading posts)
t #BOLJOH
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t 'PSFTUSZMPHHJOHUJNCFSFYQPSUTSFGPSFTUBUJPOFUD
t "TXFMMBTUPPCUBJOMBOEDPODFTTJPOTFNQUZmFMETQSJWBUF
buildings etc.) and register a trademark
EPZs, Freeports and other Special Economic Zones
The new Investment Code does not state any details on Free
Industrial Zones, which means they do not apply anymore.
Advantages and guarantees acquired by the previous laws
remain however valid.
Tax Incentives
Tax incentives provided under the Investment Code are the
following:
t 5IFCFOFmUTSFBMJ[FECZOFXBQQSPWFEJOWFTUNFOUTBSF
completely exempted from professional contributions on
revenue preempted in Title IV of Regulatory Law N0 69OO9
of 10 February 1969, as modified to date;
t *OWFTUNFOUTJOTPDJPFDPOPNJDJOGSBTUSVDUVSFTVDIBT
schools, hospitals, sporting facilities and roads realized
under approved projects are redeemable according to
the regulations on digressive repayments (sliding scale of
charges);
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made by approved investments;
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developed properties);
t %VSJOHUIFJSDPOTUJUVUJPOPSUIFJODSFBTFPGUIFJSTIBSF
capital, approved limited liability companies are exempted
from proportional rights/fees preempted in Article 13 of the
Decree of 27 February 1887 on commercial companies, as
modified to date. Approved companies, other than those
mentioned above, are exempted from fixed rights/fees
preempted in Article 13 of the Decree quoted during their
constitution;
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increase of the share capital of Limited Liability Companies
(SARL);
t "QQSPWFEFOUFSQSJTFTUIBUCVZFRVJQNFOUNBUFSJBMGSPN
local producers and industrial inputs manufactured in
the DRC or solicit the services of workers on immovable
property, are exempted from paying tax on the turnover on
these products and services. (Article 17);
t #FOFmUTGPS4.&T4.*TBSFGVSUIFSNPSF
- Full exemption from duties and taxes on import of
machinery and equipment, event second hand tools
(besides the administrative tax);
- Possibility of calculating the depreciation according to a
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
26
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
digressive mode;
- Deduction of expenses made for the training or
improvement of the staff, protection and conservation of
the environment from the taxable income;
- Exemption from duties on charters and registration fees in
the new trade register.
Table 68: DRC SELECTED PRIORITY PROJECTS
a) Commercial Farming Initiative: To address the need for
domestic food security, to accelerate efforts to reduce
food imports and improve nutrition in the country,
and to provide local markets for small hold farmers, the
government is embarking upon an ambitious initiative
to facilitate public-private partnerships with large
agribusiness investors and to establish 16 “agri-business
parks” sites under long-term (25 year, renewable) contracts
or concessions. The government commits to invest in bulk
infrastructure (roads, electricity and facilitate the securing
of land) and provide tax incentives, and the commercial
farmers commit to invest in the operational aspect of
the farm and bring commercial farming expertise and
established markets for exports to the partnership.
b) Young Farmers Initiative: In addition to seeking to attract
international commercial farmers to the country, the
DRC Government is also working to encourage young
agricultural entrepreneurs, particularly from the DRC
Diaspora, to establish agribusinesses in the country. To
attract these prospective stakeholders, the government is
offering financial and non-financial support to those with
strong business plans for projects of at least 50 ha of land
or more. An initial award of US$350,000 has been made
and plans are to scale up the initiative to bring on 2-3
young farmers a year from each province – which would
see between 22 – 33 new young farmers per annum join
the industry.
Table 69: DRC MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t
t
t
t
4"%$o4PVUIFSO"GSJDBO%FWFMPQNFOU$PNNVOJUZ
&$$"4o&DPOPNJD$PNNVOJUZPG$FOUSBM"GSJDBO4UBUFT
$0.&4"$PNNPO.BSLFUGPS&BTUBOE4PVUIFSO"GSJDB
$&1(-o&DPOPNJD$PNNVOJUZPG(SFBU-BLFT$PVOUSJFT
Table 70: ACTIVE DEVELOPMENT PARTNERS IN
DRC
t
t
t
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
(FSNBO%FWFMPQNFOU"HFODZ(*;
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
6/4ZTUFN6/
&VSPQFBO6OJPO&6
6,%FQBSUNFOUPG*OUFSOBUJPOBM%FWFMPQNFOU%'*%
#FMHJBO$PPQFSBUJPO
/FUIFSMBOET(PWFSONFOU
4XFEJTI(PWFSONFOU
Table 71: NGOS/ CHARITABLE INITIATIVES IN DRC
t "GSJDB'BJUIBOE+VTUJDF/FUXPSL
t $BSUFS$FOUFS
t $POHP.JTTJPO/FUXPSL
t $POHP/PX
t $POHP4VQQPSU1SPKFDU
t %3$7JTJPO
t (MPCBM8JUOFTT
t 'SJFOETPGUIF$POHP
t )PXBSE#VõFU'PVOEBUJPO
t )VNBO3JHIUT8BUDI
t *OTUJUVUFGPS8BSBOE1FBDF3FQPSUJOHo/FUIFSMBOET*813
t *OUFSOBUJPOBM$SJTJT(SPVQ
t /BUJPOBM%FNPDSBUJD*OTUJUVUF
t /BUJPOBM&OEPXNFOUGPS%FNPDSBDZ
t 3BJTF)PQFGPS$POHP
t 4FBSDIGPS$PNNPO(SPVOE
t 5BUJBOB(JSBVE'PVOEBUJPO
Table 72: DRC’S UNEMPLOYMENT
t Table 73: DRC’S GLOBAL VALUE CHAIN LINKAGES
t $PQQFS
t .JOJOH
t 1PUFOUJBM
- Agriculture
Table 74: DRC REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. KPMG - https://www.kpmg.com/Africa/en/KPMG-in-Africa/
Documents/DRC.pdf
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
27
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Kenya
Boundary
Table 75: KENYA QUICK FACTS
UGANDA
SOMALIA
ETHIOPIA
E AST ERN
R I F T VA L L E Y
WESTERN
NORT H E AST ERN
Kakamega
Kisumu
Nakuru
Nyeri
CENTRAL
NYANZA
Nairobi
Embu
Garissa
NAIROBI
AREA
COAST
TANZANIA
President:
Uhuru Kenyatta
Area:
580,367 sq. km
Capital:
Nairobi (3.363 million inhabitants
– 2011)
Main Cities:
Nairobi, Mombasa, Kisumu, Nakuru
Ports:
Mombasa
GDP:
US$79.9 billion (2013)
Population:
45 million (July 2014)
Language:
English and Swahili (official)
Urban Population:
24% of total population (2011)
Rate of Urbanization:
4.36% annual change
Currency:
Kenyan Shilling (KES)
Climate:
Varies from tropical along the
coast to arid in the interior
Mombasa
Figure 11: Map of Kenya
ECONOMIC BRIEF
Kenya’s economy continued to recover in 2013 from the slowdown experienced in 2011. Real GDP growth accelerated to
5.2%, 4.3% and 4.6% in the first three quarters of 2013 primarily driven by financial intermediation, tourism, construction and
agriculture.
Real GDP growth is estimated at 5.7% in 2014 respectively. Similarly CPI inflation is expected to remain single digit over the
same period. The economy’s short- to medium-term forecast is for sustained and rising growth based on: increased investor and
business confidence in the wake of peaceful March 2013 elections, increased rainfall, a stable macroeconomic environment,
lower, stable international oil prices, stability of the Kenya shilling, and reforms affecting security, governance and justice.
However, Kenya has been hampered by recent terrorist attacks and by reliance upon exporting several primary goods whose
prices have remained low. Low infrastructure investment threatens Kenya’s long-term position as the largest East African
economy, although the Kenyatta Administration has prioritized infrastructure development. International financial lenders and
donors remain important to Kenya’s economic growth and development. Unemployment is high at around 40% and more than
60% of the population is under 24 years of age.
Kenya is integrated into a number of global value chains – e.g. floriculture, textiles, leather, manufacturing and tourism – but
economic and social benefits have been limited due to insufficient or unsustainable linkages with other sectors.
Figure 12: Kenya Real GDP Growth
Real GDP growth (%)
%
10
Eastern Africa (%)
Africa (%)
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates (e); projections (p).
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
28
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 76: KENYA KEY INDUSTRIES
Table 79: KENYA TRADE
GDP 2013:
Exports
Agriculture
Industries
Agriculture
29.3%
Industry
17.4%
Services
53.3%
$6.58 billion (2013)
$6.23 billion (2012)
Tea, coffee, corn, wheat, sugarcane, fruits,
vegetables; dairy products, beef, fish, pork,
poultry, eggs
Small-scale consumer goods (plastic,
furniture, batteries, textiles, clothing, soap,
cigarettes, flour), agricultural products,
horticulture, oil refining; aluminum, steel,
lead; cement, commercial chip repair,
tourism
Commodities
Tea, horticulture products, coffee,
petroleum products, fish, cement
Partners
Uganda 10.3%, Tanzania 10%, Netherlands
7.7%, UK 7.2% US 6.3% Egypt 4.8%, DRC
4.4% (2012)
Imports
$15.86 billion (2013)
$15.1 billion (2011)
Commodities
Machinery and transportation equipment,
petroleum products, motor vehicles, iron
and steel, resins and plastics
Table 77: KENYA NATURAL RESOURCES
t -JNFTUPOF
t 4PEB"TI
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t ;JOD
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t (ZQTVN
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t)ZESPQPXFS
Partners
India 20.9%, China 15.4%, UAE 9.8%, Saudi
Arabia 6.9% (2012)
Table 78: KENYA GDP BY SECTOR
Stock of Direct Foreign Investment – at home:
$2.877 billion (31 December 2012 est.)
Table 80: KENYA FOREIGN DIRECT INVESTMENT
Stock of Direct Foreign Investment – at home:
$3.273 billion (31 December 2013 est.)
2008 2012
Agriculture, hunting, forestry, fishing
25.9
29.9
of which fishing
0.5
0.5
Mining
0.8
0.8
-
-
Manufacturing
12.3
10.4
Electricity, gas and water
2.4
1.4
Construction
4.3
4.7
Wholesale and retail trade, hotels and
restaurants
12.8
13.4
of which hotels and restaurants
1.3
0
Transport, storage and communication
11.6
10.4
Finance, real estate and business services
9.9
12.1
Public administration, education, health and
social work, community, social and personal
services
5.8
6.1
of which oil
Other services
14.2
10.9
Gross domestic product at basic prices /
factor cost
100
100
Stock of Direct Foreign Investment – abroad:
$335.4 million (31 December 2013 est.)
Stock of Direct Foreign Investment – abroad:
$315.4 million (31 December 2012 est.)
Foreign Exchange and Gold Reserves:
$5.541 billion (31 December 2013 est.)
Foreign Exchange and Gold Reserves:
$5.712 billion (31 December 2012 est.)
Table 81: KENYA SELECTED INVESTMENT
PRIORITIES
Kenya’s Investment Strategy is informed by Vision 2030, the
long-term master plan for inter alia economic development.
The priority sectors as outlined in Vision 2030 are:
t "HSJDVMUVSF
t 5SBEF
t 5PVSJTN
t *OGSBTUSVDUVSF
t .BOVGBDUVSJOH
t 'JOBODJBMTFSWJDFT
In addition to the above, the Kenya Investment Authority also
lists investment opportunities in building/construction, ICT,
Energy and Natural Resources.
The current pipeline of the Government of Kenya highlights
44 priority PPP projects in the sectors of Transport &
Infrastructure (e.g. roads, railways, airports and seaports),
Energy, Environment & Water, Education and Health.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
29
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 82: KENYA INVESTMENT INCENTIVES
The Government of Kenya provides a number of incentives
to persons and businesses who choose to invest in Kenya. A
significant proportion of these incentives benefit businesses
conducted by resident/locally incorporated companies.
Income Tax
Corporation tax on the taxable income of a resident company
is levied at 30%, while that on non-resident companies is
levied at 37.5%.
A company that lists its shares on the Nairobi Stock Exchange
will benefit from several incentive tax rates. It is also worth
noting that in Kenya there is no time limit on the carrying
forward of tax losses against future profits from an identical
source of income.
Capital Investment Allowances
Additional tax incentives offered to resident companies take
the form of capital allowances offered to those investing in
capital projects. These are offered on a reducing balance basis
and include:
a) Industrial Building Allowance (I.B.A.)
b) Investment Deduction
c) Farm Works Deduction
d) Shipping Investment Deduction
e) Mining Allowance
Export Processing Zones (EPZs)
Tax incentives are offered to investors that locate their
operations in Export Processing Zones under the Export
Processing Zones Act (Chapter 517, Laws of Kenya) and
subsequent amendments thereto.
Tax Remission for Exports
a) Import duty set off allows import duty paid on import
of capital equipment to be set off against income tax
payable
b) Rate of VAT:
i. Standard 16%
ii. Restaurants 14%
iii. Input for health care, education and exports of goods
and services 0%
Double Taxation Treaties
Kenya has entered into double taxation treaties, which
mitigate the tax chargeable on the income of persons derived
from a country other than the country in which they are
resident. Countries with which Kenya has such treaties are
Canada, Denmark, Norway, Sweden, India, Zambia, United
Kingdom and Germany.
Table 83: KENYA SELECTED PRIORITY PROJECTS
I. Kisumu Sea Port: The Kenya Ports Authority (KPA), as
contracting authority, wants to develop the Kisumu Port
into a modern commercial Lake Victoria Port to serve the
growing trade in the EAC Region on a BOT (build-operatetransfer) basis (PPP). The development of the port facilities
will be supported by better transport links to Uganda,
Tanzania and the Great Lakes Region through rail, road, air
and ferry services.
II. Nairobi Southern Bypass and Thika Road: All cargo
transport from Mombasa to Uganda and Rwanda currently
needs to go through Nairobi, which causes not only
massive traffic problems, but also leads to expensive
delays for the shipped goods to arrive. Under an Operation
& Maintenance (O&M) PPP scheme, the Kenya National
Highways Authority (KeNHA) is planning the construction
of a 28.6km dual carriageway to complete the Southern
Bypass around Nairobi, as well as a 50km ‘super highway’
from Thika to Nairobi.
III. Dualling of Mombasa – Nairobi – Nakuru Highway: The
Kenya National Highways Authority (KeNHA) is planning
the upgrading, capacity expansion and subsequent
operation & maintenance (O&M) of the heavily trafficked
485km Mombasa – Nairobi highway through a PPP
arrangement. From Nairobi to Nakuru, a second PPP
scheme envisions the widening and upgrading of the
157km Nairobi – Nakuru Road. Both roads form part of the
Trans-African Highway (Northern Corridor), which serves
East and Central Africa from the Indian Ocean seaport of
Mombasa.
IV. Lamu Port and New Transport Corridor Development
to Southern Sudan and Ethiopia (LAPSSET): The project
involves the development of a new transport corridor
from the new port of Lamu through to Ethiopia and
Southern Sudan. This will comprise of a new road network,
a railway line, oil refinery at Lamu, oil pipeline, Isiolo and
Lamu Airports and a free port at Lamu (Manda Bay) in
addition to resort cities at the coast and in Isiolo. It will
be the backbone for opening up Northern Kenya and
integrating it into the national and regional economy.
Table 84: KENYA MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t $0.&4"o$PNNPO.BSLFUGPS&BTUFSOBOE4PVUIFSO"GSJDB
t &"$o&BTU"GSJDBO$PNNVOJUZ
t *("%o*OUFSHPWFSONFOUBM"VUIPSJUZPO%FWFMPQNFOU
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
30
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 85: ACTIVE DEVELOPMENT PARTNERS IN
KENYA
t
t
t
t
t
t
t
t
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t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
'SFODI%FWFMPQNFOU"HFODZ"'%
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*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
6/4ZTUFN6/
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(MPCBM'VOE('
&VSPQFBO6OJPO$PNNJTTJPO&$
/PSXFHJBO"HFODZGPS%FWFMPQNFOU$PPQFSBUJPO/03"%
/FUIFSMBOET%FWFMPQNFOU"HFODZ4/7
$BOBEJBO*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ$*%"
Table 86: NGOS/ CHARITABLE INITIATIVES IN KENYA
t "DUJPO"JE
t "GSJDB&OUFSQSJTF$IBMMFOHF'VOE"&$'
t "MMJBODFGPS(SFFO3FWPMVUJPOJO"GSJDB"(3"
t #JMMBOE.FMJOEB(BUFT'PVOEBUJPO#.(
t $MJOUPO'PVOEBUJPO$'
t 3PDLFGFMMFS'PVOEBUJPO3'
t %PDUPST8JUIPVU#PSEFST%8#
t (MPCBM*OUFHSJUZ(*'
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t 8PSME8JMEMJGF'VOE
Table 87: KENYA’S UNEMPLOYMENT
t Table 88: KENYA’S GLOBAL VALUE CHAIN
LINKAGES
Agriculture & Agro-processing
Floriculture
Utilization of imported chemicals and
equipment
Production and export of cut flowers for
repackaging and resale
Tea
Utilization of imported chemicals (e.g.
fertilizer) and equipment
Production and export of processed tea
for repackaging, rebranding and resale;
exported tea also used in blending other
teas and beverages
Coffee
Utilization of imported chemicals (e.g.
fertilizer) and equipment
Production and export of coffee beans
for foreign processing; a small percentage
processed locally for use by residents and
tourists, with some exports to the COMESA
region
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Leather
Utilization of imported chemicals and
equipment
Production and wet-processing of leather;
bulk of which is exported for final processing
and making of final products
Textiles
Utilization of both local and imported raw
materials
Utilization of imported chemicals and
equipment
Export of final products to US and other
markets
Edible Oils
Utilization of both local and imported inputs
Utilization of imported machinery
Sale of final products to both local and
export market
Manufacturing
Automotive
Utilization of imported CDKs and semiprocessed inputs
Utilization of local inputs (e.g. upholstery
and fabricated parts)
Sale to both local and export markets
Plastics
Utilization of imported raw and semifinished inputs
Utilization of imported machinery
Sale to both local and export markets
Petrochemicals Utilization of imported inputs
Utilization of imported machinery
Sale of final products to both local and
export market
Table 89: KENYA REFERENCES AND RESOURCES
a. African Economic Outlook – www.
africaneconomicoutlook.org/en
b. KenInvest - http://www.investmentkenya.com/
opportunities
c. The CIA Factbook - https://www.cia.gov/library/
publications/the-world-factbook/geos/ke.html
d. Kenya Vision 2030 - http://www.vision2030.go.ke/index.
php/projects/economic
e. East Africa Business Council - http://www.eabc.info
f. Ameli Inyangu & Partners http://www.
amelinyangu.net/index.php?option=com_
content&view=article&id=11&Itemid=19
g. Kenya Embassy in USA - https://www.kenyaembassy.com/
investmentinc.html
h. DCED - http://www.enterprise-development.org/page/
kenya
31
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Rwanda
Table 90: RWANDA QUICK FACTS
UGANDA
DEMOCRATIC
REPUBLIC OF THE
CONGO
President:
Paul Kagame
Area:
26, 338 sq. km
Capital:
Kigali (1.004 million inhabitants –
2011)
Main Cities:
Kigali, Butare
GDP:
US$16.37 billion (2013)
Population:
12.34 million (July 2014)
Language:
English, Kinyarwanda, French,
Swahili (official)
Urban Population:
19.1% of total population (2011)
Rate of Urbanization:
4.5% annual change
Currency:
Rwandan Franc (RWF)
Climate:
Temperate; mild in mountains with
frost and snow possible
Lac
Burera
Lac
Ruhondo
NORTHERN
PROVINCE
A
NATI
PA
Byumba
A
Lac
Mikindi
Lac Hago
EASTERN
PROVINCE
GIS
NA
RE
TOWN OF
KIGALI
WESTERN
PROVINCE
Kigali
Rwamagana
TANZANIA
Kibuye
SOUTHERN
PROVINCE
Nyanza
a
Bugumya
YUNGWE
NAT'L PARK
Rura
BURUNDI
nyombyi
Figure 13: Map of Rwanda
ECONOMIC BRIEF
Africa’s most densely populated country is trying to overcome the limitations of its small, landlocked economy by leveraging
regional trade. Rwanda joined the East African Community (EAC) and is aligning its budget, trade, and immigration policies with
its regional partners. With a predominantly rural population, 90% of whom are engaged in (mainly subsistence) agriculture (and
some mineral and agro-processing), the Rwandan government has embraced an expansionary fiscal policy to reduce poverty
by improving education, infrastructure, and foreign and domestic investment and pursuing market-orientated reforms.
Real GDP growth slowed in 2013 in part due to poor performance in agriculture and the lagged effects of the suspension of
budget support disbursements in 2012. Estimates indicate that industry and services were the primary drivers of growth in 2013,
while growth in agriculture, though modest, was stronger compared to 2012. Export earnings increased by an estimated 33%
in 2013, compared to the previous year, on the back of increased coffee and tea production and favorable prices for key mineral
exports, particularly coltan and cassiterite. GDP growth is projected to have increased from 4.6% in 2013 to 7% in 2014. The key
growth drivers in the short and medium term include recovery in the services sector, increased productivity in the agriculture
sector and the sustained implementation of the public investment program.
Tourism, minerals, coffee and tea remain Rwanda’s main sources of foreign exchange, although the Rwandan Government
aspires to have the country become a regional leader in information and communication technologies. Rwanda completed
its first modern Special Economic Zone (SEZ) in Kigali, and seeks to attract investment in agribusiness, information and
communications technologies, trade and logistics, mining, and construction. However, energy shortages, instability in
neighboring states, and the lack of adequate transportation linkages to other countries continue to handicap private sector
growth.
Figure 14: Rwanda Real GDP Growth
%
12
Real GDP growth (%)
Eastern Africa (%)
Africa (%)
8
4
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
32
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 91: RWANDA KEY INDUSTRIES
GDP 2013:
Agriculture
31.9%
Industry
14.8%
Services
53.3%
Commodities
Partners
Agriculture
Coffee, tea, pyrethrum (insecticide made
from chrysanthemums), bananas, beans,
sorghum, potatoes; livestock
Industries
Cement, agricultural products, small-scale
beverages, soap, furniture, shoes, plastic
goods, textiles, cigarettes
Table 95: RWANDA FOREIGN DIRECT INVESTMENT
Table 92: RWANDA NATURAL RESOURCES
t (PME
t $BTTJUFSJUFUJO
t 8PMGSBNJUF
ore)
(tungsten ore)
t .FUIBOF
t )ZESPQPXFS
t "SBCMFMBOE
Table 93: RWANDA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
35.1
35.8
of which fishing
0.4
0.4
Mining
1.2
2.1
-
-
Manufacturing
6.0
5.1
Electricity, gas and water
0.3
0.8
Construction
7.4
7.8
Wholesale and retail trade, hotels and
restaurants
17.7
15.9
of which hotels and restaurants
2.8
2.6
Transport, storage and communication
6.9
5.2
Finance, real estate and business services
13.8
15.7
Public administration, education, health and
social work, community, social and personal
services
4.1
3.6
Other services
7.4
8.1
Gross domestic product at basic prices /
factor cost
100
100
of which oil
Table 94: RWANDA TRADE
Exports
Commodities
Partners
Imports
Foodstuffs, machinery and equipment,
steel, petroleum products, cement and
construction materials
Kenya 17.3%, Uganda 15.6%, UAE 8.9%,
China 7.2%, India 5.6%, Tanzania 5%,
Belgium 4.5%, Canada 4.1% (2012)
$538.3 million (2013)
$512 million (2012)
Coffee, tea, hides, tin ore
Kenya 30.5%, DRC 12.2%, China 12.1%,
Malaysia 10.7%, US 5.8%, Swaziland 4.9%
(2012)
$1.937 billion (2013)
$1.871 billion (2012)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Stock of Direct Foreign Investment – at home:
$900.1 million (31 December 2013)
Stock of Direct Foreign Investment – at home:
$743.3 million (31 December 2012)
Stock of Direct Foreign Investment – abroad:
$12.9 million (31 December 2013)
Stock of Direct Foreign Investment – abroad:
$12.9 million (31 December 2012)
Foreign Exchange and Gold Reserves:
$1.354 billion (31 December 2013)
Foreign Exchange and Gold Reserves:
$847.8 million (31 December 2012)
Table 96: RWANDA SELECTED INVESTMENT
PRIORITIES
t
t
t
t
t
"HSJDVMUVSF
&OFSHZ
*$5
5SBOTQPSU
'JOBODJBM4FSWJDFT
t
t
t
t
.JOJOH
)FBMUI
.BOVGBDUVSJOH
3FBM&TUBUF
Table 97: RWANDA INVESTMENT INCENTIVES
Approved investors are entitled to a range of benefits and
incentives provided for in the Investment Code, Including:
t &YFNQUJPOGSPNJNQPSUEVUJFTBOETBMFTUBYFTPOJNQPSUT
of plant, machinery and equipment. Items which are zero
import tax rated are exempted from sales tax otherwise
payable on those goods, while, for items which are not
zero import tax rated, a single flat fee of 5% of the value of
the imported items is payable in lieu of all taxes and duties
which would normally be imposed on such goods.
t *OWFTUNFOUBMMPXBODFTPGPGUIFWBMVFPGUIFJOWFTUFE
capital during the first year of operation.
t "EEJUJPOBMEFEVDUJPOGSPNUBYBCMFJODPNFPGPG
training, research and product development costs.
t 5IFSJHIUUPGVMMZPõTFUUIFDPTUPGQSPWJEJOHJOGSBTUSVDUVSF
to the site of the business operations; and duty drawback
for all duties and taxes paid on imported raw materials if
the investor is an exporter who is operating outside a free
export economic zone.
t XSJUFPõPG3%DPTUT
t $PNNPOFYUFSOBMUBSJõPOSBXNBUFSJBMTBOEDBQJUBM
equipment: 15% on intermediate goods: 25% on finished
goods.
33
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
t $POTUJUVUJPOBMMZQSPUFDUFEGSFFSFQBUSJBUJPOPGDBQJUBMBOE
profits.
t "EEJUJPOBMmTDBMJODFOUJWFTJOTUSBUFHJDTFDUPST
Table 98: RWANDA SELECTED PEACE DIVIDEND
PROJECTS
I. Lake Kivu Fertilizer and Chemical Complex: Lake Kivu
has one of largest methane supplies in the world, an initial
feasibility study by IFDC suggests that fertilizer production
from methane will be competitive with imports – thereby
reducing $30 million in imports and potentially generating
more than $100 million in exports to neighboring countries;
additional potential to reduce imports of fuel and other
chemicals through methanol and power production; and
an international company has already expressed interest in
developing a methane-based fertilizer factory.
II. Rwanda Construction Material Complex: Growing
economies and infrastructure projects in Rwanda and
neighboring countries are driving demand for cement and
other construction materials; imports already exceed $50
million and due to distance and poor infrastructure, supply
of materials from the coast is costly. Rwanda has deposits
of limestone, clay, sand and granite aggregates and other
critical raw materials. Aside from creating thousands of jobs,
local production will reduce input costs for infrastructure,
industry, tourism and other sectors. Several local investors
and foreign players are already active in the region, but joint
public-private action is needed to confirm deposits, award
concessions, develop skills, address power and transport
bottlenecks, establish appropriate industry zones, etc.
Table 99: RWANDA MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t &"$o&BTU"GSJDBO$PNNVOJUZ
t $0.&4"$PNNPO.BSLFUGPS&BTUFSOBOE4PVUIFSO"GSJDB
t $&1(-o&DPOPNJD$PNNVOJUZPG(SFBU-BLFT$PVOUSJFT
Table 100: ACTIVE DEVELOPMENT PARTNERS IN
RWANDA
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
6/4ZTUFN6/
&VSPQFBO6OJPO&6
/FUIFSMBOET%FWFMPQNFOU"HFODZ4/7
%'*%
Table 101: NGOS/ CHARITABLE INITIATIVES IN
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
)PXBSE#VõFU'PVOEBUJPO)#'
$"3&*OUFSOBUJPOBM$"3&
$BUIPMJD3FMJFG4FSWJDFT$34
$MJOUPO'PVOEBUJPO$'
$PODFSO8PSMEXJEF3XBOEB$83
'"8&3XBOEB'"8&
*OUFSOBUJPOBM&EVDBUJPO&YDIBOHF*&&
*NCVUV'PVOEBUJPO*'
+FTVJU3FGVHFF4FSWJDF+34
.JMMFOOJVN7JMMBHF.7
1MBO3XBOEB1-"/
3JHIUUP1MBZ31
3&"$)8JOSPDL*OUFSOBUJPOBM8*/30$,
3XBOEB*OJUJBUJWFGPS4VTUBJOBCMF%FWFMPQNFOU3*4%
4BWFUIF$IJMESFO45$
7403XBOEB740
8FMMTQSJOH'PVOEBUJPOGPS&EVDBUJPO8'&
8PSME7JTJPO*OUFSOBUJPOBM87*
5IF(BUTCZ$IBSJUBCMF'PVOEBUJPO
Table 102: RWANDA’S UNEMPLOYMENT
t Table 103: RWANDA’S GLOBAL VALUE CHAIN
LINKAGES
t
t
t
t
$PõFF
5FB
.JOFSBMT
1PUFOUJBM
- Food processing
- Dairy
- Beverages
- ICT
- Business Process Outsourcing
- Gas-to-liquids
Table 104: RWANDA REFERENCES AND
RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. RDB – www.rdb.rw
e. IFC: Doing Business – www.doingbusiness.org
f. US Department of States: 2011 Investment Climate
Statement (March 2011)
g. World Bank – www.worldbank.org
h. Encyclopedia: http://www.nationsencyclopedia.com/
geography/Morocco-to-Slovakia/Rwanda.html
RWANDA
t "DUJPO"JE
t "%3"3XBOEB"%3"
t "FHJT5SVTU"5
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
34
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
South Africa
Table 105: SOUTH AFRICA QUICK FACTS
ZIMBABWE
Jacob Zuma
Area:
1,219,090 sq. km
Capital:
Pretoria (Executive); Bloemfontein
(Judicial); Cape Town (Legislative)
Largest City:
Johannesburg - (3.844 million
inhabitants – 2011)
Main Cities:
Johannesburg, Cape Town, Pretoria,
Durban, Port Elizabeth, Bloemfontein
Ports:
Durban, Cape Town, Richards Bay,
Ngqura (Eastern Cape), Nolloth
(Northern Cape)
GDP:
US$595.7 billion (2013)
Population:
48.4 million (July 2014)
Language:
Afrikaans, English, Ndebele, Sepedi,
Setswana, Swati, Tsonga, Venda,
Xhosa, Zulu (official)
Urban Population:
61.7% of total population (2011)
MOZAMBIQUE
NORTHERN
PROVINCE
Polokwane
(Pietersburg)
s
BOTSWANA
President:
Nelspruit
Pretoria
Mafikeng
N A M I B I A
Johannesburg
NORTH W EST
Klerksdorp
GAUTENG
MPUMALANGA
SWAZILAND
FREE STATE
Kimberley
K WAZULUNATAL
Bloemfontein
LESOTHO
Pietermaritzburg
NORTHERN CAPE
E.C.
EA STE R N C A P E
Bisho
WESTERN CAPE
Cape Town
Figure 15: Map of South Africa
Rate of Urbanization: 1.21% annual change
Currency:
South African Rand (ZAR)
Climate:
Mostly semiarid, subtropical along
east coast
ECONOMIC BRIEF
South Africa is a middle-income, emerging market with an abundant supply of natural resources, and well-developed financial,
legal, communications, energy, and transport sectors. South Africa’s economy is the second largest in Africa, behind Nigeria and
it accounts for 24% of the continent’s gross domestic product (GDP) in terms of purchasing power parity (PPP). The country’s
stock exchange is also the 16th largest in the world. Broadly, the South African economy remained within the Reserve Bank’s
(SARB) target inflation range of 3%-6%, estimated at 5.7% in 2013. The South African Rand (ZAR) remained under pressure in
2013, sliding 20% in value during the year. National government debt increased to 42.5% of gross domestic product (GDP) in
2012/13, up from 36.2% two years earlier.
South Africa’s economic policy has focused on controlling inflation, however, the country has had significant budget deficits
that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special
interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.
Even though the country’s modern infrastructure supports a relatively efficient distribution of goods to major urban centers
throughout the region, unstable electricity supplies retard growth.
Figure 16: South Africa Real GDP Growth
%
12
Real GDP growth (%)
Southern Africa (%)
Africa (%)
8
4
0
2004
2005
2006
2007
2008
2009
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
2010
2011
2012
2013(e)
2014(p)
2015(p)
35
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
In addition to functioning as an assembly hub for the
automotive industry, South Africa has had some success
in becoming a global supplier of components (seats and
catalytic converters) capitalizing on locally available skills
and intermediate products. The Automotive Production
Development Plan (APDP) that came into force in January
2013 is aimed at encouraging new investments in the
industry, promoting use of local components and boosting
annual production to 1.2 million vehicles by 2020. In the
mining industry South Africa is an important global hub with
deep backward vertical integration and a fully-fledged supply
industry serving both South African and foreign companies,
it is an international player in its own right. Both South Africa’s
retail sector and its financial services industry are the most
sophisticated on the continent and have a significant regional
presence.
Table 107: SOUTH AFRICA NATURAL RESOURCES
t
t
t
t
t
t
(PME
$ISPNJVN
"OUJNPOZ
$PBM
*SPOPSF
.BOHBOFTF
t
t
t
t
t
t
/JDLFM
1IPTQIBUFT
5JO
6SBOJVN
(FNEJBNPOET
1MBUJOVN
t
t
t
t
t
$PQQFS
7BOBEJVN
4BMU
/BUVSBMHBT
3BSFFBSUI
elements
Table 108: SOUTH AFRICA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
3.0
2.5
of which fishing
0.1
0.1
Mining
9.7
9.6
-
-
Manufacturing
16.8
12.1
Electricity, gas and water
2.3
3.0
Construction
3.6
3.7
Wholesale and retail trade, hotels and
restaurants
13.4
16.2
of which hotels and restaurants
1.1
1.0
of which oil
Transport, storage and communication
9.4
9.1
Finance, real estate and business services
21.6
21.2
Public administration, education, health and
social work, community, social and personal
services
5.3
5.7
Other services
15.0
16.9
Gross domestic product at basic prices /
factor cost
100
100
Table 109: SOUTH AFRICA TRADE
Exports
$91.05 billion (2013)
$93.48 billion (2012)
Table 106: SOUTH AFRICA KEY INDUSTRIES
GDP 2013:
Agriculture
2.6%
Industry
29%
Services
68.4%
Commodities
Gold, diamond, platinum, other metals and
minerals, machinery and equipment
Partners
China 11.8%, US 8.3%, Japan 6%, Germany
5.7%, India 10.1% (2012)
Imports
$99.55 billion (2013)
$102.6 billion (2012)
Agriculture
Corn, wheat, sugarcane, fruits, vegetables;
beef, poultry, mutton, wool, dairy products
Commodities
Industries
Mining (world’s largest producer of
platinum, gold, chromium), automobile
assembly, metalworking, machinery,
textiles, iron and steel, chemicals, fertilizer,
foodstuffs, commercial ship repair
Machinery and equipment, chemicals,
petroleum products, scientific instruments,
foodstuffs
Partners
China 14.4%, Germany 10.1%, Saudi Arabia
7.7%, US 7.4%, Japan 4.6%, India 4.5%
(2012)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
36
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 110: SOUTH AFRICA FOREIGN DIRECT
INVESTMENT
Stock of Direct Foreign Investment – at home:
$143.3 billion (31 December 2013)
Stock of Direct Foreign Investment – at home:
$139 billion (31 December 2012)
Stock of Direct Foreign Investment – abroad:
$87.67 billion (31 December 2013)
Stock of Direct Foreign Investment – abroad:
$82.82 billion (31 December 2012)
Foreign Exchange and Gold Reserves:
$48.46 billion (31 December 2013)
Foreign Exchange and Gold Reserves:
$50.7 billion (31 December 2012)
Table 111: SOUTH AFRICA SELECTED INVESTMENT
PRIORITIES
t "EWBODFENBOVGBDUVSJOHJODMVEJOHBEWBODFENBUFSJBMT
aerospace and defense, electro-technical
t $MPUIJOHUFYUJMFTGPPUXFBSBOEMFBUIFS
t "VUPNPUJWFQSPEVDUTDPNQPOFOUTNFEJVNIFBWZ
commercial vehicles
t .FUBMTGBCSJDBUJPODBQJUBMBOESBJMUSBOTQPSUFRVJQNFOU
t 1MBTUJDTDIFNJDBMTDPTNFUJDTBOEQIBSNBDFVUJDBMT
t 'PSFTUSZUJNCFSQBQFSQVMQBOEGVSOJUVSF
t "HSPQSPDFTTJOH
t #VTJOFTTQSPDFTTTFSWJDFT
t $VMUVSBMBOEDSFBUJWFJOEVTUSJFTDSBGUNVTJDmMN
t #PBUCVJMEJOH
t (SFFOBOEFOFSHZTBWJOHJOEVTUSJFT
t %PXOTUSFBNNJOFSBMCFOFmDJBUJPO
t 6QTUSFBNPJMBOEHBTTFSWJDFTBOEFRVJQNFOU
t /VDMFBS
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 112: SOUTH AFRICA INVESTMENT
INCENTIVES
General Manufacturing
t .BOVGBDUVSJOH$PNQFUJUJWFOFTT&OIBODFNFOU1SPHSBN
(MCEP)
t $BQJUBM(PPET*OEVTUSZo5IF$BQJUBM1SPKFDUT'FBTJCJMJUZ
Program (CPFP)
t "EEJUJPOBM5BY"MMPXBODFGPS.BOVGBDUVSFSTo4*PGUIF
Income Tax Act
t 'PSFJHO*OWFTUNFOU(SBOU'*(
Automotive Industry
t "VUPNPUJWF*OWFTUNFOU4DIFNF"*4
t 1FPQMF$BSSJFS"VUPNPUJWF*OWFTUNFOU4DIFNF1"*4
Aquaculture
t "RVBDVMUVSF%FWFMPQNFOUBOE&OIBODFNFOU1SPHSBN
(ADEP)
Business Process Service
t 5IF#VTJOFTT1SPDFTT4FSWJDFT4DIFNF#14
Textiles
t $MPUIJOHBOE5FYUJMFT$PNQFUJUJWFOFTT1SPHSBN$5$1
Film and Television
t 'JMNBOE5FMFWJTJPO1SPEVDUJPO*ODFOUJWF
Tourism
t 5PVSJTN&OUFSQSJTF4VQQPSU1SPHSBN5&1
Other Incentives
t #MBDL#VTJOFTT4VQQMJFS%FWFMPQNFOU1SPHSBN##4%1
t $SJUJDBM*OGSBTUSVDUVSF1SPHSBN$*1
t $PPQFSBUJWF*ODFOUJWF4DIFNF$*4
t &NQMPZNFOU$SFBUJPO'VOE&$'
t &YQPSU.BSLFUJOHBOE*OWFTUNFOU"TTJTUBODF&.*"
t *ODVCBUJPO4VQQPSU1SPHSBN*41
t *TJWBOEF8PNFOT'VOE
t 4FDUPS4QFDJmD"TTJTUBODF4DIFNF44"4
t 4VQQPSU1SPHSBNGPS*OEVTUSJBM*OOPWBUJPO41**
t 4&%"5FDIOPMPHZ1SPHSBN
t 5FDIOPMPHZBOE)VNBO3FTPVSDFGPS*OEVTUSZ1SPHSBN
(THRIP)
37
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 113: SOUTH AFRICA MEMBERSHIP IN
REGIONAL ECONOMIC COMMUNITY (IES)
t 4"%$o4PVUIFSO"GSJDBO%FWFMPQNFOU$PNNVOJUZ
t 4"$6o4PVUIFSO"GSJDB$VTUPNT6OJPO
t 5SJQBSUJUF'5"'SFF5SBEF"HSFFNFOU
4"%$&"$&BTU
African Community) and COMESA (Common Market for
Eastern and Southern Africa)
Table 114: ACTIVE DEVELOPMENT PARTNERS IN
SOUTH AFRICA
t
t
t
t
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
(FSNBO%FWFMPQNFOU"HFODZ(*;
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
6/4ZTUFN6/
'SFODI%FWFMPQNFOU"HFODZ"'%
/PSXFHJBO"HFODZGPS%FWFMPQNFOU$PPQFSBUJPO/03"%
/FUIFSMBOET%FWFMPQNFOU"HFODZ4/7
&VSPQFBO6OJPO&6
4XFEJTI*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ4*%"
%FQBSUNFOUGPS*OUFSOBUJPOBM%FWFMPQNFOU%'*%
Table 115: NGOS/ CHARITABLE INITIATIVES IN
SOUTH AFRICA
t
t
t
t
t
t
t
t
t
t
t
"DUJPO"JE
"MMJBODFGPS(SFFO3FWPMVUJPOJO"GSJDB"(3"
#JMMBOE.FMJOEB(BUFT'PVOEBUJPO#.(
$MJOUPO'PVOEBUJPO$'
%PDUPST8JUIPVU#PSEFST%8#
(MPCBM*OUFHSJUZ(*'
0/&"DSF'VOE0/&
0YGBN
4ZOFSHPT4
8PSME7JTJPO*OUFSOBUJPOBM87*
8PSME8JMEMJGF'VOE88'
Table 116: SOUTH AFRICA’S UNEMPLOYMENT
t 0öDJBM
t :PVUIVOFNQMPZNFOUOFBSMZ
Table 117: SOUTH AFRICA’S GLOBAL VALUE CHAIN
LINKAGES
t
t
t
t
t
t
t
"VUPNPCJMF
.JOJOH
'JOBODF
"HSJDVMUVSF
3FUBJM
'PPE'SBODIJTJOH
4FDVSJUZ
Table 118: SOUTH AFRICA REFERENCES AND
RESOURCES
a. Department of Trade and Industry – www.thedti.gov.za
b. Industrial Development Corporation - www.idc.co.za
c. The CIA Factbook South Africa - www.cia.gov/library/
publications/the-world-factbook/geos/sf.html
d. South Africa.info - www.southafrica.info/business/
economy/
e. World Bank - www.worldbank.org/en/country/southafrica
f. National Development Plan - http://www.npconline.co.za
g. African Economic Outlook 2014: South Africa - www.
africaneconomicoutlook.org/en/countries/southernafrica/south-africa/
h. The Economy of South Africa - en.wikipedia.org/wiki/
Economy_of_South_Africa
i. Indicators / Statistics South Africa - beta2.statssa.gov.za
j. The African Portal - http://www.africaportal.org/country/
south-africa
k. List of Non-Governmental Organizations -www.daff.gov.
za/doaDev/sideMenu/links/Digest17.htm
l. South Africa Directory of NGOs - www.rainbownation.com
m. NGO Pulse - www.ngopulse.org
n. OECD Economic Surveys: South Africa - http://
www.treasury.gov.za/publications/other/OECD%20
Economic%20Surveys%20South%20Africa%202013.pdf
o. Department of Foreign Affairs – www.dfa.gov.za
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
38
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
South Sudan
Table 119: SOUTH SUDAN QUICK FACTS
SUDAN
Abyei
WESTERN
BAHR
EL GHAZAL
Bentiu
NORTHERN
BAHR
EL GHAZAL
Malakal
UPPER
NILE
UNITY
Aweil
Kuacjok
WARRAP
CENTRAL
AFRICAN
REPUBLIC
Wau
LAKES
Bor
WESTERN
EQUATORIA
Yambio
Salva Kiir Mayardit
Area:
644,329 sq. km
Capital:
Juba (269,000 inhabitants – 2011)
Main Cities:
Juba
GDP:
US$14.71 billion (2013)
Population:
11.56 million (July 2014)
Language:
English, Arabic, Dinka, Nuer, Bari,
Zande, Shilluk (official)
Urban Population:
18% of total population (2011)
JONGLEI
Rumbek
DEM. REP.
OF THE CONGO
President:
Rate of Urbanization: 4.23% annual change
EASTERN EQUATORIA
Juba
CENTRAL
EQUATORIA
Torit
Currency:
South Sudanese Pound (SSP)
Climate:
Hot with seasonal rainfall
KENYA
UGANDA
Figure 17: Map of South Sudan
ECONOMIC BRIEF
At independence in 2011, South Sudan produced nearly three-fourths of former Sudan’s total oil output of nearly a half million
barrels per day, however, subsistence agriculture provides a living for the vast majority of the population. The Government of
South Sudan derives 98% of its budget revenues from oil. Oil is exported through two pipelines that run to refineries and ship
facilities at Port Sudan on the Red Sea. The outbreak of conflict on 15 December 2013 combined with a further reduction of oil
exports, means that GDP growth forecasts for 2014 are being revised downwards again, and poverty and food insecurity are
rising.
South Sudan holds one of the richest agriculture areas in Africa with fertile soils and abundant water supplies. Currently the
region supports 10 million head of cattle. Growing infrastructure projects and business facilities in South Sudan are driving
demand for construction materials; imports are estimated at US$3.4 million and growing. Due to the distance and poor
infrastructure, supply of materials from neighboring countries is costly, even as South Sudan’s rich deposits of limestone, sand,
and other critical raw materials could support a boom in construction materials production in support of construction demand
in the coming years.
South Sudan has received more than $4 billion in foreign aid since 2005, largely from the UK, the US, Norway, and the
Netherlands. Following independence, South Sudan’s Central Bank issued a new currency, the South Sudanese Pound, allowing
a short grace period for turning in the old currency. Annual inflation peaked at 79.5% in May 2012, but declined rapidly
thereafter, to an average of 1.7% in 2013. Following the December 2013 outbreak of violence, inflation is on the rise again. Longterm challenges include diversifying the formal economy, alleviating poverty, maintaining macroeconomic stability, improving
tax collection, financial management, and improving the business environment.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
39
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 120: SOUTH SUDAN KEY INDUSTRIES
Agriculture
Sorghum, maize, rice, millet, wheat, gum
arabic, sugarcane, mangoes, papayas,
bananas, sweet potatoes, sunflower seeds,
shea nut trees, cotton, sesame seeds,
cassava, beans, peanuts; cattle, sheep
Industries
Petroleum, mining, forestry, gum Arabic,
hides and skins
Table 121: SOUTH SUDAN NATURAL RESOURCES
t )ZESPQPXFS
t 'FSUJMF
agricultural land
t (PME
t %JBNPOET
t
t
t
t
t
1FUSPMFVN
)BSEXPPET
-JNFTUPOF
*SPOPSF
$PQQFS
t
t
t
t
t
$ISPNJVNPSF
;JOD
5VOHTUFO
.JDB
4JMWFS
INDUSTRIAL ACTIVITY ZONES
Figure 18: Location of Key Industrial Activity, South
Sudan
Table 124: SOUTH SUDAN SELECTED INVESTMENT
PRIORITIES
Agriculture
Mining
Oil
JUBA
Table 122: SOUTH SUDAN TRADE
Exports
$4 billion (2013)
Commodities
Oil (90%)
Partners
China 72%, Japan 21%, USA 6%
Imports
$262 million (2010)
$138 million (2006)
Partners
China 25%, USA 23.2%, Pakistan 22.3%,
Uganda 13.3%
Table 123: SOUTH SUDAN FOREIGN DIRECT
INVESTMENT
There are no current statistics on South Sudan’s foreign direct
investment to date. However, generally, China remains a major
investor in the oil sector and investors from Kenya, Uganda,
and Ethiopia have been key investors in the construction,
hospitality, and agriculture/ agribusiness sectors over the past
three years.
The South Sudan’s Government Investment Strategy is aligned
to the following designated priority sectors/ industries for
investment:
t "HSJDVMUVSFBOE"HSJCVTJOFTT
t 'PSFTUSZ
t 8BUFS
t 1IZTJDBM*OGSBTUSVDUVSFBOE4PDJBM*OGSBTUSVDUVSF
t .JOJOH2VBSSZJOH&OFSHZBOE&MFDUSJDJUZ1FUSPMFVNBOE
Gas Industries
t 3FTFBSDIPONBQQJOHPGOBUVSBMSFTPVSDFTGPSFDPOPNJDVTF
t .BOVGBDUVSJOH
t 5SBOTQPSU
t *$5
t 1SJOUBOE&MFDUSPOJD.FEJB
t $PNNFSDJBM#BOLJOHBOE*OTVSBODF
t 1SPQFSUZ.BOBHFNFOUBOE'JOBODJBM*OTUJUVUJPOT
t )PTQJUBMJUZBOE5PVSJTN
t 4PDJBM)PVTJOH&EVDBUJPOBOE)FBMUI
t 1IBSNBDFVUJDBMT$IFNJDBMT.FEJDBMBOE4VSHJDBM
Table 125: SOUTH SUDAN INVESTMENT
INCENTIVES
t Access to Land: RSS and/or the Local Authorities shall
provide land. Investments in agriculture, plantation forestry,
quarrying, and mining shall be deemed to be included in
the priority and strategic sectors subject to legal limits on
concession periods and renewal requisites.
t Licenses: An Investment Certificate issued by the
Investment Authority entitles the investor to invest in the
priority area of choice.
t Entry/Work Permits: An Investment Certificate entitles
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
40
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
the investor to entry/work permits for their designated
managers. The first permits will be issued free of charge and
are valid for two years.
t Duty Exemptions: Agricultural imports, tools, equipment,
machinery and tractors, pharmaceutical, animal feeds,
seeds for boosting food, and cash crops production shall be
exempt from any duties and taxes for a period that shall be
determined by the law.
t Tax Incentives: Incentives include capital allowances
ranging from 20-100%; deductible annual allowances
ranging from 20-40%; and other depreciation allowances
ranging from 8-20%.
t Special Incentives: Special incentives may be granted by
the board of investments in strategic or transformational
sectors. These special incentives are only available on
special applications by investments in areas designated as
strategic or transformational.
Investment Guarantees, Benefits and Incentives:
t /PO%JTDSJNJOBUJPO"DDFTTUP-BOE
t (VBSBOUFFTBHBJOTU&YQSPQSJBUJPO
t -JDFOTFT
t 1SPUFDUJPOPG*OUFMMFDUVBM1SPQFSUZ3JHIUT
t &OUSZ8PSL1FSNJUT
t "DDFTTUP1VCMJD*OGPSNBUJPO
t %VUZ&YFNQUJPOT
t 3FQBUSJBUJPOPG$BQJUBM
t 1SPmUTBOE%JWJEFOET
t 5BY*ODFOUJWFT
t %JTQVUF3FTPMVUJPO4QFDJBM*ODFOUJWFT
Table 126: SOUTH SUDAN MEMBERSHIP IN
REGIONAL ECONOMIC COMMUNITY (IES)
t $0.&4"o$PNNPO.BSLFUPG&BTUFSOBOE4PVUIFSO"GSJDB
t &"$o&BTU"GSJDBO$PNNVOJUZ"QQMJFEJOOFHPUJBUJPOT
t 5SJQBSUJUF'5"'SFF5SBEF"HSFFNFOU
4"%$&"$&BTU
African Community) and COMESA (Common Market for
Eastern and Southern Africa)
Table 127: ACTIVE DEVELOPMENT PARTNERS IN
SOUTH SUDAN
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
$BOBEJBO*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ$*%"
*OUFSOBUJPOBM'VOEGPS"HSJDVMUVSBM%FWFMPQNFOU*'"%
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
6/4ZTUFN6/
Table 128: NGOS/ CHARITABLE INITIATIVES IN
SOUTH SUDAN
t "TTPDJBUJPOGPS4USFOHUIFOJOH"HSJDVMUVSBM3FTFBSDIJO
Eastern and Central Africa (ASARECA)
t $BUIPMJD0SHBOJ[BUJPOGPS3FMJFGBOE%FWFMPQNFOU"*%
(CORDAID)
t *OTUJUVUFGPS4FDVSJUZ4UVEJFT"GSJDB*44"'3*$"
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 129: SOUTH SUDAN SELECTED PEACE
DIVIDEND PROJECTS
See - http://www.investsouthsudan.org/presentations.aspx for
full project briefs:
I.
II.
III.
IV.
V.
VI.
Lakki Hydro Plant – hydropower scheme to address
chronic electricity shortages
Kapoeta Cement Factory – building materials
manufacturing plant to meet rising demand
Aweil Rice Scheme – rice farming program to improve
national food security
Marial-Bai Livestock Improvement Centre – livestock
farming scheme to leverage abundance of livestock for
domestic and regional food security
Yirol Oil Mill and Nucleus Farm – oilseed processing facility
to supply domestic and regional market
Nzara Agro-Industrial Complex – multifaceted agroindustrial farm to supply Southwestern area of country
and the DRC and CAR with a number of products,
Table 130: SOUTH SUDAN’S UNEMPLOYMENT
t Table 131: SOUTH SUDAN’S GLOBAL VALUE CHAIN
LINKAGES
t 0JM
t 1PUFOUJBM
- Mining
- Agriculture
- Forestry
- Livestock
- Gum Arabic
Table 132: SOUTH SUDAN REFERENCES AND
RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB, OECD, UNDP – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. Humanitarian Practice Network, Issue 57, May 2013: Lesson
on Transition in South Sudan by George Conway- http://
www.odihpn.org/humanitarian-exchange-magazine/
issue-57/lessons-on-transition-in-south-sudan
41
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Sudan
Table 133: SUDAN QUICK FACTS
EGYPT
L I B YA
Port Sudan
NORTHERN
CHAD
Ed Damer
NORTHERN
KORDOFAN
Khartoum
Kassala
EL
GEZIRA
GEDAREF
Wad Medani
Gedaref
El Obeid
WESTERN
DARFUR
WHITE
NILE
Nyala
SOUTHERN
KORDOFAN
SOUTHERN
DARFUR
Rabak
Singa
SENNAR
1,861,484 sq. km
Capital:
Khartoum (4.632 million
inhabitants – 2011)
Main Cities:
Khartoum
Ports:
Port Sudan, Prince Osman Digna,
and El Zubir
GDP:
US$89.97 billion (2013)
Population:
35.48 million (July 2014)
Language:
Arabic, English, Nubian, Ta
Bedawie, Fur (official)
Urban Population:
33.2% of total population (2011)
Rate of Urbanization:
2.6% annual change
Currency:
Sudanese Pound (SDG)
Climate:
Hot and dry; arid desert; rainy
season varies by region
Ed Damazin
BLUE NILE
ETHIOPIA
Kadugli
CENTRAL
AFRICAN
REPUBLIC
Area:
ERITREA
KASSALA
KHARTOUM
NORTHERN
DARFUR
Al Fasher
Umar Hassan Ahmad al-Bashir
RED SEA
NILE
El Geneina
President:
SOUTH
SUDAN
Figure 19: Map of Sudan
ECONOMIC BRIEF
Sudan’s real gross domestic product (GDP) grew by 3.6% in 2013, up from 1.4% in 2012, driven by agriculture and mining, as
well as the inflows from oil transit fees and the Transitional Financial Arrangement (TFA) with South Sudan. Despite the rising
GDP, however, inflation remained high (36.2%), reflecting the combined effect of inflationary financing, the devaluation of the
currency and high-energy prices. It is estimated that real growth will recede slightly in 2014 to 2.7% and is projected at 3.8% in
2015. Inflation is estimated to drop by 9.4 percentage points in 2014, and projected at 23.2% for 2015. However, the credibility of
the government’s disinflation program relies on addressing the contractionary effects of fiscal consolidation and boosting value
addition in agriculture, manufacturing and mining.
Sudan is attempting to develop non-oil sources of revenues, such as gold mining, while carrying out an austerity program to
reduce expenditures. Agriculture continues to employ 80% of the work force. The world’s largest exporter of gum Arabic, Sudan
produces 75-80% of the world’s total output. The government continues efforts with the UNIDO to boost agro-industrial value
addition. However, further policies are required to upgrade the supply chain into value chains. Lifting the burden of high taxes
on supply chain actors would promote the participation of small producers and clustering with larger firms.
In July 2011, Sudan lost three-quarters of its oil production due to the secession of South Sudan. The oil sector had driven much
of Sudan’s GDP growth since 1999. For nearly a decade, the economy boomed on the back of rising oil production, high oil
prices, and significant inflows of foreign direct investment. Since the economic shock of South Sudan’s secession, Sudan has
struggled to stabilize its economy and make up for the loss of foreign exchange earnings. The interruption of oil production in
South Sudan in 2012 for over a year and the consequent loss of oil transit fees further exacerbated the fragile state of Sudan’s
economy. Sudan is also subject to comprehensive US sanctions.
Figure 20: Sudan Real GDP Growth
%
10
Real GDP growth (%)
Eastern Africa (%)
Africa (%)
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
42
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 134: SUDAN KEY INDUSTRIES
GDP 2013:
Agriculture
27.4%
Industry
33.6%
Services
39.0%
Agriculture
Cotton, groundnuts (peanuts), sorghum,
millet, wheat, gum Arabic, sugarcane,
cassava (manioc, tapioca), mangoes,
papaya, bananas, sweet potatoes, sesame
seeds; sheep and other livestock
Industries
Oil, cotton ginning, textiles, cement, edible
oils, sugar, soap distilling, shoes, petroleum
refining, pharmaceuticals, armaments,
automobile/light truck assembly
Table 135: SUDAN NATURAL RESOURCES
t 4VEBOJTSJDIXJUIJUTBCVOEBOUSFTPVSDFTXIJDIBSF
represented in vast areas of land, and various climates.
t *UIBTGFSUJMFBHSJDVMUVSBMMBOETMBSHFBNPVOUTPGGSFTIXBUFS
and a variety of animal resources.
t "EEJUJPOBMOBUVSBMSFTPVSDFTJODMVEFQFUSPMFVNTNBMM
reserves of iron ore, copper, chromium ore, zinc, tungsten,
mica, silver, gold; hydropower
2008 2012
36.2
34.5
-
-
Mining
17.1
5.1
of which oil
17.0
3.1
Manufacturing
7.3
9.0
Electricity, gas and water
0.4
0.9
Construction
3.5
4.8
Wholesale and retail trade, hotels and
restaurants
13.6
16.8
-
-
Transport, storage and communication
7.5
13.6
Finance, real estate and business services
6.5
7.0
Public administration, education, health and
social work, community, social and personal
services
6.1
6.4
Other services
1.8
1.9
Gross domestic product at basic prices /
factor cost
100
100
of which fishing
of which hotels and restaurants
Exports
$4.145 billion (2013)
$3.368 billion (2012)
Table 136: SUDAN GDP BY SECTOR
Agriculture, hunting, forestry, fishing
Table 137: SUDAN TRADE
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Commodities
Gold; oil and petroleum products; cotton,
sesame, livestock, groundnuts, gum Arabic,
sugar
Partners
UAE 63.2%, Saudi Arabia 9.2%, Ethiopia 5.3%
(2012)
Imports
$5.941 billion (2013)
$8.123 billion (2012)
Commodities
Foodstuffs, manufactured goods, refinery
and transport equipment, medicines and
chemicals, textiles, wheat
Partners
Macau 18.1%, India 8.8%, Saudi Arabia 7.9%,
Egypt 6.7%, UAE 5.2% (2012)
Table 138: SUDAN FOREIGN DIRECT INVESTMENT
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTNJMMJPO
December 2013)
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTNJMMJPO
December 2012)
43
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 139: SUDAN SELECTED INVESTMENT
PRIORITIES
The Economic Program for Stabilization and Sustained
Growth (EPSSG) Five-Year Plan (2012-16) and the EPSSG
Three-Year Plan (2012-14) together with the finalized Interim
Poverty Reduction Strategy Paper (PRSP) 2012-2014, Sudan
Constitution 2005, Doha and East Sudan Peace Agreements
will continue to guide economic policy through 2012-16.
Sudan’s I-PRSP for 2012-14 acknowledges that to create jobs
and reduce unemployment and poverty, agriculture, livestock,
manufacturing and services should be the main sources of
growth.
Agriculture
Rain-fed and irrigated, with a mix of small
and large-scale farming.
Livestock
Sheep, goats (one of the largest livestock
inventories in Africa)
Oil
Sudan’s oil industry is vertically integrated
and the rent accrues to the public sector.
There are good prospects for boosting
oil yield from depleting fields using oil
recovery techniques to increase the
recovery factor up to 30% and reserves by
one billion barrels by 2020.
Manufacturing
Cotton production
SSGM
Small-scale gold mining - Great potential
for value addition in the SSGM sector
through upgrading the locally fabricated
tools and establishing machine leasing
schemes together with enhancing the
small miners’ and the larger mining firms’
synergies, including strengthening the
community-based organizations.
Table 140: SUDAN INVESTMENT INCENTIVES
Acknowledging the importance of investment to boost the
economy and to realize direct development, the government
established the Ministry of Investment in 2002. Additionally,
Sudan’s new Investment Act 2013 provides greater
exemptions and onsite facilities compared with the 1999
Act, lowering the corporate and capital gains tax rate, and
improving the timeliness of customs clearances. As a result,
USD 160 million Greenfield FDI has been attracted from Saudi
Arabia and USD 70 million from Qatar targeting agriculture
through concessionary land leases.
Restrictions:
t 5IFSFBSFGPSFJHOJOWFTUNFOUSFTUSJDUJPOTJOUIF
transportation, media and communications, and
t 4FDUPSTTVDIBTSBJMXBZGSFJHIUUSBOTQPSUBUJPOBJSQPSU
operation, television broadcasting, and newspaper
publishing are closed to foreign capital participation.
t 'PSFJHOPXOFSTIJQJTBMTPSFTUSJDUFEJOUIF
telecommunications, electricity, and financial sector
services.
t *OBEEJUJPOUPUIFPWFSUTUBUVUPSZPXOFSTIJQSFTUSJDUJPOT
a comparatively large number of sectors are dominated
by government monopolies, including, but not limited to,
those mentioned above. Those monopolies, together with
a high-perceived difficulty of obtaining required operating
licenses, make it more difficult for foreign companies to
invest.
Performance Requirements/Incentives:
Investors must begin their projects within six months of
receiving a license, submit reports every six months during
the period in which the project received special privileges,
keep regular books and maintain records on the assets of
the project exempted from customs duties, and exempted
imported materials, and present, to the Minister, the
Competent Minister and the State Minister, annually, during
the period of validity of the privileges, a copy of the annual
report of the project, approved by a certified auditor.
Sudanese investment law specifies certain sectors as strategic
for the purpose of providing additional or special incentives:
1. Infrastructure, including roads, ports, electricity, dams,
communications, energy, transport, contracting business,
education, health, tourism, IT services, and water projects;
2. Natural resource extraction and exploitation; and
3. Agriculture, animal and industrial production
Some of these strategic sectors require a minimum
investment; the sum is dependent on the sector.
Investments in strategic sectors are exempt from tax on profits
for a period of ten years. The High Council on Investment
may grant non-strategic investment an exemption not to
exceed five years. The government may also extend benefits
including free land and exemptions from other taxes and fees
to strategic and non-strategic investments. Such projects may
include, but not limited to:
t *OWFTUNFOUJOUIFMFBTUEFWFMPQFEBSFBTPGUIFDPVOUSZ
t *OWFTUNFOUTUIBUBTTJTUJOUIFEFWFMPQNFOUPGFYQPSU
capabilities;
t *OWFTUNFOUTUIBUDPOUSJCVUFUPSVSBMEFWFMPQNFOU
t *OWFTUNFOUTUIBUJODSFBTFFNQMPZNFOU
t *OWFTUNFOUTUIBUBSFDIBSJUBCMFJOOBUVSFBOE
t *OWFTUNFOUTUIBUEFWFMPQTDJFOUJmDBOEUFDIOPMPHJDBM
research.
Free Zones:
1. Suakin Free Zone
2. Aljaily Free Zone
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
44
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 141: SUDAN MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t *("%o*OUFSHPWFSONFOUBM"VUIPSJUZPO%FWFMPQNFOU
t $&/4"%o5IF$PNNVOJUZPG4BIFM4BIBSBO4UBUFT
t $0.&4"o$PNNPO.BSLFUPG&BTUFSOBOE4PVUIFSO"GSJDB
Table 142: ACTIVE DEVELOPMENT PARTNERS IN
SUDAN
t "GSJDBO%FWFMPQNFOU#BOL"'%#
t $BUIPMJD0SHBOJ[BUJPOGPS3FMJFGBOE%FWFMPQNFOU"JE
(CORAID)
t (FSNBO%FWFMPQNFOU"HFODZ(*;
t *UBMJBO%FWFMPQNFOU$PPQFSBUJPO.JOJTUSZPG'PSFJHO
Affairs) (IDC)
t *OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
t *OUFSOBUJPOBM.POFUBSZ'VOE*.'
t 6OJUFE/BUJPOT4ZTUFN6/
t 8PSME#BOL8#
Table 143: NGOS/ CHARITABLE INITIATIVES IN
SUDAN
t
t
t
t
t
t
"NOFTUZ*OUFSOBUJPOBM"*
$PNNVOJUZ%FWFMPQNFOU'VOE$%'
%BSGVS%FWFMPQNFOU"EWJTPSZ(SPVQ%%"(
%BSGVS%FWFMPQNFOU%%30
0YGBN*OUFSOBUJPOBM09'".
4VEBOFTF8PNFO&NQPXFSNFOUGPS1FBDF4V8&1
Table 144: SUDAN SELECTED PEACE DIVIDEND
PROJECTS
1. Cattle Development Project: Cattle fattening - US$9
million: Offered for implementation; technical and
economic feasibility study is available. The Cattle
Development project from the Khartoum State has the
potential of providing jobs for youth and women and as
such have a national impact, the Government of Sudan
is very supportive of the project and the technical and
economic feasibility study available.
2. Beet Sugar Project: Agriculture and Industrial Production
- $35 million: Offering of a partnership with investors;
technical and economic feasibility study is available. The
Beet Sugar Project has the potential of providing jobs to
youth and women, it is ready for implementation since a
technical and economic feasibility study is available and
the Government of Sudan supports the project.
3. Starch and Glucose Factory: Manufacturing starch
and glucose - $11 million: Offered for implementation;
technical and economic feasibility study is available. The
starch and glucose factory project aims at manufacturing
starch and glucose and has the potential of creating jobs
for youth and women, is also ready for implementation
since the feasibility is available. It has the support of the
Government of Sudan.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 145: SUDAN’S UNEMPLOYMENT
t
Table 146: SUDAN’S GLOBAL VALUE CHAIN
LINKAGES
t 0JMBOEHBT
t 1PUFOUJBM
- Gum Arabic
- Gold
- Cotton
- Livestock
Table 147: SUDAN REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. Ministry of Investment - http://www.sudaninvest.org/
English/
e. 2013 Investment Climate Statement: Sudan - http://www.
state.gov/e/eb/rls/othr/ics/2013/204736.htm
f. Office of the United States Trade Representative - http://
www.ustr.gov/
45
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Tanzania
Table 148: TANZANIA QUICK FACTS
UGANDA
Bukoba
Musoma
A
RWANDA
KENYA
G
E
R
MARA
K
A
Mwanza
MWANZA
BURUNDI
Arusha
S H I N Y A N G A
Mo s h
Shinyanga
i
ARU SHA
N
SI
T A B O R A
G
ID
NG
TA
ZANZIBAR
Zanzibar
DODOMA
DAR ES SALAAM
Morogoro
O
Dar es
Salaam
G
O
Iringa
CONGO
OCEAN
PWANI
R
DEMOCRATIC
REPUBLIC
OF THE
M B E Y A
R
O
IR INGA
ZAMBIA
Area:
947,300 sq. km
Capital:
Dar es Salaam (3.588 million
inhabitants – 2011)
Main Cities:
Dar es Salaam, Mwanza, Arusha,
Dodoma
Ports:
Dar es Salaam, Tanga, Mtwara
GDP:
US$79.29 billion (2013)
Population:
49.64 million (July 2014)
Language:
Swahili, English and Arabic (official)
Urban Population:
26.7% of total population (2011)
Rate of Urbanization:
4.77% annual change
Currency:
Tanzanian Shilling (TZS)
Climate:
Varies from tropical on coast to
temperate in highlands
A
Dodoma
R U K W A
Sumbawanga
INDIAN
Tanga
A
Singida
Tobora
Jakaya Kikwete
KILIMANJARO
KIGOMA
Kigoma
President:
Mbeya
M
O
L I N D I
Lindi
M A L A W I
Mtwara
Songea
R U V U M A
MTWARA
U E
B I Q
M O Z A M
Figure 21: Map of Tanzania
ECONOMIC BRIEF
Tanzania’s economy has continued to perform strongly, with current growth at around 7%. This is driven largely by
communications, transport, financial intermediation, construction, agriculture and manufacturing. The country’s high overall
growth rates have also been based on gold production and tourism. Tanzania has largely completed its transition to a liberalized
market economy, though the government retains a presence in sectors such as telecommunications, banking, energy and
mining. The economy still heavily depends on agriculture, which accounts for more than one-quarter of GDP, provides 85% of
exports, and employs about 80% of the work force.
In the medium term, growth will be supported by ongoing investments in infrastructure and the projected good weather
conditions. Specifically, these medium-term growth projections are backed by continued investments in the recently discovered
natural gas reserves in Tanzania and the expansion in public investments (including the ongoing construction of USD 1.2
billion gas pipeline from Mtwara to Dar es Salaam), as well as the related investments aimed at stabilizing power generation
in the country. Furthermore, the World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania’s aging
economic infrastructure, including rail and port infrastructure that are important trade links for inland countries.
The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking
industry’s total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency
and quality of financial services. Recent banking reforms have helped increase private-sector growth and investment, and the
government has increased spending on agriculture to 7% of its budget.
Figure 22: Tanzania Real GDP Growth
%
10
Real GDP growth (%)
Eastern Africa (%)
Africa (%)
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
46
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 149: TANZANIA KEY INDUSTRIES
Table 152: TANZANIA TRADE
GDP 2013:
Exports
Agriculture
Industries
Agriculture
27.6%
Industry
25.0%
Services
47.4%
$5.912 billion (2012)
Coffee, sisal, tea, cotton, pyrethrum
(insecticide made from chrysanthemum),
cashew nuts, tobacco, cloves, corn, wheat,
cassava, bananas, fruits, vegetables; cattle,
sheep, goats
Agricultural processing (sugar, beer,
cigarettes, sisal twine); mining (diamonds,
gold, and iron), salt, soda ash; cement, oil
refining, shoes, apparel, wood products,
fertilizer
Table 150: TANZANIA NATURAL RESOURCES
t )ZESPQPXFS
t *SPOPSF
t (PME
t 5JO
t %JBNPOET
t /BUVSBMHBT
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t (FNTUPOFT
t /JDLFM
Commodities
Gold, coffee, cashew nuts, manufacturers,
cotton
Partners
India 15.2%, China 11.1%, Japan 6.2%,
Germany 5.1%, UAE 4.8% (2012)
Imports
$11.16 billion (2013)
$10.32 billion (2011)
Commodities
Consumer goods, machinery and
transportation equipment, industrial raw
materials, crude oil
Partners
China 21.3%, India 16.3%, South Africa 6.4%,
Kenya 6%, UAE 5% (2012)
Table 153: TANZANIA FOREIGN DIRECT
INVESTMENT
Table 151: TANZANIA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
29.7
28.7
of which fishing
1.3
1.6
Mining
3.7
3.8
-
-
Manufacturing
8.6
9.2
Electricity, gas and water
2.3
2.4
Construction
8.5
8.9
Wholesale and retail trade, hotels and
restaurants
15.7
16.0
of which hotels and restaurants
2.9
2.5
Transport, storage and communication
7.3
8.3
Finance, real estate and business services
11.2
10.1
Public administration, education, health and
social work, community, social and personal
services
9.0
8.6
Other services
3.8
4.0
Gross domestic product at basic prices /
factor cost
100
100
of which oil
$5.92 billion (2013)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
t 4UPDLPG%JSFDU'PSFJHO*OWFTUNFOUCJMMJPO
o
highest in the 5 EAC countries
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTCJMMJPO
December 2013 est.)
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTCJMMJPO
December 2012 est.)
Table 154: TANZANIA SELECTED INVESTMENT
PRIORITIES
Tanzania’s Investment Strategy is informed by Tanzania’s
Development Vision 2025, which is implemented to achieve
the following objectives:
i) High quality livelihood for all
ii) Peace, stability and unity
iii) Good governance
iv) A well-educated and learned society, and
v) A competitive economy capable of generating sustainable
growth
To achieve the above, the Tanzania Investment Centre recently
issued an Investor Guide (see: http://www.tic.co.tz/media/
Guidebook2013-14.pdf ), which lists priority investment
sectors:
i) Agriculture, including livestock
ii) Air Aviation
iii) Commercial Buildings
iv) Commercial Development and Micro-finance Banks
v) Export Processing
vi) Geographical Special Development Areas
vii) Human Resources Development
viii) Manufacturing
ix) Natural Resources, including fishing
x) Rehabilitation and Expansion
xi) Radio and Television Broadcasting
xii) Tourism and Tour Operation
47
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 155: TANZANIA INVESTMENT INCENTIVES
1. General Incentives
The incentives are mainly classified into Lead Sector and
Priority Sector. Lead sectors include agriculture, agro-based
industries, mining, tourism, petroleum and gas, and economic
infrastructure.
6. Transfer of Capital
Regulations permit unconditional transferability (of net profits,
repayment of foreign loans, royalties, fees, charges in respect
to foreign technology, remittance of proceeds and payment
of emoluments and other benefits to foreign employees
working in Tanzania) through any authorized bank in freely
convertible currency.
Agriculture: All tax items - Import duty is zero and VAT is
exempted or deferred; Corporation tax is 30% (standard rate);
Capital allowance is 100%; withholding tax on interest on
foreign sourced loan is 0%; withholding tax on dividends is
10%; and losses carried forward for 5 years.
7. Transfer of Technology
There are no restrictions in enterprises entering into
technology transfers. But every agreement for transfer of
technology must be registered with the Tanzania Investment
Center as soon as concluded.
Mineral sector: All tax items - Import duty is zero and VAT is
relieved up to the first anniversary of the mine; Corporation
tax is 30% (standard rate); Capital allowance is 100%; and
residential and non-residential withholding tax on technical
services is 3%.
Table 156: TANZANIA MEMBERSHIP IN REGIONAL
Other applicable tax and levies on mineral sector:
t 3PZBMUZFYDFQUGPSEJBNPOETXIJDIJT
t /PUBYEVUZGFFPSPUIFSmTDBMJNQPTUPOEJWJEFOET
t /PDBQJUBMHBJOTUBY
t -PTTFTDBSSJFEGPSXBSEGPSVOSFTUSJDUFEQFSJPE
t %VUZSBUFPGBOE7"5XJMMCFDIBSHFEBGUFSUIFmSTUmWF
years of commercial production
t :FBSMZBQQSFDJBUJPOPGVOSFDPWFSFEDBQJUBMJOJOWFTUNFOU
t *NQPSUBUJPOCZPSTVQQMZUPBSFHJTUFSFEMJDFOTFE
exploration, prospecting, mineral assaying, drilling or mining
company, of goods which if imported will be eligible from
relief from duty under customs law, and service for exclusive
use in exploration, prospecting, drilling or mining activities.
2. Free Trade Zones
3. Export Incentives
Incentives offered to enhance production for export include:
t %VUZESBXCBDLTDIFNFJFSFGVOEPGJNQPSUEVUZQBJEPO
inputs used to produce exported goods.
t &YQPSU1SPNPUJPO;POFT
4. Financial Assistance
A foreign investor may, in relation to the business enterprises
he operates, obtain a credit from domestic bank and financial
institutions up to the limit established by the Bank of Tanzania
in consultation with the Tanzanian Investment Center.
ECONOMIC COMMUNITY (IES)
t 4"%$o4PVUIFSO"GSJDBO%FWFMPQNFOU$PNNVOJUZ
t &"$o&BTU"GSJDBO$PNNVOJUZ
t 5SJQBSUJUF'5"'SFF5SBEF"HSFFNFOU
4"%$&"$&BTU
African Community) and COMESA (Common Market for
Eastern and Southern Africa)
Table 157: ACTIVE DEVELOPMENT PARTNERS IN
TANZANIA
t
t
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
$BOBEJBO*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ$*%"
%FONBSL&NCBTTZ%"/*%"
6,%FQBSUNFOUGPS*OUFSOBUJPOBM%FWFMPQNFOU%'*%
&VSPQFBO6OJPO&6
*SJTI"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU*SJTI"JE
/FUIFSMBOET%FWFMPQNFOU"HFODZ4/7
4XJTT%FWFMPQNFOU$PSQPSBUJPO4%$
6/4ZTUFN6/
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
Table 158: NGOS/ CHARITABLE INITIATIVES IN
TANZANIA
t
t
t
t
t
t
t
t
t
"DUJPO"JE
"GSJDBO&OUFSQSJTF$IBMMFOHF'VOE"&$'
"MMJBODFGPS(SFFO3FWPMVUJPOJO"GSJDB"(3"
#JMMBOE.FMJOEB(BUFT'PVOEBUJPO#.(
$MJOUPO'PVOEBUJPO$'
,JDLTUBSU*OUFSOBUJPOBM,4*
0YGBN
8PSME7JTJPO*OUFSOBUJPOBM87*
8PSME8JMEMJGF'VOE88'
5. Holders of Certificate of Incentives
All tax items - Import duty on capital goods is zero and VAT is
deferred; except for one utility administrative vehicle, VAT is
20%; Corporation tax is 30% (standard rate); Capital allowance
is 100%; withholding tax on dividends is 10%; and losses
carried forward for 5 years.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
48
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 159: TANZANIA SELECTED PRIORITY
PROJECTS
I.
Construction of New Railway Line (standard gauge)
Isaka – Keza – Kigali/Gitega - Musongati: The Reli Assets
Holding Company (RAHCO), as Implementing Authority,
wants to develop the 620 km railway, connecting Tanzania,
Rwanda and Burundi as a PPP project, with the following
benefits: i) reduction of transport costs, ii) reduction in
travel time, iii) easy accessibility to various social services
to the community along the project area and iv) trade
facilitation between Tanzania and neighboring countries
of DRC, Rwanda, Burundi and Uganda.
Status: Feasibility Study was finalized in February 2014.
Identification of private-sector investors.
II. Rehabilitation of Mwanza Airport: The extension of
the current runway to accommodate bigger cargo and
passenger airplanes, as well as construction of new
cargo and passenger terminals will improve the capacity
and efficiency of this regionally important airport. The
estimated costs are US$60 million, and a feasibility study
is about to be conducted. The TIC plans to seek investors
for a PPP. Mwanza is a hub in the Great Lakes Region and
would improve links between Tanzania, Uganda, Kenya,
Rwanda, Burundi, and the DRC.
III. Procurement and Repair of Rolling Stocks for Tanzania
Railways Ltd.: This project is intended to revamp railway
operations of the Central Line to Kigoma and Mwanza
by increasing haulage capacity of passengers and freight
traffic within Tanzania and neighboring countries of
Rwanda, Burundi, Uganda and eastern DRC.
Status: Partially funded by the Government of Tanzania
(GOT) and trying to secure funding from other (private)
partners.
IV. SAGCOT (Southern Agriculture Growth Corridor
of Tanzania): Kilimo Kwanza Growth Corridors is an
international public-private partnership launched at the
World Economic Forum on Africa in May 2010 in Dar es
Salaam, Tanzania. Its mandate is to mobilize private sector
investments and partnerships to help achieve the goals
of Tanzania’s Kilimo Kwanza Strategy. By catalyzing large
volumes of responsible private investment, the initiative
aims to deliver rapid and sustainable agricultural growth,
with major benefits for food security, poverty reduction
and reduced vulnerability to climate change.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
“SAGCOT currently has 53 partners, 56% of whom are private
sector actors, 25% are from civil society and the development
sector, 8% are apex and farmer organizations and 11% are from
the Government of Tanzania. In the first quarter of the year
we have made sure that we reached out to all of our partners
to update them on our strategy and hear about their plans
and activities. Our efforts for the remainder of the year will be
focused on creating more synergies and connections between
our partners.” (http://www.sagcot.com/newsdetails/article//
southern-agricultural-growth-corridor-of-tanzania-list-ofpartners-as-of-may-2014/)
Table 160: TANZANIA’S UNEMPLOYMENT
t Table 161: TANZANIA’S GLOBAL VALUE CHAIN
LINKAGES
t "HSJCVTJOFTT
t 'JTI
t 1PUFOUJBM
- Natural gas
- Tourism
Table 162: TANZANIA REFERENCES AND
RESOURCES
a. Tanzania Investment Centre (TIC) - http://www.tic.co.tz/
b. US State Department - http://www.state.gov/e/eb/rls/
othr/ics/2013/204744.htm
c. East Africa Business Council - http://www.eabc.info
d. The CIA Factbook Tanzania - https://www.cia.gov/library/
publications/the-world-factbook/geos/tz.html
e. Development Partners Group Tanzania –
http://www.tzdpg.or.tz
f. SADC/Tanzania Investment Incentives - http://www.
sadc.int/information-services/tax-database/tanzaniainvestment-incentives/
g. Tanzania’s Development Vision 2025 - http://ncp2015.
go.tz/docs/TDV_2025_AND_LONG-TERM_PERSPECTIVE_
PLAN.pdf
h. SAGCOT: http://www.fanrpan.org/documents/d01252/
SAGCOT_Investment_Blueprint.pdf
i. Africa Economic Outlook 2014 –
www.africaneconomicoutlook.org
49
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Uganda
Table 163: UGANDA QUICK FACTS
SUDAN
YO
NI
KITGUM
MA
YUMBE
MO
KENYA
JU
KOTIDO
AD
ARUA
P A DER
GULU
President:
Lt. Gen. Yoweri Kaguta Museveni
Area:
241,038 sq. km
Capital:
Kampala (1.659 million inhabitants
– 2011)
Main Cities:
Kampala, Gulu, Lira, Mbarara,
Jinja, Bwizibwera, Mbale, Mukono,
Kasese, Masaka
Ports:
Bell (on Lake Victoria)
GDP:
US$54.37 billion (2013)
Population:
35.9 million (July 2014)
Language:
English (official)
Urban Population:
15.6% of total population (2011)
Rate of Urbanization:
5.74% annual change
Currency:
Ugandan Shilling (UGX)
Climate:
Tropical climate, semiarid in
northeast
N EB B I
MOR OTO
DRC
APAC
LIRA
DO
AI
MA SINDI
N
LA
LUWERO
MBALE
IGANGA
TORORO
SIA
JINJA
MUBENDE
Kampala KAMPALA
KAMWENGE
MP IGI
BA
KENYA
WAKISO
MUKONO
RAKAI
BUGIRI
LE
MASAKA
MBARARA
MAYUGE
BU
RI
GI
RUKUN
U
NG
KANU
BUSHENYI
KAPCHORWA
PALLISA
KAMULI
BU
IB
ND
BU
KUMI
LE
KYENJOJO
NAKAPIRIPIRIT
SOROTI
O
KABA
RO
GO
KIBOGA
KIBAALE
SEM
K IS O
KALANGALA
NTUNGAMO
KABALE
R
O
ON
AM
A
KASESE
KA
AS
KAYUNG
U
AK
R
BE
SIRON K
HOIMA
O
GY
K ATAKWI
Figure 23: Map of Uganda
Sp ke
ECONOMIC BRIEF
Uganda has substantial natural resources, including fertile soils, regular rainfall, small deposits of copper, gold, and other
minerals, and recently discovered oil. Uganda has never conducted a national minerals survey. Agriculture is the most important
sector of the economy, employing over 80% of the work force. Coffee accounts for the bulk of export revenues.
In 2013, Uganda saw the consolidation of macroeconomic stability and a gradual recovery of economic activity, with estimates
putting annual real gross domestic product (GDP) growth at 5.2%, up from 2.8% in 2012. This recovery in economic activity
has benefited from a fiscal and monetary policy stance focused on containing inflationary pressures, while ensuring debt and
exchange rate stability, thus providing an enabling macroeconomic environment for growth. Medium-term forecasts indicate a
consolidation of these trends with GDP growth reaching 6.6% in 2014 and 7% in 2015, and improvement of the current account
balance and a mildly expansionary fiscal policy.
Value chain development is receiving increasing attention in Uganda, as a way of developing production capacities and
enhancing value added generation in primary sectors. While Uganda has been relatively successful in tapping into a number
of global value chains, such as those for fish, floricultural and horticultural products, growth prospects in these and other key
product chains face a number of constraints. These consist of high production costs, including transport and energy costs,
as well as weak product-specific policy and institutional frameworks that prevent the provision of adequate support to the
development of selected value chains.
Figure 24: Uganda Real GDP Growth
%
12
Real GDP growth (%)
Eastern Africa (%)
Africa (%)
10
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Source: AfDB, Statistics Department AEO. Estimates
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
50
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 164: UGANDA KEY INDUSTRIES
GDP 2013:
Agriculture
23.1%
Industry
26.9%
Services
50.0%
Agriculture
Coffee, tea, cotton, tobacco, cassava,
potatoes, corn, millet, pulses, cut flowers;
beef, goat meat, milk, poultry
Industries
Sugar, brewing, tobacco, cotton, textiles;
cement steel production
Table 165: UGANDA NATURAL RESOURCES
t 6HBOEBIBTTVCTUBOUJBMOBUVSBMSFTPVSDFTJODMVEJOHGFSUJMF
soils, regular rainfall, small deposits of copper, gold, and
recently there has been the discovery of oil.
t 0UIFSNJOFSBMTGPVOEBSFDPCBMUIZESPQPXFSBOE
limestone, salt and arable land.
Table 166: UGANDA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
23.5
24.1
Table 167: UGANDA TRADE
of which fishing
2.9
3.0
Exports
Mining
0.3
0.4
of which oil
-
-
Manufacturing
7.9
8.8
Electricity, gas and water
4.5
4.2
Construction
13.4
14.6
Wholesale and retail trade, hotels and
restaurants
20.5
23.8
of which hotels and restaurants
4.4
5.7
Transport, storage and communication
6.9
5.3
Finance, real estate and business services
10.2
7.8
Public administration, education, health and
social work, community, social and personal
services
3.3
3.1
Other services
9.6
7.9
Gross domestic product at basic prices /
factor cost
100
100
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
$3.16 billion (2013)
$2.81 billion (2012)
Commodities
Coffee, fish and fish products, tea, cotton,
flowers, horticultural products, gold
Partners
Kenya 12.3%, Rwanda 10.3%, UAE 10.2%,
DRC 9.4%, Netherlands 6.1%, Germany
5.6%, Italy 4.4% (2012)
Imports
$4.86 billion (2013)
$5.19 billion (2012)
Commodities
Capital equipment, vehicles, petroleum,
medical supplies; cereals
Partners
Kenya 15.6%, UAE 15.4%, China 12.8%, India
11.7%, South Africa 4.1% Japan 4% (2012)
Table 168: UGANDA FOREIGN DIRECT
INVESTMENT
t 'PSFJHO&YDIBOHF3FTFSWFTCJMMJPO%FDFNCFS
2013 est.)
t 'PSFJHO&YDIBOHF3FTFSWFTCJMMJPO%FDFNCFS
2012 est.)
51
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 169: UGANDA SELECTED INVESTMENT
PRIORITIES
early years of their investment.
t *OPSEFSUPQSPNPUFFYQPSUPSJFOUFENBOVGBDUVSJOH
investment, the Government of Uganda (GOU) included
several tax incentives in the 2008/2009 budget. These
included a removal of the import duty on plant and
machinery imports, as well as for schools, hotels, hospitals,
agro-processors, and heavy truck transporters.
t 5IF(06BMTPQSPWJEFTBZFBSUBYIPMJEBZGPSJOWFTUPST
engaged in export-oriented production and, if the
investment is located more than 25 km away from Kampala,
for agro-processing investors. In the 2009/2010 budget
some of these incentives were enhanced and others were
introduced.
t *NQPSUEVUZPOUSVDLTXJUIBDBSSZJOHDBQBDJUZPGBUMFBTU
5 tons was reduced from 25% to 10% and trucks with a
minimum capacity of 20 tons now have no import duty.
Taxes on spare industrial parts were removed as was duty
on insulated milk tanks.
Agriculture
Coffee and bananas, tea, cotton, tobacco,
cereals, oilseeds, fresh and preserved fruits,
vegetables and nuts, essential oil, flowers
and sericulture (silk).
Fisheries
This is the second-highest foreign
exchange earner for Uganda.
Forestry
With over 4.9 million hectares of rich
forest vegetation, Uganda possesses
abundant potential areas like timber
processing for export, manufacture of
high quality furniture/wood product and
various packaging materials. There are
also opportunities in afforestation and
reforestation, especially of medicinal trees
and plants, and soft wood plantations for
timber, pulp and poles.
Manufacturing
Manufacturing has also been expanding
by more than 10% annually over the last
eight years. Opportunity areas range
from beverages, leather, tobacco based
processing, paper, textiles and garments,
pharmaceuticals, fabrication, ceramics,
glass, fertilizers, plastics/PVC, assembly of
electronics goods, hi-tech and medical
products.
The Law Reform Commission has proposed draft legislation
on investment incentives, but further steps have not been
approved. The draft legislation would include an exemption
on withholding tax on interest on external loans, repatriation
of dividends to provide relief from double taxation,
exemptions from duty on raw materials, and a waiver of
export tax. Foreign investors should consult the UIA and
carefully evaluate depreciation allowances by region and subsector prior to investing.
ICT
Opportunities in ICT include establishment
of information and communication
infrastructure and broadband services,
business process outsourcing services,
computer and related facilities on
international standards, ICT business
services incubation, hardware repair
training facilities, software development
niches, setting up information technology
virtual zones (ITVZ), and setting up internet
service provider facilities in other parts of
Uganda.
The GOU will often work with foreign investors to provide
additional incentives, including further tax reductions,
government subsidies, or the provision of land. (US
Department of States: 2011 Investment Climate Statement –
March 2011 report)
Table 170: UGANDA INVESTMENT INCENTIVES
Uganda’s fiscal incentive package for both domestic and
foreign investors provides generous capital recovery terms,
particularly for medium and long-term investors whose
projects entail significant plant and machinery costs and
involve significant training.
t *O,BNQBMBPGBMMPXBODFTGPSQMBOUTBOENBDIJOFSZ
and 100% of training costs are deductible on a one-time
basis from a company’s income.
t "SBOHFPGBOOVBMEFEVDUJCMFBOEEFQSFDJBUJPOBMMPXBODFT
also exist, resulting in investors normally paying
substantially less than the 30% corporate tax rate in the
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
52
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 171: UGANDA SELECTED PRIORITY
PROJECTS
Development of Mwambani Port in Tanga, Musoma
Port and New Kampala Port at Bukasa: The project is
intended to provide a multi modal link to the Great Lakes
Region and a link between Uganda and the port of Tanga
in Tanzania. Components will include the provision of
roll on - roll off facilities at Bukasa to link with those in
Tanga. A feasibility study and detailed engineering design
has commenced. Estimated cost is US$ 825 million.
Development Partners could be AfDB, Trademark EA, or
South Korea’s Economic Development Cooperation Fund
(EDCF) that seeks successful PPP projects.
II. Development of the Navigability of the Akagera River:
This will link Rwanda, Burundi, Uganda and Tanzania
through Lake Victoria. Pre-feasibility studies have been
undertaken. The estimated cost is US$ 2.0 billion.
III. 180 MW Isimba HPP and 132 kV Isimba Interconnection
Line Project: Detailed feasibility study and RAP have been
completed. Preliminary engineering designs and tender
documents expected. The estimated cost is US$ 600
million. The required financing is yet to be sourced and
the IPP is proposed as an option. Estimated completion
time is 2014-16.
IV. 600 MW Ayago HPP and 400 kV Ayago Interconnection
Line: A feasibility study and engineering designs are in
progress. Estimated cost is around US$ 2.1 billion and the
project time frame is 2014– 2020.The Project will be a PPP.
I.
Table 172: UGANDA MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t $0.&4"o$PNNPO.BSLFUPG&BTUFSOBOE4PVUIFSO"GSJDB
t &"$o&BTU"GSJDBO$PNNVOJUZ
t *("%o*OUFSHPWFSONFOUBM"VUIPSJUZPO%FWFMPQNFOU
Table 173: ACTIVE DEVELOPMENT PARTNERS IN
UGANDA
t
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
$BOBEJBO*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ$*%"
%FONBSL&NCBTTZ%"/*%"
6,%FQBSUNFOUGPS*OUFSOBUJPOBM%FWFMPQNFOU%'*%
&VSPQFBO6OJPO&6
/FUIFSMBOET%FWFMPQNFOU"HFODZ4/7
4XJTT%FWFMPQNFOU$PSQPSBUJPO4%$
6/4ZTUFN6/
64"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU64"*%
8PSME#BOL8#
Table 174: NGOS/ CHARITABLE INITIATIVES IN
UGANDA
t "HFODZGPS5FDIOJDBM$PPQFSBUJPOBOE%FWFMPQNFOU
(ACTED)
t %BO$IVSDI"JE%$"
t 5IF*OTUJUVUFGPS*OUFSOBUJPOBM$PPQFSBUJPOBOE
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Development (C&D)
t $PPQFSB[JPOFF4WJMVQQP$&4
t $PNNVOJUZ*OJUJBUJWFGPS1SFWFOUJPOPG)*7"*%4$*1"
t $IVSDIPG6HBOEBo1SPHSBNGPS%FWFMPQNFOU3FMJFG
(COU-PDR)
t $IVSDIPG6HBOEBo,BSBNPJB%JPDFTF%FWFMPQNFOU
Services (COU-KDDA)
t $BOBEJBO1IZTJDJBOTGPS"JETBOE3FMJFG$1"3
t -VUIFSBO8PSME'FEFSBUJPO-8'
t 5IF.PSPUP/BLBQJSJQJSJU3FMJHJPVT-FBEFST*OJUJBUJWFGPS
Peace (MONARLIP)
t 3BLBJ$PVOTFMMPST"TTPDJBUJPO3","
t 3BLBJ$PNNVOJUZCBTFE"*%40SHBOJ[BUJPO3"$0#"0
t 5IF3FQSPEVDUJWF&EVDBUJWFBOE$PNNVOJUZ)FBMUI
Program (REACH)
t 4PSPUJ$BUIPMJD%JPDFTF*OUFHSBUFE%FWFMPQNFOU
Organization (SOCADIDO)
t $BSUJBT.PSPUP4PDJBM4FSWJDFTBOE%FWFMPQNFOU44%
t 5SBOTDVMUVSBM1TZDIPTPDJBM0SHBOJ[BUJPO510
t 6HBOEB$IBOHF"HFOU"TTPDJBUJPO6$""
t 6HBOEB%FCU/FUXPSL6%/
t 6HBOEB+PJOU$ISJTUJBO$PVODJM6+$$
t 6HBOEB-BOE"MMJBODF6-"
t 6HBOEB8PNFO/FUXPSL680/&5
Table 175: UGANDA’S UNEMPLOYMENT
t Table 176: UGANDA’S GLOBAL VALUE CHAIN
LINKAGES
t
t
t
t
'MPSJDVMUVSFBOE)PSUJDVMUVSF
$PõFF
'JTI
1PUFOUJBM
- Dairy
- Gas
- Beef
- Minerals
- Beans
- Maize
Table 177: UGANDA REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. AFDB – www.afdb.org
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. UIA – www.ugandainvest.go.ug
e. World Bank – www.worldbank.org
f. IFC: Doing Business – www.doingbusiness.org
g. US Department of State: 2011 Investment Climate
Statement - http://www.state.gov/e/eb/rls/othr/
ics/2012/191256.htm
53
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Zambia
Table 178: ZAMBIA QUICK FACTS
TANZANIA
L u f bu
A
UL
LUAP
COPPERBELT
N
h
n
g
R
E
i
Chipata
T
Lusaka
R
A
L
A
LUSAKA
E
I
Mongu
E
c
S
M
u
T
Ndola
o
a
W
L A
M A
ANGOLA
Kabwe
MOZAMBIQUE
WESTERN
SOUTHERN
ZIMBABWE
Livingstone
NAMIBIA
752,614 sq. km
Capital:
Lusaka (1.802 million inhabitants
– 2011)
Main Cities:
Lusaka, Chingola, Kitwe,
Livingstone, Ndola, and Siavonga
GDP:
US$25.47 billion (2013)
Population:
14.64 million (July 2014)
Language:
English (official)
Urban Population:
39.2% of total population (2011)
Rate of Urbanization:
4.15% annual change
Currency:
Zambian Kwacha (ZMK)
Climate:
Tropical climate
i
a
n
u
M
Solwezi
C
Area:
n
N O R T H E R N
Mansa
NORTHWESTERN
Michael Chilufya Sata*
s
Kasama
t
CONGO
N
DEMOCRATIC
REPUBLIC
OF THE
President:
*On July 24, 2014 –The Joint Chiefs of Staff took
over Presidential decision - making powers due to
President Sata’s age related mental illness.
BOTSWANA
Figure 25: Map of Zambia
ECONOMIC BRIEF
Zambia’s economy has experienced strong growth in recent years, with real GDP growth in 2005-2013, more than 6% per year,
and economic growth was 6.5% in 2013, down from the previous year, mainly due to a fall in agricultural output, particularly
maize and cotton. The growth in real GDP has largely been driven by manufacturing, mining, construction, transport,
communications and the public sector. Copper remains the country’s mainstay, contributing about 70% to export earnings.
However, over the last few years, non-traditional exports have grown substantially. Economic performance in the medium
term is expected to remain strong. Real GDP growth is projected to increase to 7.1% and 7.4% in 2014 and 2015, respectively.
Infrastructure investment, especially in mining, power generation and roads, with the Link 8000 project, will ensure that growth
remains robust.
Manufacturing accounted for about one-tenth of GDP in 2013. The country is landlocked and is constrained by high costs of
transport, which add up to 40% of the cost of the final product. The extractive industry is the main exporter in the country
and has potential for upstream value chain development. The competitiveness of downstream activities may be constrained
given the distance from the main markets for copper products. Food and beverages account for more than two-thirds of
manufacturing value add. A growing market in the Katanga Province in the south of the Democratic Republic of Congo (DRC)
fuelled by mining activity offers opportunities for Zambian firms and farmers. Another potential consumer market is South Kivu,
also in the DRC, which is accessible from Mpulungu Port on Lake Tanganyika.
The main areas of policy focus are creating employment opportunities for the majority of Zambians (especially the youth),
improving accountability and strengthening the fight for increased transparency. The government will also focus on
strengthening fiscal management in an effort to narrow the fiscal deficit, which doubled in 2013 due to expansion of
infrastructure spending and an increase in public sector wages.
Figure 26: Zambia Real GDP Growth
%
9
Real GDP growth (%)
Southern Africa (%)
Africa (%)
7
5
3
1
-1
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(e)
2014(p)
2015(p)
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
54
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 181: ZAMBIA GDP BY SECTOR
2008 2012
Agriculture, hunting, forestry, fishing
21.2
17.7
of which fishing
1.0
0.5
Mining
3.9
2.2
-
-
Manufacturing
10.1
8.2
Electricity, gas and water
3.0
3.0
Construction
17.2
29.1
Wholesale and retail trade, hotels and
restaurants
19.8
15.1
of which hotels and restaurants
3.1
1.9
Transport, storage and communication
4.4
3.9
Finance, real estate and business services
9.8
9.2
Public administration, education, health and
social work, community, social and personal
services
2.8
2.9
Source: AfDB, Statistics Department AEO. Estimates
Other services
7.9
8.8
Table 179: ZAMBIA KEY INDUSTRIES
Gross domestic product at basic prices /
factor cost
100
100
of which oil
GDP 2013:
Agriculture
Industries
Agriculture
19.8%
Industry
33.8%
Services
46.5%
Corn, sorghum, rice, peanuts, sunflower
seeds, vegetables, flowers, tobacco, cotton,
sugarcane, cassava, coffee, cattle
Table 182: ZAMBIA TRADE
Exports
$9.414 billion (2012)
Commodities
Copper/cobalt; electricity; tobacco;
flowers; cotton; ores; dairy products; edible
products; slag and ash; bird’s eggs; copper
wire; sugar and sugar confectionery; natural
honey
Partners
China 43.4%, South Africa 7.2%, DRC 6.7%,
South Korea 5.4%, India 4.7%, UAE 4.3,
Egypt 4.1% (2012)
Imports
$8.216 billion (2013)
Copper mining and processing, emerald
mining, construction, foodstuffs, beverages,
chemicals, textiles, fertilizers, horticulture
Table 180: ZAMBIA NATURAL RESOURCES
Large resource endowment of land, water and labor:
t 5PUBMMBOEBSFBNJMMJPOIFDUBSFTTRLN
PG
which 58% is classified as medium to high potential for
agriculture production.
t "GSJDBTMBSHFTUQSPEVDFSPGDPQQFSBOEDPCBMU$PQQFS
production has increased from 575,000 to 665,000 to 700,
00 metric tonnes, in 2008, 2009 and 2010 respectively,
due to increased utilization facilitated by the international
markets.
t 1SJNFUPVSJTNEFTUJOBUJPOJO"GSJDBOBUVSBMUPVSJTNBTTFUTo
waterfalls, lakes, and rivers holding about 35% of Southern
Africa’s water, ‘wildlife protected areas’, and a tropical climate
year round.
t )PNFPG7JDUPSJB'BMMTPOFPGUIF4FWFO/BUVSBM8POEFSTPG
the World.
t ;BNCJBTSJDIBOEEJWFSTFDVMUVSFUIFSFBSFDPMPSGVM
traditional ceremonies annually.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
$8.547 billion (2013)
$7.961 billion (2012)
Commodities
Transportation equipment, petroleum
products, electricity, fertilizer, foodstuffs,
clothing; mineral fuels; machinery and
mechanical appliances; oil and oil products;
equipment parts; boilers; electrical
machinery
Partners
South Africa 36.7%, DRC 19.8% China 10.4%,
Kuwait 6% (2012
55
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 183: ZAMBIA FOREIGN DIRECT INVESTMENT
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTCJMMJPO
December 2013)
t 'PSFJHO&YDIBOHFBOE(PME3FTFSWFTCJMMJPO
December 2012)
Table 184: ZAMBIA SELECTED INVESTMENT
PRIORITIES
Zambia’s Sixth National Development Plan (SNDP) 2011 –
2015 is the successor to the Fifth National Development Plan
(FNDP), which was set to improve economic infrastructure
and invest in human development, and aims to build on the
gains of the FNDP. Both development plans are aligned with
Zambia’s Vision 2030, the long-term development strategy
aimed at a prosperous middle-income nation by 2030.
The theme of SNDP is “Sustained economic growth
and poverty reduction”; therefore, the strategic focus is
“infrastructure and human development”. While recognizing
the importance of balanced growth in all sectors of the
economy, the SNDP priority growth sectors are: agriculture,
livestock and fisheries, mining, tourism, manufacturing, and
commerce and trade. During the SNDP period, investment
in rural areas will be an important factor in increasing
employment and reducing poverty. Thus, the SNDP promotes
increased rural investment in infrastructure such as roads, rail,
ICT, energy, water and sanitation, education, and health as
well.
Table 185: ZAMBIA INVESTMENT INCENTIVES
Investment Incentives:
t "DPSQPSBUFUBYSBUFPGGPSZFBSTGSPNDPNNFODFNFOU
of operations.
t 5BYBUJPOPOPOMZPGQSPmUTJO:FBSUISPVHI:FBSGSPN
commencement of operations, and only 75% for Years 9
and 10.
t :FBSFYFNQUJPOPOEJWJEFOEUBYFTGPMMPXJOHUIFmSTUZFBS
of declaration.
t :FBSDVTUPNTEVUJFTFYFNQUJPOPOJNQPSUFENBDIJOFSZ
and equipment.
t *NQSPWFNFOUBMMPXBODFPGDBQJUBMFYQFOEJUVSFPO
improvements or upgrading of infrastructure.
Table 186: ZAMBIA SELECTED PRIORITY PROJECTS
I. Expansion of Irrigation Schemes in Farm Blocks:
Comprises of 4 components: Farm survey and
demarcations of 85,000 ha; infrastructure development;
capacity building; and project management. The farm
block concept will commercialize smallholder farmers and
link them to commercial markets. AfDB project seeking
PPP.
II. The Kalungwishi Hydro Power project is a 210MW
greenfield project in Zambia scheduled for commissioning
in 2016. A prefeasibility study was done in order to
proceed; EIA (1993, updated in 2009) need to be
revisited. ZRA secured finance for feasibility study in
2013 and invited Expressions of Interest (EoIs) from
interested companies and/or consortia with experience
in developing large scale hydropower projects on BuildOperate-Transfer (BOT) basis. This project is supported by
SADC.
III. Kafue Gorge Lower: This project entails the construction
of a dam and 750 MW hydro power plant below an
existing dam along the Kafue River. A feasibility study has
been done and EoI for IPPs to develop the project has
been advertised. This project is supported by SADC.
Table 187: ZAMBIA MEMBERSHIP IN REGIONAL
ECONOMIC COMMUNITY (IES)
t 4"%$o4PVUIFSO"GSJDBO%FWFMPQNFOU$PNNVOJUZ
t $0.&4"o$PNNPO.BSLFUPG&BTUFSOBOE4PVUIFSO"GSJDB
Investment Guarantees:
t *OWFTUNFOUHVBSBOUFFTBOEQSPUFDUJPOBHBJOTUTUBUF
nationalization through Certificate of Registration for your
investment under ZDA Act of 2006;
t (VBSBOUFFTUISPVHI;BNCJBTQBSUJDJQBUJPOJOUIF8PSME
Bank Group’s Multilateral Investment Guarantee Agency;
and
t .FNCFSPGUIF*OUFSOBUJPOBM$POWFOUJPOPOUIF4FUUMFNFOU
of Investment Disputes.
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
56
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
Table 188: ACTIVE DEVELOPMENT PARTNERS IN
ZAMBIA
t
t
t
t
t
t
t
t
t
t
t
t
t
"GSJDBO%FWFMPQNFOU#BOL"G%#
"GSJDBO)VNBOJUBSJBO"DUJPO")"
"VTUSBMJBO"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU"VE"*%
&VSPQFBO6OJPO&6
(FSNBO%FWFMPQNFOU"HFODZ(*;
*SJTI"JE*"
*OUFSOBUJPOBM'JOBODF$PSQPSBUJPO*'$
*OUFSOBUJPOBM.POFUBSZ'VOE*.'
4XFEJTI*OUFSOBUJPOBM%FWFMPQNFOU"HFODZ4*%"
/FUIFSMBOET%FWFMPQNFOU0SHBOJ[BUJPO4/7
6,%FQBSUNFOUGPS*OUFSOBUJPOBM%FWFMPQNFOU%'*%
6/4ZTUFN6/
6OJUFE4UBUFT"HFODZGPS*OUFSOBUJPOBM%FWFMPQNFOU
(USAID)
t 8PSME#BOL8#
Table 189: NGOS/ CHARITABLE INITIATIVES IN
ZAMBIA
t
t
t
t
t
#JMMBOE.FMJOEB(BUFT'PVOEBUJPO#.('
0YGBN
$"3&*OUFSOBUJPOBM$"3&
7JTJPO;BNCJB7;
8PSME7JTJPO*OUFSOBUJPOBMo;BNCJB87*
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)
Table 190: ZAMBIA’S UNEMPLOYMENT
t Table 191: ZAMBIA’S GLOBAL VALUE CHAIN
LINKAGES
t
t
t
t
$PQQFS
"HSJDVMUVSF4VHBS
-JWFTUPDLo#FFG%BJSZ
1PUFOUJBM
- Leather
- Vegetables
- Power gas transmission
- Gas-to-liquids
Table 192: ZAMBIA REFERENCES AND RESOURCES
a. African Economic Outlook –
www.africaneconomicoutlook.org/en
b. ZDA – www.zda.org.zm
c. CIA Factbook – www.cia.gov/library/publications/theworld-factbook
d. AFDB – www.afdb.org
e. Republic of Zambia: Sixth National Development Plan
2011 – 2015- http://siteresources.worldbank.org/
INTZAMBIA/Resources/SNDP_Final_Draft__20_01_2011.
pdf
57
Volume 2– Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories
References
Selected Publications
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
African Economic Outlook 2013
African Economic Outlook 2012
African Economic Outlook countries
CIA World Fact Book 2014
KPMG Africa Banking Survey 2012
KPMG Africa Reports
KPMG Angolan Banking Survey 2012
EY Africa Investment Attractiveness Survey 2012 & 2013
UNCTAD World Investment Report 2014
Harnessing Oil for Peace Development in Africa/Uganda –
(Investing in Peace – International Alert September 2009)
World Bank: World Bank Guarantee Program for
the Consultation of “Modernising the World Bank’s
Operational Policy on Guarantees” – January 2012
World Bank: Facilitating Cross-Border Trade between the
DRC and Neighbors in the Great Lakes Region of Africa:
Improving Conditions for Poor Traders – January 2011
GEF Impact Evaluation: Reducing Biodiversity Loss at CrossBorder Sites in East Africa Project – September 2007
Competitiveness and Investment Climate Strategy (CICS):
Progress Report on the Implementation of the Doing
Report I Uganda/Reform Memo – 2009
ICGLR: The ICGLR RINR and other Certification
Mechanisms in the Great Lakes Region (Special Report)
JICA: The Research on the Cross-Border Transport
Infrastructure: Phase 3
UNDP: Millennium Development Goals: Drivers on MDG
Progress in Uganda and Implications for the Post – 2015
Development Agenda (Progress Report) – September 2013
6.
7.
8.
9.
10.
11.
12.
13.
Selected Digital Documents
1.
2.
3.
4.
5.
IFP Regional Cooperation on Environment, Economy and
Natural Resources Cluster
http://www.initiativeforpeacebuilding.eu/pdf/Regional_
Cooperation_in_the_Great_Lakes_region.pdf
Regional Cooperation in the Great Lakes – http://www.
initiativeforpeacebuilding.eu/pdf/Regional_Cooperation_
in_the_Great_Lakes_region.pdf
UNECA/AU: Status of Integration in Africa (SIA IV) 2013
http://ea.au.int/en/sites/default/files/SIA%202013(latest)_
En.pdf
UNECA / AU: Toward Sustainable Tourism Industry in
Africa: UNECA SRO-EA Tourism Study – 2011
http://www.uneca.org/sites/default/files/publications/
uneca-sro-ea-tourism-study-report-2011.pdf
DMA Angola Report: Investing in Angola – 2012
http://www.developingmarkets.com/sites/default/files/
14.
15.
16.
digital-reports/dma-angola-report-2012/files/assets/
basic-html/page24.html
PwC: Africa Oil and Gas Review 2013
http://www.pwc.co.za/en_ZA/za/assets/pdf/africa-oiland-gas-review-2013.pdf
Kenya National Tourism Strategy: 2013 – 2018
http://www.tourism.go.ke/ministry.nsf/doc/national%20
tourism%20srategy%202013_2018.pdf/$file/national%20
tourism%20srategy%202013_2018.pdf
SADC_MAPP_Programme_Document-_April_08.pdf –
April 2008
http://www.sadc.int/documents-publications/
show/SADC%20Multi-country%20Agricultural%20
Productivity%20Programme%20%28MAPP%29%20
Document
Espirito Santo Research – Research Sectoral
http://www.bes.pt/SiteBES/cms.aspx?plg=8c927089-acf840ff-b2db-de582abe56b1
UN Economic Council: Report on Africa’s Regional
Integration Agenda – February 2013
http://www.uneca.org/sites/default/files/page_
attachments/report-on-africa-regional-integrationagenda.pdf
Policy Monitoring and Research Centre (PMRC) – The
State of the Energy Sector in Zambia – Oct 2013
http://pmrcblog.files.wordpress.com/2013/10/the-stateof-the-energy-sector-in-zambia.pdf
Zambia Development Agency: Energy Sector Profile –
June 2013
http://www.zda.org.zm/sites/default/files/Zambia%20
Energy%20Sector%20Profile%20-%20June%202013.pdf
USAID: Audit of USAID / Sudan’s Modern Energy Services
Program
http://oig.usaid.gov/sites/default/files/audit-reports/4650-11-003-p.pdf
Rwanda Development Board: The Opportunity in Rwanda
/ Energy - 2012
http://rdb.rw/investinrwandaenergy/energy/Energy_
Brochure_2012_final.pdf
African Development Bank (AfDB): Country Development
Paper/ DRC – June 2013
http://www.afdb.org/fileadmin/uploads/afdb/
Documents/Project-and-Operations/Democratic%20
Republic%20of%20Congo%20-%202013-2017%20-%20
Country%20Strategy%20Paper.pdf
Africa Infrastructure Country Diagnostic: East Africa’s
Infrastructure: A Regional Perspective
http://www.infrastructureafrica.org/system/files/
library/2012/02/REC%20East%20Africa.pdf
17. Africa Investor (article) Al Abbas Transport Expands
Network to Sudan – January 2014
http://www.africainvestor.com/article.asp?id=12635
Investing in the Great Lakes Region: An Investment Opportunities Brief (IOB)