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Democratic Republic
of Congo
Guide on doing business in the DRC
Investing in the DRC’s business and investment potential: With growth predicted at 8.7%
in 2014, the DRC has confirmed its lift – off and proven that its economic potential is one
of the strongest in Africa.
DEMOCRATIC REPUBLIC OF CONGO
COUNTRY BRIEFING 2015
1. BACKGROUND
Established as a Belgian colony in 1908, the then Republic of the Congo gained its
independence in 1960, but its early years marred by political and social instability.
Ethnic strife and civil war, touched off by a massive inflow of refugees in 1994 from
fighting in Rwanda and Burundi, led in May 1997 to the topping of the Mobutu regime
by a rebellion backed by Rwanda and Uganda and fronted by Laurent Kabila. Laurent
Kabila was assassinated in January 2001 and his son Joseph Kabila was named Head
of State. A transitional government was set up in July 2003. DRC has a population of
approximately 77 million. The life expectancy rate is low because of higher infant
mortality, higher death rates, lower population growth rates and diseases such as
AIDS.
The country is ethnically diverse, there are about 400 ethnic groups in the DRC
although there are four main ones namely; Mongo, Luba, Kongo and MangbetuAzande. Acess to education in DRC remains poor, with up to seven million children
across the vast country out of school-despite a 2010 government decision to make
primary education free. The country is struggling to overcome the effects of wars that
raged between 1996 and 2003, compounded by continuing violence in the east of the
country and decades of corruption and poor governance. There is a high risk of major
infectious diseases in the DRC. Many people do not have access to safe water and
sanitation and the fact that there is no health insurance in the DRC.
2. FACT SHEET
QUICKFACTS
Population
77 433 744 mil (2014)
Area
2, 344. 858
Capital
Kinshasa
Official language
French
Border countries
Angola, Burundi, Central African
Republic, Rwanda, South Sudan,
Tanzania
GDP growth rate
7.2%
GDP per capita
$400
RSA export composition to DRC
Machinery 39%, Base Metals,
30%, Mineral Products
14%,
Plastic Articles 9%, Vehicles,
Aircrafts, Vessels 8%
RSA import composition to DRC
Base
Metals
Products
25%,
Mechanical
45%,
Mineral
Machinery
Appliances
&
12%,
Vehicles & Aircraft 11% and
Natural or cultured pearls 7%
3. ECONOMY OVERVIEW
The DRC is the largest country in Central Africa, with a population of approximately
77 million people. It is not only strategically located at the center of Africa but has great
growth potential, based mainly on its vast natural resources, which include abundant
mineral wealth and the world’s second biggest rainforest. The economy of DRC is
predominantly agriculture based; this sector has shown some growth potential but has
underperformed due to inappropriate economic policies, inadequate infrastructure as
well as the unavailability of finance to pay for critical farming inputs.
GDP growth speeded up in 2012 to 7.2%, from 6.9% in 2011, driven by vigorous
performances in mining, trade, agriculture and construction, despite the political
situation and lawlessness in the eastern provinces. The economy continued to expand
in 2013 (8.2%) but it was mostly dependent on political stability, better security in the
east and continuing structural reforms. The monetized sector of the economy is
dominated by the export of natural resources especially mining. The combined effects
of investment in the extractive industries in recent years, the new agricultural drive,
and of the upgrading of infrastructure (especially introduction of fibre-optic cables)
could push overall growth to 8.2% in 2013 and could push 8.7% in 2014.
A start to production by new mining firms (Banro, Kibali Gold and Rand Gold) could
also play a role in stimulating the economy. Copper output exceeded 600 000 tonnes
in 2013 and has the potential to reach about 1 million in 2014, while gold production
was estimated at 2 tonnes in 2013 and 14 tonnes in 2014. The healthy mining sector
should boost other parts of the economy. These forecasts depend on world mineral
prices and the security situation in the east of the country. Continued fighting may
undermine business confidence and slow down activity because of the pressure of
military spending on public finances. Poor energy supplies and a resulting timid
business climate could undermine macroeconomic stability.
Mining is potentially the largest sector but due to a number of problems, it has been
unable to reach its full potential and contribute substantially to GDP. Mining exports
(in terms of both volume and value) are forecast to continue to rise in 2014-15 as
increased production comes on stream in Katanga and copper prices remain relatively
stable amid high demand from China. Despite falling prices, officially recorded gold
exports will also rise, in terms of both volume and value, supported by rising output at
the Twangiza mine operated by Banro (Canada) and the coming on stream of the
company's Namoya project, as well as the start of production which was started in
September 2013 at Kibali mine, owned by Randgold Resources (UK).
The majority of the copper mined in the DRC is processed domestically; this, together
with slack enforcement, means that the copper-concentrate export ban that is due to
enter into force in 2014 will only have a limited impact on export growth.
South Africa’s exports to the DRC stood at a high in 2013 – making the DRC to be
ranked amongst South Africa’s top-ten largest key trading partner in the continent.
Import volumes will also rise over the period, driven in part by strong demand for
intermediate and capital goods for foreign-financed mining and infrastructure projects.
There is a lack of skilled local service providers, and the deficit on the services account
will rise in line with growing demand from mining companies and infrastructure
developments.
International debt relief has greatly eased the DRC's debt-servicing requirements,
although this will be offset in the income balance by mining companies' increased profit
repatriation. International concerns about governance will continue to limit the funding
received from donors. The lack of proper transport infrastructure is also holding
growth in other sectors of the economy. Moreover, given the country’s size and
significant economic potential, a reliable transport infrastructure is essential for
economic development and growth. We forecast that the current-account deficit will
widen gradually from an estimated 8.2% of GDP in 2013 to 9.4% of GDP in 2015 as a
rising trade surplus is offset by fast-growing service imports and profit repatriation.
Volatile commodity prices—particularly of copper—and intermittent power supply
(which hampers mining output) pose considerable downside risks to this forecast and
could moderate export growth. The deficits will mainly be financed by foreign direct
investment inflows in the mining and construction sectors.
Despite the decline in the economic performance on most of the strategic sectors
during the 2008-09 period by recession. In 2010, the DRC economy had shown some
signs of recovery with the contribution of the sectors to the GDP having improved.
Below is the reflection of the sectors performance during the 2013 period in
percentages.
Business Environment and Private Sector Development
Despite some progress, major constraints remain to increased private sector
investment in the productive sectors. Procedures and transaction costs have been
simplified through: (i) reduction in the time taken to start a business and dealing with
construction permits; (ii) the establishment of a one-stop-shop for customs formalities;
(iii) a reduction in the number of taxes on companies from 118 to 30; and (iv)
operationalization of commercial courts to simplify the execution of contracts and the
settlement of trade disputes. In July 2012, DRC also completed its accession to
OHADA, an important step towards ensuring greater protection for investors.
However, the business environment provides few incentives as clearly confirmed in
the Study on Investment Constraints in DRC. The study conducted by the African
Development Bank in 2012 explains the reasons for the low level of private investment
by:
(i)
(ii)
(iii)
(iv)
the absence of a conducive environment for private initiatives especially
taxation, legal insecurity and relative quality of labour and SME financing;
the huge infrastructure gap (transport and energy) and inefficiency of logistic
services result in major additional economic costs;
the weakness of public governance; and
the weakness of private sector promotion and public-private dialogue. To
remove these constraints, the study states that the upgrading of
infrastructure and improvement of its management, the strengthening of
vocational training, improved SME financing and the deepening and
institutionalization of dialogue between government and private sector
representatives will be crucial.
These constraints explain the country’s low ranking in Doing Business 2013 (44th out
of 46 countries in sub-Saharan Africa, and, overall, 181st out of 185, compared to
178th out of 183 in 2012 and 176th out of 183 in 2011), as well as the absence of a
buoyant SME sector, which only comprises 9000 formally-established enterprises.
Among its neighbours, only Chad and the Central African Republic performed worse
than DRC.

Financial Sector and Dollarization of the Economy
Despite the development of banking activities over the last few years, DRC’s financial
sector remains embryonic. It mainly comprises 20 commercial banks (only 11 in 2008)
offering a limited range of financial instruments. The sector’s assets only amount to
USD 2.6 billion and barely 1% of the population has access to banking services
compared to an average of 6% in Central Africa. This figure is rising rapidly due to the
number of civil servants with bank accounts, the expansion of branch networks in
towns and the introduction of on-line banking services. The average equity capital per
establishment does not exceed USD 12 million. Against this backdrop, access to
financing remains difficult, in particular for SMEs. Commercial bank credit represents
7% of GDP, one of the world’s lowest rates. These banks pursue an extremely prudent
policy and bad debts only represent 3% of outstanding claims on the private sector
despite the difficult environment. Moreover, credits granted are dominated by shortterm loans which represent 66%, with sight deposits in foreign exchange accounting
for 70% of commitments. Therefore, it is not possible to satisfactorily renew and
expand the productive apparatus under these conditions. Micro-finance institutions are
developing rapidly.
The main feature of the Congolese economy remains the dominance of the American
dollar as a measuring instrument, means of payment and as a store of value.
According to the Central Bank, almost 90% of bank deposits are denominated in
American dollars, while at least 95% of credits are granted in the same currency. The
Government has already taken measures to ‘de-dollarize’ the economy, especially by
issuing new bank notes with a high face value and the requirement to show prices in
local currency. Also, the payment of taxes in CDF is encouraged by the tax services.

Regional Integration and Trade
Despite its central geostrategic positioning in the region, the country has not yet been
able to take advantage of the benefits of regional integration. DRC has a major role to
play in the region because of its geostrategic position with 9 neighbouring countries,
and its membership of four regional economic communities. Despite the advantages
of this positioning and the increased liberalization of international trade, the country’s
trade integration performance remains weak, with Africa’s share in DRC exports
representing less than 10% of the country’s total trade in terms of value. The poor
state of port, electricity and road interconnection infrastructure, the inefficiency and
high cost of transport services and vast amount of red-tape and levies imposed by a
plethora of institutions prevent the realization of the benefits of regional integration.
These obstacles to cross-border trade have made these exchanges the slowest,
costliest and riskiest on the continent. On average, cross-border procedures take 44
days for exports and 63 days for imports, i.e. respectively 12 and 15 days longer than
the average for the other sub-Saharan African countries. The average costs by
container are about USD 3,500 - well above the average for the other countries of the
continent.
Figure: 1. Contribution to GDP by Sectors 2013
GDP COMPOSITION BY SECTOR 2013
44.3
34
21.7
AGRICULTURE
INDUSTRY
SERVICES
4. BILATERAL INVESTMENT TREATIES
The U.S, Germany, France, Belgium, Italy, South Korea and China have signed
bilateral investment agreement with the DRC. South Africa and India currently have
their BIT’s under review. Lebanon, Ivory Coast and Burkina Faso have negotiated,
but not signed yet with DRC. South Africa has entered into a Memorandum of
Understanding on Bilateral Economic Development with the DRC.
5. INTERNATIONAL ASSOCIATIONS
DRC participates in the following international organisations:
ACCT
ACP
AfDB
AU
CEPGL
COMESA
FAO
G24
G-77
IAEA
IBRD
ICAO
ICCt
ICRM
IDA
IFC
IFRCS
IHO
ILO
IFAD
IMF
IMO
Interpol
IOC
IOM
IPU
ISO
ITSO
ITU
ITUC
MIGA
NAM
OIF
OPCW
PCA
SADC
UN
UNCTAD
UNESCO
UNHCR
UNIDO
UNWTO
UPU
WCL
WCO
WFTU
WHO
WIPO
WMO
WTO
6. DRC COUNTRY SWOT ANALYSIS
STRENGTH
-
Centrally located within Africa
-
Rich in Minerals and natural
WEAKNESSES
-
Poor infrastructure and
telecommunications
resources
-
Poor level of education
-
International funder support
-
Language barriers
-
Prospects for economic growth and
-
Inadequate legislative environment
exports
-
Cash based-informal economy
Foreign exchange reserves are
-
No investment policy other than
-
rising steadily
mining
-
Difficulty in getting reliable
information
-
Reliant on imports as no strong local
industry
OPPORTUNITIES
-
-
-
-
THREATS
Hydroelectric potential development
-
Fragile political environment
in the Congo River
-
Ethical tension
Mining industry not developed to its
-
Social factors may impede
full potential
development (human rights
Development of skills and labour
violations, health, education and
force
poverty etc.)
Mining supplying countries entering
-
DRC
-
Corruption and mal administration of
legal processes
Development of agricultural and
-
Significant foreign debt
industrial sectors
-
High prices tags pertaining to
-
Leveraging of foreign investment
-
Skills transfer opportunities
partnership agreements
-
Influence of China and their
continuous investment into DRC
7. INVESTING IN DRC
DRC exports country comparison to the world is currently holding position number 95.
With a total exports of $9.936 Billion (2013est.) and hold position 104 with regards to
the world imports comparison, with a total on $8.924 Billion (2013 est) worth of Imports.


Top-five Exports Commodities
-
Diamonds
-
Copper
-
Gold
-
Cobalt
-
Crude oil
Top-five Imports commodities
-
Foodstuff
-
Mining
-
Machinery
-
Transport Equipment
-
Fuels

Top Export Partners
-
China
-
Zambia
-
Belgium
-

Top Import Partners
-
South Africa
-
China
-
Belgium
-
Zambia
-
Zimbabwe
-
France
-
Kenya
SA Export Products and value in 2013
Product
Value of Exports in Annual growth from Export share in the
2013 USD
2009-2013
DRC
1364518
26%
25.4%
and 369246
41%
41.9%
Articles of Iron or 176848
30%
58%
38%
33.5%
7%
53.9%
57%
19.1%
27%
42%
All products
Machinery
Mechanical
appliances
Steel
Electrical
and 157621
electronic
equipment
Mineral fuels, oils 108522
and
distillation
products
Vehicle, Aircraft and 94004
other
related
products
Plastics and other 78761
articles
8. Investment Guide
The Democratic Republic of Congo (DRC) appears today as a still virgin country that
could benefit from this time during which the world’s wealth cards are being
redistributed in order to finally access the rank of a true regional or even international
economic power. With its 2 345 000 km² (77 times the size of Belgium, 2nd country of
the continent after Algeria), the DRC has an estimated 77 million inhabitants of whom
80% are under the age of 25 and is going to have 150 million in 2030.
Nowadays Congolese companies need external partners in terms of technology,
training and equipment. However in the DRC, South African companies are seen as
being reliable in quality and seriousness.
It can be noted, the DRC has huge potential but it is among the poorest countries in
the world. The key to its success will be in a new generation of Congolese and
foreign entrepreneurs that are able to transform this eternal potential in a true wealth.
With a corruption perceptions index score of 21 out of 100, DRC is ranked 160th out
of 176 countries according to the 2012 Transparency International Report. The
Government has tried to implement a zero tolerance strategy on corruption but the
results obtained remain unsatisfactory. This situation is due to weaknesses in the
justice system, especially partiality, and the poor functioning of the system. This is
exacerbated by the low level of basic public sector remuneration and the absence of
effective control and accountability mechanisms.
Hence the need to consider the five following advice in order to be successful in
penetrating into this market:
1. Never neglect judicial, administrative, logistic and fiscal aspects.
It is advised to contact a good Lawyer’s office, forwarding agent or accounting firm.
Never think that because we are in Africa we cannot take all necessary administrative,
judicial and risk management related protection measures.
2. Plan for a local representation by taking enough time to carefully choose
a partner.
The formula that is often used by successful companies in the DRC is to open a
representation office in partnership with a serious private local partner. This partner is
essential in the relations with his clients and the administrations. Nothing can replace
the local know-how as a source of information and a facilitator in front of multiple
administrations. But finding the right partner requires time, patience and experience.
It’s a crucial step not to be neglected.

Establishing personal relations with a local partner, its clients and the
administration, is also key to a successful trade and risk management.

The DRC culture is giving a big importance to the respect of hierarchy. Therefore,
it is important during prospection that the representative of the company may have a
decision power.

Be as flexible as possible considering the specificity of the country: difficulties in
transportation causing frequent delays, power and water shortages, heat and
mosquitoes, etc. (80% of the people lives with less than 1$ per day)
SA Companies doing business in the DRC

Enterpris
e
Name
Title
Telephone
Details
MarieChantal
Kaninda
Charles
Nikobas
a
Business
Manager
+243 81 265
3519
Kibali Gold
Ashanti Group
Dr Mark
Bristow
CEO
Shoprite
Mike
Barnard
Shalini
Moodle
y
Willy
YAV
Rio Tinto
Engen
Managing
Director
Email Address
mariechantal.kaninda@riotinto.
com
00243 81 555 charles.nikobasa@engen.
3655
cd
00243 81 276
7507
00243817152 [email protected]
978
om
[email protected]
Group Exec
Director
00243 82 113 [email protected]
3814
shalini.moodley@iburstaf
rica.com
[email protected]
00243 81 830 [email protected]
3000
om
Paul
Kasseye
t
Executive
Chairman
00243 81 830 [email protected]
3001
om
Standard Bank
Eric
Mboma
Managing
Director
[email protected]
00243 81 700 o.za
6002
Vodacom
Chantal
Losemb
e
Head of Legal
00243 81 444 Chantal.losembe@vodaco
3052
m.cd
Iburst
Pygma GROUP
Chief Executive
Officer
BenSizwe
Communication
s
South African
Airways
Mandla
Msiman
g
Chantal
Seraho
Managing
Director
00243 82 000 [email protected]
1003
Operations
Manager
+24381 700
5018
G4S (British)
Mike
Mulder
Managing
Director
ABB South
Africa
Tryphon
Mungon
o
Nicolas
Tsasa
Mungu
Evariste
Katanga
General
Manager
[email protected]
00 243 81
547 2267
00243 81 369 [email protected]
1346
bb.com
Country
Representative
00243 81 992 [email protected]
1835
Senior
Investment
Officer
DRC
REPRESENTA
TIVE
00243 81 356 evaristek@dbsa,org
8585
Connect Africa
DBSA
SMILE
COMMUNICA
TION
ALAIN
KANIN
DA
[email protected]
m
24381033766 [email protected]
1.00
Bilateral Agreements concluded with the DRC
NAME
OF AGREEMENT
Memorandum
of
Understanding on Economic
Co-operation between the
Government of the Republic of
South
Africa
and
the
Government of the Republic of
Congo.
STATUS
Signed– 31 August 2004
IMPLEMENTATION
In August 2012, the Bilateral
Working Committee, a platform to
develop an implementation plan to
oversee
the
implementation
progress on various programmes of
the MOU, was launched. The first
meeting took place in Pretoria, June
2013.
Co-operation between the Finalised negotiations of the The parties are preparing to have
Office Congolais de Controle Technical MOU
the MOU signed during the SADC
(OCC) and the South Africa
SQAM AGM in March 2015 in
Bureau of Standards (SABS)
Kinshasa
An implementation matrix has been
proposed.
Bilateral Investment treaty
Signed in August 2004
Memorandum
of
Understanding
on Small
Medium
Enterprise
Development between SEDA
and OPEC
Finalised negotiations, to be
signed during the 3rd session
of the bilateral session
proposed to be held in
Kinshasa in May 2015.
Moratorium endorsed on all signed
treaties to guarantee protection of
all investors.
Proposal for Technical assistance to
formalize DRC informal economy
Agreement on Avoidance of Agreement signed and ratified Agreement not being implemented
Double Taxation
in 2012 by South Africa and in in the DRC and creating confusion
2013 by the DRC.
between investors, traders and the
authorities.
Expropriation and compensation
There have been no previous incidents of politically motivated damage to projects or
installations during the transitional period. There are no laws forcing local ownership,
although parastatals in the petroleum and mining sectors maintain minority shares of
most foreign-owned projects.
The Bilateral Investment Treaty (BIT) signed in 2004 between DRC and South Africa
guarantees reciprocal rights and privileges to each country’s investors. The BIT also
provides for binding third-party arbitration in the event of an investment expropriation
dispute.
Re-nationalisation of the mining sector will remain highly unlikely as it is broadly
accepted that foreign investment is the only way to boost production levels; the mining
sector provides fiscal revenue and foreign currency through increased exports.
Moreover, the involvement of foreign companies in the Congolese mining sector also
provides political elites with new opportunities for private-sector accumulation (for
example, through directorships and consultancy). For these reasons, expropriation of
foreign investors will not be contemplated lightly because it would expose the
government to protracted legal challenges and undermine shaky investor confidence
in the regulatory framework.
9. How do you enter into the Congolese market?

Logistic Constraints
The DRC territory being very large, 2 access points are now used for imports.
The west part of the country is usually supplied via the ports of Boma and Matadi (the only sea
ports of the country) as well as the international airport of Ndjili located in Kinshasa.
Nevertheless, the East part of the country depends on Mombassa and the South, Lubumbashi
for instance, usually relies on Dar-Es-Salaam and Durban. Major airports of this area are those
of Lubumbashi and Goma. River links are also playing a major role in the D.R.C. Goods are
cleared at the N’djili airport and the port of Matadi before being transferred to the rest of the
country by the Congo river. Choosing transport means depends on the final destination of each
consignment. It is highly recommended to talk to professionals who will be able to indicate the
safest way for each destination. Currently, rail transport is not advised because of availability
and traffic. Things are changing though.

Financial Constraints
Some financial rules
Investments made in the DRC by nationals or foreigners are secured through different
mechanisms including the Constitution, particular laws of the country and international judicial
instruments.

Holding foreign currencies
The use of foreign currencies is free. It is mandatory to declare all foreign currencies
exceeding US $ 10 000 and to proceed to a bank transfer. All external borrowing can be
reimbursed freely by subscribing to the Declaration “RC Format”. To get more details on legal
rules related to exchange, refer to the Exchange Control Regulations published by the Central
Bank of Congo in February 2001.

Movement of Capital and Income
All financial transfer can be done via transfer agencies such as Western Union, Moneygram,
Mister cash, Soficom, etc. However, opening a bank account gives credit and security to
financial transfers.

Various Payment Methods
Credits and other funding are made through foreign currencies but some national agencies,
such as the Industry Promoting Fund, are using local currency to facilitate investment
promotion.
Requirements in establishing a company in the DRC
Formalities
Competent Service
1. Confirmation of the
Office
2. Notarising the status
Commune where the main Individual
office is located
Organisation
Notary office
Any company other than a
general partnership
Tribunal of commerce or Individual
Clerk of the High Court of Organisation
the City where the main
office is located
Service of the
All the companies
Government Gazette
3. Registration in the
Trade Register (R.C.)
4. Publishing the
company’s in the
Government Gazette
5. Get a National
Identification Number
6. Get an
import-export number
8. Get a Tax Number
Secretary General of the
Ministry of National
Economy
Secretary General of the
Ministry of External Trade
General Directorate of
Taxes
Specification
Cost in
USD
0
35
40
120
0.25 per
line
Individual
Organisation
25
50
Individual
Organisation
Any individual or organisation
exercising commercial,
industrial, agricultural, crafts
and professional activity.
75
125
9. Opportunities for SA companies by promising sectors in the DRC
Improving basic Infrastructure
Refurbishing and modernising the country’s basic infrastructure is one of the priorities of the
government’s action programme, with focus on Agriculture and transport. This infrastructure should
accommodate demographics as well as technological changes. The state id calling for private
investors under the frame work of public –private partnerships (PPP’s) and it plans to lay
groundwork for the modern agriculture by developing agri-industrial parks, refurbishing transport
infrastructure (road and rail) the air industry (runways, control, towers, technical blocks and
terminals, navigation equipment), acquiring lighting equipment and dredging the harbours for ease
of trade. The projects are in abundance, all that is needed are reliable and committed investors.
Agriculture
a) Potential
Through the recently promulgated SEZ Act 2014, DRC is in the right path to formally structure the
Agricultural Industrial business and attract investments.
The DRC has a unique agricultural potential and an area of agricultural land with no other equal in
Africa that can feed up to 2 billion people with an intensive agriculture. Instead of that, less than
10% of agricultural land are being developed and the production by hectare is matching the one of
Sahel countries even though eco-climate parameters are in every country that favours agriculture.
Therefore, the agro processing sector in the DRC is representing a huge opportunity of investment
and probably stable in the mid and long term considering the market size and the fast growing
needs.
The agricultural sector is more pressing than ever in a context of the global food crisis that is not
likely to be solved before 2020.
b) Sub sectors offering an interesting potential are :
-
Equipment and agricultural materials: fruits, milk and dairy products manufacturing units; breweries
adapted to developing countries, packaging and conditioning.
-
Meat Sector: veterinary products, animal genetic, transformation of meat (butcher’s shops and
sausages);
-
Fish Sector: the potential fishery resources of the DRC is about 700 000 Tons while only 100 000
tons of fish are exploited today;
-
Vegetable Sector: (subsistence crops and perennial crops): maize, rice, cassava (cassava being
potentially the first agro-industry), banana (plantain and dessert banana), potato, fruits and
vegetables, vegetable crops, coffee (coffee represented US$ 200 million of income export), cacao
(cacao traded at export can be estimated at about 200 000 T/year in 10 years).
-
Bio-fuel is a promising sector for the future.
Buildings and Public Construction
a) Potential
The DRC is being reconstructed with an average 7% growth rate from 2003 to 2013. Some progress
are noted in the construction of roads infrastructures but almost everything has to be rebuilt:
communication infrastructures (roads, railways, ports, airports, bridges, rivers lines), energetic
infrastructures and water production, hospitals, schools, hotels and social housing.
Construction and infrastructure are in the top list of the government’s priorities. Many works are
being funded by donors (World Bank, ADB, EU, Bilateral Cooperation).
There is an important deficit of construction material in the DRC especially cement. The annual
demand of cement is about 3.5 million tons. But the production of 4 cement factories is only reaching
about 500 000 tons. A South African Company – PPC Cement, has recently invested into the
construction of a Cement plant in the Eastern part of DRC with huge potential to supply both the
local and international markets especially the surrounding neighbours.
The DRC has got a huge development demand. This is a result of the national policy aiming to
rebuild basic infrastructures. A new Code of Public Tenders is applicable to guarantee objective
procedures for bidders.
b) Sub sectors that offer an interesting potential are :
-
Consultancy and architects’ firms : standardisation, monitoring of works, drafting terms of reference,
construction of bridges, art work, quay walls, tunnel, house construction or multi floor building;
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Property management companies for security of buildings and home automation;
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Construction material and notably the use of local construction material while making bricks, sandy
houses, wooden houses;
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Quarries: crushed and grit, aggregates (limestone), sands, quarries equipment, civil engineering
equipments;
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Automation notably for the management of cement factories, (SA PPC Cement Investment factory is
currently being constructed in Bandundu – Bas Congo Province)
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Training in construction works: masons, plumber, tile setters, carpenters;
-
Glass sector
-
Renting civil engineering equipment
Energy
a) Liberalisation of the energy sector
The liberalisation of the energy sector through the Law of 17 June 2014 is aimed at encouraging
private sector investment in the fields of production, distribution and transportation of electricity.
The aim of the promulgated Law is intended to slow down DRC’s energy deficit.
Hydro-power
The DRC has got important hydroelectric resources. The Congo river is the second in the world
considering its flow rate (40 thousands m³/sec) after Amazon (200 thousands m³/sec) but the flow
rate of the Congo river is more regular than the Amazon because the Congo runs from both sides
of Equator.
Its exploitable energetic potential for hydroelectricity is estimated at 774 000 GWH, or 66% of the
Central Africa’s potential, 35% of the whole African continent’s potential and 8% of the annual world
production potential. The DRC is therefore the number 1 in Central Africa (before Cameroun 115
000 GWH). In the world, it is at rank 3 after China and Canada. Its potential is translated by an
exploitable power of about 100 000 MW of which almost half (44 000 MW) is concentrated in Inga
only, making it the biggest hydroelectric energy deposit in the world. Usable energy that is
dissipated annually by the Inga falls is about 370 000 GWH. But only 3% of this potential is being
utilised with a national supply rate of less than 10%.
The new Inga 3 Power Plant Tripartite Agreement signed between SA, DRC and Angola, has the
potential to change the Energy structure for the entire Continent. It has a predicted capacity of 4.
500 MW at a cost of $2 billion, the construction of Grand Inga with a capacity of 39 000MW at a
cost of $60 billion, the re-construction of hydro power plants and the construction of electrical
transmission lines at a cost of $6.4 billion and the construction of other plants with a capacity of
1.960MW to serve as a supply source for local industries.
Other renewable energies
-
Biomass (combustion of agricultural or forestry waste and production of electricity through a Rankin
cycle ( vapour and turbine) and bio fuels (liquid combustible deriving from vegetable oil such as water
hyacinth or jatropha);
-
Solar energy: use of direct solar energy (thermal and photovoltaic) is still in its early stages despites
the DRC’s potential (average period of sunshine is from 1 300 to 2 600 hrs/year and an average
variation of radiance at about 60 to 90 kcal/ m².)
-
Methane gas: the Kivu’s lake has an important reserve of methane gas with regeneration’s capacity
of 250 million m³/year found deep at more than 300 meters.
-
Wind energy: the wind potential is variable (on the Bateke’s plateau, in South Kivu and North of
Katanga as well as on the Atlantic Coast in Mwanda) but not yet exploited.
-
Geothermal energy: some geothermal sources have been identified in the Easter part of the
country and in Katanga but they have not yet been exploited.
Petrol in the DRC
Reserves are estimated at 187 million of barrel. There are three sedimentary basins in the DRC.
The Coastal basin is the only producer with an (onshore and offshore) production of 25 000
barrel/day. The other two basins are almost not explored (Central basin and the Tanganyika
Graben).
Nuclear Energy
The three deposits of uranium (Shinkolobwe, Kabongwe and Luambo) are no longer operated.
Other signs of deposits have been identified elsewhere in the border with RCA, in the Bas-Congo
province, in Katanga and Kivu). The estimates of ONUDI, dated on 1975 are estimating national
reserves at about 1 800 tons.
b) Sub Sectors that offer an interesting potential:
-
Consultancy and civil engineering’s offices
-
Specialised companies in production, transport and distribution of electricity
-
Training in energy professions,
-
Electricity equipment (law, medium and high voltage billboards, generators, turbines, solar panels…)
Water and decontamination
a) Potential
DRC is the water castle of Africa:
It has got 55% of fresh water in the African continent;
The Congo river and its tributaries is the second widest basin in the world after the Amazon;
The paradox is to note that only 22% of people have access to clean water (12% in rural area and
37% in urban area). Considering then current demographic growth rate of about 3% in the DRC, 72
million people will need to have access to clean water in the next 18 years.
Due to this low rate of distribution, the sector of clean water supply and decontamination is being
closely looked at by donors, Congolese authorities and other actors of the civil society. Many calls
for tenders are often published in this sector.
b) Sub sectors that offer an interesting potential are:
-
Specialised consultancy offices in the sector of water;
-
Solutions to clean and decontaminate water;
-
Water drilling;
-
Supplier of water related equipments;
-
Training companies or institutes in the sector of water;
-
Water packaging (into bottles or plastic bags)
Mines
a)
Potential
The DRC has got a huge potential in mines. You can find copper, gold, diamond, coltan, cobalt,
coals etc.
Before the international financial crisis and the subsequent fall of commodities value in the market,
the sector of mine went through an extraordinary season. This dynamic will certainly resume with
the world’s recovering.
b)
-
Sub sectors that offer an interesting potential are :
Mining prospection;
Geologic & mining search;
Mining exploitation;
Transformation of mines;
Drilling
Mines’ manufacturing;
Civil engineering equipment to extract and transport mines;
Training into various mines related professions.
Transport and Logistic
a) Potential
Mobility in the DRC is one of the biggest challenges that the country will have to respond to in order
to ensure a sustainable development. Each transportation method, be it by road, lake, river, rail or
air, is offering a huge potential for its development.
Rail and river networks, which were incomplete from the start and for many historic or geographic
reasons, have been deteriorating even more. The road network is considerably destroyed.
Kinshasa is no longer accessible by road coming from other major cities of the country that are
Mbuji-Mayi, Lubumbashi, Kisangani, Kananga and Goma. However, under the government’s road
network reunification framework, all provinces will have a road connection to Kinshasa. The
linkages between Kinshasa and some provinces like the Bas Congo have improved since the years
2000 with the rehabilitation of some infrastructures. Around 6000km of roads are planned for
construction.
b) Sub sectors that offer an interesting potential are:
-
Establishing road, river, rail and air transport companies;
-
Shipbuilding;
-
Tramway for urban transportation;
-
Companies of taxi;
-
Car rental company;
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Companies of road signals and river navigation signals;
-
Companies of equipment (parts, handling material, etc.) for each transportation method: road, rail,
river and air;
-
School or training centres in transport related professions and logistic;
-
Specialised consultancy related to the transport sector and logistic.
Health
a) Potential
In most cases business opportunities are opening up through international tenders published by
donors like the World Bank, the World Health Organisation (WHO), EU, ADB, and Bilateral
Development Cooperation.
To date, health is one of the sectors that get more public development aid.
Contracts can also be signed by mutual agreement with private companies not directly linked to the
sector of health but looking for partners to manage their employees’ health. The new Insurance
Code which is scheduled to be promulgated into Law in 2015 is set to change the Health sector
and other sectors especially within the mining sector health regulations and open an opportunities
for international players.
b)
-
Sub sectors that offer an interesting potential are:
Generic tablets (against malaria, HIV, …);
Telemedicine;
Emergency medicine;
Medical trees;
Specialised companies related to mutual insurance system and funding medical care, death cover
and retirement insurance;
Specialised companies related to hospital management;
Animal health (medical drugs for veterinary use...)
Medical materials and equipments for all specialists;
Companies or organisations that specialises in training health related professionals
Sector of Forestry and Nature conservation
a) Potential
The country has a big forest reserve, rich and diverse in its species, the second largest in the
world after the Amazon. Some rare species are found in it like the afromosia, eben, wenge, iroko,
sapelli, sipo, tiama. Tola, kambala, lifaki
The new Code of Forest imposes some strict conditions to get new forestry concessions. Beyond
the sector of forest, new professions appear in the sector of nature conservation an ecotourism.
b)
-
Sub sectors that offer an interesting potential are:
Production and transport of timber;
Equipment for first or second transformation of wood;
Production of wood pulp;
Production and trade of pillars to support electric cables;
Forestry;
Manufacturing medical drugs;
Project for carbon pit;
Specialised companies in nature conservation;
Companies for mapping;
Training into wood related professions;
Specialised consultancy in the wood sector.
Sector of Tourism
a) Potential
The sector of Tourism has got a continued global growth of (+ 4 % per year) since the end of the
second world war up to the point of being considered in the 21st century as key to the world’s
economy.
According to the World Tourism Organisation (WTO), more than 700 million tourists have been
travelling in 2000 which led to more than 500 billion US$ of income.
Tourism in the DRC
The potential of tourism in the DRC is huge and diverse. It is not about a tourism of masses but
rather a focused tourism:
Business tourism;
Cultural, scientific and religious tourism;
Ecotourism with 8 national parks of which 5 are acknowledged as part of the world cultural
treasure by UNESCO
b) Sub sectors that offer an interesting potential are:
-
Development of hotels and conference centres in many urban places (Kinshasa, Lubumbashi,
Mbuji-Mayi, Kananga, Bukavu, Goma, Matadi, Kisangani,…);
-
Planning and management of touristic sites;
-
Travel agencies;
-
Schools and training centres in HORECA professions;
-
Specialised consultancy agencies in the sector of tourism;
-
Editor of touristic guides or booklets.
CONCLUSION & RECOMMENDATION
DRC is a post-conflict country which is in the rebuilding process. The government is working on
improving the investment environment to warranty certainty and security of investments for local
and foreign investors. The country is preparing for the third presidential elections scheduled for
November 2016.
We recommend support for the projects in the DRC in order to support economic growth and
employment opportunities. However each project will be assessed on a case-by-case basis to see
if it’s financially viable and complies with government regulations.
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