Invest in DRC

Invest in

National Agency for Investment PromotionE-mail : [email protected] - [email protected]. : +243 99 99 25 026 • +243 99 81 27 61654, Av. Colonel Ebeya - Kinshasa / GombeDemocratic Republic of CongoA

NA

PI

www.anapi.org

the DR Congo Land of opportunities

in the heart of Africa

www.anapi.org

They trusted in the new DR Congo

Some big multinationals operating in the Democratic Republic of Congo

La banque Panafricaine

TRUST MERCHANT BANK S.A.R.L.TRUST MERCHANT BANK S.A.R.L.

Société Privée à Responsabilité LimitéeN.R.C. 8518 N°Id.Nat. 6-12-N39595 17, avenue Munguzi

B.P. 1513, Commune KampembaE-mail : [email protected] Tél/fax : 002432348385

LUBUMBASHI - RDC

Mining Company Katanga (SPRL)Mi

B A N R O C O R P O R A T I O N

Kenya Airways

Achievement of this brochure has been made possible thanks to :* Conception, writing and achievement :

- Professor Mathias BUABUA wa KAYEMBE- Mr AMISI HERADY

* Translated into English by :- Mr Victor MAZANGAMA MALANGI

* Input and layout :- Mr MUAMBA Donat- Mr BIZAKU NZONZA

* Printing works :

SIVOP

[email protected]

[email protected]

His Excellency Joseph Kabila KabangePresident of the Democratic Republic of Congo

Page

I. COUNTRY WITH EXTRAORDINARY ASSETS FOR INVESTORS ...................................... 7

II. LAND OF OPPORTUNITIES WIDE OPEN TO EVERYBODY .............................................. 12

III. BOOMING FREE-MARKET ECONOMY IN THE HEART OF AFRICA .................................. 15

IV. STABLE PARTNER FOR DEMOCRACY, PEACE AND BUSINESS ..................................... 20

V. INCENTIVE AND SECURING INVESTMENT CODE ............................................................ 21

VI. TAX SYSTEM COMPATIBLE WITH INVESTMENTS ............................................................ 22

VII. ANAPI : PARTNER DEVOTED TO INVESTORS’ SERVICE ................................................. 24

VIII. HOW SHALL WE SET UP A COMPANY IN DRC .................................................................. 26

CONTENTS

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The DRC our country is winning, day after day, a new image : that of a country resoluted to retrieve its position among the great Nations and become the hub of investments in Central Africa.

To consider only the latest events, many illustrations eloquently show the rocketing of that new image of the country.

Let me quote just the following, still fresh in the mind of the national and international opinion :

- The visit in the country of great political personalities namely, the French President, Nicolas Sarkozy and the American Secretary of State, Hillary Clinton, and important leaders of international financial institutions namely, the President of the World Bank Group, Robert ZOELLICK and the IMF General Manager, Dominique Strauss Khan ;

- The agreement made between the DR Congo and the International Monetary Fund for the second Government Economic Program (PEG 2) ;

- The agreement made between the DR Congo and China for the implementation of the reconstruction and development program of the country ;

- The visit of the Rwandan President, Paul KAGAME, within the normalization of neighbourly terms between his country and ours ;

- SADC presidency now entrusted to Joseph KABILA KABANGE, DR Congo’s President ;- The government option of DRC’s membership of OHADA ;- Etc.

What to say about reforms carried out and prospective reforms to better carve the new country’s image : achievement of peace process, the full holding of democratic process with the organisation of free, democratic and transparent elections at all levels, the liberalisation of aggregate markets, the promulgation of new laws on economic matters, development throughout the country of setting up and rehabilitation work of basic infrastructures, to mention only those.

This sufficiently proves that DR Congo is moving. It is a link or the point through which all the countries involved should pass to access subregional markets of the continent (SADC, CEEAC, COMESA, CEPGL).

Thanks to its numberless resources (mining, energetic, agricultural, forest, tourist, etc.), the DR Congo appears as a solution to the current world economic crisis, since it is obvious that the latter cannot be absorbed if the aforementioned resources are not intensively utilized.

The country unquestionably acquired a new aura on international plane devoted to its development. One should acknowledge : That new aura, the country owes it to the President of the Republic and Head of State, Joseph KABILA KABANGE, thanks to his openness voluntarist policy on the world and of mobilisation everywhere of generating energies of the Congolese population, for its development.

For the purpose of sustaining this vision that the National Agency for Investment Promotion (ANAPI) was set up as One-stop Shop regarding investments in the country. This precious government tool is devoted and fully dedicated to the service of whoever wants to invest in the DR Congo.

Everybody is provided with the opportunity to make profit of the new DR Congo’s image to invest and do other good business in the country as thousands of investors experience it already. To do it today is better. Do not go to the wrong door, contact ANAPI for that purpose.

Prof. Mathias BUABUA wa KAYEMBEANAPI Managing Director

EditorialThe DR Congo’s new image :an opportunity for all

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A d m i n i s t r a t i v e m a p o f t h eD e m o c r a t i c R e p u b l i c o f C o n g o

B a s i c d a t aSurface area : 2,345,000 km²Capital-city : KinshasaPopulation : 65,2 millionProvinces : Bas-Congo, Bandundu, Equateur, Katanga (496,865

Km²), Western Kasaï, Eastern Kasaï, Maniema, Eastern Province, North-Kivu, South-Kivu

Main towns : Kinshasa, Lubumbashi, Goma, Bukavu, Kisangani, Kikwit, Mbuji-Mayi, Kananga, Matadi, Mbandaka, Kindu

Languages : - Official : French - National : Lingala, Swahili, Kikongo, TshilubaCurrency : Congolese Franc (CDF)International airports : N’djili (Kinshasa), Luano (Lubumbashi), Bangboka

(Kisangani), Goma (North-Kivu)Main ports : - Sea : Matadi, Boma. - River : Kinshasa, Kisangani, Mbandaka, Ilebo,

Kalemie, Moba, Uvira, Kalundu, Bukavu, Goma, Ubundu, Kindu.

Neighbour countries : 9 countries.Length of common borders : 9,165 km.Weather : Equatorial, humid tropical, tropical with long dry

season, coastal.Rainfall : 1,000 mm/year.Arable soil : 120 million hectares (10% only are exploited so far).Forest : 1,232,000 km2

Energetic potential : 774,000,000 Mwh or 106,000 Mwh of exploitable powerPolitical system : DemocracyGDP growth rate (in 2008) : 6.2 %GDP growth rate per capita : 3.2 %FDI annual stock : 4 billion

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is currently developed, that is, 3% for agricultural activities and 7% for breeding activities. Large scale agricultural activities can be performed in the country.

Whereas food crisis is about to start in most countries worldwide, the DRC appears as a solution to the issue for Africa and the world.The DRC wonderfully includes abundant arable land, a weather conducive to agricultural activities throughout the year, abundant water and available and motivated population.

Its climatic diversity gives rise to a great variety of farming with 3 to 4 annual harvests particularly in terms of food crops.

1.1. Huge market in the heart of Africa

L ocated in the heart of Africa, the Democratic Republic of Congo is one of the giants of the continent as far as its surface area amounting to 2,345,000 km² is concerned.The Democratic Republic of Congo shares a border of 9,165

km with nine neighbouring countries and holds therefore, a strategic position which makes it the hub of business development (movement of goods produced) in Africa and the access point to individual sub-regional markets.

In view of its population, 65,2 million inhabitants (and therefore consumers) and including the population of the neighbouring countries, the Democratic Republic of Congo constitutes a large market of around 250 million consumers.

1.2. Abundant fertile soilOver 120 million hectares of fertile arable land conducive to intense farming activities, and over 4 million irrigable land are available throughout the year in the Democratic Republic of Congo. Roughly 10% only of it

- The enclave of Cabinda (7,270 km²) and the Republic of Congo (342,000 km²/ 3,150,144 inhab.) in the West.

- Uganda (241,040 km²/25,632,794 inhab.), Burundi (27,834 km²/5,930,805 inhab.), Rwanda (26,340 km²/8,336,995 inhab.) and Tanzania (942,799 km²/34,569,232 inhab.) in the East.

- The Central African Republic (622,436 km²/3,683,538 inhab.) and Sudan (2,503,890 km²/9,872,000 inhab.) in the North.

- Zambia (752,614 km²/9,872,000 inhab.) and Angola (1,246,700 km²/10,766,471 inhab.) in the South.

Annual average temperature :

• 25° C at atlantic coast.• 24 to 25° C in the North, Central Basin, North-Katanga, KasaÏ,

Kinshasa and in Bas-Congo.• 10° C in mountaineous provinces of the East.• 20° C on high plateaus of Katanga.

Rainfall : 1,000 mm/year.

COUNTRY WITH EXTRAORDINARYASSETS FOR INVESTORS1 DRC:

Equatorial weather (Eastern Province, Equateur and the Northern parts of Maniema, Bandundu and both Kasaï).

Humid tropical weather (in the Northern parts of Eastern Province, Equateur, Bas-Congo and the central parts of Bandundu, both Kasaï and North Katanga).

Tropical weather with long dry season (in the Southern parts of Bandundu, both KasaÏ and Katanga).

Coastal weather (in the Western part of Bas-Congo).

Table n°1 : The DRC’s vegetation as per province

Province CharacteristicsBas-Congo • Mangrove Swamps

• Steppes• Forest• Savannah interspersed with strips of forests

Bandundu • Forest• Savannahs• Forest galleries

Western Kasaï • Tropophyte forest interspersed with savannahs • Grassy, shrubby savannahs• Forest galleries

Eastern Kasaï • Humid dense forest• Forest interspersed with savannahs

Maniema • Humid dense forest• Grassy and shrubby savannahs interspersed with forest galleries along rivers

Eastern Province • Forest• Savannahs

Equateur • Sempervirente ombrophile forest • Secondary savannah with imperator• Caducifoliate forest

North-Kivu • Savannahs• Clear sclerophylle forest with arborescence stratum• Ombrophile forest of mountain• Equatorial forest• Equatorial forest at Gilbertiodnedron

South-Kivu • Low-altitude equatorial forest• Mountainous equatorial forest• Savannah• Steppes• High-altitude bamboo forest

Katanga • Clear forests with bamboo plantations and acacias savannahs• Steppes• Clear forests with savannahs and steppes• Various forest types of mountainous regions• Marshy an grassy groups• Various types of savannahs, forest galleries and strips of troposphere forests.

Source : Ministry of Environment, Conservation of Nature and Tourism.

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1.3. Big fresh water reserve worldwide

The hydraulic potential of the Democratic Republic of Congo is extraordinarily provided with an hydraulic basin of 3,680,000 km thus, rendering the country one of the biggest fresh water reserves in the world beside the Baikal Lake in Russia. Large scale farm and industrial concern can be carried out thanks to it.

By means of this hydraulic potential, the country can possibly distribute water to desertic regions of South and North of African continent.

1.4. Large forest areas

The Democratic Republic of Congo is a real forest empire, a large park. Alone, the Congolese forest stands for over 45% of the overall African equatorial forest, that is, 6% of the global tropical reserves.

Its forest expanses cover around 54.6% of the country’s surface area and extend on 128,004,198 ha.

• Humid dense forests : 68.14 %• Dry dense forest damaged : 12 %• Secondary forests : 9.5 %• Forests on hydromorph soil : 6.92 %• Mountaineous forests : 3.14 %• Forest galleries (0.19%) and the mangrove swamp forest (0.04 %)

Around 1,000 species are available in the Congolese forest, among which the most scarce worldwide such as, afromosia, ebony, wenge, iroko, sapelli, sipo, tiama, tola, kambala, lifaki, etc.

Table n°2 : Location of some forest species available in DRC

Species Sites

Kambala • Equateur (Businga, Gdadolité, Bikoro, Lisala, Djolu, Bongandanga, Lukolela, Monkoto, Bumba).• Eastern Province (Bafwasende, Isangi and Opala, Ubundu, Yahuma, Banalia, Basoko,…).• Maniema (Kibombo).• Bandundu (Bolobo, Oshwe,…).

Ebony Equateur (Lisala).

Tiama Equateur (Businga, Bikoro, Lisala, Djolu, Bongandanga, Lukolela, Monkoto,…).

Sapelli • Equateur (Businga, Gdadolité, Lisala, Djolu, Bongandanga, Bumba).• Eastern Province (Bafwasende, Isangi, Banalia, Basoko, Ubundu,…).• Bandundu (Bolobo, Oshwe,…).

Sipo • Equateur (Lisala, Djolu, Bongandanga,…).• Eastern Province (Aketi and Basoko).

Acajou d’Afrique

• Equateur (Bongandanga, Bumba).• Eastern Province (Aketi and Basoko).

Wenge • Equateur (Bikoro and Lukolela).• Eastern Province (Opala).• Bandundu (Bolobo, Mushie, Inongo and Oshwe).

Afromosia • Equateur (Lisala, Djolu, Bongandanga).• Eastern Province (Bafwasende, Ubundu and Isangi).

Limba • Equateur (Lukolela).• Bandundu (Bolobo).

Bomanga • Western Kasaï (Mweka and Demba).• Eastern Province (Isangi, Opala, Ubundu and Basoko).• Maniema (Kibombo and Lubutu).• Bandundu (Bolobo, Mushie, Inongo and Oshwe).• Equateur (Bikoro and Lukolela).

Limbali Equateur (Businga, Gbadolite, Bikoro, Lisala, Djolu, Bongandanga, Lukolela, Monkoto, Bumba,…).


1.5. Huge energetic potential

Provided with the Congo River with around 2,900 km long, of which the flow is the most regular and the most powerful in the world (42,000 m3/second) after the Amazon in Brazil, the Democratic Republic of Congo holds an incredible energetic potential. With important hydroelectric resources in it, this potential is assessed at 774,000,000 Mwh, that is, 106,000 Mw of the power likely to be tapped (the equivalent of 30,000,000 oil tons per year), of which nearly 44% (that is 44,000 Mw) are concentrated exclusively at Inga site.

The Congolese energetic potential alone, stands for around 37% of the entire African potential, and about 6% of the global potential. Owing to this potential, the Democratic Republic of Congo can supply the whole Africa with electricity and the surplus of which be distributed towards the Mediterranean Europe and the Middle-East.

Likewise, the Democratic Republic of Congo is well-equipped to produce other kinds of energy : wind power, solar, nuclear, geothermal energy and that of biomass. The average wind speed varies between 2.3 and 6.5 km/h.

Province Total surface area (km²)

Forest surface area (km²) % Forest

BANDUNDU 295,658 120,000 40.6

BAS-CONGO 53,855 10,000 18.6

EQUATEUR 403,293 402,000 99.7

EASTERN PROVINCE 503,239 370,000 73.5

WESTERN KASAÎ 156,967 40,000 25.5

EASTERN KASAÏ 168,216 100,000 59.4

KINSHASA 9,965 --- ---

NORTH-KIVU, SOUTH-KIVU and MANIEMA

256,662 80,000 70.1

KATANGA 496,865 10,000 2.0

TOTAL 2,345,000 1,232,000 52.5

Table n°3 : Forest distribution per Province

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Table n°4 : Estimates of electricity demand in DRC (2008-2015)*

WORDINgPOWER IN MW

2009 2010 2011 2012 2013 2014 2015 2020 2025

* Kinshasa 637.4 663.5 691.1 720.3 751.3 784.2 818.9 1,017.1 1,263.2

* Bas-Congo 89.1 94.3 96.8 99.4 102.1 104.9 107.9 1,723.5 1,743.3

* Bandundu 27.6 43.4 45.3 47.3 49.3 51.4 53.6 66.1 81.9

* Western Kasaï 24.6 27.2 29.9 31.9 34.0 36.2 37.5 51.0 70.6

* Eastern Kasaï 34.4 37.8 40.6 43.3 46.2 49.3 52.4 72.5 100.9

* Katanga 1.832.7 1,860.6 1,935.6 2,063.9 2,091.4 2,120.2 2,150.4 2,239.8 2,428.4

* North-Kivu 25.9 37.8 39.0 40.3 41.6 42.9 44.4 52.4 62.4

* Maniema 5.8 6.5 6.9 7.2 7.5 7.9 8.3 10.4 13.1

* South-Kivu 22.4 28.6 29.4 30.3 31.1 32.0 33.0 38.3 44.7

* Eastern Province 48.0 53.5 55.7 58.0 60.4 62.8 65.4 80.2 98.5

* Equateur 38.0 47.4 50.0 53.3 56.2 59.2 62.8 86.2 131.5

2,785.1 2,899.9 3,019.6 3,194.3 3,270.4 3,350.5 3,433.7 5,437.4 6,038.4

Source : National Electricity Company (SNEL)

1.6. Mining reservoir

Congolese subsoil ranks among the richest in the world. An extremely varied range of minerals is concealed in it : copper, cobalt, diamond, gold, coal, lead, phosphate, bauxite, methane gas, tin, nickel and chromium, manganese, petroleum, oil shale, iron ore, to mention only those.The Democratic Republic of Congo is a real “geological scandal”.

Table n°5 : Distribution of DR Congo’s mining potentials per province

Bas-Congo Bandundu Eastern Kasaï Western Kasaï Equateur Eastern

Provinceï Katanga South Kivu Maniema North Kivu

SilverBauxiteCopperIron orePhosphateLeadDiamondManganeseNickelgoldZincLimestoneChromiumCobaltPlatinumTinBerylMarbleNiobo tantalumTantalumNiobiumOil shaleCassiteriteColombo TantaliteMonazitePyrochlorine TourmalineTungstenWolframZirconiumOilCoalMethane gasClayUranium

Source : Mines Ministry.Note : Red colour symbolizes mining products.

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1.7. Tourist wonders

The countless sites with natural and cultural tourist attractions it presents, its position astride the Equator, the immensity of its area, the importance of its hydrographical basin, the variety of its morphological configuration, the climatic diversity and wealth of fauna and flora, make tourism a real vocation for the Democratic Republic of Congo.It comprises seven national parks and around ten similar natural reserves. Some of the so many animal species among which okapi,

white hippopotamus, bonobo and so on, are exclusively found in DRC.In view of their universally-recognised value said to be exceptional, five of the said parks and reserves are described as UNESCO world heritage, namely : Virunga Park, Kahuzi-Biega, Garamba, Salonga and the Okapi fauna reserve.Thus, possibility is provided to practise all kinds of tourism in DRC, as mentioned hereafter : fauna and flora, cynegetic, swimming, cultural, historical (the Congolese black people who went to America), of business or escape along the Congo River or across forests, mountains and savannahs, etc.

Table n°6 : Major DRC’s tourist roads.

N° Tourist area Delimitation Tourist sites

1. Kinshasa tourist area. Kinshasa and its surroundings.

- The Congo river picturesque sites, from Maluku to Mbudi ;- The hunting reserve of Bombo-Lumene ;- The tourist site of N’sele ;- The Prehistory museum (University of Kinshasa) ;- The Botanical and zoological gardens of Kinshasa ;- The first locomotive ;- Nioki Building (ex Forescom) ;- The mausoleum and monument of President Laurent Désiré KABILA ;- The monument of the Prime Minister Patrice Emery Lumumba ;- Academy des Beaux-Arts ;- The protestant Chapel “SIMS” ;- The Institute of National Museums of Congo ;- The Mont-Ngaliema Complex ;- Kinsuka rapids ;- Malebo Pool ;- The natural symphonies ;- The Bonobos sanctuary (Pan Paniscus) ;- The Ma-Vallée Lake site ;- The University sites of UNIKIN, UPC and Catholic Faculties ;- The Catholic Mission of Kimwenza.

2. Kinshasa–Ocean.From Kinshasa City to the Atlantic Coast, going throughout Bas-Congo Province.

- Zongo Waterfalls ;- The Botanical Garden of Kisantu ;- Mbanza-Ngungu Caves ;- The Holy Town of Nkamba ;- Monument aux Porteurs ;- The Pituresque village of Vivi ;- Inga site ;- The historical Town of Boma ;- Diego Cao Rock ;- The yombe funeral architecture ;- The atlantic side ;- The mangrove sea Park ;- Moanda beach ;- Banana tip.

3. Kinshasa – Bandundu area. From Kinshasa to Bandundu Province.

- The hunting Domain of Swa-Kibula ;- The cultural festival of Gungu ;- The hunting Domain and reserve of Mangaï ;- Maï-Ndombe Lake (ex Léopold II) ;- Guillaume waterfalls (Tembo).

4. Kinshasa –Equateur area. From Kinshasa to Equateur Province.

- The botanic garden of Eala ;- The national Park of Salonga [ A great project about preserving forest ecosystems of Central Africa

is being implemented there by the European Union in collaboration with the Congolese Institute for Preserving Environment (ICCN)] ;

- The Kotakoli savannah well-stocked with game and its heap of black rocks (conducive to development of a upmarket cynegetic tourism ;

- The presidential domain of Gbadolité ;- The coastal centre of Bikoro ;- The Islands and small islands of Ubangi.

5. Kasaï – Katanga area. Both Kasaï Provinces and Katanga Province.

- Lulua river ;- Munkamba lake ;- Fwa lake ;- The catholic mission of Mikalayi ;- Mushenge village;- The mining complex of Bakwanga (MIBA) ;- GECAMINES opencast mines ;- The hydroelectric dam of N’Zilo (ex-Delcommune) ;- The mineralogical museum of Likasi ;- The subterranean mine of Kamoto ;- Lofoï waterfalls ;- Upemba National Park ;- Kundelungu National Park ;- Katende waterfalls ;- The Catholic Missions of Kamponde and Bonkonde.- Les Missions Catholiques de Kamponde et de Bunkonde.

6. Kivu – Maniema – Eastern Province area.

Provinces of North-Kivu, South-Kivu, Maniema and Eastern Province.

(Backbone of DRC’s tourist industry

- Tanganyika lake ;- The hunting Domain and reserve of Luama ;- The Road of the Slave ;- Kahuzi-Biega National Park ;- Town of Bukavu ;- Idjwi Island ;- Town of Goma ;- The National Park of Virunga (800,000 hectares) ;- Nyiragongo and Nyamulagira Volcanoes ;- The massif of Ruwenzori ;- Okapi Fauna Reserve (RFO) ;- Ituri forest ;- Hoyo Mount ;- Maïko National Park (1,000,000 hectares) ;- Garamba National Park (492,000 hectares) ;- Niangara Centre (Geodesic Centre of the African Continent) ;- The hunting domains and reserves of Bili-Uélé, Azande, Mondo-Missa, Gangala na Bodio, Maïko-

Penge and Rubi-Tele (these are the best sites for cynegetic tourism) ;- The National Institute for Agronomic Research of Yangambi (INERA, ex INEAC).

7. Wonders of Congo River area. Along the Congo river. Lovely landscapes along the Congo river from Kinshasa to Kisangani on boat.

Source : Ministry of Environment, Conservation of Nature and Tourism

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Table n° 7 : DR Congo’s national parks.

Name Surface area (Ha) Location Creation date Species general

observations

VIRUNGA NATIONAL PARK

800,000 North-Kivu April 21, 1925

- World heritage site- Located at the

border of DRC with Uganda and Rwanda

GARAMBA NATIONAL PARK

500,000 Eastern Province March 17, 1938

- Elephants- Buffaloes- Birds- Hippopotamuses

- World heritage site- Property in peril- Situated at the

border with SudanUPEMBA NATIONAL PARK

1,000,000 Katanga May 15, 1939

KUNDELUNGU NATIONAL PARK

210,000 Katanga November 30, 1970

SALONGA NATIONAL PARK

3,600,000

• Equateur• Bandundu• Both Kasaï

November 30, 1970

- Elephants- Hippopotamuses - Dwarf chimpanzees- Cercopithecus- Cephalophes- Birds- Freshwater fish- Reptiles, etc.

- World heritage site

KAHUZI-BIEGA NATIONAL PARK

600,000 South-Kivu November 30, 1970- Mountaineous

Gorillas- Elephants

- World heritage site

MAIKO NATIONAL PARK

1,000,000 Eastern Province November 30, 1970

- Okapi- Congolese Peacock- Mountaineous

Gorillas- Elephants and other

animalsOKAPI FAUNA RESERVE

1,300,000 Eastern Province Okapi - World heritage site

MARIN PARK (MANGROVE SWAMP NATURAL RESERVE)

76,000 Bas-Congo Monatees


Some species of the DR Congo’s fauna wealth

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2.1. Priority sectors- Agriculture and agribusiness- Infrastructures- Energy (water and electricity)- Social (Housing, Schools, Hospitals)- Various industries- Mines

2.2. Strategies

In order to access these opportunities, the Government recommends the strategies hereafter :

- Public – private partnership- Public – public partnership- Private – private partnership 2.3. Selected projects identified for investors

2.3.1. Mines and Hydrocarbons

• Boosting copper production in Katanga, cassiterite in Kivu and gold at Kilo-Moto.

• Boosting diamond production (both Kasaï and Eastern Province), coltan (Kivu and Maniema), coal (Luena and Lukunga), iron ore (Banalia and Luebo).

• Rehabilitation of Moanda refinery in the coastal Basin of Bas-Congo.

• Exploitation of methane gas in Kivu.

• Oil prospecting in coastal basin (Bas-Congo), in Central Basin, at Ituri and in Tanganyika graben.

• Oil exploitation at Ituri in Eastern Province.

• Transport infrastructures and of oil product distribution in urban centres.

2.3.2. Agriculture, forest and hydrography

• Relaunch of food crops : maize, rice, tomatoes, groundnuts, bana-nas,…

• Resumption of palm-tree exploi-tation (Bandundu and Equateur).

• Relaunch of income-generating farming : cotton, coffee, hevea, tea, cocoa,…

• Sugar cane farming.• Production and transportation of

rough lumber (Equateur, Eastern Province, both Kasaï, Bandundu,

Mayumbe).• Bio-fuel production from palm oil, jatropha, seaweed of the river

and lakes, etc.• Industrial timber processing (Kinshasa, Kisangani, Kananga).• Wood pulp production (Kinshasa).• Cattle breeding (Katanga, Kivu, Eastern Province, Bas-Congo).• Pig breeding and poultry farming all over DRC.• Milk production (Katanga, Kivu, Eastern Province, Bas-Congo).• Rehabilitation of the Agro-industrial Domain of N’sele (Kinshasa).• Fluvial, sea and lake fishing.

Table n° 8 : DRC’s agricultural potentialities.

Crops Bas-Congo Bandundu Equateur Western Kasaï

Eastern Kasaï Maniema Eastern

ProvinceNorth-Kivu

South-Kivu

Food cropsManiocMaizeRiceGroundnutPlantainPotato YamWheatSorghunBeanSoya beans and TarotSweet potato

Market gardeningOnionTomato

Income-generating farmingFibreHeveaMillet Palm-treeCoffeeCinchonaCocoaTobaccoCottonPyrethrumTeaGourdSugar canePapaineSesameUrenaVoandzou

Source : Agriculture Ministry, Monographies of DRC Provinces, 1998.

LAND OF OPPORTUNITIES WIDE OPEN TO EVERYBODY2 DRC:

Note : Blue colour symbolizes agricultural products

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2.3.3. Industry

• Manufacturing industries (agribusiness, tobacco industry, textile and leather industry, timber industry and paper mill, che-mical industry and of chemicals production, oil and coal by-pro-duct industry, rubber and plastic manufacture, manufacture of building materials, cement factory).

• Basic metallurgic industry (Steel industry, production and first processing of non-ferrous metals, manufacture of metallic items, manufacture of electric appliances and electric supplies, building of motor vehicles.

2.3.4. Banking and insurance

• Setting up banking and micro-finance institutions in the capital-city, in provinces’chief-towns and in districts.

• Setting up new insurance companies.

Some existing Banks : Citibank, Stanbic Bank, Ecobank, Raw-bank, Procredit Bank, BCDC, BIC, Banque Congolaise, Sofibanque, Trust Merchant Bank, BIAC, Solidaire Banque, FIBANK, Afriland Bank, Advans Banque, Bank of Africa, ...

2.3.5. Tourism Many protected natural parks and reserves : Virunga, Salonga, Kahuzi Biega, Maïko, Kundelungu.

Development of various tourist activities :

- Building of up-to-date hotels in several urban centres and guest-houses in villages.

- Management of tourist sites.- Modernising of national parks.

2.3.6. Some projects in energy sector

A. Electricity sector

1. Rehabilitation and modernising with possibility of expanding existing hydroelectric power stations namely Inga1(341 MW) and Inga 2 (1,424 MW).Project cost : 361million USD ;

2. Building of Inga 3 power station (4,320 MW)Project cost : 3,542,600,000 USD ;

3. Building of Great Inga (39 000 MW). Project Cost : 8 billion USD(1st phase) ;

4. Building of the hydroelectric power station of KATENDE (36 Mw). Cost : 168 million ;

5. Building of the hydroelectric power station of SEMILIKI (72 MW) and associate networks. Cost : 160 million ;

6. Building of the hydroelectric power station of KAKOBOLA (99 MW) and its associate networks. Cost: USD 53 million ;

7. Building of the hydroelectric power station of BUSANGA (300 MW). Cost : USD 310 million ;

8. Building of the 2nd THT line 400 Kv INGA–KINSHASA. Cost : Euros 159 million ;

9. Building of the hydroelectric power station of WANIE RUKULA(700 MW). Cost : USD 900 million ;

10. Connecting on THT cc line INGA –KOLWEZI at TSHIMBULU(200 MW). Cost : USD 200 million ;

11. Improvement and development of MT/LT distribution networks of the city of Kinshasa. Cost : USD 209 million ;

12. Building of High Tension line Bandundu - Boende – Mbandaka. Cost : 80 million ;

13. Building of the line GBADOLITE- BUSINGA – GEMENA. Cost : USD 53 million ; * The afore-mentioned investment cost does not include the building of new hydroelectric power

stations and the rehabilitation of existing power stations (Inga, Nseke, Zongo,…).

For partnership, contact :

About electricity : S.N.EL • Head office : Avenue de la Justice n° 2381, Gombe Commune. • P.O. box 500 Kinshasa 1 • e-mail : [email protected] • Web site : www.snel.org

About water : REgIDESO • Registered office : Immeuble Regideso, Boulevard du 30 Juin, Gombe Commune • e-mail : [email protected] • Web site : www.regidesordc.com

MASTER PLAN FOR DEVELOPINg ENERgY BY 2015

Target :

- Electrification of 775 centres

Investment total cost : 3.77 billion USD) *Projects concerned :

- Rehabilitation of existing installations ;- Building of HT and THT transport lines ;- Connecting Tshimbulu from THTCC line to supply

power to Kasaï provinces and probably to Bandundu province ;

- Building of new power stations and micro hydroelectric stations throughout the country ;

- Provision of electricity by renewable energy sources.

14. Building of the line 132 Kv Kasese-Kasindi-Beni – Goma and on the line Beni - Bunia. Cost :

USD 100 million ; 14. Construction of fresh water mains : • DRC - Desertic zones of North and South Continent Project

13

B . Water sector

1. Rehabilitation and reinforcing of drinking water supply system in the town of Mbuji Mayi. Cost : 15,000,000 USD.

2. Rehabilitation and reinforcing of drinking water supply system in the town of Kisangani . Cost : 17,500,000 USD

3. Rehabilitation reinforcing of drinking water supply system in the town of INONGO. Cost :

3,500,000 USD.4. Rehabilitation and reinforcing of drinking water supply system in

the town of MBANZA NGUNGU. Cost: 8,500,000 USD.5. Rehabilitation and reinforcing of drinking water supply system in

the town of MBANDAKA. Cost : 13,000,000 USD

2.3.7. Infrastructures

• Building of Ilebo-Kinshasa railroad section.• Rehabilitation of the existing railway network : Kinshasa - Matadi

(ONATRA), Sakanya - Ilebo (SNCC), Kamina - Kalemie (SNCC), Ubundu - Kisangani (SNCC) and the railroad of Uélé.

• Building key main roads, roads for interconnecting North (Ituri) to South of the D.R.C. (Kalemie).

• Building roads for interconnecting sub-regions of Central Africa (CEEAC), Eastern Africa (COMESA) and Southern Africa (SADC).

• Kinshasa – Matadi highway.• Road building for agricultural purpose in different provinces of

the country.• Dredging of the Congo river bed (Matadi-Atlantic Ocean) and its

main tributaries.• Beaconing of navigable reaches (Kinshasa-Kisangani, Kinshasa-

Ilebo).

2.3.8. Transports and harbours

• Building highways N’djili Airport – Town Center of Kinshasa and Lubumbashi-Kasumbalesa.

• Rehabilitation and building of N’djili airport.• Rehabilitation of Lubumbashi, Kisangani and Goma airports.• Setting up city haulage companies in Kinshasa and in major

provinces’chief-towns.• Building railway lines to connect Matadi-Banana (Bas-Congo) and

Kananga-Tshikapa and Angolan border (Eastern Kasaï).• Improving the navigability of major rivers through dredging and

beaconing.• Building of a deep water harbour at Banana (Bas-Congo).• Rehabilitation and extension of Matadi port, those of Ilebo and

Mbandaka.

2.3.9. Telecommunications

• Development of cellular telephony and Internet throughout the national area.

• Expansion of cable network for fixed telephone all over the country.

• Connection to international fibre optic.

2.3.10. Building, civil engineering and housing

• Building low-rent houses in various urban centers (Kinshasa, Matadi, Bandundu, Kananga, Mbuji Mayi, Mbandaka, Kisangani, Goma, Bukavu).

• Building/Rehabilitating and equipping basic infrastructures : schools, specialised hospitals, shopping centers.

14

- progressive cut of domestic tax rates ;- revival of cooperation with international financial institutions

(World Bank, International Monetary Fund) ;- Setting up of facilitation and supporting structures for the

private sector.

As of that moment, we observe :

- stability of macro-economic parameters ;- inflation control ;- resumption of the national productivity.

Table n°9 : Development of some indicators of the Congolese economy from 2001 to 2008.

2001 2002 2003 2004 2005 2006 2007 2008Nominal gDP (in million USD) 5,155.8 5,525.4 5,670.8 6,531.3 7,100.4 8,685.1 10,130.76 11,850.52

gDP growth rate (%) - 2.1 3.5 5.8 6.6 6.5 5.1 6.3 6.2

gDP growth rate per capita (%) - 4.8 0.8 3.0 3.8 3.4 2.0 3.2 3.1

Population (in million inhab.) 53.5 55.0 56.4 58.0 59.7 61.4 63.3 65.2

Population growth rate (%) 2.7 2.7 2.7 2.7 3.0 3.0 3.0 3.0

Inflation rate (%) 135.1 15.8 4.4 9.2 21.3 18.2 12 27.57

Exchange rate (CDF/1 USD) 311.7 382.1 372.5 444.1 431.3 503.4 518.8 639.3

Source : Central Bank of Congo, Condensé d’informations statistiques, n° 21 / 2009

F ollowing a long period of poor performance between 1990 and 2000, the Congolese economy is irreversibly committed in growth process owing to the liberalisation policy of the overall market (particularly mining, oil, pricing,…) and

important economic steps taken by the Government.

In order to boost economy, the country’s authorities decided as follows :

- implementation of free-market economy ;- adoption of exchange floating rate system ;- promulgation of new laws designed to favour business de-

velopment in the country (Investment Code, Mining Code, Forest Code, Labour Code) ;

Graphique n°1 : Evolution du taux d’infl ation

140

130

120

110

100

90

80

70

60

50

40

30

20

10

0

2001 2002 2003 2004 2005 2006 2007 2008 Year

%

135,5

15,8

4,49,2

22,3

18,2

12

Source : Central Bank of Congo, Condensé d’informations statistiques, n° 21 / 2009 Source : Central Bank of Congo, Condensé d’informations statistiques, n° 21 / 2009

Graph n° 1 : Development of inflation rate Graph n° 2 : Development of GDP growth rate.

Graphique n°2 : Evolution du taux de croissance du PIB

10,0

9,0

8,0

7,0

6,0

5,0

3,0

2,0

1,0

0,0

-1,0

-2,0

-3,0

2002 2003 2004 2005 2006 2007 2008 Year

-2,1

2001

3,5

5,8

6,6 6,5

5,1

6, 6,23

%

BOOMINg FREE MARKET ECONOMYIN THE HEART OF AFRICA3 DRC:

15

Table n° 10 : Export agricultural production from 1999 to 2008

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Coffee (t) 24,430 16,880 7,983 8,785 5,945 6,778 8,192 8,155 4,202 4,642Cocoa bean (t) 2,975 2,827 2,397 2,617 1,216 1,316 1,289 950 217 4,642

Rough timber (m3) 40,133 16,478 14,437 16,854 60,296 99,861 117,845 150,505 213,308 140,711Sawn timber (m3) 20,263 8,215 18,004 28,010 20,369 34,616 30,062 25,253 35,959 46,650

Veneering timber (m3) 1,022 233 0 7 8,731 5,004 7,762 6,524 2,631 -Rubber (t) 1,799 2,029 2,029 1,351 3,240 2,838 5,578 3,269 5250 -Palm-oil (t) 6,102 4,490 4,472 4,663 13,119 12,797 17,531 13,024 6016 2,642Cabbage oil 486 159 719 313 696 603 111 128 253 -

Source: Central Bank of Congo, Condensé d’informations statistiques, n°21 / 2009

Graph n° 3 : Export agricultural production (1999 – 2008)


Table n° 11 : Mining and metallurgic production from 1999 to 2008

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Copper (t) 31,225 30,821 37,845 27,359 16,359 18,995 26,389 36,388 96,391 335,066Cobalt (t) 2,308 3,738 11,637 11,865 7,929 9,967 8,234 10,841 17,886 42,461Zinc (t) 0 214 1,014 828 4,886 5,067 15,110 32,324 33,809 15,465Diamond (1,000 carats) 20,116 16,006 18,198 22,503 26,981 29,503 32,599 28,544 28,270 20,947Raw gold (kilos) 829 1,451 1,512 2,154 819 1,202 2,244 250 122 150Crude oil (1,000 barrels) 8,650 8,459 9,380 8,425 9,246 10,119 9,216 9,009 8,816 8,365


Graph n° 4 : Mining and metallurgic production (1999 – 2008)


Table n° 12 : Energetic production

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Drinking water 1,000 m3 20,3297 187,802 214,635 206,447 212,460 226,150 228,401 235,068 242,341 235,827

Electricity 1,000 Mwh 5,100 5,813 5,798 5,937 5,980 6,922 7,128 7,629 7,543 7,495Source: Central Bank of Congo, Condensé d’informations statistiques, n°21 / 2009

Copper (t)

Cobalt (t)

Zinc (t)

Diamond (1000carats)

Raw gold (Kilos)

Crude oil (1000 barrels

Coffee (t)Cocoa (t)Rough lumber (m3)Sawed timber (m3)Veneering timber (m3)Rubber (t)Palm oil (t)Cabbage oil (t)

16

Graph n° 5 : Drinking water production

Source: Cental Bank of Congo, Condensé d’informations statistiques, n°21/2009

Graph n° 6 : Electricity production

Source: Central Bank of Congo, Condensé d’informations statistiques, n°21/2009

Table n° 13 : Goods handling in main harbours (in metric tons)

Loading

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Matadi 128,439 119,225 99,488 121,779 179,196 318,150 367,654 384,793 457,654 448,431

Boma 20,137 34,740 17,397 16,509 19,018 23,668 20,842 38,665 41,914 34,776

Kinshasa 9,081 11,181 3,666 3,791 2,507 3,182 8,532 5,762 15,928 42,222

TOTAL 157,657 165,146 120,551 142,079 200,721 345,000 397,028 429,220 515,496 525,429Source: Central Bank of Congo, Condensé d’informations statistiques, n°21 / 2009

Unloading

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Matadi 694,850 921,685 939,468 111,9051 1,169,934 1,323,320 1,455,435 1,486,812 1,533,669 1,348,993

Boma 15,973 27,558 25,685 18,229 33,484 50,851 90,242 147,355 126,341 158,857Kinshasa 37,288 39,804 29,642 33,469 53,839 91,648 128,642 119,190 154,355 163,254TOTAL 748,111 989,047 994,795 1,170,749 1,257,257 1,465,819 1,674,319 1,753,357 1,814,365 1,671,104

Source : Central Bank of Congo, Condensé d’informations statistiques, n°21 / 2009

Graph n° 7 : Loading in main harbours


Graph n° 8 : Unloading in main harbours


Table n° 14 : Development of Public Funds (in millions of CDF)

2001 2002 2003 2004 2005 2006 2007 2008 2009 (up to May)Income 66,641 147,833 221,300 306,024 495,263 576,828 772,823 1,209 525,446

67,441 130,225 232,519 335,230 524,969 611,493 786,015 1,238 515,634Balance -800 17,607 -11,219 -29,205 -29,706 -34,664 -13,192 2,584 9,812


Drinking water 1000 m3

Drinking water 1000 m3

Electricity 1000 Mwh

Electricity 1000 Mwh

17

Graph n° 9 : Inflation average rate (2006 - 2007)


Table n° 15 : Development of trade balance, from 1999 to 2008 (in million USD)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008A. EXPORTS 808.7 823.5 900.7 1,131.7 1,374.1 1,917.2 2,071.6 2,704.6 4,165.5 6,801,2Gold 0.1 0 20.8 18.2 0 0 0 2.9 4.0 5.3Diamond 521 436.8 472.7 653.3 956.6 1,009.1 1,157.6 883.6 827.5 1,098.3GCM products 59.7 139.5 84 57.8 42.3 112.6 121.6 367.3 260.0 232.6Other mining companies - - - - - 356.8 251.5 831.6 2,237.5 4,428.0Oil 115.9 205.9 201.2 204.6 250.9 359.8 452.7 452.2 609.2 784.8Coffee 91.2 7.6 20.3 14.2 12.4 18 8.1 37.8 63.2 87.0Timber - - - - - 29.3 45.4 55.5 86.5 81.9Electricity - - - - - - - 23.1 28.2 35.0Miscellaneous 20.8 33.7 101.7 183.6 111.9 31.6 34.7 50.5 49.4 48.1B. IMPORTS 568.2 697.1 806.8 1,080.9 1,594.3 1,975 2,473.7 2,891.6 4,387.6 6,736.1Consumer goods 188.6 152.4 193.8 176.4 220.3 312.4 510.2 1,000.9 1,143.1 1,618.1Raw materials 94.9 76.8 54.6 65.1 71.8 74.4 113.1 149 174.5 289.8Capital goods 79.6 64.3 66.1 88.6 76.6 98.8 150.1 1,206.5 2,401.8 3,874.2Energy 89.2 71.9 84.1 168.5 183.2 226.1 431 535.2 668.3 953.9

Miscellaneous 115.9 331.7 408.2 582.3 1,042.4 1,263 1,269.3 0 0 0C. BALANCE 240.5 +126.4 +93.9 +50.8 -220.2 -57.9 -402.1 -187.1 -215.2 65.1


Graph n° 10 : Development of trade balance(1999 – 2008)


Graph n° 11 : Development of exports(1999 – 2008)


Graph n° 12 : Development of imports(1999 – 2008)

Source: Central Bank of Congo, Condensé d’informations statistiques, n° 21 / 2009

GoldDiamondGCM productsOilCoffeeMiscellaneous

A. EXPORTSB. IMPORTSC. BALANCE

Consumer goods

Raw materials

Capital goods

Energy

Miscellaneous

18

Table n° 16 : Forecasts of macroeconomic indictators

2007 2008 2009 2010 2011 2012 2013 2014 2015

Real GDP growth rate 6.5 8.0 9.0 9.5 9.8 10.0 10.3 10.5 11.0

Population (in million inhabitants) 63.3 65.2 67.2 69.2 71.3 73.4 75.6 77.9 80.2

GDP per capita (in USD) 152.4 164.9 179.6 196.4 215.5 237.0 258.8 283.1 325.1

Inflation rate (end of period) 12.0 8.0 7.0 6.0 5.0 5.0 5.0 5.0 5.0

Inflation rate (annual average) 17.4 8.9 7.5 6.5 5.5 5.0 5.0 5.0 5.0

Source : Central Bank of Congo.

SOME REFORMS RECENTLY OPERATEDIN THE DEMOCRATIC REPUBLIC OF CONgO

In political and security area

- Achievement of peace process (end of war)- Unification of the Congolese money market- Adoption of a new Constitution (through the people’s referendum)- Achievement of election process (free, democratic and transparent elections at all levels)- Integration process within the Army (DDRR)- Implementation of reform process in the Army and Security Services- Signing of peace agreement with the armed rebels and neighbour countries

In economic area

- Liberalising of overall market (mining, oil and price)- Adoption of floating exchange rate (abolition of government fixing system)- Adoption of laws on the restructuration of public enterprises- Revival of structural cooperation with Bretton Wood Institutions (WB and IMF)- Promulgation of new laws designed to favour business development in the country

(Investment Code, Mining Code, Forest Code, Labour Code, and son on)- Freedom of transferring income abroad- Setting up a new cash-based spending mechanism- Setting up a reduced tax system for investors- Prohibition of nationalisation and expropriation- Equal treatment between investors regardless of their nationalities - Reform process of public corporations (State withdrawal, capital opened up to the private)- Setting up structures for the facilitation and support of investors (ANAPI, CAMI, COPIREP,

BCECO, UCOP, BCMI)- Government option of OHADA membership (African business law)- Government agreement with IMF on the 2nd Government Economic Program (PEG2)

In administrative and judicial area

- Implementation of reforms in the Civil Service- Reform process in judiciary apparatus- Setting up Commerce Courts- Abolition of safe-conduct (free movement of Aliens all over the national area)- Bringing down (to 4) services operating in border posts- Suppression of four formalities in the setting up process of companies- Reform of the Magistrature- Reform of Civil Service

In infrastructure area- Flashing development of organisational work and / or of rehabilitation of basic

infrastructures (Five priority projects of the President of the Republic)- Chinese program still implemented

19

Institutions of the Republic :

- the President of the Republic ;- the Parliament (Bicameral : National Assembly and Senate) ;- the Government led by the Prime Minister ;- the Courts and Tribunals.

Supporting structures to private sector :

- ANAPI (National Agency for Investment Promotion)- COPIREP (Steering Committee for Public Corporation Reform)- CAMI (Mining Registry)- BCECO (Coordinating Central Bureau)- UCOP (Economic Reunification Project Coordinating Unit)- BCMI (Infrastructure Market Coordinating Bureau)- ARPTC (Post, Telephone and Communication Regulatory Authority)- FEC (Federation of Congolese Enterprises)

4.1. Internal security mechanism

• The Constitution, DRC supreme law, recognizes for every individual the right to carry out investments in compliance with the laws and regulations of the country.

• It likewise guarantees the right of property, regarded as a sacred right, to every individual.

• guarantees provided by the new investment Code :

- Equal treatment between all investors regardless of their nationa-lities ;

- Nationalisation and expropriation strictly prohibited ;- No withdrawal of any of the rights granted to investors (obser-

vance of vested interests) ;- Freedom of transferring from DRC investment-generated income

abroad.

4.2. International safety mechanisms for investors in DRC :

- DRC’s membership of MIGA (Multilateral Investment Guarantee Agency), World Bank branch ensuring investments against non commercial risks.

- DRC’s membership of CIRDI (Investment Dispute Settlement In-

ternational Centre), based in Washington DC.- DRC is also member of ACA (Trade Insurance Agency in Africa).- DRC is member of Shelter Africa, a worldwide body for invest-

ment financing in real estate sector.- DRC is signatory of many bilateral agreements related to recipro-

cal protection of investments with many countries.- An internal dispute arbitration program of the business commu-

nity by private arbitrators was developed by DRC.- The country’s commitment in a very advanced implementation

process of OHADA business law, since the Government decided to join this organisation in order to improve the business law

4.3. Democracy for the stability and security of all

Free, democratic and transparent elections were held at all levels of national life in the Democratic Republic of Congo in 2006, thus providing the latter with authorities stemming from the people’s will (President of the Republic, Prime Minister who was derived from the parliament majority, National and Provincial Members of Parliament, Senators, Provincial Governors, and so on).

Therefore, thanks to the openness policy and permanent talk with all political players and neighbour countries, the stability of institutions has come true.

H.E. Joseph KABILA KABANGEHead of the State

Léon KENGO wa DONDOPresident of the Senate

Evariste BOSHABPresident of the National Assembly

Adolphe MUZIT0Prime Minister

STABLE PARTNER FOR DEMOCRACY,PEACE AND BUSINESS4 DRC:

20

5.1. Features

- Law taken in economic liberalisation context to provide facilita-tion to investors.

- Precious tool with tax and customs incentives for public, private and semi-public investments designed to boost the Congolese economy.

- The Code sets general rules to be applied to domestic as well as foreign direct investments operated in DRC, and provides for particular provisions for SMEs and SMIs.

- With the exception of mines and hydrocarbons, banking, insu-rance, reinsurance, arms and explosive production, trade and mi-litary activities, all business sectors are involved in the Code.

- Unique system for all approved investments and equal treatment between domestic and foreign investors.

- One-stop shop regarding investment : National Agency for Invest-ment Promotion (ANAPI).

- Tax and customs benefits.- Government guarantees and security to the investments imple-

mented.

5.2. Investment Code target sectors

Agriculture, agribusiness, breeding, fishing, manufacturing industries, hotel-trade and catering, building and civil engineering, council houses, timber and forestry, air, road, sea and fluvial transports, telecommunications, information technologies, energy, textile, sundry services, etc.

5.3. Approval procedure

Owing to its simplification, approval procedure has to be conducted with promptness (time is money).

- Submission of approval application file in one copy to ANAPI.- Prompt scrutinizing of the file by ANAPI.- Approval decision through Interministerial Decree (Planning and

Finances) within 30 days.- Approval is taken for granted beyond the deadline.- Written and motivated decision in the event of refusal.

5.4. Eligibility conditions

Eligibility conditions to benefits of Investment Code get some relaxation from the new Code. They present as follows :

- Be or be converted into a corporation subject to Congolese law.- Undertake to observe the regulations in terms of protection of

environment and conservation of nature.- Undertake to train the local staff on specialized technical duties

and those of guidance and responsibility.- The share capital should amount to 200,000 USD minimum.- Guarantee a value added rate equal to or exceeding 35%.

5.5. Granted benefits

Benefits provided to investments approved at the Investment Code system include :

- Full exemption from duties and taxes on import for machinery, tools and new equipment, new spare parts not exceeding 10% of CIF value for public utility investments.

- Full exemption from duties and taxes on import for machinery, tools, new equipment and new spare parts not exceeding 10% of CIF value of the said equipment.

- Full exemption from duties and taxes on export of all or part of finished products, carved or semi-carved in good conditions for the balance of payments.

- Full exemption from professional tax on income for profits made by newly approved investments.

- Exemption from tax on land concessions and developed properties.- Exemption from tax on turnover inside the country for products

and services bought from local producers.- Exemption from ad valorem duty when constituting or increasing

the share capital of Limited Liability Companies.

5.6. Duration of granted benefits

The customs and tax benefits aforementioned are provided for the time periods set forth hereafter :-3 years : Economic zone A (Kinshasa City).

-4 years : Economic zone B (Bas-Congo, towns of Lubumbashi, Likasi and Kolwezi).

-5 years : Economic zone C (Bandundu, Equateur, Eastern Kasaï, Western Kasaï, Maniema, North-Kivu, Sorth-Kivu, Eastern Province and Katanga.

Investment projects from Small and Medium-sized Enterprises (SMEs) and Small and Medium-sized Industries (SMIs) are eligible for Investment Code benefits with the proviso that the cost of the investment planned amount at least to 10,000 USD.

SMEs and SMIs benefit, besides the exemptions related to the general system, from the advantages hereafter :

- Full exemption from duties and taxes on import, for plant, equip-ment even of second hand, new spare parts not exceeding 10% of CIF value of the said equipment, the industrial inputs we need for the materialisation of the approved investment ;

- Autorisation to deduct from their taxable profit, expenses made for training, improvement of the company leader or his staff, pro-tection and conservation of environment, and to calculate their depreciation pursuant to a degressive mode ;

- Exemption from duties on corporate or cooperative charters and on registration fees in the new Trade Register.

5.7. Obligations of approved companies

Approved companies should :

- Implement the approved programme ;- Keep regular accounts ;- Provide the staff with training ;- Observe the regulations in terms of exchange, protection and

conservation of environment ;- Pass on to ANAPI significant data relating to the achievement

level of investment or the running every six months ;- Observe the regulations in force about employment ;- Comply with national and international standards to be applied to

goods and services produced.

5.8. Penalities

In the event of failure :

- Withdrawing approval in case of ineffective formal notice. - Loss of benefits with backdated impact.

5 DRC:INCENTIVE AND SECURINg

INVESTMENT CODE

21

The taxation system to be applied to DRC’s companies presents broadly as follows :

6.1. Taxes

Table n° 17 : Summary of the congolese tax system

Nature of tax or levy Common law system Tax system for mines (industrial sector and small scale exploitation)

Tax on rental income 22% Ibidem

Deduction from rents 20% Ibidem

Movable property tax 20% • 10% for dividends and other distributions deposited by the Holder to his share holders.

Professional tax on remunerations. Implementation of the progressive scale without the total tax exceed 30% of the taxable income. Ibidem

Exceptional tax on expatriates’payments. 25% 10%

Professional tax on profits 40% 30%

Tax on turnover on import.

• 3% for capital goods, agricultural, veterinary and cattle-breeding inputs and specifically-named products in the tariff of duties and taxes on import.

• 13% for others.

Not concerned

Tax on turnover inside the country.

• 6% for conveyance operations within the country.

• 15% for conveyance operations outside the country.

• 18% for provisions of services by natural persons or legal entities established in the country.

• 9% for provisions of services by banks and financial institutions as loans.

• 30% for provisions of technical assistance by natural persons or legal entities not established in the country.

• 18% for property work.

• 3% for the sale of capital goods and agricultural, veterinary and locally-made cattle-breeding inputs.

---

• Services provided by the holder of mining right are taxable at common law rate (18%).

• 5% when the holder benefits from provisions of services related to his business.

---

---

Deposit on various taxes. 1% of transfer value ---

Mining tax to be paid by the holder of the operating mining title, calculated on the basis of net value of the sales made.

---

• 0.5% for iron or ferrous metals.• 2% for non ferrous metals.• 2.5% for precious metals• 4% for gems.• 1% for industrial minerals, solid hydrocarbons and

Artisanal exploitation implies activities of small scale workers, dealers and approved desks. Approval for desks which purchase or sell roughly – exploited mineral substances is granted by the Minister of Mines and is valid for a one-year period, endlessly renewable. During approval and at each renewal a fixed tax is paid.

Tax regime to be applied to small scale exploitation

Small scale mining exploitation is a matter of unique taxation system regarding taxes for which the holder of the mining title is liable for tax. Hence, the payment of that inclusive taxation exempts the holder from the payment of mining tax, movable tax, professional tax on profits, Tax on Expatriates’income and Tax on turnover.

10% of turnover originating from the sales of market products. That inclusive taxation is due during sale.

TAX SYSTEM COMPATIBLE WITH INVESTMENTS6 DRC:

22

6.2. Customs regime on import

Table n° 18 : Summary of customs regime on import (for investors)

Common law Investment Code

Equipment, machinery, plant, tools, heavy vehicles 8 %Exemption

(Note : 5 % administrative charges not exempted)

Agricultural and breeding inputs 5 % 5 %

Raw materials 5 % 5 %

Pharmaceutical inputs 5 % 5 %

Spare parts 10 % Exempted

Other inputs and intermediate products 10 % 10 %

DR CONgO’s NEW IMAgE

The newly-elected SADC President, Joseph KABILA KABANgE, posing with his peers among which

Jacob ZUMA of the Republic of South Africa during the 29th SADC summit of September 2009 in Kinshasa - DRC.

23

7.1. Key missions

Public technical institution provided with a legal status, ANAPI’s basic missions are :

- Various assistance to investors throughout investment process (before, during and after investment).

- Provision of information related to Congolese market to inves-tors.

- Stabilization of investment climate.- Pro-active and multifaceted marketing for investors’ attraction.- Grant of customs and tax benefits to investors.

7.2. Some services provided to investors by ANAPI

As investors’ first-rank partner, ANAPI provides various services to investors with a view to rendering them competitive.

They are inter alia :

- Welcome from entry post (airport, port)- Transportation- Reservation in hotels- Provision of various information- Organising stays- Approval to benefits of Investment Code- Search of domestic and foreign partners- Conviviality- Search of land concessions and premises- Help setting up companies (One-stop Shop)- Obtaining of special licenses - Obtaining of settlement visa- Accompaniment within the country.

FREE !

ANAPI’s services are all free

AMISI HERADYPromotion Manager

OLIGO MBELA OTTONApproval Department Manager

MWEMA MULUNGI MBUYUDeputy Managing Director

Prof. Dr Mathias BUABUA wa KAYEMBE

Managing Director

BITENU Jean-AdolpheFinancial and administrative Manager MPEMBELE KISADILA

One-stop Shop ManagerSINGA KUSA

CPA Standing SecretaryANAPI Management CommitteePermanently available to service investors.

Some of ANAPI women’s staffGiving satisfaction to investors is their main concern.

Investors are given much care :like this one warmly welcomed by ANAPI CEO

[email protected]@anapi.org

+243 99 99 25 026 • +243 99 81 27 61654, Av. Colonel Ebeya - Kinshasa / Gombe

PARTNER DEVOTED TO INVESTORS’SERVICE7 ANAPI:

24

Investors are given much care :like this one warmly welcomed by ANAPI CEO

*Governedbyaspecificlegislation,them

iningsectorisnotincludedinthesestatistics.

7.3. Statistics of investments attracted by A

NA

PI*

Table n° 19 : Overall situation of investm

ent projects attracted by AN

API from

2003 to June 2009

20032004

20052006

20072008

2009(up to june)

CUMULATED TO

TAL FROM

2003 TO

JUNE 2009

Branchesof

industry

Project Num

berInvestm

ent cost

(USD)

Jobsto be

generated

Projectnum

berInvestm

entCost(USD)

Jobsto be

generated

Project num

berinvestm

ent cost

(USD)

Jobsto be

generated

Project num

berInvestm

ent cost

(USD)

Jobsto be

generated

Project num

berInvestm

ent cost

(USD)

Jobs to be

generated

Project Num

ber Investm

ent cost

(USD)

Jobsto be generated

Project Num

berInvestm

ent cost

(USD)


Project Num

berInvestm

ent cost

(USD)


1. Services52

2 014 322 6498 902

461 925 172 842

5 69654

640 131 4588 540

391 395 544 646

3 66248

905 129 4888433

581.365.375.094

668021

938.517.8392946

3189.184.194.016

45

2. Brewing

industries3

158 105 379 201

21 907 000

1482

48 567 497 50

00

02

105 153 932 185

00

09

313.733.8035.584

3. manufcturing

industries22

90 673 849 2 129

21134 743 288

4 93529

63 431 922

1 91628

145 050 587 2 371

2562 809 207

130720

162.453.5402937

451.584.113

358149

710.746.50615.953

4. Food industries

1720 589 073

99314

21 363 975 966

926 250 399

74211

85 415 657 852

1475 772 123

216916

98.940.8503778

329.098.193

20184

357.430.2709.701

5. Pharmaceutical

industries4

8 059 590 504

214 754 598

2030

0 0

23 969 200

1090

0 0

00

02

2.210.85850

1028.994.246

866

6. Chemical

industries0

0 0

21 033 804

880

0 0

00

00

0 0

00

00

00

21.033.804

88

7. Infrastructures4

132 278 459584

447 020 360

2 6182

18 943 79197

10117 621 091

1 0432

47 871 203455

8112.845.740

14562

34.991.45398

32511.572.097

6.351

8. Agriculture and forestry

1037 077 093

1 69023

101 165 681 2 993

838 229 418

1 1276

34 896 500 1 411

922 979 015

69710

245.610.2093096

36.216.230

14969

486.174.14611.163

9. Food-Process-ing Industries

15.621.321

501

5.621.32150

10. Miscellaneous

637.316.561

10366

37.316.5611.036

Total112

2 461 106 09215 003

1142 247 161 548

17 647104

835 554 48512 472

961 782 497 681

9 448100

1 219 714 968 13 246

1121.985.225.433

17.94742

1.105.556.5684.888

68011.636.816.775

90.651

AN

API, A

pproval Departm

ent, July 2009

25

8.1. Who to apply to

Two key possibilities are presented to investors anxious to set up companies in DRC :

- Apply to ANAPI’s One-stop Shop.- Contact a Law Firm or a Trust company.

ANAPI proves to be the right door, owing to the free service it provides and its promptness.

8.2. Major formalities

HOW SHALL WE SET UP A COMPANYIN DRC8

Trade License

(Ministry of Economy andForeign Trade)

Authentication of statutes

(Notarial Office)

Tax number(Government Tax Authority)

Registration in the New Trade Register

(Commerce Court)

National Identification Number

(Ministry of Economy and Foreign Trade)

Export-Import Number

(Ministry of Economy andForeign Trade)

26

Invest in DRC

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