Jean Luc Dokaya b. Y. August 2014 Version 03

Jean Luc Dokaya b. Y. August 2014

Version 03

Presentation Outline Introduction

1. Country Profile

2. The Agricultural potential of the DRC

3. The Benefits and Business Opportunities in the Agriculture sector in DRC

Wealth and agricultural potential by provinces

DRC agribusiness situation

Local, regional and international markets

Legal and Administrative tools available

4. Conclusion

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Jean Luc Dokaya (Business and Investment Consultant)

Email: [email protected] Tel: +243 (0) 81 502 0000

Introduction The DRC has a vast agricultural potential with an abundance

of natural resources and a climate that favours a range of activities.

Over 120 million ha of land are available conducive to cultivation or pasture, of which only about 10 percent is currently exploited. It also has 55 million ha of exploitable dense forest.

The DRC is one of the most populated countries in Africa with almost 70 million consumers, constituting an important market for producers.

Climatic conditions favour with tropical climate of larger scale agricultural activities throughout the year, with rainfall alternating year-round between the Northern and Southern Hemispheres

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1. Country Profile

Country area: 2.345.409km2

Population: Approximately 73,599,190 inhabitants

Density: 31 people per km2

Administrative subdivisions

Provinces: 11

Districts: 25

Territories: 145

Sectors: 840

Decentralization process which is underway will bring to 26 the number of provinces. Districts are expected to disappear.

The DRC is located in the heart of Africa and has only a corridor than a hundred kilometers wide which gives it access to the Atlantic Ocean about 40 km

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2. The Agricultural potential of the

DRC - Topography and climatic situation

Topography and climatic situation

The country has a very diverse terrain;

The annual rainfall in the DRC vary from 815 to 2465 mm

Bowls offer favorable for growing oil palm weather, rubber, coffee, cocoa, bananas and cassava.

And savannas can be grown cotton, cereals, legumes, tubers (cassava, sweet potato, yams etc.) and livestock can be practiced

The temperate climate of the mountains to the east of the country is suitable for growing coffee, tea, potato, wheat, pea, sorghum and livestock herds.

The natural pasture can support up to 40 million head of cattle

Arable land

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The Agricultural potential of the

DRC - Rainfall and hydrography

The Democratic Republic of Congo has an

important hydrographic network covering

around 77,810 km² and including a river (Congo

River) and lakes.

The Congo River possesses the most regular and

powerful flow in the world (40.000 m3/second)

after the Amazon

The Congo River stands for a very important

hydrographic potential with a basin of

approximately 3.75 million km²,

It has a regular and powerful flow (40,000

m3/day) mainly due to its closeness to Equator

The Country is provided with a dense river

network and well distributed throughout the

entire territory favorable to the development of

irrigation on almost 4 million hectares. This gives

the possibility to produce throughout the year.

The Including hydrographic network includes about thirty large rivers totaling more than 20,000 km of

shoreline

On the African plane, the Congo River comes first and ranks second on the global plane after the

Amazon River in Brazil in terms of flow 6

Rainfall and hydrography - Continued

Other big lakes are hereunder :

Tanganyika Lake (3,900 km², between the Democratic Republic of Congo, Tanzania,

Zambia and Burundi) ;

Edouard Lake (situated at 916 m of altitude over 2,150 km² of surface, between the

Democratic Republic of Congo and Uganda. It flows into Albert Lake through the

Semiliki) ;

Albert Lake (5,000 km², crossed by the Nile between the DR Congo and Uganda) ;

Kivu Lake (2,700 km², between the DR Congo and Rwanda. It contains a huge reserve of

methane gas) ;

Mai-Ndombe Lake (2,325 km) of surface and 400 m of altitude.

Tumba Lake ;

Moero Lake.

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Wealth and agricultural potential by provinces

1 Bandundu Province:

Food crops: cassava, rice, squash, corn; fruits

Perennial crops: oil palm

Livestock: Cattle (Feshi plains, and Idiofa

Ngungu), goats and poultry

2 Bas Congo Province

Food crops: beans, cassava, soybeans, potatoes,

fruits and vegetables

Perennial crops: coffee, cocoa;, palm oil, banana

Livestock: Cattle, goats, poultry

3 Province of Equador

Food crops: rice, maize

Perennial crops: coffee, cocoa, oil palm, rubber,

4 Kasai Occidental Province

Food crops: Corn, soybeans,

Perennial crops / industrial coffee, oil palm,

cotton

• 5 Kasai Oriental

Food crops: Corn, soybeans, cassava

Perennial crops: coffee, palm oil, cotton

• 6 Katanga Province

Food crops: corn, rice, potato, sunflower

perennial crops: Cotton,

Livestock: cattle, goats, poultry

• 7 Province of Kinshasa

Food crops: cassava; corn

Livestock: pigs, poultry

• 8 Province Maniema

Food crops: rice, cassava, bananas

Perennial / Industrial: Oil palm, cotton, coffee

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3. The Benefits and Business

Opportunities in the Agriculture sector in the DRC (continued)

9 North Kivu

Food crops: cassava, beans,

potatoes, rice, wheat, vegetables,

sorghum, millet

Perennial / industrial: coffee, tea,

banana, oil palm, cocoa, cinchona


10 Eastern Province

Food crops: cassava, potato, rice

Perennial / Industrial Coffee, banana,

oil palm;


11 South Kivu Province

Food crops: cassava, potato, rice, sorghum

Perennial / Industrial Coffee, banana, tea and cinchona, Rauwolfia, Cinchona

Livestock: cattle, goats, poultry

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DR Congo Agribusiness Situation

Land under annual or perennial crops constitutes only 3.5 percent of the total land

area. Agriculture is divided into two basic sectors: subsistence, which employs the

vast majority of the work force, and commercial, which is export-oriented and

conducted on plantations. Subsistence farming involves four million families on plots

averaging 1.6 hectares (four acres), usually a little larger in savanna areas than in

the rain forest.

Subsistence farmers produce mainly manioc, corn, tubers and sorghum.

In 2004, food-crop production included manioc, 14,950,000 tons; sugarcane,

1,787,000 tons; corn, 1,155,000 tons; peanuts, 364,000 tons; and rice, 315,000 tons. In

2004, plantains totaled 1,199,000 tons; sweet potatoes, 224,500 tons; bananas,

313,000 tons; yams, 84,000 tons; and pineapples, 193,000 tons. Domestic food

production is insufficient to meet the country's needs, and many basic food

products have to be imported.

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Local, regional and International markets

73 million Congolese

9 neighboring countries with nearly

250 million people

The production of cash corps was

severely disrupted by the wave of

civil disorder that engulfed the

country between 1960 and 1967,

and production fell again after

many small foreign-owned

plantations were nationalized in

1973–74.

By the mid-1990s, the production of

the DRC's principal cash crops

(coffee, rubber, palm oil, tea) was

mostly back in private hands.

Commercial farmers number some

300,000, with holdings between 12

and 250 hectares (30 and 618

acres).

11 Jean Luc Dokaya (Business and Investment Consultant)

Local, regional and International markets (continued)

Coffee

Coffee is the DRC's third most important export (after copper and crude oil) and is

the leading agricultural export. An estimated 33,000 tons were produced in 2004

(down from an average of 97,000 tons during 1989–91); 80 percent of production

comes from the Oriental Provinces, Equateur, and both north and south Kivu.

10–15 percent of production is arabica coffee, the vast majority being robusta;

coffee exports are mostly sold to Italy, France, Belgium, and Switzerland. The

collapse of the International Coffee Agreement in 1989 quickly led to a doubling of

exports by the former Zaire, whereupon the surplus entering the world market drove

down prices rapidly.

Rubber

Rubber is the fourth most important export cash crop. The plantation crop has been

slowly recovering from nationalization. Some plantations are now replanting for the

first time in over 20 years.

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Legal and administrative tools available

Agricultural Laws

The National Investment Code

The National Agricultural Investment Plan

Facilities of Industrial Promotion Fund (IPF) and the National Fund for

Agricultural Development (FNDA)

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Conclusion Agriculture in the Democratic Republic of the Congo is an industry in the country of

the DRC that has plenty of potential.

The agricultural sector supports two-thirds of the population.

80 million hectares of arable land;

Permanent water availability;

Reallocation of abandoned farms and plantations;

73 million people to feed internally and 250 million in the region;

Improving the business climate;

The availability of the Fund for the Promotion of Industry and the National Fund for

Agricultural Development.

All assets to invest in the DRC. We do not expect that your decision to join us in this

wonderfully happy and adventure.

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Thank you

Jean Luc Dokaya b. Y. August 2014 Version 03

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