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INVESTING DR CONGO 2013

INVESTING INVESTIR DR CONGO2013

Doing Business in Africa


INVESTING DR CONGO2013


© The Africa Report – Groupe Jeune Afrique H!adq"a#t!#$: 57%&$, #"! d’A"t!"&', 75016 Pa#&$, F#an(! T!'.: (+331) 44 30 19 60 – Fax: (+331) 45 20 08 23 ))).th!af#&(a#!p*#t.(*m Ph*t*+#aph, %, M"#&!' D!-!, /J!"n! Af#&q"!, e!cept w"ere ot"erwise mentioned. Printer: Léonce Desprez, 62620 France

All rigHTs reserveD. No PArT oF THis PublicATioN MAy be reProDuceD, sToreD iN A reTrievAl sysTeM or TrANsMiTTeD iN ANy ForM by ANy MeANs, wiTHouT THe Prior wriTTeN PerMissioN oF THe AFricA rePorT.


coNTeNTs 6

KEY POINTS

POLITICS & SOCIETY HISTORY

10

13

F!"m #nd$p$nd$n%$ t" th$ Th#!d r$p&'(#% g$")!aph#% map

DR CONGO 2013 MINING AND HYDROCARBONS 34 s&'*tant#a( m#n$!a( ,$a(th 37 e%"n"m#% map* 39 FAcTFile MINING

39

AND HYDROCARBONS

P$t!"($&m'* p!"m#*$*

INFRASTRUCTURE 40 T!an*p"!t #* a p!#"!#t+ 43 FAcTFile INFRASTRUCTURE REAL ESTATE

58

SOCIETY

14

A nat#"n "f )!$at %&(t&!a( !#%hn$**

POWER AND WATER

60

POLITICAL LIFE

16 18

c"n*"(#dat#n) d$m"%!a%+

62

FAcTFile POLITICS

23

ba%k "n th$ #nt$!nat#"na( *ta)$ FAcTFile INTERNATIONAL

A %"n*#d$!a'($ $n$!)+ *h"!ta)$ FAcTFile POWER AND WATER

SERVICES

INTERNATIONAL

20

12 m#((#"n h"&*#n) &n#t* n$$d$d

COMPANIES & MARKETS

63 65

untapp$d "pp"!t&n#t#$* FAcTFile SERVICES

EDUCATION AND HEALTH

67

P"*#t#-$ m$a*&!$* f"! #mp!"-$m$nt

COMPANY LIFE 46 P!#-at$ *$%t"! tak$* p!$%$d$n%$ 49 FAcTFile COMPANY LIFE

TRAVEL DIARY

ECONOMY & BUSINESS ENVIRONMENT BANKING AND FINANCE OUTLOOK

26 29

A '!#)ht %"nt$xt

FAcTFile OUTLOOK

FOREIGN TRADE

30 33

50 53

imp"!t* and $xp"!t* a!$ !#*#n) at a '!#*k pa%$ FAcTFile FOREIGN TRADE

Man+ ma!k$t* t" %"nq&$! FAcTFile BANKING AND FINANCE

TIMBER AND AGRO-INDUSTRY

54 57

T," -$!+ p!"m#*#n) *$%t"!* FAcTFile TIMBER AND AGRO-INDUSTRY

70

y"&! t!#p


KEY POINTS With 70 million people and considerable natural wealth, the Democratic Republic

AT THE CROSSROADS OF A HUGE MARKET Dr c!n"! #ha$%# &t# '!$d%$# (&th

of Congo has outstanding development

n&n% )!*nt$&%# and +&%# &n an &d%a+

potential. Its huge area — half the size of

and #!*th%$n Af$&)a. it &# a m%m'%$

the European Union — boasts a strategic geographical and commercial location in the heart of Africa.

+!)at&!n '%t(%%n )%nt$a+, %a#t%$n !f Af$&)a'# +%ad&n" $%"&!na+ %)!n!m&) !$"an&#at&!n#, &n)+*d&n" th% '&""%#t !n%, th% c!mm!n Ma$k%t f!$ ea#t%$n and s!*th%$n Af$&)a (coMesA), (h&)h ha# 400 m&++&!n p%!p+%, and th% s!*th%$n Af$&)an D%,%+!pm%nt c!mm*n&t- (sADc), (&th a )!m'&n%d

DR Congo, whose 8.3% growth rate in 2013

gDP !f $575.5 '&++&!n.

is expected to reach 10% in 2014 — higher than the African average — is committed

A FAVOURABLE BUSINESS CLIMATE

to a huge national reconstruction

Man- f&#)a+, +%"a+ and &n#t&t*t&!na+

programme accompanied by sweeping structural reforms in every area of the

$%f!$m# — #&mp+%$ )*#t!m# p$!)%d*$%#, +!(%$ tax%#, &mp+%m%ntat&!n !f vAT and )$%at&!n !f a !n%-#t!p (&nd!( %na'+&n"

nation's life in order to diversify the

%nt$%p$%n%*$# t! #%t *p '*#&n%##%#

economy and put the country on the road

#p*$ p$&,at% &n,%#tm%nt and th%

to emergence by 2030.

&n th$%% da-# — a$% *nd%$ (a- t! d%,%+!pm%nt !f f+!*$&#h&n" a)t&,&t&%# &n %,%$- #%)t!$.


GROWTH STRATEGY Dr c!n"!'# "$!%th #t$at&"' (# )a#&d !n d(*&$#(f'(n" th& &+!n!m' and p$!m!t(n" th& p$(*at& #&+t!$ (n !$d&$ t! f,&(t# (nd,#t$(a- d&*&-!pm&nt. Th& p$(!$(t(&# a$& t! #t$&n"th&n (nf$a#t$,+t,$&, p$!+&## -!+a-

h&+ta$&# !f a$a)-& -and, Dr

• services

c!n"! +!,-d "$!% &n!,"h f!!d

Dr c!n"!'# h,"& #(z& m&an#

t! f&&d th$&& )(--(!n p&!p-&.

th&$& (# +!n#(d&$a)-& $!!m

A"$!-(nd,#t$(a- pa$k# ha*& )&&n

f!$ "$!%th (n a($, $a(-, $(*&$ and

#&t ,p t! #p,$ fa$m !,tp,t and

ma$(t(m& t$an#p!$t. Th& t&$t(a$'

d&*&-!p +!mm&$+(a- a"$(+,-t,$&

#&+t!$ a++!,nt# f!$ )a$&-' a

%(th a h("h j!)-+$&at(!n

th($d !f gDP &*&n th!,"h th&$&

p!t&nt(a-.

(# a $ap(d-' "$!%(n" m(dd-& +-a##. icT, f(nan+(a- #&$*(+&#,

$&#!,$+&# and #&t ,p #,++&##f,a+t(*(t' +-,#t&$#. A-- !f th(# (#

• industry

$&ta(-(n" and ),#(n&## t!,$(#m

a++!mpan(&d )' an a""$&##(*&

and infrastructure

a$& "$!%(n" at a #t&ad' pa+&

#t$at&"' t! )!!#t h'd$!&-&+t$(+

w(th ",a$ant&&d !,t-&t# at

and !ff&$ maj!$ m!d&$n(#at(!n

p!%&$ !,tp,t.

h!m&, (n Af$(+a and a+$!## th&

and "$!%th p$!#p&+t#.

"-!)&, a"$!-(nd,#t$(&# h!-d man' !pp!$t,n(t(&#. Th& &nt($&

INVESTING IN • farming and forestry A-th!,"h Dr c!n"! )!a#t# th& %!$-d'# #&+!nd-)(""&#t t$!p(+af!$&#t, t(m)&$ a++!,nt# f!$ j,#t 1% !f gDP. ind,#t$(a--#+a-& p-antat(!n# (!(- pa-m $,))&$, +!ff&&, +!tt!n, &t+.) m,#t )& $&*(ta-(#&d. Fa$m(n" and )$&&d(n" m&th!d# a$& #t(-- *&$' $,d(m&nta$'. w(th 80 m(--(!n

man,fa+t,$(n" #&+t!$ m,#t )& d(*&$#(f(&d and )&n&f(t f$!m (nf$a#t$,+t,$& p$!j&+t# ,nd&$ %a' (n &n&$"', +!n#t$,+t(!n and p,)-(+ %!$k#. Dr c!n"! +!,-d "&n&$at& ha-f th& p!%&$ Af$(+a n&&d#, m!#t-' f$!m h'd$!&-&+t$(+ dam#.


politiCS & sociEtY


10

POLITICS AND SOCIETY

HISTORY

From independence to the Third Republic

© ONU

F!"t# t$"%$&'nt #'a"( ma"k th' )!$nt"#'( "')'nt h*(t!"#

Josep! Kasa-Vi"u (rig!t), t!e first president of Congo-Kins!asa, at t!e May 1963 summit setting up t!e Organisation of African Unity (OAU) in Addis A"a"a.

Seventh century Rise of the Kongo kingdom

KINGDOMS AND EMPIRES Th' P#+m*'(, th' 'a"&*'(t !))$pant( !f p"'('nt-da# D'm!)"at*) r'p$%&*) !f c!n+! (Dr c!n+!), ,'"' j!*n'd *n th' (')!nd m*&&'nn*$m %'f!"' th' ch"*(t*an '"a %# bant$ p'!p&'(, ,h! &*-'d *n ,'&&-!"+an*('d (!)*'t*'( h'ad'd %# &'ad'"( d'()'nd'd f"!m

INVESTING DR CONGO 2013

&*n'( !f )h*'f(. Th'(' )!mm$n*t*'( +a-' "*(' t! p!&*t*)a& $n*t(, th' m!(t *mp!"tant %'*n+ th' K!n+! k*n+d!m, ,h*)h )!-'"'d p"'('ntda# Dr c!n+! and pa"t !f th' c!n+!, ga%!n and An+!&a, and th' l$%a, l$nda, Man+%'t$ and Zandé 'mp*"'(.


KING LEOPOLD II'S PROPERTY

DECADES OF "ZAIRIANISATION"

F!" #$nt%"&$', #!nta#t (&th e%"!p$an' (a' #!nf&n$d t! th$ At)ant&# #!a't. exp)!"at&!n !f d$$p$'t c!n*! d&d n!t 'ta"t &n $a"n$'t %nt&) 1878, (&th th$ s#!t'man Da+&d l&+&n*'t!n$ and th$ en*)&'hman H$n", stan)$,. lat$", stan)$, $nt$"$d &nt! th$ '$"+&#$ !f th$ b$)*&an k&n*, l$!p!)d ii. Th$ c!n*! (a' #"$at$d and "$#!*n&'$d a' an &nd$p$nd$nt stat$ (eic) — l$!p!)d'' p"&+at$ p"!p$"t, — -, th$ T"$at, !f b$")&n (26 F$-"%a", 1885), (h&#h '$tt)$d th$ d&+&'&!n !f Af"&#a -$t($$n th$ e%"!p$an p!($"'. ext"$m$ +&!)$n#$, th!%'and' !f d$ath' and &nt$n'$ $xp)!&tat&!n !f nat%"a) "$'!%"#$' ma""$d l$!p!)d'' "$&*n &n c!n*!.

J!'$ph Dé'&"é M!-%t%'' #!%p -"!%*ht that p$"&!d t! an $nd !n 24 N!+$m-$" 1965. H$ '$t %p a '&n*)$-pa"t, "$*&m$ and )a%n#h$d Za&"&an&'at&!n, h&' t$"m f!" #%)t%"a) d$#!)!n&'at&!n. in 1971 M!-%t% "$nam$d th$ "&+$", th$ #%""$n#, and th$ #!%nt",, (h&#h -$#am$ th$ r$p%-)&# !f Za&"$, and nat&!na)&'$d th$ $#!n!m,. H$ a)'! p"!#)a&m$d h&m'$)f Ma"'ha) M!-%t% s$'$ s$k!. A' th$ ,$a"' ($nt -,, p!!" mana*$m$nt and "ampant #!""%pt&!n )$d t! th$ #!))ap'$ !f th$ $#!n!m, and th$ stat$. Th$ !pp!'&t&!n and th$ p$!p)$ f!"#$d M!-%t% t! 'ta"t d$m!#"at&'&n* th$ #!%nt", &n Ap"&) 1990. Th$ ,$a"' that f!))!($d ($"$ $xt"$m$), %n'ta-)$. in 1991 and 1993 )!!t&n* d$'t"!,$d th$ $#!n!m&# fa-"&#. in 1994, aft$" th$ $+$nt' &n n$&*h-!%"&n* r(anda, th!%'and' !f "$f%*$$' f)!!d$d &nt! $a't$"n Za&"$.

int$"nat&!na) !p&n&!n p"$''%"$d l$!p!)d &nt! app!&nt&n* an &n+$'t&*at&+$ #!mm&tt$$ &n 1904. Th$ b$)*&an pa")&am$nt f&$"#$), d$-at$d &t' #!n#)%'&!n'. in 1908 th$ k&n* (a' f!"#$d t! hand !+$" c!n*!, (h$"$ h$ had n$+$" '$t f!!t, t! th$ b$)*&an stat$. it' )$*a) 'tat%' ma, ha+$ #han*$d, -%t th$ #!)!n&a)&'t ','t$m "$ma&n$d. b$)*&%m $xp)!&t$d th$ c!n*!'' !"$', pa)m !&), "%--$", #!ff$$ and #!#!a f!" &t' !(n -$n$f&t. on 30 J%n$ 1960 th$ r$p%-)&# !f th$ c!n*! -$#am$ &nd$p$nd$nt, (&th J!'$ph Ka'a-v%-% a' H$ad !f stat$. P!)&t&#a) %n"$'t, th$ a''a''&nat&!n !f P"&m$ M&n&'t$" Pat"&#$ em$", l%m%m-a (17 Jan%a", 1961) and +a"&!%' '$#$''&!n&'t -&d', $'p$#&a)), &n th$ Katan*a "$*&!n %nd$" th$ )$ad$"'h&p !f M!ï'$ T'h!m-$, ma"k$d th$ "$p%-)&#'' $a")&$'t ,$a"'.

Mars!al Mo"utu !eaded t!e country from 1965 to 1997.

2006

LAURENT DÉSIRÉ KABILA

Constitution of the Third Republic

Th$ A))&an#$ !f D$m!#"at&# F!"#$' f!" th$ l&-$"at&!n !f th$ c!n*!, )$d -, la%"$nt Dé'&"é Ka-&)a and -a#k$d -, r(anda, u*anda and

KEY FIGURES ! Area: 2,345 409 km2 ! Coastline: 40 km ! Population: 70 million ! Gross domestic product (GDP): $17.90 billion ! Per capita GDP: $319 ! Currency: the Congolese franc (1 dollar = 917 CDF)

INVESTING DR CONGO 2013

2012 and 2013 data and estimates, UNDP, UNICEF

FROM THE BELGIAN CONGO TO INDEPENDENCE

11

© PASCAL MAITRE POUR JA

POLITICS AND SOCIETY HISTORY


12

POLITICS AND SOCIETY HISTORY

J$-&ph Ka(#*a, 'h$ (&+am& h&ad $f th& +$!nt") aft&" h#- fath&" 'a- a--a--#nat&d #n K#n-ha-a $n 16 Jan!a") 2001, *a!n+h&d a h!,& nat#$na* and #nt&"nat#$na* +ampa#,n t$ "&-t$"& p&a+& and "&+$n+#*& th& c$n,$*&-&. Š G. DUbOURThOUMIEUx POUR JA

THE THIRD REPUBLIC

1960 Independence from Belgium

b!"!nd#, $%&"th"&' M$(!t! $n 17 Ma) 1997. Ka(#*a "&nam&d Za#"& th& D&m$+"at#+ r&p!(*#+ $f c$n,$. M$(!t! '&nt #nt$ &x#*& #n M$"$++$, 'h&"& h& d#&d a f&' m$nth- *at&". in A!,!-t 1998 r'andan and u,andan t"$$p- (a+k#n, t'$ "&(&* ,"$!p-, th& c$n,$ l#(&"at#$n M$%&m&nt and th& c$n,$*&-& A--&m(*) f$" D&m$+"a+), (&,an a n&a"*) f$!")&a" $++!pat#$n $f a '#d& -'ath $f n$"th&"n and &a-t&"n Dr c$n,$.

Ka(#*a'- #n#t#at#%& *&d t$ a m&&t#n, #n s!n c#t), s$!th Af"#+a $n 25 F&("!a") 2002 +a**&d th& int&"-c$n,$*&-& D#a*$,!& and t$ p&a+& a++$"d- '#th r'anda and u,anda #n J!*) and s&pt&m(&" 2002. on 30 J!n& 2003 a ,$%&"nm&nt $f nat#$na* !n#$n 'a- -&t !p; th& c$n-t#t!t#$n $f th& Th#"d r&p!(*#+ 'a- &na+t&d #n F&("!a") 2006. Th& t"an-#t#$n &nd&d #n D&+&m(&" 2006, aft&" Ka(#*a'pa"t) '$n ($th th& p"&-#d&nt#a* (11 +and#dat&-) and *&,#-*at#%& &*&+t#$n-. Th& &+$n$m#+ -#t!at#$n ha- ,"ad!a**) #mp"$%&d -#n+& th&n, (!t h$t(&d$f +$nf*#+t p&"-#-t #n &a-t&"n Dr c$n,$, &-p&+#a**) N$"d-K#%!, +a!-#n, n!m&"$!- p$p!*at#$n m$%&m&nt-, t"&m&nd$!- h!man and mat&"#a* *$--&- and -&%&"& #n-&+!"#t). â– 

A PRIME LOCATION DR Congo, a State straddling the equator four times the size of France, is central Africa's most populous nation and the continent's second-biggest country in area after Algeria. The 4,700 km-long Congo River, the world's secondbiggest river in terms of flow after the Amazon, forms a huge loop inside the country that stretches from the Atlantic Ocean to the great East African rift, a region of high mountains and great lakes. The north is the domain of the equatorial forest, while the south and centre form a high, mineral-rich plateau covered with tree-studded savannas and the Atlantic coastline stretches for approximately 40 kilometres in the west. DR Congo shares its borders with the enclave of Cabinda (Angola) and the Congo in the west, the Central African Republic and South Sudan in the north, Uganda, Rwanda, Burundi and Tanzania in the east, and Zambia and Angola in the south. The country's location makes it a crossroads of central, eastern and southern Africa.

INVESTING DR CONGO 2013


POLITICS AND SOCIETY

20˚ E

25˚ E

5˚ N

CENTRAL AFRICAN REPUBLIC

Mb o m o u

Zongo

Bosobolo

Ou ban gu i

O

B A S I N o ro

KWANGO

Tshikapa

K I V

Luiza

Lulua

PLATEAU

K as

Luvu a

Kabongo

Kaniama

Kapanga

Moba Manono

Lake Upemba Malemba

Nkulu

Kamina

Mitwaba

ba

15˚ E

A

T

A

N

Dilolo

G

Lake Moero

ZAMBIA

A

Kambove

Kolwezi

Pweto (Lake Mweru)

a la

Bukama Lub ud i

K

10˚ S

Sandoa

ira Luf

ANGOLA

5˚ S

Kongolo ga Luku Kalémié Lake Kabalo Nyunzu Tanganyika Kabinda

Gandajika

MweneDitu

Fizi

Kabambare

Lubao

Lu

go an Kw

Kahemba

Kasongo

AI

S A

Mbuji-Mayi

Lake Kivu

di Ruzizi BURUNDI U Uvira

TANZANIA

Kananga

RWANDA

Bukavu

ma Lua

Luebo

Kasongo-Lunda

ATLANTIC OCEAN

Demba

Lake Edward

U lin

Oshwe Dekese Kole Lodja Bagata Lukénié Sankuru Kasa Kibombo i Lubefu Ilebo Bulungu Kenge Lusambo Mweka

Idiofa

Goma

Lake Alber Margherita Peak 5,119 m Equator

Rutshuru

Lowa Punia

Kalima

Bandundu

Ruwenzori Mountains

Beni Butembo

Kindu

Popokabaka

Matadi

Lomela

Bunia Ituri

Lubutu

Ubundu

Kw ilu

Kasangulu LOWER Madimba C O N G O Mbanza-Ngungu Kikwit

Moanda Boma

Opala

K

NG

CO

KINSHASA

Kisangani

Aru

Blue Mountains

di Lin

K wa

ap a

Aba

Mungbere

O N G O

i Lomam

Pool Malebo

L ok

hu

Yangambi

Lo Ikela me Monkoto l

Inongo

Kutu

Ts

Boende

Aru wi m i C

a

Mushie

CONGO

Tshela 5˚ S CABINDA (Angola)

Lake Mai-Ndombe

Basoko

Djolu

Faradje

U P P E R

Bumba

Bougandanga

C O N G O Mbandaka Lake Tumba

Isiro

Rubi

CONGO

Kibali

5˚ N

UGANDA

Bomongo

Niangara

30˚ E

Buta

Aketi

Lisala

Basankusu Equator

Bondo Uélé

Yakoma

Gemena

Libenge

SOUTHERN SUDAN

Mbomou Gwane

13

Likasi

Kasenga

10˚ S

Lake Changalele

Lubumbashi

Kipushi

ZAMBIA 25˚ E

30˚ E

0

TOWNS AND CITIES Number of inhabitants

COMMUNICATIONS Main road

over 5,000,000

Secondary road or trail

from 1,000,000 to 1,500,000

Railway

from 100,000 to 500,000

International Airport

from 20,000 to 100,000

RELIEF ALTITUDE in metres over 2,000 from 1,000 to 2,000 from 500 to 1,000 less than 500

less than 20,000

INVESTING DR CONGO 2013

300 km

© CARTOGRAPhY : LES ÉDITIONS DU JAGUAR

20˚ E


14

POLITICS AND SOCIETY

SOCIETY

A nation of great cultural richness Th! f"#$th-%&''!(t )"#nt$* &n Af$&)a and th! %&''!(t &n th! F$!n)h-(p!ak&n' +"$,d &n t!$m( "f p"p#,at&"n

Nearly !alf t!e population is under 15 years old.

6

MILLION people: estimates of the size of the Diaspora

FOUR MAIN ETHNIC GROUPS N!a$,* ha,f "f Dr c"n'"'( 70 m&,,&"n &nha%&tant( a$! #nd!$ th! a'! "f 15. s"m! 365 t$&%!(, !a)h +&th &t( "+n d&a,!)t, )an %! d&-&d!d &nt" f"#$ ma&n !thn&)-)#,t#$a, '$"#p(: th! ban'a,a ,&-! &n eq#at!#$ p$"-&n)! and pa$t "f

INVESTING DR CONGO 2013

n"$th!$n band#nd#; th! baka(a& &n Ka(a誰-o$&!nta,! and Ka(a誰-o))&d!nta,!; th! bak"n'" &n ba(-c"n'" and pa$t "f band#nd#; and th! ba(+ah&,& &n Katan'a, N"$d-K&-# and s#d-K&-#, Man&!ma and o$&!nta,! P$"-&n)!. o-!$ ha,f th! p"p#,at&"n %!,"n'( t"


POLITICS AND SOCIETY SOCIETY

th! bant", a t!#m #!f!##$n% a&'(! a)) t' a )$n%"$*t$+ %#'"p $n+)"d$n% 360 )an%"a%!* *p'k!n $n +!nt#a) and *'"th!#n Af#$+a. Dr c'n%' a)*' ha* *!(!#a) th'"*and P,%m$!* $n th! th$+k f'#!*t z'n!, s"dan!*! $n th! u&an%"$ and u!)! &a*$n*, and th! N$)'t$+ p!'p)! $n n'#th!a*t.

ONE OFFICIAL LANGUAGE, FOUR NATIONAL TONGUES F#!n+h $* th! 'ff$+$a) )an%"a%! &"t th! c'n%')!*! "*! f'"# )'+a) t'n%"!*, *'m! 'f -h$+h a#! m")t$nat$'na): K$k'n%' '# M"n"k"t"&a $* *p'k!n $n ba*-c'n%' and band"nd" a* -!)) a* th! c'n%' and An%')a; K$*-ah$)$ $n th! !a*t f#'m l"&"m&a*h$ t' K$*an%an$ a* -!)) a* $n u%anda, r-anda, b"#"nd$, K!n,a and Tanzan$a; and T*h$)"&a $n Ka*aï-o#$!nta)! and Ka*aï-o++$d!nta)!. l$n%a)a, -h$+h $* -$d!*p#!ad $n K$n*ha*a and n!$%h&'"#$n% c'n%', +an &! "nd!#*t''d th#'"%h'"t th! +'"nt#,.

WORLD-FAMOUS ARTISTS Th! D!m'+#at$+ r!p"&)$+ 'f c'n%' &'a*t* a #$+h, (a#$!d, th#$($n% +")t"#a) *+!n! $n+)"d$n% m"*$+, pa$nt$n%, *+")pt"#!, th!at#!, dan+!, )$t!#at"#! and t#ad$t$'na) a#t*. M"*$+ and pa$nt$n% ha(! p#$d! 'f p)a+! -$th -'#)d-fam'"* a#t$*t* *"+h a* K'ff$ o)'m$dé and sam&a ché#$. Th! c'n%')!*! d$a*p'#a, an !*t$mat!d *$x m$))$'n *t#'n%, %#!at), +'nt#$&"t!* t' th!$# $nt!#nat$'na) #!n'-n. em$%#at$'n &!%an d"#$n% th! +')'n$a) p!#$'d and $n+#!a*!d d"#$n% th! s!+'nd r!p"&)$+ (Za$#!). At f$#*t, m'*t 'f th! d!*t$nat$'n* -!#! F#!n+h-*p!ak$n% +'"nt#$!* &"t th!, ha(! %#ad"a)), &!+'m! m'#! (a#$!d. Th! maj'#$t, 'f c'n%')!*! !m$%#ant* )$(! $n e"#'p! (b!)%$"m, F#an+!, s-$tz!#)and and th! un$t!d K$n%d'm) and Af#$+a &"t $n #!+!nt ,!a#* th! un$t!d stat!*, canada, th! g")f stat!* and *'m! A*$an +'"nt#$!* ha(! a)*' &!+'m! d!*t$nat$'n*. ■

RELIGIONS AND BELIEF SYSTEMS cath')$+$*m, P#'t!*tant$*m, K$m&an%"$*m and i*)am a#! p#a+t$+!d th#'"%h'"t th! +'"nt#,. M'*t M"*)$m* )$(! $n Man$!ma p#'($n+!. K$m&an%"$*m, nam!d aft!# s$m'n K$m&an%", a P#'t!*tant &'#n $n ba*c'n%' -h' +)a$m!d t' ha(! #!+!$(!d th! #!(!)at$'n 'f h$* +a))$n% $n 1921, ha* man, f'))'-!#*, !*p!+$a)), am'n% th! K'n%' p!'p)!*. s,n+#!t$*m m!an* that m'*t p!'p)! *t$)) *t#'n%), &!)$!(! $n t#ad$t$'na) &!)$!f *,*t!m*, -h$+h h!a($), $nf)"!n+! th! +'"nt#,'* *'+$a) and p')$t$+a) )$f!. P!nt!+'*ta)-t,p! !(an%!)$+a) +h"#+h!* a#! !(!#,-h!#!, !*p!+$a)), $n K$n*ha*a. Th! n"m&!# 'f f'))'-!#* ha* %#!at), $n+#!a*!d $n th! )a*t 15 ,!a#*.

MAIN HUMAN INDICATORS " Life expectancy at birth: 45 years " Population density: 30/km2 " Demographic growth: 3.1% a year " Population under the age of 14: 47% " Average age: 16.7 years " Urban/rural distribution: 35%/65% " Literacy rate over the age of 15: 67.2% (women, 58.9% and men, 85.8%)

INVESTING DR CONGO 2013

15


16

POLITICS AND SOCIETY

POLITICAL LIFE

Consolidating democracy

Š G. DUbOURThOUMIEUx POUR JA

A !t"#n$ m%&t'pa"t( !(!t)m and a d'*)"!) m)d'a &and!+ap)

Over 18,000 candidates competed in t!e Novem"er 2011 legislative elections.

A SEMI-PRESIDENTIAL SYSTEM

400 political parties

Th) c#n!t't%t'#n #f th) D)m#+"at'+ r)p%,&'+ #f c#n$#, ad#pt)d ,( ")f)")nd%m 'n D)+)m,)" 2005 and )na+t)d 'n F),"%a"( 2006, )n!h"'n)d -#m)n'! and +h'&d")n'! "'$ht! and $)nd)" pa"'t( 'n p%,&'+ 'n!t't%t'#n! f#" th) f'"!t t'm) 'n th) +#%nt"('! h'!t#"(, ")+#$n'!)d

INVESTING DR CONGO 2013

'n!t't%t'#na& #pp#!'t'#n and !)t %p a !)m'-p")!'d)nt'a& !(!t)m. ex)+%t'*) p#-)" '! *)!t)d 'n th) P")!'d)nt #f th) r)p%,&'+ and th) +a,'n)t, ,%t th) P")!'d)nt #f th) r)p%,&'+'! ")!p#n!','&'t')! and !k'&&! +#nf)" %p#n h'm a &)ad'n$ "#&). Th) P"'m) M'n'!t)" '! th) h)ad #f $#*)"nm)nt and a!!%m)! p#&'t'+a& ")!p#n!','&'t(


POLITICS AND SOCIETY POLITICAL LIFE

17

!"f#$" th" Nat%#na& A''"m!&(. H" )a$$%"' #*t th" P$"'%d"nt'' p#&%)(, !*t th" P$"'%d"nt and )a!%n"t )##p"$at" #n d"f"n)", '")*$%t( and f#$"%+n affa%$'. A !%)am"$a& pa$&%am"nt mad" *p #f a Nat%#na& A''"m!&( and a s"nat" "x"$)%'"' &"+%'&at%," p#-"$.

Th" n*m!"$ #f p#&%t%)a& pa$t%"' ha' 'k($#)k"t"d '%n)" th" m*&t%pa$t( '('t"m -a' '"t *p %n 1990. Dr c#n+# n#- ha' #,"$ 400 (278 #ff%)%a&&( $"+%'t"$"d -%th th" M%n%'t$( #f th" int"$%#$ %n 2006). M#'t ha," a ,"$( &%m%t"d f#&&#-%n+. Th"( a$" #$+an%'"d a$#*nd a &"ad"$ #$ a handf*& #f %nd%,%d*a&' -%th#*t an %d"#&#+( #$ a -"&&-d"f%n"d p$#+$amm". v"$( #ft"n, -h"n th" &"ad"$ d%'app"a$', '# d#"' th" pa$t(. on&( a$#*nd 10 pa$t%"' $"a&&( )a$$( an( -"%+ht. s#m" ha," mad" th"%$ ma$k #n th" )#*nt$('' h%'t#$%)a& m%&"'t#n"', '*)h a' Ét%"nn" T'h%'"k"d% -a M*&*m!a'' un%#n p#*$ &a dém#)$at%" "t &" p$#+$è' '#)%a& (un%#n f#$ D"m#)$a)( and s#)%a& P$#+$"'', uDPs), th" f%$'t #pp#'%t%#n pa$t(, #$ f#$m"$ P$%m" M%n%'t"$ Ant#%n" g%z"n+a'' Pa$t% &*m*m!%'t" *n%f%é (un%f%"d l*m*m!%'t Pa$t(, PAlu). Th" )"nt$"-&"ft Pa$t% d* p"*p&" p#*$ &a $")#n't$*)t%#n "t &a dém#)$at%" (P"#p&"'' Pa$t( f#$ r")#n't$*)t%#n and D"m#)$a)(, PPrD), f#*nd"d !( J#'"ph Ka!%&a %n 2002, "'p#*'"' '#)%a& d"m#)$a)(.

A PRESIDENTIAL MAJORITY IN THE NATIONAL ASSEMBLY in th" N#,"m!"$ 2011 &"+%'&at%," "&")t%#n', 18,386 )and%dat"' ,%"d f#$ 500 '"at'. Th" p$"'%d"nt%a& maj#$%t(

© ALL RIGhTS RESERVED

A HOST OF POLITICAL PARTIES

T!e Palais du Peuple in Kins!asa, t!e seat of Parliament.

-#n 341, %n)&*d%n+ 69 f#$ th" PPrD and 272 f#$ %t' a&&%"': th" Pa$t% d* p"*p&" p#*$ &a pa%x "t &a dém#)$at%" (P"#p&"'' Pa$t( f#$ P"a)" and D"m#)$a)(, 30 '"at'), M#*,"m"nt '#)%a& p#*$ &" $"n#*,"a* (s#)%a& M#,"m"nt f#$ r"n"-a&, 28), PAlu (17), A&&%an)" d"' f#$)"' dém#)$at%q*"' d* c#n+# (A&&%an)" #f D"m#)$at%) F#$)"' #f th" c#n+#, 17) and A&&%an)" p#*$ &" $"n#*,"a* d* c#n+# (A&&%an)" f#$ th" r"n"-a& #f th" c#n+#, 15). in th" #pp#'%t%#n (119 '"at'), th" &"ad%n+ pa$t( %' th" uDPs (42) f#&&#-"d !( J"anP%"$$" b"m!a'' M#*,"m"nt p#*$ &a l%!é$at%#n d* c#n+# (M#,"m"nt f#$ th" l%!é$at%#n #f th" c#n+#, 21) and th" un%#n p#*$ &a nat%#n )#n+#&a%'" (un%#n f#$ th" c#n+#&"'" Nat%#n, 16) &"d !( th" "x-p$"'%d"nt #f th" A''"m!&( v%ta& Kam"$h", f#$m"$&( a )&#'" a''#)%at" #f J#'"ph Ka!%&a, -h# d"f")t"d t# th" #pp#'%t%#n.

THE PRESS AND CIVIL SOCIETY Th" m"d%a &and')ap" "xp&#d"d %n

INVESTING DR CONGO 2013

500

deputies in the National Assembly


POLITICS AND SOCIETY POLITICAL LIFE

© VINCENT FOURNIER POUR JA

18

DR Congo !as over 600 newspapers, 200 radio stations and 80 television c!annels.

!"## than 20 $"a%#, &%'()n& f%'m a handf*! 'f 'ff)+)a! '*t!"t# t' ',"% 80 t"!",)#)'n +hann"!#, 200 %ad)' #tat)'n# and 600 n"(#pap"%# and p"%)'d)+a!#, man$ -a#"d )n K)n#ha#a. rad)' okap), !a*n+h"d )n F"-%*a%$ 2002 a# pa%t 'f th" un)t"d Nat)'n# M)##)'n )n th" c'n&' (MoNuc), ha# th" m'#t !)#t"n"%#. r"!)a-!" da)!)"# (()th +)%+*!at)'n #"!d'm "x+""d)n& 1,500 +'p)"#) )n+!*d" l" P't"nt)"!, l" Pa!ma%è#, l" Pha%", la réfé%"n+" P!*# and l’A,"n)%. Th" p%"## ha# a #*%p%)#)n&!$ f%"" t'n" and th" H)&h c'*n+)! f'% A*d)',)#*a! and c'mm*n)+at)'n th" j'*%na!)#m "th)+# (at+hd'&, 'ft"n #an+t)'n# n"(#pap"%# f'% #t"pp)n& '*t 'f -'*nd#. Dr c'n&' a!#' ha# man$ #"+*!a% and %"!)&)'*# '%&an)#at)'n#. M'#t f'+*# 'n h*man)ta%)an and d","!'pm"nt p%'j"+t#, th" %"#t 'n h*man and ('%k"%#' %)&ht#, +),)+ "d*+at)'n, "n,)%'nm"nta! )##*"# and th" d"f"n+" 'f nat*%a! %"#'*%+"#. ■

PRESIDENT JOSEPH KABILA KABANGE

© G. DUbOURThOUMIEUx POUR JA

Joseph Kabila Kabange, the son of Laurent Désiré Kabila and Sifa Mahanya, was born on 4 June 1971 in Hewa Bora (Sud-Kivu Province), where he began his education before continuing at the French school in Dar es-Salaam, Tanzania, where he

President Josep! Ka"ila Ka"ange.

also trained as a military officer. In 1996, as the troops of the Alliance des Forces Démocratiques pour la Libération du Congo-Zaïre (Alliance of Democratic Forces for the Liberation of Congo-Zaire) advanced on Kinshasa, leading to Mobutu's overthrow in May 1997, he commanded operations on the Kisangani, Lubumbashi and Kinshasa axis. Later that year he continued his officer's training at Beijing's National Defence University. After his father's assassination on 16 January 2001 he became Head of State and was sworn in on 26 January. He led the transition government from 2003 to 2006, the year he won the presidential election with 58% of the vote in the second round, defeating Jean-Pierre Bemba, leader of the Mouvement pour la libération du Congo (Congo Liberation Movement, MLC). In November 2011 he was re-elected with 48.9% of the vote in a one-round election, beating Étienne Tshisekedi wa Mulumba of the UDPS (32.3%).

INVESTING DR CONGO 2013


FAcTFile

THE FLAG is sky-blue with a yellow star in the upper left-hand corner and a red stripe bordered by a thin yellow line running diagonally across it. Blue stands for peace, the red stripe for the martyrs' blood, yellow for the country's wealth and the yellow star for hope in a radiant future.

NATIONAL MOTTO Justice, peace, work

THE PRESIDENT OF THE REPUBLIC is elected by direct universal suffrage and a simple majority to a five-year term renewable once. As Head of State he appoints and has the power to dismiss the Prime Minister, the head of government; convenes and chairs the Council of Ministers; enacts laws; and invests the provincial governors and vicegovernors. He is Commander-in-Chief of the armed forces and chairman of the High Council for Defence. PARLIAMENT is made up of two chambers, the National Assembly and the Senate. The National Assembly has 500 members elected to five-year

renewable terms by secret direct universal suffrage. The Senate has 120 members elected to five-year renewable terms by the Provincial Assemblies in indirect proportional elections. Each province chooses four senators, except the city-province of Kinshasa, which elects eight. Former Presidents of the Republic are automatically senators for life. THE PROVINCES Article 2 of the 2006 Constitution called for the establishment of 26 provinces, but the corresponding decentralisation process is still ongoing so the country runs with 11 provinces so far. Each is administered by a government and an assembly. The provincial government is made up of a governor, vice-governor and a maximum of 10 ministers, appointed by the governor, who may or may not be members of the Provincial Assembly. The governor and vice-governor are elected to fiveyear terms renewable once by the provincial deputies who may or may not be in the Provincial Assembly. They are invested by order of the President of the Republic.

The Provincial Assembly deliberates in the provinces' areas of competence (town and country planning, housing, regional finances, education, health, etc.), acts as a check on the provincial government, and controls local public services. The assembly legislates by decree. Its members, called provincial deputies, are elected to five-year renewable terms by direct universal suffrage or co-optation. The number of co-opted provincial deputies may not exceed one-tenth the number of Provincial Assembly members.

USEFUL ADDRESSES ●

GOVERNMENT PORTAL www.congo.gouv.cd PRIME MINISTER'S OFFICE Tel.: (+243) 815 555 676 www.rdc.primature.cd AGRICULTURE www.rdc-agriculture.com MINING www.mines-rdc.cd BUDGET www.ministeredubudget.cd

ADMINISTRATIVE ORGANISATION Province

Capital

Population*

1

Bandundu

Bandundu

8.4

2

Bas-Congo

Matadi

4.7

3

Équateur

Mbandaka

7.8

4

Kasaï-Occidental

Kananga

5.6

5

Kasaï-Oriental

Mbuji-Mayi

7.1

6

Katanga

Lubumbashi

6.1

7

Kinshasa

Kinshasa

9.6

8

Maniema

Kindu

2.1

9

Nord-Kivu

Goma

6.1

10

Orientale

Kisangani

8.5

11

Sud-Kivu

Bukavu

4.8

* million

THE CONSTITUTION of the Third Republic, enacted on 18 February 2006, made DR Congo a sovereign, independent, united, indivisible, social, democratic and secular State of law with a semi-presidential system. Law 11/002 of 20 January 2011 amended the Constitution to establish a single round of presidential elections.

POLITICS


20

POLITICS AND SOCIETY

INTERNATIONAL

Back on the international stage

Š bAUDOUIN MOUANDA POUR JA

A f!"#$%n p!&$'( that f!)t#") p#a'# and #'!n!m$' d#*#&!pm#nt

Kins!asa !osted t!e 14t! Summit of t!e Organisation internationale de la francop!onie in Octo"er 2012.

9 countries share their borders with DR Congo

STRONG DIPLOMACY A) )!!n a) J!)#ph Ka+$&a Ka+an%# +#'am# p"#)$d#nt $n Jan,a"( 2001, h# "#d#f$n#d and "#!"$#nt#d f!"#$%n p!&$'( t! p,t Dr c!n%! +a'k $n th# %&!+a& %am#, !p#n $t ,p t! th# -!"&d and d$*#")$f( $t) pa"tn#")h$p). Th# '!,nt"( $) #m#"%$n% f"!m a &!n%

INVESTING DR CONGO 2013

a"m#d '!nf&$'t that h$t th# #a)t pa"t$',&a"&( ha"d and $) )t$&& ),+j#'t t! atta'k) +( a"m#d %"!,p), #)p#'$a&&( $n N!"d-K$*,. F!" !*#" 10 (#a") th# p"#)$d#nt ha) +##n t"($n% t! "#)t!"# and )t"#n%th#n p#a'# -h$&# d#*#&!p$n% f"$#nd&( t$#) -$th Dr c!n%!') n$n# $mm#d$at# n#$%h+!,").


POLITICS AND SOCIETY INTERNATIONAL

21

D!" t# th" $#nf%&$t that 'a("d f'#m 1998 t# 2003 and p"')&)t"nt &n)"$!'&t* &n N#'d-K&+!, )&n$" 1999 Dr c#n(# ha) ,""n )!pp#'t"d ,* th" un&t"d Nat&#n) M&))&#n &n th" D"m#$'at&$ r"p!,%&$ #f c#n(# (MoNuc), '"p%a$"d #n 1 J!%* 2010 ,* th" 23,000-)t'#n( un&t"d Nat&#n) sta,&%&)at&#n M&))&#n &n th" D"m#$'at&$ r"p!,%&$ #f c#n(# (MoNusco), #n" #f th" ,&((")t uN m&))&#n) &n th" -#'%d. A) pa't #f &t) p"a$"k""p&n( mandat", MoNuc )!pp#'t"d th" h#%d&n( #f p'")&d"nt&a%, %"(&)%at&+" and p'#+&n$&a% "%"$t&#n) &n 2006 and 2007. Man* &nt"'nat&#na% h!man&ta'&an Ngo) a'" a%)# a$t&+" &n Dr c#n(#.

RESTORING THE COUNTRY'S INTERNATIONAL IMAGE in add&t&#n t# th"&' nat&#na% &mpa$t, th" ma$'#-"$#n#m&$ and &n)t&t!t&#na% '"f#'m) a&m&n( t# ")ta,%&)h (##d (#+"'nan$" a) -"%% a) "$#n#m&$ and f&nan$&a% )ta,&%&t* ha+" h"%p"d '")t#'" a p#)&t&+" &nt"'nat&#na% &ma(" #f Dr c#n(#. P'&m" M&n&)t"' Matata P#n*#, app#&nt"d &n Ma* 2012, ha) mad" man* t'&p) a,'#ad, &n pa't&$!%a' t# th" un&t"d stat") and e!'#p", t# )t'"n(th"n t&") -&th th" &nt"'nat&#na% $#mm!n&t*. in add&t&#n, th" $#!nt'* ha) mad" an "ff#'t t# )"tt%" a''"a') #-"d t# '"(&#na% ,#d&"). in o$t#,"' 2012 K&n)ha)a h#)t"d th" o'(an&)at&#n &nt"'nat&#na%" d" %a f'an$#ph#n&" )!mm&t, &%%!)t'at&n( th" p#%&$*') )!$$")). N"- d&p%#mat&$ '"p'")"ntat&#n) a'" #p"n&n( !p &n K&n)ha)a and a&' %&nk) t#

Š ALL RIGhTS RESERVED

THE UNITED NATIONS MISSION

President Ka!ila wit" ban Ki-moon, UN Secretary General, and Jim Yong Kim, president of t"e World bank.

f#'"&(n $ap&ta%) a'" #n th" '&)". Dr c#n(# n#- h#)t) a ('#-&n( n!m,"' #f '"(&#na% and $#nt&n"nta% $#nf"'"n$").

DIVERSIFYING ECONOMIC PARTNERSHIPS Th" $#n+&$t&#n that d&p%#ma$* m!)t ," a d'&+&n( f#'$" #f "$#n#m&$ and )#$&a% ('#-th ha) %"d #ff&$&a%) t# f#'(" "$#n#m&$ t&") -&th a '&)&n( n!m,"' #f &n$'"a)&n(%* d&+"')" pa'tn"') $h#)"n f#' th" kn#-h#- th"&' $#mpan&") $an ,'&n( t# '",!&%d&n( and "q!&pp&n( th" $#!nt'*, ")p"$&a%%* &t) &nf'a)t'!$t!'". wh&%" ma&nta&n&n( &t) t'ad&t&#na% m!%t&%at"'a% (th" int"'nat&#na% M#n"ta'* F!nd and w#'%d bank) and ,&%at"'a% (b"%(&!m, F'an$" and th" un&t"d stat") &n pa't&$!%a') '"%at&#n), Dr c#n(# ha) ,'#ad"n"d &t) t&") -&th #th"' $#!nt'&") &n e!'#p", r!))&a and th" "m"'(&n( nat&#n), &n$%!d&n( T!'k"*, ch&na, ind&a, s#!th K#'"a and b'az&%. it ha) a%)# )t'"n(th"n"d %&nk) -&th Af'&$an

INVESTING DR CONGO 2013

23,000 people make up MONUSCO


22

POLITICS AND SOCIETY INTERNATIONAL

Š KOPANO TLAPE/AFP IMAGEFORUM

REFURBISHING MISSIONS ABROAD

President Ka!ila wit" "is Sout" African counterpart, Jaco! Zuma.

!n"t!t#t!$n" "#%h a" th& Af'!%an D&(&)$pm&nt bank and *!th "&(&'a) Af'!%an %$#nt'!&".

A '&$'+an!"at!$n $f f$'&!+n p$)!%, !n"t!t#t!$n" +$&" hand-!n-hand *!th th!" &ff$'t. Th& '&%'#!tm&nt $f ,$#n+ $ff!%!a)" and a%q#!"!t!$n $f n&* &q#!pm&nt ha" a%%$mpan!&d th& M!n!"t', $f F$'&!+n Affa!'"' $(&'ha#). s!+n!f!%ant '&"$#'%&" ha(& -&&n &a'ma'k&d t$ '&f#'-!"h d!p)$mat!% m!""!$n"; 'a!"& "a)a'!&" and &n"#'& th&, a'& pa!d '&+#)a'),; p#'%ha"& n&* -#!)d!n+" and '&n$(at& $)d $n&", &"p&%!a)), !n th& uN s&%#'!t, c$#n%!) M&m-&' stat&"; and '&"t$'& th& '$tat!$n $f d!p)$mat" a" *&)) a" p'$(!d& th&m *!th $p&'at!n+ -#d+&t". b&"!d&" !nt&'nat!$na) p$)!%,, maj$' &%$n$m!% and "&%#'!t, !nt&'&"t" a'& at "tak&. Dr c$n+$'" *&a)th !n nat#'a) '&"$#'%&" (m!n&", f$'&"t", *at&', &n&'+, and h,d'$%a'-$n") mak& !t an !n%'&a"!n+), (a)#&d &%$n$m!% pa'tn&'. â– 

CONFLICT RESOLUTION IN THE EAST In 2012 a rebel group calling itself M23 (Movement of 23 March) rose up in eastern DR Congo demanding observance of the accords signed between the government and the National Congress for the Defence of the People (CNDP), the insurgent movement from which it sprang. M23 has jeopardised progress towards making the area safer by maintaining a strife-torn climate, causing significant material damage, and committing many atrocities, especially rapes. On 24 February 2013, 11 countries of the region (Angola, Burundi, Central African Republic, Congo, DR Congo, Rwanda, South Africa, South Sudan, Tanzania, Uganda and Zambia), meeting in Addis Ababa, Ethiopia, signed a framework agreement on peace, security and cooperation in DR Congo that calls for close monitoring to ensure that the desired goals are achieved. A 3,000 strong UN intervention brigade, armed with an offensive mandate for the first time, will reinforce MONUSCO, responsible for protecting civilians.

INVESTING DR CONGO 2013


FAcTFile INTERNATIONAL ORGANISATIONS The Democratic Republic of Congo joined the United Nations on 20 September 1960. It was among the 31 African States that, on 25 May 1963, founded the Organisation of African Unity (OAU), which became the African Union (AU) on 26 May 2001. REGIONAL ORGANISATIONS DR Congo belongs to four African regional economic organisations. COMESA The Common Market for Eastern and Southern Africa (COMESA) groups together 19 countries: Burundi, Comoros, Djibouti, DR Congo, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, the Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. Founded in 1994 to strengthen a free-trade agreement existing since 1981, it has a population of 400 million and a combined GDP exceeding $800 billion, making it Africa's biggest regional organisation.

INTERNATIONAL SADC The Southern Africa Development Community (SADC), founded in August 1992 to create a customs union between the Member States, includes 14 countries: Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. ECGLC Set up on 20 September 1976, the Economic Community of the Great Lakes Countries (ECGLC) includes Burundi, DR Congo and Rwanda. The organisation suspended its missions in 1996 due to the conflicts raging in the three Member States, but decided to resume them in 2008 and confirmed the decision in August 2010. Its headquarters is in Gisenyi, Rwanda, on the border with Goma, the capital of Nord-Kivu in DR Congo.

REPRESENTATIONS OF INTERNATIONAL BODIES ●

AFRICAN DEVELOPMENT BANK (AfDB) Tel.: (+243) 815 560 291 www.afdb.org WORLD BANK Tel.: (+243) 999 975 019 www.worldbank.org INTERNATIONAL MONETARY FUND (IMF) Tel.: (+243) 817 006 183 www.imf.org UNITED NATIONS STABILISATION MISSION IN THE DR CONGO (MONUSCO) Tel.: (+243) 818 906 000 www.monusco.unmissions.org

EUROPEAN UNION Tel.: (+243) 817 006 656 eeas.europa.eu

DIPLOMATIC REPRESENTATIONS

ECCAS The Economic Community of Central African States (ECCAS) includes the six members of the Economic and Monetary Community of Central Africa (CEMAC: Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea and Chad, all in the franc zone) plus Angola, Burundi, DR Congo and São Tomé & Príncipe. Set up by a treaty signed in Libreville, Gabon in October 1983 that came into force in December 1984, its purpose is to establish joint sector-based policies for Member States. The organisation has a peacekeeping and conflict prevention mandate due to the region's recurring armed conflicts.

UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Tel.: (+243) 815 553 300 www.cd.undp.org

SOUTH AFRICA Tel.: (+243) 812 936 888 BELGIUM Tel.: (+243) 817 005 900 www.diplomatie.be/kinshasafr CANADA Tel.: (+243) 996 021 500 www.canadainternational.gc.ca/ congo/ CHINA Tel.: (+243) 851 725 151 cd.chineseembassy.org/fra/ UNITED STATES Tel.: (+243) 815 560 151 french.kinshasa.usembassy. gov FRANCE Tel.: (+243) 815 559 999 www.ambafrance-cd.org INDIA Tel.: (+243) 815 559 770 MOROCCO Tel.: (+243) 817 007 089 ambamarocongo@yahoo.fr UNITED KINGDOM Tel.: (+243) 817 150 761 www.ukindrc.fco.gov.uk SWITZERLAND Tel.: (+243) 898 946 800 www.eda.admin.ch TURKEY Tel.: (+243) 817 007 500 www.kinshasa.emb.mfa.gov.tr


eCONOMy & BUSINESS ENVIRONMENT


26

ECONOMY AND BUSINESS ENVIRONMENT

OUTLOOK

A bright context

© FERONIA.COM

r!ap"n# th! $!n!fit& aft!' a d!(ad! )f &*!!p"n# '!f)'m&

Agriculture accounts for nearly 40% of DR Congo's GDP.

10%

growth rate in 2014

SOARING GROWTH SINCE 2009 Aft!' th! +at! 1990& — th! !nd )f th! Za"'! ,!a'& f)++)*!d $, '!$!+ -p'"&"n#& "n th! n)'th and !a&t, *h"(h h-'t th! !()n)m, and "mp).!'"&h!d th! p)p-+at")n — Dr c)n#) +a-n(h!d a .a&t nat")na+ '!()n&t'-(t")n p')#'amm! a& *!++ a& &*!!p"n#

INVESTING DR CONGO 2013

ma(')-!()n)m"( and &t'-(t-'a+ '!f)'m&. g')&& d)m!&t"( p')d-(t (gDP) #')*th, n!#at".! "n 2001, ')&! $, an a.!'a#! 5.6% a ,!a' d-'"n# th! 2002-2010 p!'")d. in th! *ak! )f th! "nt!'nat")na+ f"nan("a+ ('"&"&, "n 2009 "t d"pp!d t) 2.8% $-t $)-n(!d $a(k t) 7.1% "n 2012 and "& !xp!(t!d t)


ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

!"a#h 8.3% $n 2013 and 10% $n 2014, %&t't!$pp$n( th" Af!$#an a)"!a(". M"an*h$+", th" $mp+"m"ntat$%n %f 't!$#t ,&d("ta!- and m%n"ta!p%+$#$"' ha' ,!%&(ht $nf+at$%n &nd"! #%nt!%+.

DRIVEN BY THE MINING INDUSTRY b"t*""n 1996 and 2005, "#%n%m$# (!%*th *a' f&"++"d ,- m$n$n( and #%n't!&#t$%n *h$+", $n !"#"nt -"a!', $t ha' ,""n ,&%-"d ,- #%mm"!#", t!an'p%!t, t"+"#%mm&n$#at$%n', p&,+$# *%!k' and a(!$#&+t&!". Aft"! d"#!"a'$n( $n )%+&m" $n 2009, m$n$n(, *h$#h a##%&nt' f%! a!%&nd 15% %f gDP, ha' ,"n"f$t"d f!%m 't"ad(+%,a+ p!$#"' %f m$n"!a+' and th" ,$( $n)"'tm"nt' th"- ha)" att!a#t"d, "'p"#$a++- #%pp"!-#%,a+t and (%+d. sta,+" "x#han(" !at"', 't"p' t% "a'" #%n("'t$%n at th" p%!t' %f Matad$ and b%ma, and th" !"ha,$+$tat$%n %f !%ad $nf!a't!&#t&!" a##%&nt f%! th" (!%*th %f t!ad". A !"a+ "'tat" ,%%m and th" (%)"!nm"nt'' am,$t$%&' p&,+$# *%!k' p!%(!amm" ha)" ,%%'t"d th" #%n't!&#t$%n $nd&'t!-. N"* t"+"#%mm&n$#at$%n' %p"!at%!' %ff"!$n( m%!" '"!)$#"' ha)" a!!$)"d.

RESUMPTION OF LOGGING AND FARMING Fa!m$n( and +%(($n( ha)" mad" th" ,$(("'t #%nt!$,&t$%n' t% (!%*th '$n#" 2010. A(!$#&+t&!" a##%&nt' f%! n"a!+40% %f gDP and "mp+%-' 70% %f th" p%p&+at$%n. Th" !"d")"+%pm"nt %f fa++%* fa!m+and, (%)"!nm"nt h"+p f%! 'ma++h%+d"!' (d$'t!$,&t$%n %f t!a#t%!', f"!t$+$'"!' and $mp!%)"d '""d') and +a&n#h %f th" a(!$#&+t&!a+ #ampa$(n $n 2012 f%'t"!"d th" !"'&mpt$%n %f #!%p "xp%!t' (%$+ pa+m, !&,,"! and #%ff"") and an $n#!"a'" $n th" p!%d&#t$%n %f f%%d #!%p'. Aft"! d$pp$n( '+$(ht+- $n

27

2009, th" *%%d $nd&'t!- (1% %f gDP) $' ,%&n#$n( ,a#k *$th !$'$n( p!%d&#t$%n %f +%(' and 'a*n t$m,"!.

RISING TAX REVENUES Th"!" a!" '")"!a+ ,!$(ht 'p%t' %n th" ,&d("t mana("m"nt f!%nt. Ant$-f!a&d m"a'&!"', m%d"!n$'at$%n %f f$nan#$a+ !&+"' and $nt!%d&#t$%n %f n"* tax and #&'t%m' $n't!&m"nt' ha)" ,%%'t"d tax !")"n&"'. A #%!p%!at" d$)$'$%n ha' ,""n #!"at"d and %n"-'t%p *$nd%*' '"t &p at th" ma$n ,%!d"! #!%''$n('. on" f+a('h$p !"f%!m *a' th" $nt!%d&#t$%n %f )a+&" add"d tax (vAT) $n 2012. sp"nd$n( ha' ,""n #&t *h$+" (&a!ant""$n( $t' q&a+$t- and *$th%&t h&!t$n( (!%*th. F&t&!" !"f%!m' $n#+&d" tax #&t' and th" m"!("! %f f$nan#$a+ '-'t"m'. H$(h"! !")"n&"' ha)" h"+p"d 'h!$nk th" d"f$#$t d"'p$t" th" !$'" $n p&,+$# $n)"'tm"nt and #&!!"nt "xp"nd$t&!"', d%m$nat"d ,- %p"!at$n( and '"#&!$t- "xp"n'"' mad" n"#"''a!- ,- 't!$f" $n th" "a't.

AGRICULTURE AND LOCAL PROCESSING Th" "#%n%m- $' 't$++ t&!n"d $n*a!d and (!%*th d%"' n%t ,"n"f$t th" p%p&+at$%n "n%&(h. T% #han(" that, a' pa!t %f $t' +%n(-t"!m )$'$%n th" (%)"!nm"nt ha' %)"!ha&+"d $t' (!%*th m%d"+ and d")"+%pm"nt 't!at"($"' *h$#h, ,a'"d %n th" d$)"!'$f$#at$%n %f th" "#%n%m-, *$++ h"+p ma$nta$n "xpan'$%n and #!"at" '&'ta$na,+" j%,'. Th" ma$n d!$)"!' %f (!%*th $n#+&d" th" !%ad !"ha,$+$tat$%n and "xt"n'$%n p!%(!amm", an $n#!"a'" $n p%*"! and *at"! '&pp+- and th" +%#a+ p!%#"''$n( %f a(!$#&+t&!a+ p!%d&#t' t% #!"at" m%!" add"d )a+&". A(!%-$nd&'t!$a+ pa!k' and 'p"#$a+ "#%n%m$# z%n"' a!" p+ann"d t% #a!!- %&t that p%+$#-.

INVESTING DR CONGO 2013

70%

of the population earn a living from agriculture


28

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

T!e government is focusing on local processing of agricultural products.

25%

BOOSTING PUBLIC INVESTMENT M!an"h#$!, th! %&'!(nm!nt "#$$ )&&*t p+)$#, #n'!*tm!nt #n *+,h

p(&m#*#n% *!,t&(* a* a%(#,+$t+(!, #nf(a*t(+,t+(!, h!a$th and !d+,at#&n a* "!$$ a* #mp(&'! th! p!(f&(man,!* &f %&'!(nm!nt *!('#,!* #n th! a(!a* &f p&$#,- ana$-*#*, f&(m+$at#&n and mana%!m!nt and #n th! !x!,+t#&n and m&n#t&(#n% &f p(&%(amm!*. st!p* +nd!( ,&n*#d!(at#&n #n,$+d! mak#n% a t(an*#t#&n t& p(&%(amm! )+d%!t#n%, #n,(!a*#n% th! (!*p&n*#)#$#t- &f m#n#*t!(* and f&,+*#n% mana%!m!nt &n (!*+$t*. Th! adm#n#*t(at#'! (!f&(m +nd!( "a- *#n,! 2011, "h#,h a#m* t& h#(! -&+n%!( *taff, "#$$ ,&nt#n+!. Th! adm#n#*t(at#'! and f#nan,#a$ d!,!nt(a$#*at#&n p(&,!** "#$$ )!%#n, th! %&a$ )!#n% t& !n*+(! that a$$ th! p(&'#n,!* p&**!** th! h+man and t!,hn#,a$ (!*&+(,!* th!- n!!d t& mana%! th! *ha(! &f th! nat#&na$ )+d%!t a$$&,at!d t& th!m. ■

share of debt in GDP

NATIONAL DEBT CUT TENFOLD After a break of several years, DR Congo resumed its relations with the International Monetary Fund (IMF) and the World Bank in 2001. In April 2002 the normalisation of ties with the IMF led to the conclusion of a $740-million three-year accord – the Government Economic Programme (GEP) – as part of the Poverty Reduction and Growth Facility (PRGF). In 2009 the signing of GEP II, backed by a $550-million PRGF, enabled DR Congo to reach the HIPC (Heavily Indebted Poor Countries) Initiative completion point on 30 June 2010. The country's $13.7-billion debt, 127% of GDP in late 2009, was brought down to $1.4 billion in 2010 (25% of GDP in 2012). GEP II ended in December 2012 but the loan's last two tranches ($225 million) were not disbursed due to lack of transparency in the mining sector. The issue has been cleared up and talks on a new three-year programme are under way.

INVESTING DR CONGO 2013


FAcTFile

OUTLOOK GDP STRUCTURE Other: 11% ●

● Agriculture: 40 %

Timber: 1% ● Industry: 5% ● Construction: 6%●

Mining: 15% ●

GDP GROWTH RATE 2009

2010

2011

2012

2013(e)

2014(e)

2.8 %

6.9 %

6.9 %

7.1 %

8.3 %

10 %

● Trade: 22% AfDb, IMF data

Official Congolese data, (e) IMF estimates

PUBLIC FINANCES (iN % oF gDP) 2009

2010

2011

2012

2013(!)

2014 (!)

Total revenues

24.3

33

35.8

32.5

36.4

38.8

Of which tax revenues

16.8

19.9

23.6

32.4

33.4

33.1

Total spending (and net loans)

28.5

30.6

36.2

38.6

41.6

41.8

Of which current expenditures

20.7

16.5

16.8

20.7

20.7

20.7

Balance

- 4.2

2.4

- 0.4

- 6.2

- 5.2

-3

Official Congolese data, (e) IMF estimates

BALANCE OF TRADE (iN % oF gDP) 2009

2010

2011

2012

2013 (!)

2014 (!)

Exports

39.3

63.4

62.4

61.1

56.2

52.5

Imports

44.6

58.4

59.2

54.1

52.2

50.2

Balance

-5.2

5

3.2

54.1

4.1

2.2

Official Congolese data, (e) IMF estimates

FOREIGN TRADE (iN MillioN DollArs) 2009

2010

2011

2012

Exports

2,777.5

5,612.1

6,915.1

4,997.8

Imports

3,229.8

4,308.4

5,247.6

4,764.4

Official Congolese data


30

ECONOMY AND BUSINESS ENVIRONMENT

FOREIGN TRADE

Imports and exports are rising at a brisk pace

ch!na !" th# t$p %&"t$m#', s$&th Af'!%a th# (#ad!n) "&pp(!#'

T!e port of Matadi, at t!e mout! of t!e Congo River, is t!e country's main maritime gateway.

+103% Growth of exports (2002-2009)

FOREIGN TRADE'S CONTRIBUTION TO THE ECONOMY F$'#!)n t'ad#, *h!%h p(&mm#t#d !n th# 1990" +&t +$&n%#d +a%k !n th# f!'"t d#%ad# $f th!" %#nt&' ,, a%%$&nt#d f$' n#a'(, 80% $f Dr c$n)$'" gDP !n 2010. in a-#'a)#

INVESTING DR CONGO 2013

-a(&#, #xp$'t" '$"# f'$m $1.696 +!((!$n a ,#a' +#t*##n 1990 and 2001 t$ $3.449 +!((!$n +#t*##n 2002 and 2009 (+103%). imp$'t" !n%'#a"#d f'$m $1.538 +!((!$n t$ $3.687 +!((!$n (+140%) d&'!n) th# "am# p#'!$d.


32

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

A WIDE RANGE OF IMPORTS

Kasum!alesa and Goma (on t"e !order wit" Zam!ia and Rwanda, respectively) are t"e two main land crossings for trade.

MINING PRODUCTS DOMINATE EXPORTS

+140% Growth of imports (2002-2009)

o!" and m#n"!a$% (&'pp"!, &'(a$t, )'$d and d#am'nd%), h*d!'&a!('n% ('#$) and t#m("! a&&'+nt"d f'! ',"! 90% 'f "xp'!t% #n ,a$+" ("t-""n 2008 and 2012. M#n#n) p!'d+&t% t'p th" $#%t: 77.26% #n 2012 &'mpa!"d t' 28% #n 2000. N"xt &'m" '#$ (a!'+nd 15% #n 2012) and t#m("! (2.8%). ch#na #% th" $"ad#n) &+%t'm"! f'! c'n)''% m#n#n) p!'d+&t%, "%p"&#a$$* &'pp"!, and a(%'!(% n"a!$* ha$f th" &'+nt! *'% "xp'!t% (49% 'n a,"!a)" ("t-""n 2008 and 2012). Th" 'th"! ma!k"t% a!" s'+th K'!"a and th" e+!'p"an un#'n, "%p"&#a$$* b"$)#+m and F#n$and, -h"!" %'m" 'f th" &'(a$t m#n"d #n Dr c'n)' #% !"f#n"d.

INVESTING DR CONGO 2013

imp'!t% a!" !#%#n) and #n&!"a%#n)$* d#,"!%#f#"d, a$th'+)h f'+! t*p"% — f''d, &h"m#&a$%, m#n"!a$% and m"ta$% and ma&h#n"% — a&&'+nt"d f'! ',"! 70% #n 2012. Th" %ha!" 'f ma&h#n" #mp'!t% &$#m("d f!'m 16.73% #n 2010 t' 27.76% #n 2012, a %#)n 'f th" !#%" 'f man+fa&t+!#n) and %+(-&'nt!a&t#n) #n m#n#n) and p+($#& -'!k%. F''d #mp'!t% !ank %"&'nd (16% #n 2012), a pa!ad'x f'! a &'+nt! * -#th -#d" %-ath% 'f a!a($" $and #d"a$ f'! fa!m#n). o,"! ha$f th" #mp'!t% &'m" f!'m %#x &'+nt!#"%: s'+th Af!#&a (34.19%), ch#na (19.30%), b"$)#+m (9.33%), F!an&" (6.31%), th" un#t"d stat"% (4.58%) and g"!man* (3.82%). T!ad" -#th 'th"! Af!#&an &'+nt!#"% #% %t#$$ ma!)#na$ d"%p#t" %p"&#a$ !")#'na$ a)!""m"nt% (sADc, coMesA and ceeAc). H'-","!, #nf'!ma$ &!'%%('!d"! t!ad" #% %#)n#f#&ant.

A NEW TRADE POLICY T' !"(a$an&" th" %t!+&t+!" 'f f'!"#)n t!ad", Dr c'n)' f'&+%"% 'n (''%t#n) "xp'!t% 'f p!'&"%%"d m#n#n) p!'d+&t% and &a%h &!'p% (pa$m '#$, !+(("!, &'f f"" and &'&'a) a% -"$$ a% 'n d","$'p#n) n'n-t!ad#t#'na$ %"&t'!% %+&h a% $#,"%t'&k, f!+#t and ,")"ta($"%. T' d' that, th" &'+nt! * &'n&"nt!at"% 'n t!a#n#n) and !a#%#n) fa!m"!%' a-a!"n"%% 'f #nt"!nat#'na$ %tanda!d%, &'n%"! ,at#'n, pa&ka)#n) and th" &!"at#'n 'f $a("$%. s","!a$ t!an%,"!%a$ '! %"&t'!-(a%"d m"a%+!"% -#$$ a$%' %+pp'!t fa!m"!% #n th"#! n"- a&t#,#t#"%. ■


FAcTFile

FOREIGN TRADE EXPORTED PRODUCTS (% oF ToTAl vAlue)

Agribusiness

2008

2009

2010

2011

2012

1.8

2.4

1.4

0.7

1

Energy (oil and gas)

5.8

17

12.7

17.6

15.6

Timber

5.4

4

2.5

2.3

2.8

Minerals and metals

84

73.2

77.2

74.2

77.3

Others (1)

3

3.4

6.2

5.2

3.3

3,745.4

2,777.5

5,612.1

6,915.1

4,997.8

Total value (m!""!#n$ #f d#""a%$) (1) Te!tile, clot"ing, s"oes, c"emicals, mac"inery and transport equipment

IMPORTED PRODUCTS (% oF ToTAl vAlue) Agribusiness Energy Chemicals

2008

2009

2010

2011

2012

21.5

23.7

22.8

19.9

16

10

7.6

13.7

4.7

4.7

12.1

16.5

17.9

14.7

14.4

Machinery, transport equipment

28.5

25.9

23.5

33.5

37.6

Minerals and metals

16.3

12.2

12

12.2

14.1

Miscellaneous end products

3.5

4.9

5.4

4

5

Others (1)

8.1

9.2

4.7

11

8.2

3,993.9

3,229.8

4,308.4

5,247.6

4,764.4

Total value (m!""!#n$ #f d#""a%$) (1) Te!tile, clot"ing, s"oes, c"emicals, mac"inery and transport equipment

MAIN CUSTOMERS (% oF ToTAl eXPorT vAlue) 2008

2009

2010

2011

2012

China

42.2

40.9

44.5

47

71.7

Belgium

13.6

8.4

5.2

5.7

7.5

South Korea

0.1

0.8

1.7

2.3

4.8

Finland

8.7

2.7

2.3

1.4

3.6

2011

2012

2008

2009

2010

South-Africa

28.2

17.8

20.1

21.1

34.2

China

5.9

10

11

15.8

19.3

Belgium

9.8

10

8.2

8.3

10.3

France

4.6

7.1

5.3

4.7

6.3

United States

3.3

2.5

2.2

3.2

4.6

Germany

3.1

3.4

2.9

3.1

3.8

Data DRC aut"orities, Jeune Afrique

MAIN SUPPLIERS (% oF ToTAl iMPorT vAlue)


34

ECONOMY AND BUSINESS ENVIRONMENT

MINING AND HYDROCARBONS

Substantial mineral wealth o+tp+t &f (t$at!%'" &$!( '( $'('n%

Katanga !as t!e "iggest concentration of copper mines.

80% of the world's cobalt reserves

A GEOLOGICAL SCANDAL D!"#a$!d a "%!&#&%'"a# ("anda#" )* a *&+n% b!#%'an %!&#&%'(t at th! )!%'nn'n% &f th! #a(t "!nt+$* )!"a+(! &f 't( 'mm!n(! m'n!$a# $!(&+$"!(, Dr c&n%& p&((!((!( &,!$ 1,000 (+)(tan"!(, 'n"#+d'n% a$&+nd 20 (t$at!%'" &$!(. Th! "&+nt$* )&a(t( th! -&$#d'( (!"&nd-)'%%!(t

INVESTING DR CONGO 2013

$!(!$,!( &f "&pp!$, 25% &f 't( %&#d $!(!$,!(, 30% &f 't( d'am&nd( and &,!$ 80% &f 't( "&)a#t and "&#tan. b+t 'n th! pa(t Dr c&n%& ha( p$&,!d 'n"apa)#! &f )!n!f'tt'n% f$&m th'( amaz'n% -!a#th. Th! m'n'n% 'nd+(t$*, &n"! "&nt$&##!d )* stat!-&-n!d "&mpan'!(, 'n"#+d'n% géné$a#! d!( m'n!( !t d!( "a$$'è$!( (gé"am'n!(),


ECONOMY AND BUSINESS ENVIRONMENT MINING AND HYDROCARBONS

!h"#h !a$ nat"%na&"$'d "n 1967, d(%)' *(%!th +nt"& th' &at' 1970$ ,'f%(' 'nt'("n* a p'("%d %f d'#&"n'. it$ #%nt(",+t"%n t% gDP f'&& f(%m 24% "n 1980 t% 5% "n 1990, !h"&' th' "nf%(ma& and a(t"$ana& $'#t%($ *('! #%n$"d'(a,&-.

DEEP REFORMS SINCE 2001 r'f%(m$ a"m"n* t% att(a#t p(")at' #ap"ta& $ta(t'd t+(n"n* th' m"n"n* "nd+$t(- a(%+nd "n 2001. A n'!, )'(- &",'(a& m"n"n* #%d', ad%pt'd "n 2002 and app&"'d "n 2003, "$ +p f%( (')"$"%n $%%n. st'p$ ha)' ,''n tak'n t% ('*+&at' #'(ta"n $'#t%($, "n#&+d"n* *%&d, !"th th' #('at"%n %f #&'a("n* h%+$'$. F%( #%pp'( and #%,a&t, 'xp%(t$ %f +np(%#'$$'d %(' and, &at'(, #%n#'nt(at'$, !'(' ,ann'd "n %(d'( t% ,%%$t &%#a& add'd )a&+'. in 2007 #%nt(a#t$ $"*n'd d+("n* th' p(')"%+$ 10 -'a($, !h%$' #&a+$'$ !'(' %ft'n +nfa)%+(a,&' t% th' c%n*%&'$' pa(t-, !'(' ('n'*%t"at'd. in a&&, 57 #%nt(a#t$ %( #%n)'nt"%n$ ha)' ,''n (')"$'d, 39 ma"nta"n'd, th('' n'*%t"at'd and 15 #an#'&&'d, !"th th' ('$+&t that stat'-%!n'd #%mpan"'$ ha)' a#q+"('d ,"**'( $tak'$ "n j%"nt )'nt+('$ $'t +p !"th f%('"*n m"n"n* #%mpan"'$ and (%-a&t"'$ ha)' ,''n +p!a(d&- (')"$'d. in 2010 p+,&"# m"n"n* #%mpan"'$ !'(' t+(n'd "nt% #%mm'(#"a& 'nt'(p("$'$.

Man- n'! %p'(at%($ ha)' a((")'d %)'( th' pa$t 10 -'a($. exp&%(at"%n ha$ "nt'n$"f"'d and %+tp+t "$ $"*n"f"#ant&- +p, '$p'#"a&&- "n th' Katan*a ('*"%n. T%ta& "n)'$tm'nt %)'( th' p'("%d $tand$ at $12 ,"&&"%n.

Š FORRESTGROUP.COM

NEW OPERATORS, TRANSPARENCY EFFORTS

INVESTING DR CONGO 2013

35


ECONOMY AND BUSINESS ENVIRONMENT MINING AND HYDROCARBONS

© FORRESTGROUP.COM

36

Copper and co!alt are processed on site.

2

nd

biggest copper reserves in the world

M!n!n" n#$ a%%#&nt' f#( a(#&nd 15% #f gDP, 11% #f stat) ()*)n&)' and 30% #f th) %#&nt(+'' f#()!"n %&(()n%+ )a(n!n"'. Dr c#n"# j#!n)d th) ext(a%t!*) ind&'t(!)' T(an'pa()n%+ in!t!at!*) (eiTi) !n 2005 and ha' had th) 'tat&' #f %and!dat) %#&nt(+ '!n%) F),(&a(+ 2008. b&t th) nat!#na%#mm!tt)) ')t &p !n 2009 ha' ,))n !n%apa,-) #f p&,-!'h!n" ()p#(t' %#mp-+!n" $!th th) 'tanda(d' #f th) eiTi, $h!%h '&'p)nd)d th) Drc f#( a +)a( !n Ap(!- 2013. c#(()%t!*) 't)p' ha*) ,))n tak)n f#( ,)tt)( t(a%)a,!-!t+ #f )a(n!n"' and data and !mp(#*)d "#*)(nan%), !n%-&d!n" th) p&,-!%at!#n #f m!n!n" %#nt(a%t' #n th) F!nan%) and M!n!n" m!n!'t(!)'' $),'!t)'.

360 COPPER COMPANIES w!th )'t!mat)d ()')(*)' p&t at 75 m!--!#n t#nn)', th) %#pp)( ,)-t 't()t%h!n" th(#&"h Dr c#n"#'' Katan"a P(#*!n%) and #n !nt#

INVESTING DR CONGO 2013

n)!"h,#&(!n" Zam,!a !' #n) #f th) $#(-d'' (!%h)'t %&p(!f)(#&' a()a'. s#m) 360 %#mpan!)', th) ,!"")'t #f $h!%h $#(k !n pa(tn)('h!p $!th gé%am!n)', a() !n*#-*)d !n )xp-#(at!#n and m!n!n" a%t!*!t!)'. M#'t a() 'ma-- #p)(at#(' ,&t '#m) m&-t!nat!#na-' a() a-'# *)(+ a%t!*), !n%-&d!n" Am)(!%a'' F())p#(tM%M#ran, s$!tz)(-and'' g-)n%#(), Kazakh'tan'' e&(a'!an Nat&(ar)'#&(%) c#(p#(at!#n (eNrc) and ch!na'' ch!na ra!-$a+ g(#&p, s!n#h+d(# MMg M!nm)ta-' and J!n%h&an. Th) #() !' p(#%)'')d #n '!t) !n %#n%)nt(at#(' and m)ta-$#(k!n" p-ant'. expan'!#n and ,&!-d!n" p(#j)%t' a() &nd)( $a+ #( !n th) p-ann!n" 'ta")'. in 2012 #&tp&t 't##d at 619,000 t#nn)', ,()ak!n" th) p()*!#&' ()%#(d #f 505,229 t#nn)' ')t !n 1986. it %#&-d ()a%h 1.5 m!--!#n t#nn)' a +)a( !n 2016.

THE WORLD'S LEADING COBALT PRODUCER Drc'' )'t!mat)d %#,a-t ()')(*)' a() p&t at 6.7 m!--!#n t#nn)': 90% #f th) $#(-d'' t#ta- ,a')d #n %&(()nt kn#$-)d"). Th) (a$ mat)(!a- %#m)' f(#m $a't) f(#m #-d m!n)' and d)p#'!t' #f %#pp)( $!th $h!%h %#,a-t !' a''#%!at)d. o&tp&t f)-- t# 6,427 t#nn)' !n 1992 ,)f#() %-!m,!n" ,a%k &p t# 86,943 t#nn)' !n 2012 and !' )xp)%t)d t# ()a%h 180,000 t#nn)' !n 2016. Th) %#&nt(+'' t#p f!*) p(#d&%)(' a() th) T)nk) F&n"&(&m) M!n!n" %#n'#(t!&m, M&tanda M!n!n" (g-)n%#()), b#'' M!n!n" (eNrc), r&a'h! M!n!n" (J!n%h&an) and g(#&p)m)nt p#&( -) t(a!t)m)nt d& t)((!- d) l&,&m,a'h! (gTl-sTl), a j#!nt *)nt&() ,)t$))n b)-"!&m'' Ma-ta F#(()'t g(#&p and gé%am!n)'. ›››


ECONOMY AND BUSINESS ENVIRONMENT

37

M b om o u

Mobayi

Bondo

Poko

Buta Rubi

Bumba

Moto

Mungbere

A ru w i m i

O

KINSHASA

k o ro Lukénié

Moanda Matadi Banana Boma

Kananga

Lukuga

ga Luku

Mbuji-Mayi

Kabalo

Kalémié

Lake Tanganyika

Luvu a

Ka s

Lulua

o ang Kw

Manono

Luena Nzilo

Lubudi

Kolwezi

Dilolo

Lake Moero

ira Luf

Kambove

Koni

Likasi

COPPERBELT High Katanga copper belt

MINES

INDUSTRY

Uvira

Kongolo

Mukuka Kisenge Lukuka

ENERGY

di

Ilebo

Tshikapa

ATLANTIC OCEAN

Lake Kivu

Bukavu

Sankuru

Kikwit

Zongo

Goma

U lin

Kindu

Kasa i

Lu ala ba

CO

NG

Kw ilu

Lowa

Punia Kalima

ma Lua

INGA

Lo

Mushie Bandundu Kwa

Lake Edward

Sukumakanga

i Lomam

Lo me l

a

Tshela

Lake Mai-Ndombe

Maluku

Ubundu

ap a

Lake Albert

di Lin

Ts hu

Lake Tumba

Kilo

Ituri

Kisangani

Mbandaka

Pool Malebo

Mahagi

CONGO

Lubumbashi

0

COMMUNICATIONS

Coal

Cotton ginning

Copper and cobalt

Railway

Uranium

Agribusiness

Gold

Navigable waterways

Methane

Oil mill (palm oil)

Diamonds

International Airport

Oil

Chemicals

Cassiterite and coltan

Commercial port

Oil exploration

Timber

Niobium

Oil pipeline

Leather, textiles

Manganese

Oil refinery

Plastic

Zinc

Hydroelectric plant

Mechanical

Inga-Katanga high-voltage cable

Cement works Construction materials Metallurgy

INVESTING DR CONGO 2013

300 km

Kipushi

© Cartography: Les Éditions du Jaguar

Ou ban gu i

Aketi Lisala

Kibali

Uélé Bambesa


38

ECONOMY AND BUSINESS ENVIRONMENT MINING AND HYDROCARBONS

© B. MouanDa p!#r Ja

GOLD: A GLITTERING OUTLOOK

DR C!"g! pr!cessed !ver 600,000 t!""es !f c!pper !re i" 2012.

››› DRC is the world's leading producer

of cobalt, a mineral increasingly used in batteries, particularly for electric vehicles.

THE INDUSTRIAL DIAMOND LEADER

300,000

bpd

oil output by 2020

Put at 200 million carats, DRC's estimated diamond reserves are the biggest in Africa. The highest concentrations are in Kasaï-Orientale, Kasaï-Occidentale and Orientale Province near Kisangani. In 2012 output hit 21.236 billion carats: 25% of the world's total of industrial diamonds and 5% of diamonds for jewellery. Most of the mining is on a non-industrial scale. La Minière de Bakwanga (MIBA), whose capital belongs to the State (80%) and Sibeka, a Belgian company, once owned the biggest industrial diamond mine, but production fell from 8.782 billion carats in 1986 to just 548,000 in 2012. The company is being reorganised and has sold mines to the State that may be taken over by private companies and individuals.

INVESTING DR CONGO 2013

DRC's estimated gold reser ves are put at 1,520 tonnes, rank ing it 10 th worldwide. The precious metal can be found in most regions but especially in Orientale Province, Sud-Kivu and Maniema. Most companies are still in the exploration stage. They include Kibali Goldmines, in a par tnership with South Africa's AngloGold A shanti and Randgold Resources (45% each); Société minière de Kilo -Moto, which is expec ted to star t producing in late 2013; A shanti Goldf ields Kilo; Mwana Africa; Kilo Goldmines; and Banro, the only company producing since Oc tober 2011. Total output stood at 2.8 tonnes in 2012.

CASSITERITE AND COLTAN O ther resources include zinc, produced by GTL-STL, which has reprocessed the waste from the former Lubumbashi plant since 20 0 0, coltan (colombo -tantalite) and cassiterite, which are of ten associated with each other in DR Congo. Both are used in elec tronics. Estimated cassiterite reser ves are put at approximately 450,0 0 0 tonnes (7% of the world's total). Coltan and cassiterite deposits can be found in Maniema, Nord-Kivu, Sud-Kivu and Katanga. Prof its from the mining of these minerals, which is illegal in par t of Nord-Kivu, have been used to fund armed groups. Elsewhere, several companies are involved in exploration and mining, including Sak ima and Mineral Mining Resources. ■


FACTFILE

MINING AND HYDROCARBONS CHANGES IN MINING OUTPUT 2008

2009

2010

2011

2012

Copper*/t!""es

337,430

309,610

437,755

499,198

619,942

Cobalt*/t!""es

42,461

56,103

84,475

99,475

86,433

132

220

178

309

2,812

Industrial diamonds / th!#s$"ds !f c$r$ts

Gold/kg

21,100

19,119

17,013

19 780

21,236

Cassitérite/t!""es

20,012

16,583

11, 943

8,920

7,188

530

463

440

536

585

Zinc/t!""es

13,523

12,849

10,191

14,758

11,623

Oil/millions of barrels

8.797

8.977

9.380

8.390

8.545

Coltan/t!""es

*L!c$lly pr!cessed !re. D$t$: Mi"istry !f Mi"es, C!"g! Ce"tr$l B$"k

PETROLEUM'S PROMISES

Ore

Reserves (t!""es)

Copper

75 million

Lithium

31 million

Niobium

30 million

Manganese

7 million

Zinc

7 million

DR Congo has great potential, especially in the CuvetteCentrale and near the lakes in the east, in particular the Albertine and Tanganyika Grabens (basins), where estimated reserves are put at 50 billion barrels. Until now, only the coastal basin (Bas-Congo) has produced 25,000 barrels/day of crude oil, of which 10,000 bpd offshore. Exploration focuses on the coastal basin and

6.7 million

the five blocks of the Albertine Graben (Lakes Albert

Iron (!ver 60%)

1 million

and Edward, shared with Uganda). Small companies,

Cassiterite

450,000

Cobalt

Gold Diamonds (c$r$ts)

1,500 206 million

D$t$: Mi"istry !f Mi"es, Je#"e afriq#e

USEFUL ADDRESSES ●

CAMI (mine registry) www.cami.cd CEEC (Precious Mineral Substances Evaluation, Appraisal and Certification Centre) Tel.: (+243) 990 398 427 www.ceec.cd

COHYDRO Tel.: (+243) 819 500 401 www.cohydro.cd

GÉCAMINES www.www.gecamines.cd

PROMINES-MINISTRY OF MINES Tel.: (+243) 974 325 00 SAESSCAM (supervision of the non-industrial sector) www.saesscam.cd

including the UK's Soco, Dominion Petroleum and Energulf, America's Surestream, South Africa's Sacoil, and big ones such as Italy's Eni and France's Total, are active in this area. They operate on the basis of production-sharing contracts with Congolaise des hydrocarbures (Cohydro). If any oil is found, these projects could boost output to 300,000 barrels/day by 2020. After the development of the Tanganyika and Cuvette-Centrale Graben, where exploration is off to a slow start, and of the Moero and Upemba Grabens (Katanga), DR Congo will likely rank among Africa's five leading oil producers by 2035. DR Congo is working on revitalising the Société congolaise des industries de raffinage (Socir) and rehabilitating its Muanda refinery, shut down since 1998. This unit, which has a capacity of 750,000 tonnes per year, will be joined by two refineries that are to be built near the Cuvette Centrale and Grabens oil fields. In addition, the Reptilian Project calls for the building of a 1,000 km pipeline between Cuvette Centrale and the Muanda terminal.

D$t$ DRC $#th!rities, Je#"e afriq#e

MAIN DEPOSITS


40

ECONOMY AND BUSINESS ENVIRONMENT

INFRASTRUCTURE

Developing transport is a priority

Š aLL RIGHTS RESERVED

Towards an integrated, competitive multimodal system

17,000 km !f r!"ds will be reh"bilit"ted by 2016.

REHABILITATION STRATEGY

4

th

biggest rail network in Africa

DR Congo's transport system combines river, road, rail, air and sea. Decades of poor management and lack of investment led to severe deterioration, making connections both inside the country and with the rest of the world difficult. Just 5% of the 150,000 km road

INVESTING DR CONGO 2013

network is practicable year round. The strategy to rehabilitate and strengthen the network is based on targeted investments and an overall reform of the management system of infrastructure and public transport companies. The goal: to develop an integrated international system connecting all the country's


41

© aLL RIGHTS RESERVED

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

The L$"l"b", he"dstre"m #f the C#!g# River.

economic clusters (provinces and zones) in order to foster the emergence of a huge domestic market and link them to foreign markets at competitive prices.

REFURBISHING THE RAIL NETWORK The rail strategy focuses on refurbishing the equipment (tracks, rolling stock and locomotives) of the Société nationale des chemins de fer du Congo (SNCC) which operates Africa's fourth-biggest rail network (4,000 km, of which 858 are electrified). A $335-million Multimodal Transport Project (PTM) is under way with backing from the World Bank. The objectives in maritime transport, considered crucial for foreign trade, include renovating and updating the ports of Matadi and Boma as well as building a deepwater port at Banana on the Atlantic coast.

MARKING THE CONGO RIVER DR Congo has a huge hydrological network fanning out from the

Ki!sh"s"-ndjili I!ter!"ti#!"l airp#rt.

4,700 km-long Congo River, which is, however, only navigable on the 1,400 km stretch between Kisangani and Kinshasa but boasts the advantage of never running dry. Actions with support from the European Union (€60 million) include the marking of the river between the two big cities, which has been completed, and of the Kasaï River between Kwamouth and Ilebo, which is under way. They will be supplemented by the rehabilitation of river ports, including Kinshasa, and the reconditioning of boats owned by public companies (ITB Kokolo and MB Ngungu).

MODERNISING AIRPORTS While the focus is on safety in aviation, none of the 54 airports and airfields open to the public (out of a total of 184) complies with ICAO international standards. Efforts to remedy the situation focus primarily on the international airports of Kinshasa (Ndjili), Lubumbashi and Kisangani, where the rehabilitation

INVESTING DR CONGO 2013

184

airports and airfields


42

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

ENSURING ROAD SAFETY

The SnCC !per"tes 4,000 km !f tr"ck, !f which 858 "re electrified.

150,000 KM

of roads

of runways and the building of new control towers, firehouses and power supply facilities are under way. Since March 2013, a temporary modular terminal has been under construction at Ndjili to handle international traffic. It will be completed during the first quarter of 2014 and operational in June 2014. The building of a new, $350-million international airport will start in late 2014. The national airline, Lignes aériennes congolaises, must be dissolved and a new company responsible for domestic flights set up by late 2013.

In addition to rehabilitating and extending roads, DR Congo is concentrating on traffic regulations and safety. Several ministries are involved in the actions under way as part of the Road Safety Programme (PROSER), which focuses on the entire chain, from prevention to implementation of a rapid reaction system in case of an accident. It also involves overhauling the motor vehicle registration system and procedures for obtaining a driver's license, implementing mandatory motor vehicle inspections and improving traffic control. The new urban public transport company, Transco, which started up in Kinshasa in June 2013, will have 500 buses by the end of 2013. Private carriers, grouped together in the Association des propriétaires de véhicules du Congo (APVCO), will be able to acquire new buses on easy terms if they keep books and meet strict safety guidelines. A bus assembly plant will be built in Kinshasa.■

STRENGTHENING INTERNATIONAL CONNECTIONS DR Congo's trade with the rest of the world transits through three main ports. The busiest is Matadi, on the ocean side of the Congo River, with Boma and Banana helping out downstream. Matadi handles a large share of the country's imports, particularly foodstuffs, manufactured and petroleum products, as well as most palm oil and timber exports. In Katanga, Kasumbalesa, the border crossing with Zambia, is the exit point for mining products and the entrance for goods imported from Southern and East Africa as well as from Asia. In the east, Goma, the capital of Nord-Kivu, on the border with Rwanda, processes trade with neighbouring countries and Asia via ports in Kenya and Tanzania. Export and import traffic is minimal at the lake port in Kalemie (Tanganyika district, Katanga) and insignificant at the crossing between Kinshasa and Brazzaville, separated by the Congo River. In the long term, it may grow once the planned road-rail bridge between the capitals is built.

INVESTING DR CONGO 2013


FACTFILE THE 2012-2016 PROGRAMME TO STRENGTHEN THE ROAD NETWORK DR Congo's 153,209 km road network includes 58,509 km of general roadways, of which approximately 3,000 km are paved; 7,400 km of urban roads; and 87,300 km of local or farm roads, most of which are in extremely poor condition. The 2012-2016 government programme aims to: ● rehabilitate and modernise 17,000 km of roads, of which 2,000 km are paved and 15,000 unpaved ● upgrade 25,000 km of farm roads ● complete the rehabilitation of main roads and urban roads in provincial capitals and other big cities launched in the framework of the previous programme ● update the roads forming the national "ring" and strengthen connections with neighbouring countries ● gradually pave the roads between the provincial capitals and those connecting them to big cities. To achieve these goals, plans are under way to boost public investment in infrastructure and consolidate the National Road Maintenance Fund. Several strategic roads will be renovated by publicprivate partnerships within the framework of a BOT contract or a concession. INSTITUTIONAL REFORM OF THE TRANSPORT SECTOR At first, institutional reform focused on turning the seven public transport companies — the Société commerciale des transports et des ports, Congolaise des voies maritimes, Société nationale des chemins de fer, Régie des voies aériennes, Lignes aériennes congolaises, Lignes maritimes congolaises and Société des chemins de fer des Uélé-Fleuve — into commercial enterprises. Now the emphasis is on their economic

INFRASTRUCTURE

transformation, with the signature of performance contracts with the State, and of service, management or assistance contracts aiming to improve their financial situation, reorganise them and lead them to focus on their core activities. The partial or total sale of the State's stake in their capital is planned in the long term. EXPANDING SEAPORT CAPACITY DR Congo has three seaports: Matadi and Boma, located on the maritime side of the Congo River, and Banana, on the Atlantic Ocean. Matadi accounts for 95% of the country's port traffic with 2.7 million tonnes in 2012, of which 2.2 million are imports. In addition to the rehabilitation and modernisation of Matadi and Boma's port infrastructure, the stretch of the Congo River between them will be dredged to facilitate the movement of large vessels. They have limited expansion possibilities, so the building of a deepwater port at Banana is being considered to keep pace with the rise in trade and growth of activities. The project is part of the West Special Economic Zone, which includes the Kinshasa-Inga-Matadi-Banana axis. Its estimated cost is put at $474 million, including the port

extension and the construction of a railway connecting Banana and Boma to Matadi, where it will link up with the Kinshasa-Matadi railway.

USEFUL ADDRESSES ●

MINISTRY OF ROADS AND TRANSPORT www.ministeredestransports-vc.cd MINISTRY OF LAND PLANNING AND DEVELOPMENT www.minitpr-rdc.com CONGOLESE PUBLIC WORKS AGENCY (ACGT) Tel.: (+243) 810 000 000 www.acgt.cd RÉGIE DES VOIES AÉRIENNES (AIRWAY CONTROL BOARD) www.rva-rdc.com NATIONAL RAILWAY COMPANY (SNCC) www.sncc.cd NATIONAL ROAD MAINTENANCE FUND Tel.: (+243) 990 287 400 www.foner.cd TRANSCO www.transco-rdc.cd


COMPANIES & MARKETS


46

COMPANIES AND MARKETS

COMPANY LIFE

Private sector takes precedence

© aFP IMaGEFoRuM

Towards economic diversification and local processing

DR C!"g! strives f!r l!c#l pr!cessi"g !f "#t$r#l #"d #gric$lt$r#l res!$rces.

3

days

the time it takes to create a business

AT THE HEART OF GROWTH STRATEGY According to the African Development Bank, DR Congo has 80,000 private companies — not many for such a big country — of which 80% are SMEs. Concentrated in big cities, especially Kinshasa, they face a lack of infrastructure, shortage of transport, irregular and

INVESTING DR CONGO 2013

insufficient power supply, difficult access to credit and a discouraging business climate. Mindful that these stumbling blocks hinder the competitiveness of the country and its companies, the government has developed a growth strategy based on economic diversification and the local processing of


COMPANIES AND MARKETS COMPANY LIFE

47

resources. Four priority public investment sectors have been identified: agriculture, fishing and breeding; processing; mining and hydrocarbons; and transport infrastructure.

STRENGTHENING SUPPORTIVE INSTITUTIONS The government is also busy improving governance and setting up bodies to promote private investment and the emergence of SME/SMIs. With the setting up of the Comité de Pilotage pour l’Amélioration du Climat des Affaires et des Investissements en RDC (CPCAI) — Business and Investment Climate Improvement Steering Committee — several tax, legal, accounting and institutional reforms have been under way since 2009. In July 2012 DR Congo joined the Organisation pour l'Harmonisation en Afrique du Droit des Affaires (OHADA - Organisation for the Harmonisation of Business Law in Africa).The country has also joined other guarantee mechanisms, such as the Multilateral Investment Guarantee Agency (MIGA), the Association of Chartered Certified Accountants (ACA) headquartered in Nairobi, and the Washington-based International Centre for the Settlement of Investment Disputes (ICSID). In April 2013 a one-stop window was set up to simplify business creation procedures, cutting the time it takes to complete the process from five months to three days, the number of formalities from 13 to three, and fees from $3,000 to $120 for a PLC. In Kinshasa, the one-stop window is in a building containing a notary's office, the trade and commerce registry clerk and a scheduling centre of the Direction générale des recettes administratives et domaniales (Department of Administrative and Domain Revenues, DGRAD). The

M!"y ref#rms t# stre"gthe" the priv!te sect#r h!ve bee" $"der w!y si"ce 2011.

Agence nationale de promotion des investissements (National Agency for the Promotion of Investments, ANAPI), set up in 2002, prepares applications for compliance with the investment code and assists investors. Each provincial capital has a branch and several are located abroad.

SIMPLYFING CUSTOMS PROCEDURES A new customs code and a one-stop window at the Matadi, Kinshasa, Kasumbalesa, Goma and Beni customs stations will help cut costs and speed up import/export procedures by limiting the number of processors at borders. Moreover, in 2012 the government decided to eliminate certain fees payable to the Office congolais de contrôle (Congolese Inspection Office) in order to facilitate international trade. It also abolished or cut import duties, stepped up import quality inspections, and banned imports of certain goods such as vehicles manufactured before 2002.

NEW ACTIVITY CLUSTERS Growth clusters will be set up with World Bank backing to promote local processing of natural and agricultural

INVESTING DR CONGO 2013

80%

of private companies are SMEs and SMIs


48

COMPANIES AND MARKETS COMPANY LIFE

BETTER SME/SMI ACCESS TO CREDIT

M!rs!vc", the le!di#g pr"d$cer "f s"!p !#d c""ki#g "il.

80,000

private companies

resources. Within this framework, based on the identification of major producing areas, agro-industrial parks that pick up where agricultural activities leave off will be built. Five Special Economic Zones (SEZ), each focusing on specific activities, will be created between now and 2015. The one in Maluku opened in 2012. Private developers, selected by tender, are building the SEZs in partnership with the State. They also market them to businesses and monitor the lease and moving process.

Several steps have been taken to facilitate SME/SMI access to credit and medium-term financing. The creation of an agricultural bank and an agricultural investment fund, which will be funded by taxes, budget allocations and contributions from development partners, is under consideration. The Société financière de développement (Development Finance Company, or Sofide) was relaunched in 2012 with $20 million in government funding, and the same amount in 2013, to improve financing of other activities, which already benefit from the Industry Promotion Fund. A central risk company has been created and a lend-lease law will be passed in 2013. The Comité de pilotage pour l'amélioration du climat des affaires et des investissements (CPCAI - Business and Investment Climate Improvement Steering Committee), an inter-ministerial organisation, is responsible for identifying problems encountered by investors, defining policy to improve the business climate and speed up reforms.. All these measures, and the continuation of major infrastructure projects, will help DR Congo improve its ranking in the World Bank's Doing Business 2014 report. ■

THE FEDERATION OF CONGO COMPANIES The Fédération des entreprises du Congo (Federation of Congo Companies, FEC), an employers' organisation and Chamber of Commerce, Industry, Agriculture and Crafts all rolled into one, has some 2,500 national and foreign members from every activity sector. Chaired by Albert Yuma Mulimbi, it is the country's biggest trade organisation and a forum for discussion, exchange and meetings. As an entrepreneurial platform, the FEC helps its members promote their activities and defend their interests with the government. A member of several international trade organisations and chambers of commerce, the FEC organises seminars, business and trade missions, business luncheons and conferences on a regular basis.

INVESTING DR CONGO 2013


FACTFILE

COMPANY LIFE DR CONGO'S LEADING COMPANIES

Rank

Rank in Afrique

Activity

Turnover

1

298

Engen RD Congo

Name

Hydrocarbons

429.8

2

357

Airtel Congo RDC

Telecoms

335.9

3

499

Gécamines

Mining

335.9

Mining

186.1

Distribution

96.9

4

> 500

Shaline Resources

5

> 500

CFAO RC Congo

2011 t!r"#ver i" milli#"s #f d#ll$rs (i" it$lics whe" 2010 t!r"#ver). offici$l DRC d$t$.

FIVE SPECIAL ECONOMIC ZONES Location West

Maluku Zone (since 2012) Matadi-Kinshasa-Kikwit Corridor

South

Kolwezi-Likasi-Lubumbashi-Sakania Corridor

Main activities Hydroelectric power, oil, bauxite and manufacturing Heavy industry and manufacturing involving ore processing

Centre

Ilebo-Tshikapa-Kananga-Mbuji-Mayi Corridor

Transport and agribusiness

Northwest

Kisangani-Bumba-Mbandaka Corridor

Timber and food industries

East

Uvira-Bukavu-Goma-Beni-Bunia Corridor

Manufacturing and food industries

DIRECT FOREIGN INVESTMENT In millions of FC

2009

2010

2011

2012

% OF TOTAL

Services

1,471.1

281.5

1,220.8

2,274.7

63.8

Industry

142.5

865.1

697.2

538.4

27.2

Agriculture and timber

33.4

320.7

39.1

49.2

5.3

Infrastructure Total

210

13.6

60.9

N.S.

3.4

1,856.8

1,480.9

2,017.8

2,862.2

100

D$t$: a"$pi – ".s.: "#t sig"ific$"t

USEFUL ADDRESSES ●

ANAPI (NATIONAL AGENCY FOR THE PROMOTION OF INVESTMENTS) Tel.: (+243) 999 925 026 www.investindrc.cd ONE-STOP WINDOW Tel.: (+243) 822 284 008 www.guichetunique.cd CAZES (SPECIAL ECONOMIC ZONE SUPPORT UNIT) www.cazesrdc.net

CPCAI (BUSINESS AND INVESTMENT CLIMATE IMPROVEMENT STEERING COMMITTEE) Tel.: (+ 243) 824 938 473 www.cpcai.cd INDUSTRY PROMOTION FUND Tel.: (+ 243) 816 905 362 www.fpi-rdc.cd

FEC (FEDERATION OF CONGO COMPANIES) Tel.: (+243) 812 488 909 www.fec.cd FENAPEC (NATIONAL FEDERATION OF CRAFTSMEN AND SMES) Tel.: (+243) 999 947 761 or (+243) 819 918 281


50

COMPANIES AND MARKETS

BANKING AND FINANCE

Many markets to conquer

Š JoSEPH MouRa PouR Ja

The financial sector still has a long way to go with private individuals and SMEs

The he!dq"!rters #f B!$q"e c#mmerci!le d" C#$g# (BCDC) i$ Ki$sh!s!

20

commercial banks

GROWING AT A BRISK PACE Congo's financial system has 26 credit institutions, of which 20 are commercial banks (10 in 2001). Their assets stood at $2.64 billion in 2012. Four banks owned by foreign companies that have been operating in the country

INVESTING DR CONGO 2013

for a long time account for 70% of the market: the Banque commerciale du Congo (Forrest Group, mines), Banque internationale pour l'Afrique au Congo (Blattner Elwyn Group, services and industry), Rawbank (the Rawji Group, commerce and industry) and Trust Merchant Bank


(the Levy family), the newcomer. Various international and African groups share the rest of the market: Citigroup; the pan-African Ecobank and Bank of Africa; the central African leaders BGFIBank (Gabon) and Afriland First Bank (Cameroon); Nigeria's Access Bank and First International Bank; and South Africa's Stanbic Bank.

A LOW BANKING RATE Banking, long limited to institutions and mining companies, is now growing at a brisk pace. The growing number of banks — 214 agencies and branches in 2012, of which 56% are in Kinshasa — and direct deposit of government employees' salaries (see box) have helped raise the number of accounts from 15,300 in 2003 to two million in 2013, but the banking rate is still low: barely 5%, compared to an average of 18% in sub-Saharan Africa. There is still a long way to go and competition is growing, with the various players targeting SMEs and the diaspora.

A DIVERSIFIED SERVICES OFFER Meanwhile, the offer of products and services has become much more diversified. The arrival of ATMs has led to increased payments by bank card, which are now accepted by shops, hotels and restaurants in more and more cities. In 2011 the Congo Central Bank (BCC) set up a modern remote compensation system to facilitate transactions in the national currency throughout the country and spur the growth of new services using the web, e-mail and mobile phones. With the aim of improving access to credit, the

© BauDouIn MouanDa PouR Ja

COMPANIES AND MARKETS BANKING AND FINANCE

BCC has set up an in-house app prefiguring the modernisation of the central risk office. It allows operators to access data on borrowers' solvency.

TOO MANY SHORT-TERM LOANS Despite this progress, total assets stood at just $3.4 billion in 2012, the equivalent of those of the Banque de l’habitat de Tunisie, which ranks fifth in Tunisia and 63rd in Africa in terms of size. DR Congo's banking system is still too small to finance the economy. The low level of equity (an average of $12 million) and demand deposits (70.3% of commitments, usually in foreign currencies) limits their ability to finance local projects. Most loans to SMEs are still short term (less than one year): 60% of the total in 2012, including a very large proportion of overdrawn loans (48.5% du total). Long term loans only account for 4.6% of the total.

SOLUTIONS FOR SMES In the medium term, several initiatives will help solve the SME/ SMI credit crunch. International

INVESTING DR CONGO 2013

51


52

COMPANIES AND MARKETS BANKING AND FINANCE

© BauDouIn MouanDa PouR Ja

Africa SME Fund. The relaunching of the Société financière de développement (Development Finance Company, or Sofide) and planned opening of a branch of PTA Bank, Comesa's development bank, will bolster these measures. Since 2011 DR Congo has been a shareholder in PTA Bank, which plans to open an office in Kinshasa by 2015.

THE GROWTH OF MICROFINANCE

The B!"q#e i"ter"!ti$"!le p$#r l’afriq#e !# C$"g$ (BIaC) is the c$#"try's third-biggest b!"k.

development partners such as the International Finance Corporation (a subsidiary of the World Bank), Agence française de développement and European Investment Bank have granted banks credit lines. New SME financing methods are appearing, such as capital investment. For example, in 2008 the Netherlandsbased XSML launched the Central

DR Congo has around 100 microfinance institutions. To encourage them and foster the creation of micro-businesses, which offer a way out of poverty, in 2011 the government set up the Fonds national de la microfinance (National Microfinance Fund, FNM) with $2.5 million in capital. Additional funds from the government and foreign lenders should nurture the FNM's growth in 2013. The Congo Central Bank is negotiating with development partners to create a risk clearinghouse in the microfinance sector. ■

DIRECT DEPOSIT FOR CIVIL SERVANTS

5%

of Congolese have a bank account

The process of directly depositing government workers' wages into their bank accounts began in January 2013 in Kinshasa, where 130,000 civil servants live. It was then expanded to the other provinces and completed in June 2013. Over a million people, including military and police officers, are involved. The reform has made it possible to root out phoney employees, curb corruption and save nearly $100 million. The government supplies banks with computerised lists of employees for whom bank accounts must be opened. These civil servants then receive notification of payment deposit on their mobile phones. The next step will involve the wages of employees working for public companies and institutions.

INVESTING DR CONGO 2013


FACTFILE

BANKING AND FINANCE THE FIVE BIGGEST BANKS (They have over 70% of the market) Rank in Africa

Name

Total assets 2012 (milli$#s $f d$ll!rs)

1

195

Rawbank

661.6

2

> 200

BCDC

526.3

3

-

BIAC

448.4

4

-

TMB

394.7

5

-

BIC

287.2

Rank

D!t!: Je"#e afriq"e, afric!'s 200 biggest b!#ks

TOTAL DEPOSITS (in millions of dollars) Rank

Rank in Africa

Name

2012

2011

Growth

1

195

Rawbank

490.2

403.2

21.6%

2

> 200

BCDC

380.7

298.7

271.5%

3

-

BIAC

353.1

2,801.2

26%

4

-

TMB

337.9

2,611.1

291.4%

5

-

BIC

228.6

1,781.6

28%

D!t!: Je"#e afriq"e, afric!'s 200 biggest b!#ks

USEFUL ADDRESSES BANQUE CENTRALE DU CONGO Tel.: (+243) 812 616 001 www.bcc.cd

● ●

RAWBANK www.rawbank.cd BANQUE COMMERCIALE DU CONGO (BCDC) www.bcdc.cd BANQUE INTERNATIONALE POUR L'AFRIQUE AU CONGO (BIAC) www.biac.cd

TRUST MERCHANT BANK (TMB) www.trustmerchantbank.cd BANQUE INTERNATIONALE DE CRÉDIT (BIC) www.bic.cd ADVANS BANQUE CONGO www.advansbanquecongo. com PROCREDIT BANK CONGO www.procreditbank.cd

© oLIVIER PouR Ja


54

COMPANIES AND MARKETS

TIMBER AND AGRO-INDUSTRY

Two very promising sectors

© FERonIa.CoM

A huge area of underused forests and arable land

J!st 5% "f the c"!#try's 80 milli"# hect$res "f $r$ble l$#d is f$rmed.

145.5 million ha of forest

THE WORLD'S SECOND-BIGGEST FOREST DR Congo's forests cover 145.5 million hectares — twothirds of the Congo Basin's tropical forest, the world's second-biggest forest after the Amazon — of which 85 million are dense and

INVESTING DR CONGO 2013

humid, primarily in the provinces of Équateur, Bandundu, Bas-Congo and Orientale.

REVISING THE FORESTRY CODE Since 2002 major reforms have been under way to restore order to the timber industry, which was hard hit


COMPANIES AND MARKETS TIMBER AND AGRO-INDUSTRY

in the country's northern provinces by armed conflicts. A new forestry code was adopted in August 2002: 285 forestry contracts were reviewed and 164 terminated. A moratorium banned new concessions until the establishment of a zoning and land use plan. Old deeds are being converted into Forest Concession Contracts (FCC), which must include a social clause signed with local communities and a four-year management plan. Of 156 old deeds, 80 were considered convertible and 48 FCCs have been signed.

LIMITED PROCESSING The timber industry's estimated contribution to GDP is put at 1%, with around 10 companies accounting for most of that figure. Most of the output, which stands at less than 200,000m3, down from 450,000m3 in 1990, is exported as logs. China is the leading importer. Processing, which is limited to sawing, does not exceed 30%, even though the Forestry Code sets the target at 70%. The goal is to locally process 100% of timber production within 10 years and to develop the industry until it accounts for 3% of GDP.

EXTENSIVE AGRICULTURE Agriculture accounts for 40% of GDP and employs nearly 70% of the population. Smallholders whose farms do not exceed one hectare grow subsistence crops (cassava, maize, beans, potatoes, plantain bananas and rice). Their methods are rudimentary and they consume most of the food they produce. Private farmers grow maize and vegetables around big centres such as Kinshasa

55

and Lubumbashi and Katanga's mining towns. Mechanised farms ranging in size from 200 to 500 ha are still rare and mostly concentrated in Katanga or Bas-Congo. The International Food Policy Research Institute (IFPRI) estimates that DR Congo has the potential to produce enough food to feed three billion people. The Canadian investment group Feronia is betting that the country will be a "new Brazil".

$1.2 BILLION IN FOOD IMPORTS Despite 80 million hectares of arable land, just 5% is used. DR Congo cannot manage to feed its people and must resort to food imports, which stood at $1.2 billion in 2012. The government has thus taken a new approach to farm policy and increased the national investment budget devoted to agriculture, considered a priority. The creation of an agricultural bank is under consideration. The new farm bill, which entered into force in June 2012, calls for the creation of an agricultural investment fund.

RELAUNCHING INDUSTRIAL PLANTATIONS The number of industrial oil palm, rubber and coffee plantations has been growing since the mid2000s. A handful of agro-industrial companies, including Les Plantations et huileries du Congo, which Feronia acquired from Unilever, and units of the Blattner Elwyn group produce palm oil (7,200 tonnes in 2012). The rubber sector is gradually bouncing back thanks to small-scale planters. Projects to rehabilitate or create private palm oil and rubber

INVESTING DR CONGO 2013

The l!c"l timber-pr!cessi#g r"te is 30%.


56

COMPANIES AND MARKETS TIMBER AND AGRO-INDUSTRY

sector is recovering: output stood at 8,000 tonnes in 2012 (104,000 tonnes in 1988). The cultivation of tea, once very developed in Nord-Kivu, and cocoa, in Équateur and Orientale Province, has nearly disappeared. Of all of the companies that produced cotton and ginned cottonseed in the late 1990s, only the Société textile de Kisangani (Sotexki) still exists.

AGRO-INDUSTRIES ARE ALMOST NON-EXISTANT

F!rmers still "se r"dime#t!ry meth$ds t$ gr$w f$$d.

5% of arable land is farmed

plantations and to breathe new life into old State plantations in partnership with private companies are under consideration. Armed conflicts and lack of maintenance have cut coffee production (Robusta in Orientale Province and Arabica in Nord-Kivu and Sud-Kivu), but the

Agro-industrial processing is limited to a handful of products. The Compagnie sucrière de Kwilu Ngongo, in Bas-Congo, refines sugar and Marsavco and Novaproducts make palm oil soap. A few mills, including Mukalayi and African Milling in Katanga, produce corn flour and Midema makes wheat flour (155,000 tonnes in 2012) in BasCongo. A few small units make fruit juice and soap. ■

THE 2011 FARM LAW IS ROCKING AGRICULTURE Enacted on 24 December 2011, the law on general agricultural principles in DR Congo, a first in the country, features some interesting innovations, such as the creation of an agricultural development fund and its management in synergy with banking and non-banking financial institutions. It also calls for professionals' involvement in the decision-making process and for compliance with international environmental protection standards. The law sets access to farmland and provides for the establishment of a conciliation procedure prior to any legal action over land conflicts. Farms are divided into three categories: individual, family (using contract labour) and industrial. Contested by foreign investors, Article 16, which set the amount of shares owned by the State or nationals at a minimum of 51%, is being revised.

INVESTING DR CONGO 2013


FACTFILE

TIMBER AND AGRO-INDUSTRY TIMBER PRODUCTION

m3

2008

2009

2010

2011

2012

Logs

140,711

107,415

203,528

183,468

186,234

Sawn timbers

46,650

40,538

24,951

33,431

33,943

Official DRC data

INNOVATIVE APPROACH

the rest. Each site will be developed

TO AGRO-INDUSTRIAL PARKS

and managed under a BOT contract

The new approach to agricultural

awarded to a consortium comprising

policy aims to increase production

a NGO which will ensure that the

and income of small farmers, to

project provides a good quality of

improve their techniques and

food security.

promote the transformation and

Three sites have been identified

distribution of products. It is based

• Near Nkundi (Cataractes district,

on the creation of agro-industrial

Bas-Congo province): 53,000 ha, of

parks, a type of agricultural

which 15,000 ha is State-owned,

special economic zone hosting the

currently devoted to rice production.

entire value chain ! production,

• On the Batéké Plateau (Kwengo

processing, storage, packaging,

district, Bandundu): 10,000 ha, of

sale and transportation ! as well as

which 3,500 ha is reserved for small

health services and education and

farmers. It is planned as a pilot site

training centres.

for irrigated agriculture.

The State is responsible for securing

• Near Kimbinga (Kwilu district,

the land, ensuring the supply of

Bandundu): 40,000 ha.

water and electricity and improving

Other sites will be established

roads (agricultural service road).

later in provinces such as Katanga

The private sector, i.e. national and

(Kalemie, Kasese), Maniema (Kindu,

foreign, large and small operators

Kasongo), Équateur (Bumba,

grouped into cooperatives, does

Businga) and Orientale Province.

USEFUL ADDRESSES ●

MINISTRY OF THE ENVIRONMENT, NATURE CONSERVATION, FORESTRY AND TOURISM) Tel.: (+243) 810 790 627 contact@mecnt.cd MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Tel.: (+243) 970 061 270 www.rdc-agriculture.com

RELAUNCH OF LIVESTOCK Large cattle farms are located in the Katanga, Bas-Congo and Bandundu provinces. Highly affected by conflicts, ranches located in Tanganyika and Kamina districts are not as productive as in the past. Meat production represents only 5.5% of the country's needs, estimated at more than 1.5 million tonnes per year. In most villages, there is a small herd of goats (4 million head), sheep, pigs (967,000) and poultry (20 million). Poultry farms producing chickens and eggs have sprung up around major cities. Focus is placed on public-private partnership: - support for the creation and development of private farms around cities and small family farms in the countryside to raise short-cycle livestock (poultry, sheep, goats and pigs), - importation of breeding stock to repopulate cattle ranches.


58

COMPANIES AND MARKETS

REAL ESTATE

12 million housing units needed The country also has a glaring shortage of office buildings

Prestige b!ildi"gs #re g$i"g !p i" the big cities.

A BOOMING MARKET If nothing is done, the already severe shortage of decent housing and offices will increase as economic activity and the urban population grow. DR Congo will

INVESTING DR CONGO 2013

have 30 million city dwellers in 2015, up from 16.7 million in 2000, and the estimated shortfall of housing units is put at 12 million. The number of urban real estate projects — apartment blocks, office buildings,


COMPANIES AND MARKETS REAL ESTATE

59

detached houses, hotel complexes, shopping malls and conference centres — has been rising since the mid-2000s, especially in Kinshasa and the provinces of Katanga, Nord-Kivu and Sud-Kivu. The trend is towards the creation of new neighbourhoods on the outskirts of big cities.

Real estate developers include individuals, local businesses and a handful of international companies, including Hawkwood Properties (La Cité du Fleuve in Kinshasa) and Luano Grandes Properties (in Lubumbashi), a subsidiary of Forum Properties Africa. Most of their projects are built for companies and high-income individuals. Two social housing projects of 2,000 units each are being built in Kinshasa: on the Kinshasa International Fair (FIKIN) site by China Communications Construction Company Ltd; and at the old Bandalungwa Nursery by Zhen Gwei Technique Congo. Demand is huge. Private companies are catching up with the shortfall rather than meeting future need.

AN ENORMOUS SOCIAL HOUSING PROGRAMME Two kinds of activities will meet the rising need for decent housing: the profitable rehabilitation and modernisation of State-owned properties, and the construction of around 30,000 social housing units by 2016. Private initiatives and public-private partnerships are encouraged. Plans include the creation of a housing bank, passing of a lend-lease bill and destruction

© BauDouIn MouanDa PouR Ja

A HANDFUL OF INTERNATIONAL DEVELOPERS

DR C!"g! will h#ve 30 milli!" city-dwellers by 2015.

of slums and shantytowns. A development master plan and individual plans for each province and big city are in the works.

THE FIGHT AGAINST UNPLANNED URBANISATION The shortage of decent housing has resulted in unplanned urbanisation, the uncontrolled growth of shantytowns, waste accumulation, environmental damage and soil erosion. That is why government policy goes beyond building housing units. The 2012-2016 programme aims to destroy unauthorised structures, expand cities, modernise certain urban neighbourhoods and create economically viable villages capable of optimising the use of Statebuilt collective facilities (schools, hospitals, etc.). The government has launched a sweeping property law reform that modernises deeds, ensures their legal validity and raises the responsibility of the officials in charge of attributing them. ■

INVESTING DR CONGO 2013

30,000 social housing units by 2016


60

COMPANIES AND MARKETS

POWER AND WATER

A considerable energy shortage

The country could generate half of Africa's electricity

87% !f the p!wer pr!d"ced c!mes fr!m hydr!electric s!"rces.

HALF THE AVAILABLE POWER

9% of the population has access to electricity

After years of poor management and lack of investment, DR Congo's power plants are in critical condition. Available power was just 1,250 megawatts in 2012, while demand stood at 2,600 MW. Population growth and economic development will push demand up to 3,100 MW in 2015 and 5,100 MW in

INVESTING DR CONGO 2013

2020, including 2,300 MW for mining activities. Installed power is currently 2,526.75 MW, 87% of which comes from hydroelectric sources. Most (2,459 MW) is generated by the Société nationale d'électricité (Snel), which operates three interconnected networks (west, south and east), three isolated networks and 28 autonomous centres.


COMPANIES AND MARKETS POWER AND WATER

61

Just 9% of the population has access to power, with wide disparities between cities (35%) and the countryside (1%). Bas-Congo, Kinshasa, Katanga and Orientale are the best-supplied provinces.

OPENING UP TO PRIVATE OPERATORS Energy policy aims to reorganise the sector and boost the power supply. Reforms focus on restructuring Snel, which became a commercial company in late 2010 and has been bound by a performance contract with the State since February 2012. The gradual establishment of a regulatory authority has liberalised the industry. Two private operators, Électricité du Congo and Hydroforce, already have public service concessions and the government has launched a technical and financial audit to follow up on both contracts.

REHABILITATING AND BUILDING POWER PLANTS The government has set the goal of doubling power supply by 2016. Two kinds of projects, some carried out within the framework of public-private partnerships, in particular with mining companies, will achieve that goal. The first involves rehabilitating Snel plants and the related power lines. The second consists of building new hydroelectric plants (see following page), highvoltage lines and distribution networks. The focus is on hydroelectric power, but the use of renewable energy is encouraged. Solar power (panels, streetlights, air conditioners, miniplants, etc.) is making some headway. The construction of a coal-fired plant in Katanga is being considered.

Régides! distrib"tes dri#ki#g w$ter i# 95 "rb$# ce#tres.

BOOSTING REGIDESO'S PERFORMANCE Just 37% of the urban population has access to drinking water. As part of the Projet d’alimentation en eau potable du milieu urbain (Urban Water Supply Project, PEMU) financed by the World Bank, Régideso, the utility that collects, treats and supplies drinking water in 95 urban centres, became a commercial company in December 2010 and has been bound by a performance contract with the State since February 2012. In September 2012 a service contract was signed with the grouping Sénégalaise des Eaux/ Finagestion, the latter also being a shareholder in the Société des eaux de Côte d’Ivoire (Sodeci). The rehabilitation and extension of water treatment and distribution facilities in Kinshasa, Lubumbashi and Matadi are under way. All these projects should raise the urban population's supply rate to 50% by 2020. ■

INVESTING DR CONGO 2013


FACTFILE

POWER AND WATER

DR CONGO'S ESTIMATED HYDROELECTRIC RESOURCES ARE PUT AT 100,000 MW — OVER A-THIRD OF AFRICA'S POTENTIAL. HYDRO-ELECTRIC PLANTS BEING REHABILITATED INGA I AND I Location: on the Congo River about 40 kilometres upstream from Matadi (Bas-Congo) and 250 km west of Kinshasa. Installed power: 1,775 MW (14 turbines), including Inga I (351 MW), on line since 1972, and Inga II (1,424 MW, 1982) End of work: 2016 for six machines. One machine will still need rehabilitation. HYDRO-ELECTRIC POWER PLANTS UNDER CONSTRUCTION ZONGO II Location: on the Inkisi River, 130 km from Kinshasa, near Zongo 1 (Bas-Congo) Power: 150 MW Cost: $367.5 million Financing: China EximBank Construction: Sinohydro KAKOBOLA Location: Gungu territory (Bandundu) Power: 9.3 MW Cost: $55 million Financing: EximBank of India

($42 million) and DRC Construction: Angelique International GRAND KATENDE Location: 50 km south of Kananga (Kasaï Occidental) Power: 64 MW Cost: $280 million Financing: EximBank of India ($168 million) and DRC Construction: Bharat Heavy Electricals and Angelique International PROJECTS UNDER WAY INGA III A joint project between DR Congo and South Africa, which agreed to purchase 2,500 MW (800 MW purchase option). The two countries signed the treaty in March 2013. The project will be carried out in two phases: Inga III Low-Head and Inga III High-Head. INGA III LOW-HEAD Location: downstream from the Inga I and Inga II dams, at the mouth of the Bundi River Power: approximately 4,800 MW Cost: $8.4 billion, including

$3.5 billion for the power plant Financing: the project developer, public and private international lending institutions (the World Bank, African Development Bank, European Investment Bank, Agence française de développement) and a South African financial institution (Development Bank of Southern Africa) for the high-voltage line between the Zambian border (near Kolwezi) and South Africa. Site developer: a concession will be granted to a consortium selected via a call for tenders, to be announced early 2014. Three consortiums have been short-listed: the China Three Gorges/Sinohydro group; a partnership between South Korea's Daewoo and Posco and Canada's SNC-Lavalin; and the Spanish tandem Actividades de Construcción y Servicios (ACS) and Eurofinsa. Start-up date: 2016. INGA III HIGH-HEAD Power: the work will boost Inga III's output to approximately 7,000 MW. Cost: $3 to 5 billion.


COMPANIES AND MARKETS

63

SERVICES

Untapped opportunities

Š DIDI JunIoR KannaH

ICT, retail and business travel are opening new avenues

Telec!ms "re the St"te's sec!#d-le"di#g s!$rce !f reve#$es "fter mi#es.

FIVE MOBILE PHONE OPERATORS The telecommunications industr y posts around $1 billion in turnover, accounts for 5.7% of GDP and ranks second in State revenues af ter mining, making it one of DR Congo's most buoyant sectors. Five operators share the mobile phone market: India's Bharti Air tel, South Africa's Vodacom,

Tigo (a subsidiar y of the SwedishLuxembourg company Millicom International Cellular), France's Orange and Lebanon's Africell. The number of subscribers soared from 158,000 in 2001 to 21 million in 2013 but the penetration rate is just 25%, spelling a bright outlook for growth. Besides providing new ser vices, one aim is to develop

INVESTING DR CONGO 2013

21

MILLIon mobile phone subscribers


64

COMPANIES AND MARKETS SERVICES

and runs through part of Southern and East Africa. The future East backbone, connected to Seacom or EASSy's undersea cables in the Indian Ocean, will ser ve Nord- and Sud-Kivu.

THE GROWTH OF RETAIL

High-v!l"me ret#ili$g is gr!wi$g #t # brisk p#ce i$ Ki$sh#s# #$d L"b"mb#shi.

1.7 MILLIon

air passengers in 2012

rural telephony. Some 65% of the population lives in the countr yside, where access to telecom ser vices is sparse.

INTERNET ACCESS The value-added ser vices that mobile phone operators of fer, such as the third generation (3G Plus) and mobile banking, as well as the laying of fibre optic cables in certain parts of the countr y, have helped increase Internet access. DR Congo is connected to the broadband West Africa Cable System (WACS). A 637 km underground connection has been laid between Muanda, in the west, where the landing station is located, and Kinshasa. Installation is under way to Lubumbashi, itself connected to the Liquid Telecom consortium's undersea network, which starts in Kasumbalesa, a city on the border with Zambia,

INVESTING DR CONGO 2013

The arrival of expatriates with good purchasing power working for NGOs, MONUSCO and foreign companies, and the rise of a middle class, although still small, has spurred brisk growth of highvolume retail in the biggest cities, Kinshasa and Lubumbashi. The capital has over 10 supermarkets and shopping malls with various chains, including South Africa's Shoprite, as well as many small convenience stores, most owned by Indians and Lebanese. Greece's Hyper Psaro and India's Liberty and Jambo Mart supermarkets are dominant in Lubumbashi. The retail industr y is also growing in the mining towns of Katanga, especially Kolwezi. DR Congo is one of the eight African countries where the French groups CFAO and Carrefour, the world's second-biggest retailer, have chosen to build new shopping malls.

AIR TRANSPORT IS TAKING OFF Air transport is cleared for take-of f. In 2012 the number of passengers reached 1.7 million, including a million international arrivals. Several international carriers, including Air France, Brussels Airlines, Royal Air Maroc, Ethiopian Airlines, South African Airways, Kenya Airways, Turkish Airlines and ASk y, operate flights to DR Congo. ›››


FACTFILE

SERVICES TELECOMMUNICATION OPERATORS MARKET SHARE ● Africell: 1 million

● Airtel: 8 million

© VInCEnT FouRnIER PouR Ja

● Orange: 2.5 million

D!t!: "per!t"rs, aRPTC

● Tigo: 2.5 million

● Vodacom: 7 million

TELEPHONY GROWING AT A SWIFT PACE 2009

2010

2011

2012

2013(e)

2014(e)

Thousands of GSM subscribers

9 458

11,249

15,645

19,792

25,037

31,672

Thousands of GPRS subscribers

200

300

590

969

1,591

2,164

D!t!: "per!t"rs, aRPTC – (e) estim!te

INTERNET SUBSCRIPTION RATE % of the population

2009

2010

2011

2012

2013(e)

2014(e)

2.11

2.11

3.77

4.90

6.36

8.25

D!t!: "per!t"rs, aRPTC – (e) estim!te

ECONOMIC DATA In millions of dollars

2007

2008

2009

2010

Overall turnover

667.1

760.7

594.1

609.4

Accumulated investments

564.1

294.8

186.9

118.9

D"##ées "pér!te$rs, aRPTC

SUNNY SKIES FOR DOMESTIC AIR TRANSPORT

The growth of mining and manufacturing activities has spurred a steady rise in flights between Kinshasa and Lubumbashi — the capital of Katanga — as well between those two cities and Kasaï-Occidental and Kasaï-Oriental (connections with Mbuji-Mayi, Kananga and Tshikapa). Traffic between Kinshasa and the east's other big cities, such as Kisangani (Orientale Province) and Goma (Nord-Kivu), is stable. Flights to Équateur Province (Mbandaka and Gemena) are still few and far between.

USEFUL ADDRESSES ●

ARPTC POST AND TELECOMMUNICATIONS REGULATORY AUTHORITY www.arptc.cd AIRTEL Kinshasa, Gombe Tel.: (+243) 996 000 121 www.africa.airtel.com

VODACOM Tel.: (+243) 813 131 000 www.vodacom.cd TIGO Tel.: (+243) 898 222 222 www.tigo.cd ORANGE Tel.: (+243) 840 000 000 www.orange.cd AFRICELL www.africell.cd


66

COMPANIES AND MARKETS SERVICES

and Gomair. Many local airlines limit their flights to a single province or short distances between provinces.

HOTELS ON THE RISE

The C!mp"g#ie "fric"i#e d’"vi"ti!# (Caa) serves 34 cities i# the c!$#try.

25 airlines

›››

There are twenty-five airlines, all in the process of acquiring ICAO certification, to handle domestic traf fic, with the largest also operating flights between provinces and to neighbouring countries. The Compagnie africaine d’aviation (CAA), which operates in partnership with FlyCongo, ranks first by far in terms of destinations (34), followed by Korongo Airlines

Af ter suf fering from a woeful shortage of hotels, especially in the middle and at the high end of the spectrum, DR Congo is gradually making up for lost time. Kinshasa and Lubumbashi are the best of f, with a diversified of fer to meet demand from business and convention tourism, which is growing due to the many national and international conferences taking place in Kinshasa and Lubumbashi. The capital boasts around 10 mid-range and high-end hotels, including the Fleuve Congo Hôtel, Grand Hôtel de Kinshasa, Memling, Venus, Royal and Léon Hôtel. In Lubumbashi, business travellers can choose between the Grand Karavia — the most luxurious — Planet Hollybum, Le Resource and the Park Hotel. The number of private event centres is rising to meet demand from convention organisers. ■

AIRLINE CERTIFICATION Determined to make domestic flights safer, the government, Civil Aviation Authority and Régie des voies aériennes have met the problem of international certification of airlines operating in DR Congo head on. Five airlines — CAA-FlyCongo, Korongo Airlines, Air Tropique, ITAB and Kin Avia — are currently undergoing the process, which began in May 2013. International Air Transport Association (IATA) experts supervise the inspections, which focus on every aspect of operation and must lead to compliance with International Civil Aviation Organisation (ICAO) standards. All the airlines must undergo the same process or face being grounded.

INVESTING DR CONGO 2013


COMPANIES AND MARKETS

67

EDUCATION AND HEALTH

Positive measures for improvement A rising number of public-private partnerships

The priv!te sect"r is i#cre!si#gly i#v"lved i# he!lth c!re.

PUBLIC EDUCATION IS SWAMPED The primary school enrolment rate (6-11 years old), which fell to 51.7% in 2001, is back up to 75%, according to the 2010 national report on progress towards meeting the Millennium Development Goals (MDG). But most schools are overcrowded and

under-equipped, programmes are out of date and teachers are poorly trained. The same problems plague vocational schools and universities. The private sector and NGOs pick up the slack, but they cannot work miracles. Lack of skills is a major concern for companies.

INVESTING DR CONGO 2013

75% of children between the ages of 6 and 11 are enrolled in school


68

COMPANIES AND MARKETS EDUCATION AND HEALTH

organisations and development partners is helping to gradually improve the situation. Health is also a priority for companies as part of their social commitments.

PRIVATE CLINICS AND HOSPITALS

a f!ll-sc"le #verh"!l #f the ed!c"ti#$ system "$d f"cilities is !$der w"y.

PROFESSIONALISING THE SYSTEM Of ficials have shif ted the focus of education strategy. The share of public spending must rise from 3% of GDP in 2010 to 7% by 2016. An overhaul of the education system is under way. Two priorities have been set: reform of the content of school, university and technical training programmes, and creation of vocational training programmes in secondar y and higher education, towards which many students will be orientated.

HEALTH IS A PRIORITY

450 beds

capacity of the Cinquantenaire Hospital

Like that of education, the quality of health care has deteriorated due to lack of investment, equipment and drugs. Public hospitals struggle to provide the most basic care. Coupled with poverty, this situation translates into lower vaccination rates, the spread of HIV-AIDS and a resurgence of epidemics like cholera and diseases thought to have been eradicated, such as polio. Malaria is still the biggest killer. Support from international

INVESTING DR CONGO 2013

The share of the national budget earmarked for health has increased fivefold in 10 years and funding for hospitals and public health centres is rising at a steady pace. New hospitals have been built, including the 450-bed Cinquantenaire in Kinshasa. Considered the biggest facility of its kind in central Africa, it is managed by the Indian group Padiyath Health Care. The private sector is growing briskly, especially with the emergence of NGOmanaged clinics and health centres. Most people still cannot af ford ser vices, but the overall growth in of fer will help improve access to basic care, reduce infantile and maternal mortality rates and cut the prevalence rate of endemic diseases.

A MAJOR BUDGETARY EFFORT The 2012-2016 five-year plan calls for boosting public health spending to 5% a year, rehabilitating existing structures (general hospitals, health centres and pharmacies) and building new ones. Pharmaceutical plants will be constructed in partnership with the private sector in order to increase the supply of essential drugs. Improving healthcare coverage, in particular by implementing health insurance and mutual insurance companies in ever y province, will supplement these actions. â– 


TRAVEL DIARY


70

TRAVEL DIARY

Your trip

Swimmi#g p""l !t the Gr!#d Hôtel de Ki#sh!s!.

Str!w h$ts "# the b!#ks "f the C"#g" River, M!l$k$.

HOTELS IN KINSHASA

!re "ther dr!wc!rds. av"id the

FLEUVE CONGO HÔTEL

Tel.: (+243) 815 553 001

This five-st!r h"tel h!s everythi#g it t!kes f"r ! st!y c"mbi#i#g b$si#ess (c"#fere#ce r""ms, b$si#ess ce#tre, etc.) !#d ple!s$re (! swimmi#g p""l, sp! !#d fit#ess ce#tre). D"#'t miss di##er !t the P!#"r!m!, which b"!sts ! terr!ce "fferi#g ! $#iq$e view "f Br!zz!ville, the c!pit!l "f #eighb"$ri#g C"#g". Tel.: (+243) 825 000 300 www.fleuvecongohotel.net

GRAND HÔTEL DE KINSHASA This verit!ble i#stit$ti"# is still freq$e#ted by p"litic!#s !#d the b$si#ess c"mm$#ity, especi!lly d$ri#g the f"r$ms th!t "fte# t!ke pl!ce there. The swimmi#g p""l, te##is c"$rt !#d perf"rm!#ce h!ll

r""ms !b"ve the disc". www.grandhotelkinshasa.net

LE MEMLING n!med !fter ! Flemish p!i#ter, this h"tel i# the he!rt "f the b$si#ess q$!rter is !ppreci!ted f"r its b!r, f$#cti"# r""ms !#d sh"ppi#g !rc!de. D"#'t miss the p""lside j!zz c"#certs by G!briel W!digesil!'s Ki#j!zz! b!#d. Tel.: (+243) 815 557 700 www.memling.net

LE ROYAL Prestigi"$s b$t #"t l$x$ri"$s, #e!r the he!rt "f the b$si#ess q$!rter. n" swimmi#g p""l b$t ! c"vered p!ti" !#d sp!ci"$s, well-fitted r""ms. Tel.: (+243) 815 555 666 www.hotelroyaldrc.com


71

© BauDouIn MouanDa PouR Ja

TRAVEL DIARY

a typic#l Ki$sh#s# rest#"r#$t.

DRC rem#i$s # p#r#dise f!r B!$!b!s.

24 HOURS OF SPARE TIME

LÉON HÔTEL

LE PETIT TRIANON

Y!"'ll f#ll i$ l!ve with this prettily dec!r#ted h!tel. Impecc#ble service #$d th!"ghtf"l st#ff. The excelle$t v#l"e f!r m!$ey #$d l!c#ti!$ i$ the he#rt !f the G!mbe b"si$ess q"#rter #re big pl"ses. Tel.: (+243) 810 325 620 www.leonhotel.cd

G#str!$!mic rest#"r#$t i$ the

RESTAURANTS, BARS, DISCOS

MUZIK BAR

where y!" c#$ swim dri$k # l!c#l

Ki$sh#s#'s l#test l!"$ge-b#r-

beer #$d e$j!y # h!t me#l.

Cercle Fr#$ç#is, # meeti$g pl#ce f!r

LOLA YA BONOBOS "B!$!b!

b"si$essme$. after # g!"rmet me#l

p#r#dise" i$ Li$g#l#. Visiti$g the

#cc!mp#$ied by the fi$est Fre$ch

s#$ct"#ry !f these little m!$keys,

wi$es, e$j!y # p!!lside c!ffee.

which live !$ly i$ DRC, is #$

Tel.: (+243) 999 942 710

"$f!rgett#ble experie$ce. Fr!m there y!" c#$ g! t! L"k#y# F#lls,

rest#"r#$t. E$j!y # dri$k !$ the

Tel.: (+243) 818 141 492

LIMONCELLO

ch#rmi$g p#ti! f!ll!wed by di$$er

E"r!pe#$ c"isi$e, especi#lly It#li#$, i$ # desig$ setti$g. air-c!$diti!$i$g #$d # ve$til#ted p#ti!. Tel.: (+243) 815 141 111

www.lolayabonobo.org

i$ the rest#"r#$t bef!re d#$ci$g the

FLEUR DE SEL I$ # vill# with # g#rde$, !fferi$g # fl!r#l setti$g !$ the terr#ce. Q"iet #tm!sphere i$side. Excelle$t Fr#$c!Belgi#$ c"isi$e. Tel.: (+243) 999 917 953

$ight #w#y i$ the disc!.

KINKOLÉ, NSELE AND MALUKU

Tel.: (+243) 818 066 101

Ki$k!lé, # cheerf"l vill#ge fe#t"ri$g # m#rket #$d fishi$g p!rt cl"ttered

LE KLUBB

with pir!g"es #r!"$d 20 km $!rth

o$e !f Ki$sh#s#'s tre$diest sp!ts,

!f ndjili airp!rt !$ the C!$g!

with the afr!-Kl"bb, its sister cl"b

River's l"sh b#$ks, is # st!p !$ the

(C!$g!lese #$d afric#$ m"sic).

w#y t! nsele #$d M#l"k" f"rther

Tel.: (+243) 999 991 916

$!rth, # trip Ki$sh#sh#'s reside$ts

www.afro-klubb.com

e$j!y.


72

TRAVEL DIARY

Hôtel Gr#"d K#r#vi# i" L!b!mb#shi.

The #iry rest#!r#"t #t Pl#"et H$llyb!m.

HOTELS IN LUBUMBASHI

l$ve with this ch#rmi"g h$tel th#t c$mbi"es c$mf$rt #"d c$"vivi#lity. It

GRAND KARAVIA

$ffers c$mf$rt#ble r$$ms, # f#"t#stic

The b!si"essm#"'s f#v$!rite pl#ce t$

rest#!r#"t, # swimmi"g p$$l, # disc$

st#y. L$c#ted i" the G$lf q!#rter, "e#r

#"d # cr#fts sh$p j!st 10 mi"!tes

the l#ke i" # q!iet, p#rk-like setti"g, it

fr$m the #irp$rt.

$ffers 200 c$mf$rt#ble r$$ms, sever#l

Tel.: (+243) 997 030 256

rest#!r#"ts, # swimmi"g p$$l, fit"ess ce"tre, te""is c$!rt #"d w#ter sp$rts.

RE-SOURCE

Tel.: (+243) 815 583 058

L$c#ted i" # g#rde" "e#r the G$lf

www.grandkaraviahotel.com

Cl!b, 500 metres fr$m L#ke Tsh$mbe.

PARK HÔTEL

rest#!r#"t #"d # swimmi"g p$$l.

Q!iet, be#!tif!l r$$ms, # refi"ed

The P#rk H$tel, c!rre"tly !"derg$i"g

Tel.: (+243) 815 056 704

re"$v#ti$", h#s #" $!td#ted 1950s

www.re-source.cd

ch#rm, # d$w"t$w" l$c#ti$", # p#ti$ with # b#r #"d, every weeke"d, # b#"d pl#yi"g p$p!l#r 20th ce"t!ry t!"es.

RESTAURANTS

Tel.: (+243) 997 032 330

BUSH CAMP

www.congoparkhotel.com

Excelle"t $rg#"ic rib $f beef fr$m the $w"er's r#"ch, #s well #s til#pi#,

PLANET HOLLYBUM

chicke", #"tel$pe $r cr$c$dile i" #

D!ri"g her 2007 visit t$ L!b!mb#shi,

w#rmly-c$l$!red setti"g.

Pri"cess C#r$li"e $f M$"#c$ fell i"

Tel.: (+243) 997 025 901


TRAVEL DIARY

The B#sh C!mp Rest!#r!"t.

a view $f L!ke Kiv#.

CASA DEGLI ITALIANI

Tel.: (+243) 818 155 444

It!li!" c#isi"e i" ! simple dĂŠc$r !"d

www.lugofarmcountrylodge.com

! very frie"dly setti"g, pl#s sh$ws $f C$"g$lese !rt. The pizz!s !re

MUYAMBO PARK

excelle"t.

This 400-hect!re !"im!l p!rk i" the

Tel.: (+243) 997 025 756

he!rt $f the s!v!""!h !ppr$xim!tely 15 km fr$m the t$w" ce"tre is h$me

LES ARCADES

t$ ! wide v!riety $f wildlife th!t y$#

This Fre"ch !"d C$"g$lese

c!" w!tch $" f$$t $r by bike, g$lf c!rt,

rest!#r!"t i" ! vill! with ! g!rde" is

jeep $r q#!d. The m!"-m!de l!ke

$"e $f the best pl!ces t$ e!t i" t$w".

$ffers fishi"g !"d ped!l-b$!ti"g.

a lively !mbi!"ce !t the rest!#r!"t

Tel.: (+243) 815 051 632

b!r, c$sier i"side the vill!. Tel.: (+243) 814 532 511

24 HOURS OR MORE SUNDAY ON THE FARM Spe"di"g ! d!y $r weeke"d $" ! f!rm is ! very tre"dy thi"g t$ d$ here, especi!lly !t the L#g$ F!rm !"d C$#"try L$dge, ! h!ve" $f pe!ce j#st 40 km fr$m L#b#mb!shi. C$mf$rt!ble r$$ms, $rg!"ic f$$d, f!rm t$#rs, hiki"g !"d biki"g thr$#gh the fields.

73


74

TRAVEL DIARY

PRACTICAL INFORMATION ●

I! "dditi#! t# " v"lid p"ssp#rt (six m#!ths "fter the ret$r! d"te), "ll f#reig!ers e!teri!g DR C#!g# m$st h"ve " vis". apply #! the web. ●

AIRLINES

VISA

HEALTH

Yell#w fever v"cci!"ti#! req$ired. Typh#id "!d hep"titis a "!d B v"cci!"ti#!s, "s well "s preve!tive m"l"ri" tre"tme!t, "re rec#mme!ded.

CLIMATE

The "ver"ge temper"t$re r"!ges betwee! 25°C t# 32°C depe!di!g #! where y#$ "re: !#rth #r s#$th #f the Eq$"t#r, i! m#$!t"i!s #r l#wl"!ds #r #! pl"te"$s. The therm#meter s#metimes dips bel#w 20°C i! the !#rth. The r"i!y se"s#!s "re april t# l"te J$!e "!d September t# l"te oct#ber. The dry se"s#!s "re n#vember t# l"te M"rch "!d J$ly t# l"te a$g$st. It's c##ler i! the s#$th (especi"lly K"t"!g"), i! p"rtic$l"r d$ri!g the dry se"s#!. The rhythm #f the se"s#!s is the #pp#site: the r"i!y se"s#! l"sts fr#m mid-oct#ber t# mid-M"y (with " sh#rt dry spell i! J"!$"ry), the m"i! dry se"s#! fr#m M"y t# oct#ber. n#rd- "!d S$d-Kiv$ h"ve " temper"te clim"te ye"r r#$!d.

CURRENCY

AIR FRANCE Kinshasa Tel.: (+243) 998 001 014 BRUSSELS AIRLINES Kinshasa Tel.: (+243) 996 017 000 ROYAL AIR MAROC Kinshasa Tel.: (+243) 815 590 009 ETHIOPIAN AIRLINES Kinshasa : (+243) 817 006 585 Lubumbashi : (+243) 812 771 780 KENYA AIRWAYS Kinshasa: (+243) 999 911 239 Lubumbashi: (+243) 819 719 540 SOUTH AFRICAN AIRWAYS Kinshasa: (+243) 817 005 908 Lubumbashi: (+243) 817 009 495

The c$rre!cy is the C#!g#lese fr"!c (CDF). I! 2013, 1 d#ll"r = "r#$!d 900 CDF

TURKISH AIRLINES

SECURITY

Tel.: (+243) 122 510 097

DR C#!g# is rel"tively s"fe #$tside n#rd-Kiv$, the It$ri district "!d p"rts #f K"t"!g", which visit#rs "re str#!gly "dvised t# "v#id. I! Ki!sh"s", d# !#t w"lk #r drive "l#!e, especi"lly "t !ight; d# !#t t"ke " t"xi $!less y#$ k!#w the driver pers#!"lly; "!d d# !#t c"rry v"l$"bles #r l"rge "m#$!ts #f c"sh #! y#$. Tr"vellers c"! st#p by "t their emb"ssy's c#!s$l"r secti#! t# register "!d, if they wish, le"ve their p"ssp#rt f#r s"fekeepi!g. They c"! tr"vel with " certified c#py.

HOURS W#rki!g d"ys "re M#!d"y t# Frid"y b$t s#me sh#ps "re #pe! #! the weeke!d. G#ver!me!t #ffices "re #pe! fr#m 8"m t# 3pm, sh#ps fr#m 8"m t# 10pm "!d b"!ks fr#m 7:45"m t# 2 #r 3pm.

In Kinshasa

FLY CAA Kinshasa : (+243) 995 903 900 Lubumbashi : (+243) 995 007 000 KORONGO AIRLINES Lubumbashi: (+243) 996 030 107 Kinshasa: (+243) 991 001 717


GROUPE JEUNE AFRIQUE


20130909 investir rdc en  

GUIDE INVESTIR ANG RD CONGO 2013

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