República Democràtica del Congo flag República Democràtica del Congo: Invertir a la República Democràtica del Congo

Inversió estrangera directa (IED) a la República Democràtica del Congo

FDI in Figures

According to UNCTAD’s 2021 World Investment Report, FDI flows into the Democratic Republic of Congo increased from USD 1.5 billion in 2019 to USD 1.6 billion in 2020, despite the global economic crisis triggered by the Covid-19 pandemic. In the Democratic Republic of Congo, inflows into the mining sector supported FDI as cobalt prices rose with rising demand for its use in smartphones and electric car batteries - the country is the world's leading producer of cobalt and Africa's top copper miner. The FDI stock has been estimated at USD 27.3 billion in 2020. Such levels remain far below the country’s potential: in fact, the DRC has abundant mineral resources and a huge potential in sectors like mining, energy (especially hydroelectric), and infrastructure. To date, the mining sector is the one that attracts most FDI, followed by telecommunications. South Africa, Belgium and China are the country’s main investors.

The country benefits from a large domestic market and is strategically located in the centre of the African continent, being also a member of the Common Market for Eastern and Southern Africa (COMESA). The Democratic Republic of Congo has rich hydroelectric and mining resources (such as diamonds, copper, cobalt, gold and uranium), which have remained largely untapped. In order to attract FDIs, the government of the DRC provides incentives which are generally negotiated with foreign investors. However, the business climate is especially poor, and foreign investors are facing a number of challenges (corruption, lengthy administrative procedures and administrative fees) in establishing their businesses in the DRC. While there laws protecting investors in the country, the court system is often slow, so disputes can extend for years. However, a reform of the country's legal system is underway, which is expected to increase transparency, earning the trust of potential investors. In 2018, the mining code was amended, increasing taxes and royalties, requiring that at least 10% of the capital of mining companies be owned by indigenous citizens, and severely restricting the export of unprocessed minerals under new mining permit. In addition, the humanitarian and conflict situation in the east of the country and the stormy relations with neighbouring countries (Rwanda, Uganda and Angola) are factors which contribute to persistent insecurity in the country. Reflecting these difficulties, the DRC is ranked 183rd out of 190 countries in the last Doing Business report, published by the World Bank in 2020. In recent years, some of the biggest Chinese mining companies have heavily invested in the country, especially in cobalt and copper mines, with Chinese companies currently owning 15 of the 17 cobalt operations in the DRC.

 
Foreign Direct Investment 201920202021
FDI Inward Flow (million USD) 1,4881,6471,870
FDI Stock (million USD) 25,63227,27929,149
Number of Greenfield Investments* 6124
Value of Greenfield Investments (million USD) 5701,135184

Source: UNCTAD, Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 
Country Comparison For the Protection of Investors Democratic Republic of Congo Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 7.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 3.0 5.5 9.0 5.0

Source: Doing Business, Latest available data

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Return to top

What to consider if you invest in the Democratic Republic of Congo

Strong Points
Among the reasons to invest in the Democratic Republic of Congo:
- high growth rate of the national economy
- abundant mineral resources (copper, cobalt, diamond, gold, tin), with 80 million hectares of arable land and around 1,100 minerals in its subsoil
- the country is a member of several regional economic blocks, including the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), the Economic Community of Central African States (ECCAS), and the Economic Community of the Great Lakes Countries (ECGLC).
- several incentives granted to foreign investors
- huge potential in sectors like mining, energy (especially hydroelectric), and infrastructure
Weak Points
Several factors hinder the Democratic Republic of Congo’s business climate:
- a difficult business climate (predatory tax agencies, limited access to capital, difficulties enforcing contracts due to the weak judicial system, weak banking sector)
- endemic corruption at all levels of government
- a shortage of skilled labor
- political uncertainty, with ongoing armed conflict in the eastern part of the country
- weak infrastructure (transport, energy, telecommunications)
- high level of poverty
- political instability
Government Measures to Motivate or Restrict FDI
The government of the DRC provides some incentives to foreign investors. Such measures are generally negotiated during a streamlined period of approximately 30 days. Negotiated incentives can range from tax breaks to duty exemptions, and can vary according to the location and type of enterprise, the number of jobs created, the degree of training and promotion of local staff, and the export-producing potential of the operation.
Furthermore, the government created a “one-stop shop” for foreign investors, the Guichet Unique (https://www.guichetunique.cd/), that brings together all the government entities involved in the registration of a company in the DRC.
To know more about local incentives to FDI, consult the guide of the National Agency for Investment Promotion (ANAPI).

Return to top

Vols fer algun comentari sobre aquest contingut? Escriu-nos.

 

© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: September 2022

Return to top