Economic Guide: Democratic Republic of the Congo Opportunities for investment FOREWORD Preface “My aim is to build a strong economy” Félix Tshisekedi, President of the Democratic Republic of the Congo Extracts from State of the Nation address, December 13, 2019 “The business climate is an issue that is of the utmost concern to me. Everyone is fully aware that to attract investment, both domestic and foreign, we need to improve the business climate. […] If we are to make progress with rebuilding our country, it is essential that we develop a better economic system. And so I will be personally supervising the reforms we undertake to enhance our tax system to make it easier to attract investment. My aim is to build a strong economy through establishing structural communications and telecommunications infrastructure. To do this, I will ensure that we improve the business climate by introducing an institution to monitor indicators. © AFP - BENOIT DOPPAGNE Attracting a massive influx of investors also requires the proper dispensation of justice, as well as legal and judicial protection for investors. It is for this reason that reform of the justice system is vital. We are working actively to combat the corruption which is depriving our country of many of its resources. On this note, I would invite all public officials to act in an exemplary and dignified manner. Our country’s geographical location and its enormous energy and environmental potential put us at the forefront of the challenges of today’s era. We must play the role that falls to us in the global effort to combat climate change. We must be a driving force for the development of our continent, and this obliges us to be open to neighboring countries and subregional organizations. We are working to make our businesses competitive and, where we have a comparative advantage, to considerably reduce our dependency on imports. The coming year will show that we have resumed collaboration with our traditional partners, and seen a huge influx of foreign investment, the result of my recent trips. With the measures that we have taken across the board, I can say with confidence that we are on the right path.” Preface U.S. CHAMBER OF COMMERCE Economic Guide: DRC - 3 FOREWORD Preface Michael A. Hammer United States Ambassador to the Democratic Republic of the Congo Welcome! Mbote! On behalf of the American Embassy in Kinshasa, we are interested in connecting with your business if you are looking to invest in the Democratic Republic of the Congo, or as most refer to it, the DRC. It has been my privilege to serve for the past year in the DRC as your Ambassador, and during that time I have grown to love the dynamic Congolese people, vibrant culture, and spectacular natural beauty. The DRC is the largest country in Sub-Saharan Africa, roughly the size of Western Europe and with a population of over 90 million. After a historic first peaceful transfer of power with the inauguration of President Félix Tshisekedi in January 2019, U.S. companies are taking a new look at the Congolese market. President Tshisekedi made his first trip outside the continent © DR to Washington, D.C. and together we launched the U.S.- DRC Privileged Partnership for Peace and Prosperity (PP4PP) – which not only aims to combat corruption and bring peace and stability, but also has as a key focus attracting U.S. investment and increasing trade. Our relations with the DRC are deep and longstanding. The United States is the DRC’s largest bilateral donor with approximately $500 million in development and humanitarian programming per year. The focus of American foreign policy in the DRC is to be a partner in helping it realize its vast potential. Congo has the energy resources to power Africa; arable land to feed Africa; and an entrepreneurial people. Plus, we need to mention an estimated $24 trillion in mineral deposits - including abundant cobalt, coltan, copper, diamonds, gold, lithium, tantalum and tin. At our Embassy, we have established an interagency commercial Deal Team (KinshasaDealTeam@ state.gov) which is ready to work and advise you as you explore the many opportunities in the DRC market. The AmCham chapter has also shifted into high gear and is ready to meet you. Please get in touch, visit us, and consider the DRC as a place for you to do business. You can follow our activities on Twitter and Facebook. I look forward to seeing you soon in Kinshasa. À bientôt, Mike Hammer @USAmbDRC 4 - Economic Guide: DRC U.S. CHAMBER OF COMMERCE FOREWORD Editorial Editorial Scott Eisner DRC : Africa’s most untapped investment destination The Democratic Republic of the Congo (DRC) is endowed © IAN WAGREICH with abundant natural resources, strategic minerals and half Scott Eisner, of Africa’s forests and river systems. These resources, and other President of the U.S.-Africa unique attributes of the country, present significant opportunities Business Center and for investment. The DRC is embarking on a number of reforms, Senior Vice President, including the liberalization of the energy sector, the establishment U.S. Chamber of Commerce of a one-stop-shop for investors, and the streamlining of the tax system. These reforms and other engagements with multilateral institutions, as well as a commitment by the government to improve the ease of doing business, are all indicative of a nation ready to attract foreign direct investment. This economic guide provides insights into a variety of sectors outside of mining, for which the DRC is well known. Prospects in agriculture, energy, infrastructure, ecotourism, education, and health provide tangible investment opportunities across the country’s 26 provinces. The U.S. Chamber of Commerce’s U.S.-Africa Business Center (USAfBC) will work closely with the Congolese public and private sectors to expand the commercial relationship between our two nations. This interaction will also allow American companies to support the DRC ’s economic diversification agenda through skills development and technology transfer. The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. The Chamber also works closely with 118 American Chambers of Commerce (AmCham) abroad, including 18 on the African continent. The USAfBC, housed within the Chamber, is an advocacy and policy organization with a mission to build prosperity for Africans and Americans through job creation and an entrepreneurial spirit. With over $5.6 billion in projected consumer and business expenditures on the continent by 2025 and a population of 1.2 billion expected to double by 2050, we firmly believe that Africa is the future of the global economy. It is our hope that the comprehensive nature of this guide will offer useful information to individuals and companies keen on investing in one of Africa’s most untapped investment destinations —the DRC. Editorial 6 - Economic Guide: DRC U.S. CHAMBER OF COMMERCE FOREWORD Preface Lino N’shimba President & Chairman of the Board, American Chamber of Commerce in the DRC; Founder and CEO, Africa Equity & Investment Group SARL he DRC is naturally located at the heart of the African continent and has the potential to be Tthe backbone for development in Africa. The peaceful transition of power and the progressive vision of President Félix Antoine Tshisekedi Tshilombo offer a genuine promise of a great, thriving Congo on the path to emergence. The U.S. Chamber of Commerce is the largest business federation in the world. Represented in the DRC by the American Chamber of Commerce in the Democratic Republic of the Congo (AmCham Congo-DR) – a conglomerate of businesses in key sectors for development – it provides a link to facilitate trade and investment between the United States and the DRC. For AmCham Congo-DR, promoting trade and investment between the two countries and neighboring countries is a priority. It has set up a commercial, social and political forum for its members to strengthen the bonds of friendship between the two nations. In addition, AmCham Congo-DR contributes real © DR added value to commercial opportunities associated with economic growth. It is also an advocate for its member companies, whether American or Congolese, thanks to its close ties with the local authorities. Working closely with organizations which support the Office of the President of the Republic – the Federation of Businesses of the Congo (FEC) and the National Agency for Investment Promotion (ANAPI) – AmCham Congo-DR has produced the Investor’s Guide to the DRC, an information pack covering the real opportunities for investment in the DRC and how to get established in the country legally. The DRC is not just about Kinshasa or mines, there’s also 26 provinces, agriculture, energy, tourism, infrastructure... In short, it’s a country with plentiful resources, both natural and human. The problems faced by the DRC are in fact opportunities for investment. 8 - Economic Guide: DRC U.S. CHAMBER OF COMMERCE FOREWORD Preface Anthony Nkinzo Kamole Managing Director, ANAPI s it regains control over its economy and development, the DRC is ready for take-off with the accession to power of a Anew, democratically elected president – a first for the DRC – and the establishment of a continental free trade area aimed at securing regional integration and comprehensive development in Africa. Located at the heart of the African continent, the DRC is classed as one of the world’s megadiverse countries. Blessed with mineral, energy, agricultural and tourism resources, as well as a variety of other assets which give it potential on a continental scale, this large country is predestined to become a platform for industrial production © DR capable of providing alternatives for Africa’s development needs.