Explore The Northern Corridor
Business Environment
Overview
The DRC is the second-largest country in Africa by area and is endowed with vast natural resources, including minerals, arable land, and forests. Despite this wealth, the country continues to face significant development challenges due to decades of conflict, weak institutions, poor infrastructure, and political instability.
KEY ECONOMIC INDICATORS (2024 ESTIMATES)
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• GDP (nominal): USD 66 billion
• GDP growth rate: 6.1% (real GDP, 2024 est.)
• GDP per capita: USD 750 (nominal)
• Inflation rate: 15.3% (2024 est.)
• Unemployment rate: 9.5% (official), but underemployment is widespread
• Population: ~105 million (2024 est.)
• Currency: Congolese Franc (CDF)
MAJOR SECTORS
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1. Mining and Extractives
• Main exports: Copper, cobalt, gold, diamonds, tin, coltan, oil
• The DRC is one of the world’s top producers of cobalt (used in batteries) and copper.
• The mining sector accounts for more than 40% of GDP and over 90% of export revenues.
2. Agriculture
• Agriculture contributes around 19% of GDP and employs over 60% of the population.
• Main products: cassava, maize, plantains, rice, palm oil, coffee, cocoa.
• The sector is largely subsistence-based, with limited mechanization or commercial farming.
3. Services
• Includes trade, telecommunications, banking, and transport.
• Urban areas (notably Kinshasa and Lubumbashi) show growth in retail and digital services.
• Financial inclusion remains low; mobile banking is growing steadily.
4. Industry and Manufacturing
• Limited industrial base; mostly focused on food processing, beverages, cement, and construction materials.
• The government aims to increase value addition in mining and agriculture.
5. Trade and Investment
• Main trading partners: China, South Africa, Zambia, Belgium, UAE, USA
• Main imports: Machinery, food products, fuels, vehicles
• Main exports: Copper, cobalt, gold, crude oil
• Member of regional blocs: COMESA, SADC, and AfCFTA
• High potential for intra-African trade, especially with neighbours like Angola, Uganda, and Rwanda.
OPPORTUNITIES
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• Mineral wealth and green-energy metals (especially cobalt and lithium) for global energy transition
• Agribusiness potential with vast arable land and water resources
• Renewable energy development, especially hydropower
• Cross-border trade via regional integration (AfCFTA, Northern Corridor)
• Digital economy expansion and fintech innovation
GOVERNMENT PRIORITIES (2024–2025)
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• Diversifying the economy beyond mining
• Promoting industrialization and local content
• Infrastructure development (roads, energy, rail)
• Strengthening institutions and anti-corruption
• Boosting agriculture and food security
INVESTMENT CLIMATE
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1. General Overview
The DRC offers substantial investment opportunities, particularly in mining, agriculture, energy, infrastructure, and digital sectors. However, the investment climate is challenged by institutional weaknesses, legal uncertainty, and security risks, especially in the eastern regions.
The government has made efforts to improve the business environment, attract foreign direct investment (FDI), and diversify the economy, but progress remains uneven.
2. Key Strengths for Investors
✅ Natural Resource Wealth
• Vast reserves of copper, cobalt, gold, diamonds, oil, and rare earth minerals.
• The DRC is the world’s largest source of cobalt—key for electric vehicle batteries.
• Huge potential in renewable energy (especially hydropower).
✅ Strategic Location
• Shares borders with nine countries, making it a key regional trade hub.
• Access to the Atlantic Ocean via the port of Matadi and the Congo River.
✅ Large and Young Population
• Over 100 million people, with a growing urban consumer base.
• Significant labor force availability and growing demand for goods/services.
✅ Regional Integration
• Member of COMESA, SADC, and the African Continental Free Trade Area (AfCFTA).
• Potential for duty-free regional trade and cross-border value chains.
3. Key Sectors Open for Investment and related investment opportunities
Mining: Processing and refining minerals, local supply chains
Agriculture: Commercial farming, agro-processing, agritech
Energy: Hydropower (Inga III), solar, grid expansion
Infrastructure: Roads, railways, bridges, ports, logistics hubs
ICT and Telecom: Internet infrastructure, mobile banking, e-commerce
Tourism: Eco-tourism, national parks, hospitality services
Manufacturing: Cement, textiles, construction materials
4. Recent Reforms and Developments
• Digitalization of business registration through the "Guichet Unique de Création d’Entreprise".
• Simplification of tax procedures and promotion of e-payment systems.
• Capacity Enhancement for the National Agency for Investment Promotion (ANAPI) to support investors.
• Greater collaboration with development partners (World Bank, AfDB, EU) on investment climate reforms.
5. Investor Protections
• Member of the Multilateral Investment Guarantee Agency (MIGA) and ICSID (International Centre for Settlement of Investment Disputes).
• Bilateral investment treaties (BITs) with several countries.
• OHADA member (Harmonization of Business Law in Africa) – offers uniform commercial laws.
KEY ECONOMIC INDICATORS (2024 ESTIMATES)
----------------------------------------------------------------
• GDP (nominal): USD 66 billion
• GDP growth rate: 6.1% (real GDP, 2024 est.)
• GDP per capita: USD 750 (nominal)
• Inflation rate: 15.3% (2024 est.)
• Unemployment rate: 9.5% (official), but underemployment is widespread
• Population: ~105 million (2024 est.)
• Currency: Congolese Franc (CDF)
MAJOR SECTORS
-----------------------
1. Mining and Extractives
• Main exports: Copper, cobalt, gold, diamonds, tin, coltan, oil
• The DRC is one of the world’s top producers of cobalt (used in batteries) and copper.
• The mining sector accounts for more than 40% of GDP and over 90% of export revenues.
2. Agriculture
• Agriculture contributes around 19% of GDP and employs over 60% of the population.
• Main products: cassava, maize, plantains, rice, palm oil, coffee, cocoa.
• The sector is largely subsistence-based, with limited mechanization or commercial farming.
3. Services
• Includes trade, telecommunications, banking, and transport.
• Urban areas (notably Kinshasa and Lubumbashi) show growth in retail and digital services.
• Financial inclusion remains low; mobile banking is growing steadily.
4. Industry and Manufacturing
• Limited industrial base; mostly focused on food processing, beverages, cement, and construction materials.
• The government aims to increase value addition in mining and agriculture.
5. Trade and Investment
• Main trading partners: China, South Africa, Zambia, Belgium, UAE, USA
• Main imports: Machinery, food products, fuels, vehicles
• Main exports: Copper, cobalt, gold, crude oil
• Member of regional blocs: COMESA, SADC, and AfCFTA
• High potential for intra-African trade, especially with neighbours like Angola, Uganda, and Rwanda.
OPPORTUNITIES
----------------------
• Mineral wealth and green-energy metals (especially cobalt and lithium) for global energy transition
• Agribusiness potential with vast arable land and water resources
• Renewable energy development, especially hydropower
• Cross-border trade via regional integration (AfCFTA, Northern Corridor)
• Digital economy expansion and fintech innovation
GOVERNMENT PRIORITIES (2024–2025)
-----------------------------------------------------
• Diversifying the economy beyond mining
• Promoting industrialization and local content
• Infrastructure development (roads, energy, rail)
• Strengthening institutions and anti-corruption
• Boosting agriculture and food security
INVESTMENT CLIMATE
-------------------------------
1. General Overview
The DRC offers substantial investment opportunities, particularly in mining, agriculture, energy, infrastructure, and digital sectors. However, the investment climate is challenged by institutional weaknesses, legal uncertainty, and security risks, especially in the eastern regions.
The government has made efforts to improve the business environment, attract foreign direct investment (FDI), and diversify the economy, but progress remains uneven.
2. Key Strengths for Investors
✅ Natural Resource Wealth
• Vast reserves of copper, cobalt, gold, diamonds, oil, and rare earth minerals.
• The DRC is the world’s largest source of cobalt—key for electric vehicle batteries.
• Huge potential in renewable energy (especially hydropower).
✅ Strategic Location
• Shares borders with nine countries, making it a key regional trade hub.
• Access to the Atlantic Ocean via the port of Matadi and the Congo River.
✅ Large and Young Population
• Over 100 million people, with a growing urban consumer base.
• Significant labor force availability and growing demand for goods/services.
✅ Regional Integration
• Member of COMESA, SADC, and the African Continental Free Trade Area (AfCFTA).
• Potential for duty-free regional trade and cross-border value chains.
3. Key Sectors Open for Investment and related investment opportunities
Mining: Processing and refining minerals, local supply chains
Agriculture: Commercial farming, agro-processing, agritech
Energy: Hydropower (Inga III), solar, grid expansion
Infrastructure: Roads, railways, bridges, ports, logistics hubs
ICT and Telecom: Internet infrastructure, mobile banking, e-commerce
Tourism: Eco-tourism, national parks, hospitality services
Manufacturing: Cement, textiles, construction materials
4. Recent Reforms and Developments
• Digitalization of business registration through the "Guichet Unique de Création d’Entreprise".
• Simplification of tax procedures and promotion of e-payment systems.
• Capacity Enhancement for the National Agency for Investment Promotion (ANAPI) to support investors.
• Greater collaboration with development partners (World Bank, AfDB, EU) on investment climate reforms.
5. Investor Protections
• Member of the Multilateral Investment Guarantee Agency (MIGA) and ICSID (International Centre for Settlement of Investment Disputes).
• Bilateral investment treaties (BITs) with several countries.
• OHADA member (Harmonization of Business Law in Africa) – offers uniform commercial laws.
Investment Incentives
Tax Incentive
Tax and Customs Incentives
The Investment Code provides for attractive customs and tax exemptions for the benefit of investors who present to ANAPI their investment projects (Business Plan), once the project is approved by ANAPI within a period not exceeding 30 days, the investor benefits from the customs, tax and parafiscal advantages hereafter:Financial Incentive
Investment Incentives
• Investment Code (2002): Offers tax exemptions and customs benefits.• Special Economic Zones (SEZs): Being established to promote manufacturing and trade.
• Public-Private Partnerships (PPP): Encouraged for infrastructure development.
• Mining Code (2018): Regulates resource extraction but has been criticized for unpredictability.