Access to Markets - D.R. Congo

DRC market information

The DRC is a real market in the heart of Africa where the needs for goods and services are enormous. The Congolese territory constitutes a vast market for the sale of products

Population: More than 84 million inhabitants including 4% in urban areas (World Bank estimate for 2018) not including expatriates,

Capital : Kinshasa (more than 11 million inhabitants)
Main cities : Lubumbashi, Mbuji-Mayi, Goma, Kananga, Kisangani, Bukavu

Population growth rate: +3.2% (World Bank, 2018) i.e. 2 million more inhabitants per year

Main customers : China (43%), Zambia (24%), South Korea (8%), Italy (3.5%), Belgium (3.3%)
Main suppliers: China (20%), South Africa (18%), Zambia (11%), Belgium (6%), India (4.3%), France (3%)

A strategic position in the heart of Africa

Located in Central Africa, on the equator (between 5° north latitude and 13° south latitude), the DRC has an area of 2,345,095 km2. It has 9,165 km of borders which it shares with 9 countries, namely: the Republic of Congo and the enclave of Cabinda (Angola) in the West; the Central African Republic and Sudan in the North; Rwanda, Tanzania, Uganda and Burundi in the East; Zambia in the southeast and Angola in the south. This strategic geographical position in the heart of Africa makes it a real focal point and penetration point for other African markets.

Potential, Opportunities and Market Drivers

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Agriculture, fishing and breeding

The agricultural potential of the DRC is colossal: of the 80 million hectares (ha) of arable land that the country has, only 28% (23 million hectares) are cultivated, and only a few lands devoted to rice production. and sugar cane are irrigated. The country represents an abundant labor force for agriculture which employs more than 70% of the country's total workforce.

The diversity of climatic basins, the abundance of rainfall, and the presence of large quantities of surface water allow several harvests per year for many products.

The natural conditions for the development of agriculture, livestock and fish farming are met in the DRC (fertile soil of 72 million ha, favorable climate, fresh water resources).

Cassava and market gardening in peri-urban areas have the potential to feed the local population.

Palm oil, rubber, tea, coffee can provide substantial export earnings.

Pastures could support about 40 million head of cattle.

Finally, the DRC is the largest freshwater reserve in Africa with a basin
hydraulics of 3,680,000 km. Inland waters could allow the production of more than 700,000 tons of fish.

Main foodstuffs produced in terms of quantities in 2015

Foodstuffs	Tons
The manioc	35 million tons
The plantain banana	5 million tons
The corn	2 million tons
paddy rice	1 million tons

The list of some products grown in the DRC

Annuity products	Cocoa, coffee, rubber, oil palm, cotton, tea, jatropha, cinchona
Food crops	Peanut, potato, wheat, yam, bean, soy,
Vegetable and fruit crops	Salads, tomatoes, onions, passion fruit, mangosteen, rambutan or hairy or hairy lychee, plum, strawberries, safu, canarium and other tropical fruits

Foodstuffs

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Food products are the 1st item on which households spend their income. Given the weakness of the local food processing industrial fabric, both in terms of quantity and variety of products, the volume of food product imports is enormous.

Sugar, maize flour, vegetable oil, rice are the main food products imported from the DRC, from Zambia, Angola, Tanzania, China and Uganda.

Poultry meat presents export opportunities due to the volume of demand (USD 73.4 million in 2016/USD 114.24 in 2014).

Confectionery posted an import volume of USD 16.5 million in 2016, and remains a product of opportunity. Currently, the market is shared between South Africa (34.0%), Brazil (25.4%), and China (10.0%).

The local agri-food processing industry is however limited to a few products and a few units, namely the manufacture of corn flour, wheat flour, sugar, bread, palm oil, cans, detergents , margarine, beer, alcoholic and non-alcoholic beverages.

Miscellaneous products ranging from food products such as vegetable oil, canned food, dairy products, alcoholic and sweet drinks, to household products from Angola for Kinshasa and Zambia which supplies the south-eastern part ( Lubumbashi, Kolwezi and Likasi) are sold at competitive prices at the Lufu border market in Bas Congo, 300 km from the capital Kinshasa, and at the Kasumbalesa market, 95 km from Lubumbashi, the second largest city in the DRC.

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Textile

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To date, only the Textile Company of Kisangani (Sotexki) produces loincloths and good quality printed fabrics “made in Congo”. The quantity produced being lower than the demand, the majority of Congolese traders import loincloths and other fabrics from China, Holland, India and other African countries.

Traders also go to Turkey, Dubai, India, France, Belgium and the United States to stock up on loincloths, clothing for children, men and women, shoes, plants and wigs.

cosmetic products

The DRC cosmetics market remains dominated by cosmetic products (beauty milks, soap, cream, powder) made locally and in Côte d'Ivoire, Ghana, Nigeria, Cameroon, South Africa, Senegal and other products European cosmetics.

Mining

The DRC is quota geological scandalquot as its mining resources are important and diverse (copper, cobalt, coltan, gold, diamonds). The world's leading producer of cobalt, a strategic raw material for the automotive industry, the DRC is also a major player in copper and gold.

The mining sector in the Democratic Republic of Congo is regulated by Law No. 007/2002 of July 11, 2002 on the Mining Code and Decree No. 038/2003 of March 26, 2003 on mining regulations. It was modified by the new mining code of 2018.

Click here to see the table of minerals by province

The new code, supplemented by application texts, provides in particular:

The removal of the 10-year stability clause, now limited to 5 years;
An increase in the participation of the Congolese State in operating companies from 5 to 10%;
A new calculation of royalties by raising the rates on minerals from 2.5 to 3.5%, and up to 10% for strategic minerals such as cobalt;
The introduction of a 50% tax on superprofits when the prices of raw materials experience an increase of more than 25% compared to the forecasts projected in the feasibility study;
Less advantageous taxation, increased currency repatriation obligations,
Possibilities of subcontracting limited to legal entities under Congolese law and with Congolese capital.

Distribution of products on the market

There are a number of import companies that specialize in food products. The importation and wholesale distribution of products are dominated by Congolese, Lebanese, Indian and Chinese companies established in the DRC for several years.

Since 2011, Retail has been banned from foreign investors and its importers. (Decree-law n°011/37 of October 11, 2011)

Tables of Opportunity Products and Services

Market opportunities	Main suppliers to date	Observation
Food products (Corn flour, rice, meat, sugar, salt, vegetable oil, fish, milk, manufactured products	Angola: Kinshasa, Lower Congo, South Africa: Kinshasa and Lubumbashi, Kolwezi, Likasi China: The whole extent, Zambia: Lubumbashi, Kolwezi, Likasi, Kamina Tanzania: Uvira, Kalemie and its surroundings Rwanda and Burundi: Goma, Bukavu, Beni, Uvira Uganda: Kisangani, Bukavu, Bunia and its surroundings	Large market
Cosmetic products: Soap, beauty milk, lotion, perfume, shampoo, eau de toilette, powder, foundation, shea butter, extensions, wigs	DRC, Ivory Coast, Senegal, Nigeria, Ghana, South Africa, Burkina Faso, Cameroon, India, China, Belgium France, USA etc…
Textile: loincloth, fabrics, clothes for men, women and children, shoes, lingerie,	DRC, China, Turkey, Brazil, Benin, Nigeria, Senegal, Ghana, Togo, France, Belgium, Italy, United Arab Emirates, Uganda, Tanzania, Thailand, USA	Large market
Devices: all categories combined	China, France, Germany, India, South Africa, Brazil, United Arab Emirates
Furniture, works	DRC, United Arab Emirates, Zambia, Turkey, Egypt
Machines, materials and mechanical and electrical equipment,	China, Germany, India, United Arab Emirates, France, Belgium, South Africa
Pharmaceutical products	DRC, India, France, Belgium, Tanzania, Kenya
Insurance Services	- Public company : National Insurance Company (SONAS), - Private company: Rawsur SA, Activa Assurances RDC, Société financière assurance Congo SA (SFA CONGO), Sunu Assurance IARD RDC SA, Mayfair Insurance Congo SA, Global Pionner Assurance SA - Insurance brokerage company: Allied Insurance Brokers SARL (AIB), Gras Savoye RDC SA, Assurance Okapi SARL, Ascoma RDC SARL, Juasur SA, Elite Congo SARL, Société Dambana Assurance SARLU (Sodassur)	- Market still not saturated, - Liberalized since 2015, - The potential of the insurance market estimated at 5 billion US dollars according to figures from the National Insurance Company (SONAS) - The Congolese population does not yet have the culture of insurance, a strong awareness is necessary.
Computer engineering services	South Africa, India, local companies with Congolese capital,
Consulting and engineering for energy optimization	South Africa, India, France, Belgium, Spain, China	Market not yet competitive
Energy Solar, wind, hydraulic, biogas, biofuel	The National Electricity Company is still the only supplier of hydraulic energy	- Sector liberalized since 2014 - Legal framework: Law n°14/011 of June 17, 2014 - Liberalization of the sector to private partners - SNEL open to public-private partnerships - Electrification rate: very low (10% according to SNEL) - Only hydraulic energy is exploited - Renewable energies (Solar, wind, biogas, biofuel) under-exploited

Non-tariff market access conditions

In general, the Congolese market is open to all countries. There are no tariff or non-tariff restrictions imposed by the government.

However, some line ministries introduce internal standards by sector (eg ministry of health/drugs, ministry of foreign trade/commodities), and regulations can be changed easily.

The DRC can take temporary bans on the import of consumer goods, in the name of safeguarding local production.

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Macroeconomic indicator

The official currency of the DRC is the Congolese franc (CDF) but the Congolese economy is de facto dollarized, although the government introduced new foreign exchange regulations in 2014 which stipulate that transactions within the national territory must be settled in francs. Congolese, the prices are displayed in Congolese francs but the invoices are drawn up and paid either in Congolese francs or in dollars.

Know the exchange rate in the DRC

http://www.bcc.cd/index.php?option=com_content&view=category&id=40&Itemid=70

How to access the Congolese market

The best approach is therefore to approach a woman entrepreneur on the 50Million African Women Speak platform who operates in a specific sector and either:

send samples to him for test in the market,
Or bring your samples to the DRC

National Agency for the Promotion of Investments (ANAPI)

To be able to benefit from the favorable regime, investors are required to file an application for approval with the National Agency for the Promotion of Investments (ANAPI), placed under the authority of the Ministers of Planning and Portfolio. Approval is given by ministerial order after review of the file by ANAPI. This structure has created within it, since 2005, a one-stop shop allowing investors to complete, in one place, all the formalities to create a business. The duration of the preferential regime depends on the quoteconomic regionquot and is not renewable. It is three years for economic region A; four years for economic region B; and five years for economic region C.

The DRC's 2002 investment code provides for a number of tax, customs and general measures aimed at attracting direct investment. The investment code does not apply to many sectors, including mining and hydrocarbons, banking and insurance, commercial activities where investments are governed by specific laws.

ANAPI provides, within the framework of facilitation, various services to investors before, during and after their installation.

i) Services offered before the installation of the investor

Provision of economic and miscellaneous information;
Organization of stays: facilitation;
Obtaining entry visas: facilitation;
Search for local and foreign partners;
Accompaniment in Kinshasa and inside the country in prospecting missions.

ii) Services offered during installation

Facilitations for investors looking for land (and premises) and for connection to the water and electricity network;
Support in obtaining settlement visas;
Support for obtaining specific licenses (Mines, Banks, Telecommunications, Air transport, etc.);
Support for the creation of companies;
Granting of customs, fiscal and parafiscal advantages.

iii) Customs, tax and parafiscal benefits

Types of benefits granted:
- Exemption from income tax;
- Exemption from property tax;
- Exemption from entry fees for equipment and other materials;
- Exemption from export duties for finished products.
- Exemption from import VAT for new projects in customs benefits.

Duration of benefits granted:
- Economic region A (Kinshasa): 3 years from the date of operation;
- Economic region B (Bas-Congo, Lubumbashi, Likasi and Kolwezi): 4 years;
- Economic Region C (the other Provinces and Cities of the Country): 5 years