Invest in

the

DR Congo

Lan d of opportunities in t he h eart of A ca fri

ANAPI

National Agency for Investment Promotion

E-mail : anapirdc@yahoo.fr - anapirdc@anapi.org Tel. : +243 99 99 25 026 +243 99 81 27 616 54, Av. Colonel Ebeya - Kinshasa / Gombe Democratic Republic of Congo

www.anapi.org

They trusted in the new DR Congo

Some big multinationals operating in the Democratic Republic of Congo

La banque Panafricaine

TRUST MERCHANT BANK S.A.R.L.

Mi Mining Company Katanga (SPRL)

BANRO CORPORATION

Socit Prive Responsabilit Limite N.R.C. 8518 NId.Nat. 6-12-N39595 17, avenue Munguzi B.P. 1513, Commune Kampemba E-mail : mckgroup@mwangaza.cd Tl/fax : 002432348385 LUBUMBASHI - RDC

SIVOP

Kenya Airways
Achievement of this brochure has been made possible thanks to : * Conception, writing and achievement : - Professor Mathias BUABUA wa KAYEMBE - Mr AMISI HERADY * Translated into English by : - Mr Victor MAZANGAMA MALANGI * Input and layout : - Mr MUAMBA Donat - Mr BIZAKU NZONZA * Printing works :

anapirdc@yahoo.fr

www.anapi.org
anapirdc@anapi.org

His Excellency Joseph Kabila Kabange

President of the Democratic Republic of Congo

CONTENTS
Page I. II. III. IV. V. COUNTRY WITH EXTRAORDINARY ASSETS FOR INVESTORS ...................................... 7 LAND OF OPPORTUNITIES WIDE OPEN TO EVERYBODY .............................................. 12 BOOMING FREE-MARKET ECONOMY IN THE HEART OF AFRICA.................................. 15 STABLE PARTNER FOR DEMOCRACY, PEACE AND BUSINESS ..................................... 20 INCENTIVE AND SECURING INVESTMENT CODE ............................................................ 21

VI. TAX SYSTEM COMPATIBLE WITH INVESTMENTS ............................................................ 22 VII. ANAPI : PARTNER DEVOTED TO INVESTORS SERVICE ................................................. 24 VIII. HOW SHALL WE SET UP A COMPANY IN DRC .................................................................. 26

Editorial
The DR Congos new image : an opportunity for all
The DRC our country is winning, day after day, a new image : that of a country resoluted to retrieve its position among the great Nations and become the hub of investments in Central Africa. To consider only the latest events, many illustrations eloquently show the rocketing of that new image of the country. Let me quote just the following, still fresh in the mind of the national and international opinion : The visit in the country of great political personalities namely, the French President, Nicolas Sarkozy and the American Secretary of State, Hillary Clinton, and important leaders of international financial institutions namely, the President of the World Bank Group, Robert ZOELLICK and the IMF General Manager, Dominique Strauss Khan ; The agreement made between the DR Congo and the International Monetary Fund for the second Government Economic Program (PEG 2) ; The agreement made between the DR Congo and China for the implementation of the reconstruction and development program of the country ; The visit of the Rwandan President, Paul KAGAME, within the normalization of neighbourly terms between his country and ours ; SADC presidency now entrusted to Joseph KABILA KABANGE, DR Congos President ; The government option of DRCs membership of OHADA ; Etc.

What to say about reforms carried out and prospective reforms to better carve the new countrys image : achievement of peace process, the full holding of democratic process with the organisation of free, democratic and transparent elections at all levels, the liberalisation of aggregate markets, the promulgation of new laws on economic matters, development throughout the country of setting up and rehabilitation work of basic infrastructures, to mention only those. This sufficiently proves that DR Congo is moving. It is a link or the point through which all the countries involved should pass to access subregional markets of the continent (SADC, CEEAC, COMESA, CEPGL). Thanks to its numberless resources (mining, energetic, agricultural, forest, tourist, etc.), the DR Congo appears as a solution to the current world economic crisis, since it is obvious that the latter cannot be absorbed if the aforementioned resources are not intensively utilized. The country unquestionably acquired a new aura on international plane devoted to its development. One should acknowledge : That new aura, the country owes it to the President of the Republic and Head of State, Joseph KABILA KABANGE, thanks to his openness voluntarist policy on the world and of mobilisation everywhere of generating energies of the Congolese population, for its development. For the purpose of sustaining this vision that the National Agency for Investment Promotion (ANAPI) was set up as One-stop Shop regarding investments in the country.This precious government tool is devoted and fully dedicated to the service of whoever wants to invest in the DR Congo. Everybody is provided with the opportunity to make profit of the new DR Congos image to invest and do other good business in the country as thousands of investors experience it already. To do it today is better. Do not go to the wrong door, contact ANAPI for that purpose.

Prof. Mathias BUABUA wa KAYEMBE

ANAPI Managing Director

A d m i n i s t r a t i v e m a p o f t h e D e m o c r a t i c R e p u b l i c o f C o n g o

B a s i c
Surface area Capital-city Population Provinces Main towns Languages Currency International airports Main ports : : : : : : : : :

d a t a

Neighbour countries Length of common borders Weather Rainfall Arable soil Forest Energetic potential Political system GDP growth rate (in 2008) GDP growth rate per capita FDI annual stock

: : : : : : : : : : :

2,345,000 km Kinshasa 65,2 million Bas-Congo, Bandundu, Equateur, Katanga (496,865 Km), Western Kasa, Eastern Kasa, Maniema, Eastern Province, North-Kivu, South-Kivu Kinshasa, Lubumbashi, Goma, Bukavu, Kisangani, Kikwit, Mbuji-Mayi, Kananga, Matadi, Mbandaka, Kindu - Official : French - National : Lingala, Swahili, Kikongo, Tshiluba Congolese Franc (CDF) Ndjili (Kinshasa), Luano (Lubumbashi), Bangboka (Kisangani), Goma (North-Kivu) - Sea : Matadi, Boma. - River : Kinshasa, Kisangani, Mbandaka, Ilebo, Kalemie, Moba, Uvira, Kalundu, Bukavu, Goma, Ubundu, Kindu. 9 countries. 9,165 km. Equatorial, humid tropical, tropical with long dry season, coastal. 1,000 mm/year. 120 million hectares (10% only are exploited so far). 1,232,000 km2 774,000,000 Mwh or 106,000 Mwh of exploitable power Democracy 6.2 % 3.2 % 4 billion

1.1. Huge market in the heart of Africa

ocated in the heart of Africa, the Democratic Republic of Congo is one of the giants of the continent as far as its surface area amounting to 2,345,000 km is concerned. The Democratic Republic of Congo shares a border of 9,165 km with nine neighbouring countries and holds therefore, a strategic position which makes it the hub of business development (movement of goods produced) in Africa and the access point to individual sub-regional markets. - The enclave of Cabinda (7,270 km) and the Republic of Congo (342,000 km/ 3,150,144 inhab.) in the West. - Uganda (241,040 km/25,632,794 inhab.), Burundi (27,834 km/5,930,805 inhab.), Rwanda (26,340 km/8,336,995 inhab.) and Tanzania (942,799 km/34,569,232 inhab.) in the East. - The Central African Republic (622,436 km/3,683,538 inhab.) and Sudan (2,503,890 km/9,872,000 inhab.) in the North. - Zambia (752,614 km/9,872,000 inhab.) and Angola (1,246,700 km/10,766,471 inhab.) in the South. In view of its population, 65,2 million inhabitants (and therefore consumers) and including the population of the neighbouring countries, the Democratic Republic of Congo constitutes a large market of around 250 million consumers.

DRC:
COUNTRY WITH EXTRAORDINARY ASSETS FOR INVESTORS
is currently developed, that is, 3% for agricultural activities and 7% for breeding activities. Large scale agricultural activities can be performed in the country. Whereas food crisis is about to start in most countries worldwide, the DRC appears as a solution to the issue for Africa and the world. The DRC wonderfully includes abundant arable land, a weather conducive to agricultural activities throughout the year, abundant water and available and motivated population. Its climatic diversity gives rise to a great variety of farming with 3 to 4 annual harvests particularly in terms of food crops.
Equatorial weather (Eastern Province, Equateur and the Northern parts of Maniema, Bandundu and both Kasa). Humid tropical weather (in the Northern parts of Eastern Province, Equateur, Bas-Congo and the central parts of Bandundu, both Kasa and North Katanga). Tropical weather with long dry season (in the Southern parts of Bandundu, both Kasa and Katanga). Coastal weather (in the Western part of Bas-Congo).

Annual average temperature : 25 C at atlantic coast. 24 to 25 C in the North, Central Basin, North-Katanga, Kasa, Kinshasa and in Bas-Congo. 10 C in mountaineous provinces of the East. 20 C on high plateaus of Katanga. Rainfall : 1,000 mm/year.

1.2. Abundant fertile soil

Over 120 million hectares of fertile arable land conducive to intense farming activities, and over 4 million irrigable land are available throughout the year in the Democratic Republic of Congo. Roughly 10% only of it

Table n1 : The DRCs vegetation as per province

Province
Bas-Congo

Characteristics
Mangrove Swamps Steppes Forest Savannah interspersed with strips of forests

Bandundu

Forest Savannahs Forest galleries Tropophyte forest interspersed with savannahs Grassy, shrubby savannahs Forest galleries Humid dense forest Forest interspersed with savannahs Humid dense forest Grassy and shrubby savannahs interspersed with forest galleries along rivers Forest Savannahs Sempervirente ombrophile forest Secondary savannah with imperator Caducifoliate forest Savannahs Clear sclerophylle forest with arborescence stratum Ombrophile forest of mountain Equatorial forest Equatorial forest at Gilbertiodnedron Low-altitude equatorial forest Mountainous equatorial forest Savannah Steppes High-altitude bamboo forest Clear forests with bamboo plantations and acacias savannahs Steppes Clear forests with savannahs and steppes Various forest types of mountainous regions Marshy an grassy groups Various types of savannahs, forest galleries and strips of troposphere forests.

Western Kasa

Eastern Kasa Maniema

Eastern Province Equateur

North-Kivu

South-Kivu

Katanga

Source : Ministry of Environment, Conservation of Nature and Tourism.

1.3. Big fresh water reserve worldwide

The hydraulic potential of the Democratic Republic of Congo is extraordinarily provided with an hydraulic basin of 3,680,000 km thus, rendering the country one of the biggest fresh water reserves in the world beside the Baikal Lake in Russia. Large scale farm and industrial concern can be carried out thanks to it. By means of this hydraulic potential, the country can possibly distribute water to desertic regions of South and North of African continent.

Its forest expanses cover around 54.6% of the countrys surface area and extend on 128,004,198 ha. Humid dense forests : 68.14 % Dry dense forest damaged : 12 % Secondary forests : 9.5 % Forests on hydromorph soil : 6.92 % Mountaineous forests : 3.14 % Forest galleries (0.19%) and the mangrove swamp forest (0.04 %)

1.4. Large forest areas

The Democratic Republic of Congo is a real forest empire, a large park. Alone, the Congolese forest stands for over 45% of the overall African equatorial forest, that is, 6% of the global tropical reserves.

Around 1,000 species are available in the Congolese forest, among which the most scarce worldwide such as, afromosia, ebony, wenge, iroko, sapelli, sipo, tiama, tola, kambala, lifaki, etc.

Table n2 : Location of some forest species available in DRC

Species
Kambala

Sites
Equateur (Businga, Gdadolit, Bikoro, Lisala, Djolu, Bongandanga, Eastern Province (Bafwasende, Isangi and Opala, Ubundu,

Lukolela, Monkoto, Bumba). Yahuma, Banalia, Basoko,).

Maniema (Kibombo). Bandundu (Bolobo, Oshwe,).

Ebony Tiama Sapelli

Equateur (Lisala). Equateur (Businga, Bikoro, Lisala, Djolu, Bongandanga, Lukolela, Monkoto,).
Equateur (Businga, Gdadolit, Lisala, Djolu, Bongandanga, Bumba). Eastern Province (Bafwasende, Isangi, Banalia, Basoko, Ubundu,). Bandundu (Bolobo, Oshwe,). Equateur (Lisala, Djolu, Bongandanga,). Eastern Province (Aketi and Basoko). Equateur (Bongandanga, Bumba). Eastern Province (Aketi and Basoko). Equateur (Bikoro and Lukolela). Eastern Province (Opala). Bandundu (Bolobo, Mushie, Inongo and Oshwe). Equateur (Lisala, Djolu, Bongandanga). Eastern Province (Bafwasende, Ubundu and Isangi). Equateur (Lukolela). Bandundu (Bolobo).

Sipo Acajou dAfrique Wenge

Afromosia Limba Bomanga

Table n3 : Forest distribution per Province

Province
BANDUNDU BAS-CONGO EQUATEUR EASTERN PROVINCE WESTERN KASA EASTERN KASA KINSHASA NORTH-KIVU, SOUTHKIVU and MANIEMA KATANGA TOTAL

Total surface area (km)

295,658 53,855 403,293 503,239 156,967 168,216 9,965 256,662 496,865 2,345,000

Forest surface area (km)

120,000 10,000 402,000 370,000 40,000 100,000 --80,000 10,000 1,232,000

% Forest
40.6 18.6 99.7 73.5 25.5 59.4 --70.1 2.0 52.5

Western Kasa (Mweka and Demba). Eastern Province (Isangi, Opala, Ubundu and Basoko). Maniema (Kibombo and Lubutu). Bandundu (Bolobo, Mushie, Inongo and Oshwe). Equateur (Bikoro and Lukolela).

Limbali

Equateur (Businga, Gbadolite, Bikoro, Lisala, Djolu, Bongandanga, Lukolela, Monkoto, Bumba,).

Source : Ministry of Environment, Conservation of Nature and Tourism.

1.5. Huge energetic potential

Provided with the Congo River with around 2,900 km long, of which the flow is the most regular and the most powerful in the world (42,000 m3/ second) after the Amazon in Brazil, the Democratic Republic of Congo holds an incredible energetic potential. With important hydroelectric resources in it, this potential is assessed at 774,000,000 Mwh, that is, 106,000 Mw of the power likely to be tapped (the equivalent of 30,000,000 oil tons per year), of which nearly 44% (that is 44,000 Mw) are concentrated exclusively at Inga site.

The Congolese energetic potential alone, stands for around 37% of the entire African potential, and about 6% of the global potential. Owing to this potential, the Democratic Republic of Congo can supply the whole Africa with electricity and the surplus of which be distributed towards the Mediterranean Europe and the Middle-East. Likewise, the Democratic Republic of Congo is well-equipped to produce other kinds of energy : wind power, solar, nuclear, geothermal energy and that of biomass. The average wind speed varies between 2.3 and 6.5 km/h.

Table n4 : Estimates of electricity demand in DRC (2008-2015)*

WORDINg
* Kinshasa * Bas-Congo * Bandundu * Western Kasa * Eastern Kasa * Katanga * North-Kivu * Maniema * South-Kivu * Eastern Province * Equateur

POWER IN MW
2009 637.4 89.1 27.6 24.6 34.4 1.832.7 25.9 5.8 22.4 48.0 38.0 2010 663.5 94.3 43.4 27.2 37.8 1,860.6 37.8 6.5 28.6 53.5 47.4 2011 691.1 96.8 45.3 29.9 40.6 1,935.6 39.0 6.9 29.4 55.7 50.0 2012 720.3 99.4 47.3 31.9 43.3 2,063.9 40.3 7.2 30.3 58.0 53.3 2013 751.3 102.1 49.3 34.0 46.2 2,091.4 41.6 7.5 31.1 60.4 56.2 2014 784.2 104.9 51.4 36.2 49.3 2,120.2 42.9 7.9 32.0 62.8 59.2 2015 818.9 107.9 53.6 37.5 52.4 2,150.4 44.4 8.3 33.0 65.4 62.8 2020 1,017.1 1,723.5 66.1 51.0 72.5 2,239.8 52.4 10.4 38.3 80.2 86.2 2025 1,263.2 1,743.3 81.9 70.6 100.9 2,428.4 62.4 13.1 44.7 98.5 131.5

2,785.1

2,899.9

3,019.6

3,194.3

3,270.4

3,350.5

3,433.7

5,437.4

6,038.4

Source : National Electricity Company (SNEL)

1.6. Mining reservoir

Congolese subsoil ranks among the richest in the world. An extremely varied range of minerals is concealed in it : copper, cobalt, diamond, gold, coal, lead, phosphate, bauxite, methane gas, tin, nickel and chromium, manganese, petroleum, oil shale, iron ore, to mention only those. The Democratic Republic of Congo is a real geological scandal.

Table n5 : Distribution of DR Congos mining potentials per province

Bas-Congo Silver Bauxite Copper Iron ore Phosphate Lead Diamond Manganese Nickel gold Zinc Limestone Chromium Cobalt Platinum Tin Beryl Marble Niobo tantalum Tantalum Niobium Oil shale Cassiterite Colombo Tantalite Monazite Pyrochlorine Tourmaline Tungsten Wolfram Zirconium Oil Coal Methane gas Clay Uranium
Note : Red colour symbolizes mining products. Source : Mines Ministry.

Bandundu

Eastern Kasa

Western Kasa

Equateur

Eastern Province

Katanga

South Kivu

Maniema

North Kivu

1.7.Tourist wonders
The countless sites with natural and cultural tourist attractions it presents, its position astride the Equator, the immensity of its area, the importance of its hydrographical basin, the variety of its morphological configuration, the climatic diversity and wealth of fauna and flora, make tourism a real vocation for the Democratic Republic of Congo. It comprises seven national parks and around ten similar natural reserves. Some of the so many animal species among which okapi,

white hippopotamus, bonobo and so on, are exclusively found in DRC. In view of their universally-recognised value said to be exceptional, five of the said parks and reserves are described as UNESCO world heritage, namely : Virunga Park, Kahuzi-Biega, Garamba, Salonga and the Okapi fauna reserve. Thus, possibility is provided to practise all kinds of tourism in DRC, as mentioned hereafter : fauna and flora, cynegetic, swimming, cultural, historical (the Congolese black people who went to America), of business or escape along the Congo River or across forests, mountains and savannahs, etc.

Table n6 : Major DRCs tourist roads. N Tourist area Delimitation

-

Tourist sites
The Congo river picturesque sites, from Maluku to Mbudi ; The hunting reserve of Bombo-Lumene ; The tourist site of Nsele ; The Prehistory museum (University of Kinshasa) ; The Botanical and zoological gardens of Kinshasa ; The first locomotive ; Nioki Building (ex Forescom) ; The mausoleum and monument of President Laurent Dsir KABILA ; The monument of the Prime Minister Patrice Emery Lumumba ; Academy des Beaux-Arts ; The protestant Chapel SIMS ; The Institute of National Museums of Congo ; The Mont-Ngaliema Complex ; Kinsuka rapids ; Malebo Pool ; The natural symphonies ; The Bonobos sanctuary (Pan Paniscus) ; The Ma-Valle Lake site ; The University sites of UNIKIN, UPC and Catholic Faculties ; The Catholic Mission of Kimwenza. Zongo Waterfalls ; The Botanical Garden of Kisantu ; Mbanza-Ngungu Caves ; The Holy Town of Nkamba ; Monument aux Porteurs ; The Pituresque village of Vivi ; Inga site ; The historical Town of Boma ; Diego Cao Rock ; The yombe funeral architecture ; The atlantic side ; The mangrove sea Park ; Moanda beach ; Banana tip. The hunting Domain of Swa-Kibula ; The cultural festival of Gungu ; The hunting Domain and reserve of Manga ; Ma-Ndombe Lake (ex Lopold II) ; Guillaume waterfalls (Tembo). The botanic garden of Eala ; The national Park of Salonga [ A great project about preserving forest ecosystems of Central Africa is being implemented there by the European Union in collaboration with the Congolese Institute for Preserving Environment (ICCN)] ; The Kotakoli savannah well-stocked with game and its heap of black rocks (conducive to development of a upmarket cynegetic tourism ; The presidential domain of Gbadolit ; The coastal centre of Bikoro ; The Islands and small islands of Ubangi. Lulua river ; Munkamba lake ; Fwa lake ; The catholic mission of Mikalayi ; Mushenge village; The mining complex of Bakwanga (MIBA) ; GECAMINES opencast mines ; The hydroelectric dam of NZilo (ex-Delcommune) ; The mineralogical museum of Likasi ; The subterranean mine of Kamoto ; Lofo waterfalls ; Upemba National Park ; Kundelungu National Park ; Katende waterfalls ; The Catholic Missions of Kamponde and Bonkonde. Les Missions Catholiques de Kamponde et de Bunkonde. Tanganyika lake ; The hunting Domain and reserve of Luama ; The Road of the Slave ; Kahuzi-Biega National Park ; Town of Bukavu ; Idjwi Island ; Town of Goma ; The National Park of Virunga (800,000 hectares) ; Nyiragongo and Nyamulagira Volcanoes ; The massif of Ruwenzori ; Okapi Fauna Reserve (RFO) ; Ituri forest ; Hoyo Mount ; Mako National Park (1,000,000 hectares) ; Garamba National Park (492,000 hectares) ; Niangara Centre (Geodesic Centre of the African Continent) ; The hunting domains and reserves of Bili-Ul, Azande, Mondo-Missa, Gangala na Bodio, MakoPenge and Rubi-Tele (these are the best sites for cynegetic tourism) ; The National Institute for Agronomic Research of Yangambi (INERA, ex INEAC).

1.

Kinshasa tourist area.

Kinshasa and its surroundings.

2. 3. 4. 5.

KinshasaOcean.

From Kinshasa City to the Atlantic Coast, going throughout Bas-Congo Province.

Kinshasa Bandundu area.

From Kinshasa to Bandundu Province.

Kinshasa Equateur area.

From Kinshasa to Equateur Province.

Kasa Katanga area.

Both Kasa Provinces and Katanga Province.

6. 7.
10

Kivu Maniema Eastern Province area.

Provinces of North-Kivu, South-Kivu, Maniema and Eastern Province. (Backbone of DRCs tourist industry

Wonders of Congo River area.

Along the Congo river.

Lovely landscapes along the Congo river from Kinshasa to Kisangani on boat.

Source : Ministry of Environment, Conservation of Nature and Tourism

Table n 7 : DR Congos national parks.

Name VIRUNGA NATIONAL PARK Surface area (Ha) 800,000 Location North-Kivu Creation date April 21, 1925 Elephants Buffaloes Birds Hippopotamuses Species general observations World heritage site Located at the border of DRC with Uganda and Rwanda World heritage site Property in peril Situated at the border with Sudan

GARAMBA NATIONAL PARK UPEMBA NATIONAL PARK KUNDELUNGU NATIONAL PARK

500,000

Eastern Province

March 17, 1938

1,000,000 210,000

Katanga Katanga

May 15, 1939 November 30, 1970 Elephants Hippopotamuses Dwarf chimpanzees Cercopithecus Cephalophes Birds Freshwater fish Reptiles, etc. Mountaineous Gorillas Elephants Okapi Congolese Peacock Mountaineous Gorillas Elephants and other animals

SALONGA NATIONAL PARK

3,600,000

Equateur Bandundu Both Kasa

November 30, 1970

- World heritage site

KAHUZI-BIEGA NATIONAL PARK

600,000

South-Kivu

November 30, 1970

- World heritage site

MAIKO NATIONAL PARK

1,000,000

Eastern Province

November 30, 1970

OKAPI FAUNA RESERVE MARIN PARK (MANGROVE SWAMP NATURAL RESERVE)

1,300,000 76,000

Eastern Province Bas-Congo

Okapi Monatees

- World heritage site

Source : Ministry of Environment, Conservation of Nature and Tourism.

Some species of the DR Congos fauna wealth

11

2.1. Priority sectors

- Agriculture and agribusiness - Infrastructures - Energy (water and electricity) - Social (Housing, Schools, Hospitals) - Various industries - Mines

DRC:
LAND OF OPPORTUNITIES WIDE OPEN TO EVERYBODY
Mayumbe). Bio-fuel production from palm oil, jatropha, seaweed of the river and lakes, etc. Industrial timber processing (Kinshasa, Kisangani, Kananga). Wood pulp production (Kinshasa). Cattle breeding (Katanga, Kivu, Eastern Province, Bas-Congo). Pig breeding and poultry farming all over DRC. Milk production (Katanga, Kivu, Eastern Province, Bas-Congo). Rehabilitation of the Agro-industrial Domain of Nsele (Kinshasa). Fluvial, sea and lake fishing.

2.2. Strategies
In order to access these opportunities, the Government recommends the strategies hereafter : - Public private partnership - Public public partnership - Private private partnership

2.3. Selected projects identified for investors 2.3.1. Mines and Hydrocarbons
Boosting copper production in Katanga, cassiterite in Kivu and gold at Kilo-Moto. Boosting diamond production (both Kasa and Eastern Province), coltan (Kivu and Maniema), coal Table n 8 : DRCs agricultural potentialities. (Luena and Lukunga), iron ore Western Eastern Crops Bas-Congo Bandundu Equateur (Banalia and Luebo). Kasa Kasa Rehabilitation of Moanda refinery Food crops Manioc in the coastal Basin of Bas-Congo. Maize Exploitation of methane gas in Rice Kivu. Groundnut Oil prospecting in coastal basin Plantain (Bas-Congo), in Central Basin, at Potato Yam Ituri and in Tanganyika graben. Wheat Oil exploitation at Ituri in Eastern Sorghun Province. Bean Transport infrastructures and of Soya beans and oil product distribution in urban Tarot Sweet potato centres.

Maniema

Eastern Province

NorthKivu

SouthKivu

2.3.2. Agriculture, forest and hydrography

Relaunch of food crops : maize, rice, tomatoes, groundnuts, bananas, Resumption of palm-tree exploitation (Bandundu and Equateur). Relaunch of income-generating farming : cotton, coffee, hevea, tea, cocoa, Sugar cane farming. Production and transportation of rough lumber (Equateur, Eastern Province, both Kasa, Bandundu,

Onion Tomato Fibre Hevea Millet Palm-tree Coffee Cinchona Cocoa Tobacco Cotton Pyrethrum Tea Gourd Sugar cane Papaine Sesame Urena Voandzou

Market gardening

Income-generating farming

Source : Agriculture Ministry, Monographies of DRC Provinces, 1998. Note : Blue colour symbolizes agricultural products

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2.3.3. Industry
Manufacturing industries (agribusiness, tobacco industry, textile and leather industry, timber industry and paper mill, chemical industry and of chemicals production, oil and coal by-product industry, rubber and plastic manufacture, manufacture of building materials, cement factory). Basic metallurgic industry (Steel industry, production and first processing of non-ferrous metals, manufacture of metallic items, manufacture of electric appliances and electric supplies, building of motor vehicles.

14. Building of the line 132 Kv Kasese-Kasindi-Beni Goma and on the line Beni - Bunia. Cost : USD 100 million ; 14. Construction of fresh water mains : DRC - Desertic zones of North and South Continent Project

2.3.4. Banking and insurance

Setting up banking and micro-finance institutions in the capitalcity, in provinceschief-towns and in districts. Setting up new insurance companies. Some existing Banks : Citibank, Stanbic Bank, Ecobank, Rawbank, Procredit Bank, BCDC, BIC, Banque Congolaise, Sofibanque, Trust Merchant Bank, BIAC, Solidaire Banque, FIBANK, Afriland Bank, Advans Banque, Bank of Africa, ...

2.3.5.Tourism
Many protected natural parks and reserves : Virunga, Salonga, Kahuzi Biega, Mako, Kundelungu. Development of various tourist activities : - Building of up-to-date hotels in several urban centres and guesthouses in villages. - Management of tourist sites. - Modernising of national parks.

For partnership, contact :

About electricity : S.N.EL Head office : Avenue de la Justice n 2381, Gombe Commune. P.O. box 500 Kinshasa 1 e-mail : sneldg@ic.cd Web site : www.snel.org REgIDESO Registered office : Immeuble Regideso, Boulevard du 30 Juin, Gombe Commune e-mail : courrier@regidesordc.com Web site : www.regidesordc.com

2.3.6. Some projects in energy sector A. Electricity sector

1. Rehabilitation and modernising with possibility of expanding existing hydroelectric power stations namely Inga1(341 MW) and Inga 2 (1,424 MW).Project cost : 361million USD ; 2. Building of Inga 3 power station (4,320 MW)Project cost : 3,542,600,000 USD ; 3. Building of Great Inga (39 000 MW). Project Cost : 8 billion USD(1st phase) ; 4. Building of the hydroelectric power station of KATENDE (36 Mw). Cost : 168 million ; 5. Building of the hydroelectric power station of SEMILIKI (72 MW) and associate networks. Cost : 160 million ; 6. Building of the hydroelectric power station of KAKOBOLA (99 MW) and its associate networks. Cost: USD 53 million ; 7. Building of the hydroelectric power station of BUSANGA (300 MW). Cost : USD 310 million ; 8. Building of the 2nd THT line 400 Kv INGAKINSHASA. Cost : Euros 159 million ; 9. Building of the hydroelectric power station of WANIE RUKULA(700 MW). Cost : USD 900 million ; 10. Connecting on THT cc line INGA KOLWEZI atTSHIMBULU(200 MW). Cost : USD 200 million ; 11. Improvement and development of MT/LT distribution networks of the city of Kinshasa. Cost : USD 209 million ; 12. Building of High Tension line Bandundu - Boende Mbandaka. Cost : 80 million ; 13. Building of the line GBADOLITE- BUSINGA GEMENA. Cost : USD 53 million ;

About water

MASTER PLAN FOR DEVELOPINg ENERgY BY 2015 Target :

Electrification of 775 centres

Investment total cost : 3.77 billion USD) * Projects concerned : Rehabilitation of existing installations ; Building of HT and THT transport lines ; Connecting Tshimbulu from THTCC line to supply power to Kasa provinces and probably to Bandundu province ; Building of new power stations and micro hydroelectric stations throughout the country ; Provision of electricity by renewable energy sources.

The afore-mentioned investment cost does not include the building of new hydroelectric power stations and the rehabilitation of existing power stations (Inga, Nseke, Zongo,).

13

B . Water sector
1. Rehabilitation and reinforcing of drinking water supply system in the town of Mbuji Mayi. Cost : 15,000,000 USD. 2. Rehabilitation and reinforcing of drinking water supply system in the town of Kisangani . Cost : 17,500,000 USD 3. Rehabilitation reinforcing of drinking water supply system in the town of INONGO. Cost : 3,500,000 USD. 4. Rehabilitation and reinforcing of drinking water supply system in the town of MBANZA NGUNGU. Cost: 8,500,000 USD. 5. Rehabilitation and reinforcing of drinking water supply system in the town of MBANDAKA. Cost : 13,000,000 USD

2.3.8.Transports and harbours

Building highways Ndjili Airport Town Center of Kinshasa and Lubumbashi-Kasumbalesa. Rehabilitation and building of Ndjili airport. Rehabilitation of Lubumbashi, Kisangani and Goma airports. Setting up city haulage companies in Kinshasa and in major provinceschief-towns. Building railway lines to connect Matadi-Banana (Bas-Congo) and Kananga-Tshikapa and Angolan border (Eastern Kasa). Improving the navigability of major rivers through dredging and beaconing. Building of a deep water harbour at Banana (Bas-Congo). Rehabilitation and extension of Matadi port, those of Ilebo and Mbandaka.

2.3.7. Infrastructures
Building of Ilebo-Kinshasa railroad section. Rehabilitation of the existing railway network : Kinshasa - Matadi (ONATRA), Sakanya - Ilebo (SNCC), Kamina - Kalemie (SNCC), Ubundu - Kisangani (SNCC) and the railroad of Ul. Building key main roads, roads for interconnecting North (Ituri) to South of the D.R.C. (Kalemie). Building roads for interconnecting sub-regions of Central Africa (CEEAC), Eastern Africa (COMESA) and Southern Africa (SADC). Kinshasa Matadi highway. Road building for agricultural purpose in different provinces of the country. Dredging of the Congo river bed (Matadi-Atlantic Ocean) and its main tributaries. Beaconing of navigable reaches (Kinshasa-Kisangani, KinshasaIlebo).

2.3.9.Telecommunications
Development of cellular telephony and Internet throughout the national area. Expansion of cable network for fixed telephone all over the country. Connection to international fibre optic.

2.3.10.Building, civil engineering and housing

Building low-rent houses in various urban centers (Kinshasa, Matadi, Bandundu, Kananga, Mbuji Mayi, Mbandaka, Kisangani, Goma, Bukavu). Building/Rehabilitating and equipping basic infrastructures : schools, specialised hospitals, shopping centers.

14

ollowing a long period of poor performance between 1990 and 2000, the Congolese economy is irreversibly committed in growth process owing to the liberalisation policy of the overall market (particularly mining, oil, pricing,) and important economic steps taken by the Government. In order to boost economy, the countrys authorities decided as follows : - implementation of free-market economy ; - adoption of exchange floating rate system ; - promulgation of new laws designed to favour business development in the country (Investment Code, Mining Code, Forest Code, Labour Code) ;

DRC:
BOOMINg FREE MARKET ECONOMY IN THE HEART OF AFRICA
- progressive cut of domestic tax rates ; - revival of cooperation with international financial institutions (World Bank, International Monetary Fund) ; - Setting up of facilitation and supporting structures for the private sector.

As of that moment, we observe :

- stability of macro-economic parameters ; - inflation control ; - resumption of the national productivity.

Table n9 : Development of some indicators of the Congolese economy from 2001 to 2008.
2001
Nominal gDP (in million USD) gDP growth rate (%) gDP growth rate per capita (%) Population (in million inhab.) Population growth rate (%) Inflation rate (%) Exchange rate (CDF/1 USD) 5,155.8 - 2.1 - 4.8 53.5 2.7 135.1 311.7

2002
5,525.4 3.5 0.8 55.0 2.7 15.8 382.1

2003
5,670.8 5.8 3.0 56.4 2.7 4.4 372.5

2004
6,531.3 6.6 3.8 58.0 2.7 9.2 444.1

2005
7,100.4 6.5 3.4 59.7 3.0 21.3 431.3

2006
8,685.1 5.1 2.0 61.4 3.0 18.2 503.4

2007
10,130.76 6.3 3.2 63.3 3.0 12 518.8

2008
11,850.52 6.2 3.1 65.2 3.0 27.57 639.3

Source : Central Bank of Congo, Condens dinformations statistiques, n 21 / 2009

Graphique n1 : Evolution du taux dination

% 140
135,5

Graph n 1 : Development of inflation rate

Graph n 2 : Development of GDP growth rate.

Graphique n2 : Evolution du taux de croissance du PIB
% 10,0

130 120

9,0
110 100 90 80 70 60 50 40 30 20
15,8 22,3 18,2 12 4,4 9,2

8,0 7,0 6,0 5,0 3,0 2,0 1,0 0,0 -1,0 -2,0
-2,1 5,8 5,1 3,5

6,6

6,5

6,3

6,2

2001 2002 2003 2004 2005 2006 2007 2008 Year

10 0 2001 2002 2003

2004

2005

2006

2007

2008

Year

-3,0

Source : Central Bank of Congo, Condens dinformations statistiques, n 21 / 2009

Source : Central Bank of Congo, Condens dinformations statistiques, n 21 / 2009

15

Table n 10 : Export agricultural production from 1999 to 2008

1999 Coffee (t) Cocoa bean (t) Rough timber (m3) Sawn timber (m3) Veneering timber (m3) Rubber (t) Palm-oil (t) Cabbage oil 24,430 2,975 40,133 20,263 1,022 1,799 6,102 486 2000 16,880 2,827 16,478 8,215 233 2,029 4,490 159 2001 7,983 2,397 14,437 18,004 0 2,029 4,472 719 2002 8,785 2,617 16,854 28,010 7 1,351 4,663 313 2003 5,945 1,216 60,296 20,369 8,731 3,240 13,119 696 2004 6,778 1,316 99,861 34,616 5,004 2,838 12,797 603 2005 8,192 1,289 117,845 30,062 7,762 5,578 17,531 111 2006 8,155 950 150,505 25,253 6,524 3,269 13,024 128 2007 4,202 217 213,308 35,959 2,631 5250 6016 253 2008 4,642 4,642 140,711 46,650 2,642 -

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Graph n 3 : Export agricultural production (1999 2008)

Coffee (t) Cocoa (t) Rough lumber (m3) Sawed timber (m3) Veneering timber (m3) Rubber (t) Palm oil (t) Cabbage oil (t)

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Table n 11 : Mining and metallurgic production from 1999 to 2008

1999 Copper (t) Cobalt (t) Zinc (t) Diamond (1,000 carats) Raw gold (kilos) Crude oil (1,000 barrels) 31,225 2,308 0 20,116 829 8,650 2000 30,821 3,738 214 16,006 1,451 8,459 2001 37,845 11,637 1,014 18,198 1,512 9,380 2002 27,359 11,865 828 22,503 2,154 8,425 2003 16,359 7,929 4,886 26,981 819 9,246 2004 18,995 9,967 5,067 29,503 1,202 10,119 2005 26,389 8,234 15,110 32,599 2,244 9,216 2006 36,388 10,841 32,324 28,544 250 9,009 2007 96,391 17,886 33,809 28,270 122 8,816 2008 335,066 42,461 15,465 20,947 150 8,365

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Graph n 4 : Mining and metallurgic production (1999 2008)

Copper (t) Cobalt (t) Zinc (t) Diamond (1000carats) Raw gold (Kilos) Crude oil (1000 barrels

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Table n 12 : Energetic production

1999 Drinking water 1,000 m3 Electricity 1,000 Mwh 20,3297 5,100 2000 187,802 5,813 2001 214,635 5,798 2002 206,447 5,937 2003 212,460 5,980 2004 226,150 6,922 2005 228,401 7,128 2006 235,068 7,629 2007 242,341 7,543 2008 235,827 7,495

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

16

Graph n 5 : Drinking water production

Drinking water 1000 m3

Graph n 6 : Electricity production

Electricity 1000 Mwh

Drinking water 1000 m3

Electricity 1000 Mwh

Source: Cental Bank of Congo, Condens dinformations statistiques, n21/2009

Source: Central Bank of Congo, Condens dinformations statistiques, n21/2009

Table n 13 : Goods handling in main harbours (in metric tons)

Loading
1999 Matadi Boma Kinshasa TOTAL 128,439 20,137 9,081 157,657 2000 119,225 34,740 11,181 165,146 2001 99,488 17,397 3,666 120,551 2002 121,779 16,509 3,791 142,079 2003 179,196 19,018 2,507 200,721 2004 318,150 23,668 3,182 345,000 2005 367,654 20,842 8,532 397,028 2006 384,793 38,665 5,762 429,220 2007 457,654 41,914 15,928 515,496 2008 448,431 34,776 42,222 525,429

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Unloading
1999 Matadi Boma Kinshasa TOTAL 694,850 15,973 37,288 748,111 2000 921,685 27,558 39,804 989,047 2001 939,468 25,685 29,642 994,795 2002 111,9051 18,229 33,469 1,170,749 2003 1,169,934 33,484 53,839 1,257,257 2004 1,323,320 50,851 91,648 1,465,819 2005 1,455,435 90,242 128,642 1,674,319 2006 1,486,812 147,355 119,190 1,753,357 2007 1,533,669 126,341 154,355 1,814,365 2008 1,348,993 158,857 163,254 1,671,104

Source : Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Graph n 7 : Loading in main harbours

Graph n 8 : Unloading in main harbours

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Table n 14 : Development of Public Funds (in millions of CDF)

2001 Income Balance 66,641 67,441 -800 2002 147,833 130,225 17,607 2003 221,300 232,519 -11,219 2004 306,024 335,230 -29,205 2005 495,263 524,969 -29,706 2006 576,828 611,493 -34,664 2007 772,823 786,015 -13,192 2008 1,209 1,238 2,584 2009 (up to May) 525,446 515,634 9,812

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

17

Graph n 9 : Inflation average rate (2006 - 2007)

Source: Central Bank of Congo, Condens dinformations statistiques, n52/2007

Table n 15 : Development of trade balance, from 1999 to 2008 (in million USD)
1999 A. EXPORTS Gold Diamond GCM products Other mining companies Oil Coffee Timber Electricity Miscellaneous B. IMPORTS Consumer goods Raw materials Capital goods Energy Miscellaneous C. BALANCE 808.7 0.1 521 59.7 115.9 91.2 20.8 568.2 188.6 94.9 79.6 89.2 115.9 240.5 2000 823.5 0 436.8 139.5 205.9 7.6 33.7 697.1 152.4 76.8 64.3 71.9 331.7 +126.4 2001 900.7 20.8 472.7 84 201.2 20.3 101.7 806.8 193.8 54.6 66.1 84.1 408.2 +93.9 2002 1,131.7 18.2 653.3 57.8 204.6 14.2 183.6 1,080.9 176.4 65.1 88.6 168.5 582.3 +50.8 2003 1,374.1 0 956.6 42.3 250.9 12.4 111.9 1,594.3 220.3 71.8 76.6 183.2 1,042.4 -220.2 2004 1,917.2 0 1,009.1 112.6 356.8 359.8 18 29.3 31.6 1,975 312.4 74.4 98.8 226.1 1,263 -57.9 2005 2,071.6 0 1,157.6 121.6 251.5 452.7 8.1 45.4 34.7 2,473.7 510.2 113.1 150.1 431 1,269.3 -402.1 2006 2,704.6 2.9 883.6 367.3 831.6 452.2 37.8 55.5 23.1 50.5 2,891.6 1,000.9 149 1,206.5 535.2 0 -187.1 2007 4,165.5 4.0 827.5 260.0 2,237.5 609.2 63.2 86.5 28.2 49.4 4,387.6 1,143.1 174.5 2,401.8 668.3 0 -215.2 2008 6,801,2 5.3 1,098.3 232.6 4,428.0 784.8 87.0 81.9 35.0 48.1 6,736.1 1,618.1 289.8 3,874.2 953.9 0 65.1

Source: Central Bank of Congo, Condens dinformations statistiques, n21/2009

Graph n 10 : Development of trade balance (1999 2008)

Graph n 11 : Development of exports (1999 2008)

Gold Diamond GCM products

A. EXPORTS B. IMPORTS C. BALANCE

Oil Coffee Miscellaneous

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Source: Central Bank of Congo, Condens dinformations statistiques, n21 / 2009

Graph n 12 : Development of imports (1999 2008)

Consumer goods Raw materials Capital goods Energy Miscellaneous

Source: Central Bank of Congo, Condens dinformations statistiques, n 21 / 2009

18

Table n 16 : Forecasts of macroeconomic indictators

2007 Real GDP growth rate Population (in million inhabitants) GDP per capita (in USD) Inflation rate (end of period) Inflation rate (annual average) 6.5 63.3 152.4 12.0 17.4 2008 8.0 65.2 164.9 8.0 8.9 2009 9.0 67.2 179.6 7.0 7.5 2010 9.5 69.2 196.4 6.0 6.5 2011 9.8 71.3 215.5 5.0 5.5 2012 10.0 73.4 237.0 5.0 5.0 2013 10.3 75.6 258.8 5.0 5.0 2014 10.5 77.9 283.1 5.0 5.0 2015 11.0 80.2 325.1 5.0 5.0

Source : Central Bank of Congo.

SOME REFORMS RECENTLY OPERATED IN THE DEMOCRATIC REPUBLIC OF CONgO

- Achievement of peace process (end of war) - Unification of the Congolese money market - Adoption of a new Constitution (through the peoples referendum) - Achievement of election process (free, democratic and transparent elections at all levels) - Integration process within the Army (DDRR) - Implementation of reform process in the Army and Security Services - Signing of peace agreement with the armed rebels and neighbour countries Liberalising of overall market (mining, oil and price) Adoption of floating exchange rate (abolition of government fixing system) Adoption of laws on the restructuration of public enterprises Revival of structural cooperation with Bretton Wood Institutions (WB and IMF) Promulgation of new laws designed to favour business development in the country (Investment Code, Mining Code, Forest Code, Labour Code, and son on) Freedom of transferring income abroad Setting up a new cash-based spending mechanism Setting up a reduced tax system for investors Prohibition of nationalisation and expropriation Equal treatment between investors regardless of their nationalities Reform process of public corporations (State withdrawal, capital opened up to the private) Setting up structures for the facilitation and support of investors (ANAPI, CAMI, COPIREP, BCECO, UCOP, BCMI) Government option of OHADA membership (African business law) Government agreement with IMF on the 2nd Government Economic Program (PEG2)

In political and security area

In economic area

In administrative and judicial area

- Implementation of reforms in the Civil Service - Reform process in judiciary apparatus - Setting up Commerce Courts - Abolition of safe-conduct (free movement of Aliens all over the national area) - Bringing down (to 4) services operating in border posts - Suppression of four formalities in the setting up process of companies - Reform of the Magistrature - Reform of Civil Service Flashing development of organisational work and / or of rehabilitation of basic infrastructures (Five priority projects of the President of the Republic) - Chinese program still implemented

In infrastructure area

19

4.1. Internal security mechanism

The Constitution, DRC supreme law, recognizes for every individual the right to carry out investments in compliance with the laws and regulations of the country. It likewise guarantees the right of property, regarded as a sacred right, to every individual. guarantees provided by the new investment Code : - Equal treatment between all investors regardless of their nationalities ; - Nationalisation and expropriation strictly prohibited ; - No withdrawal of any of the rights granted to investors (observance of vested interests) ; - Freedom of transferring from DRC investment-generated income abroad.

DRC:
STABLE PARTNER FOR DEMOCRACY, PEACE AND BUSINESS
ternational Centre), based in Washington DC. - DRC is also member of ACA (Trade Insurance Agency in Africa). - DRC is member of Shelter Africa, a worldwide body for investment financing in real estate sector. - DRC is signatory of many bilateral agreements related to reciprocal protection of investments with many countries. - An internal dispute arbitration program of the business community by private arbitrators was developed by DRC. - The countrys commitment in a very advanced implementation process of OHADA business law, since the Government decided to join this organisation in order to improve the business law

4.3. Democracy for the stability and security of all

Free, democratic and transparent elections were held at all levels of national life in the Democratic Republic of Congo in 2006, thus providing the latter with authorities stemming from the peoples will (President of the Republic, Prime Minister who was derived from the parliament majority, National and Provincial Members of Parliament, Senators, Provincial Governors, and so on). Therefore, thanks to the openness policy and permanent talk with all political players and neighbour countries, the stability of institutions has come true.

4.2. International safety mechanisms for investors in DRC :

- DRCs membership of MIGA (Multilateral Investment Guarantee Agency), World Bank branch ensuring investments against non commercial risks. - DRCs membership of CIRDI (Investment Dispute Settlement In-

Institutions of the Republic :

the President of the Republic ; the Parliament (Bicameral : National Assembly and Senate) ; the Government led by the Prime Minister ; the Courts and Tribunals.

H.E. Joseph KABILA KABANGE

Head of the State

Lon KENGO wa DONDO

President of the Senate

President of the National Assembly

Evariste BOSHAB

Adolphe MUZIT0
Prime Minister

Supporting structures to private sector :

ANAPI (National Agency for Investment Promotion) COPIREP (Steering Committee for Public Corporation Reform) CAMI (Mining Registry) BCECO (Coordinating Central Bureau) UCOP (Economic Reunification Project Coordinating Unit) BCMI (Infrastructure Market Coordinating Bureau) ARPTC (Post, Telephone and Communication Regulatory Authority) FEC (Federation of Congolese Enterprises)

20

5.1. Features

- Law taken in economic liberalisation context to provide facilitation to investors. - Precious tool with tax and customs incentives for public, private and semi-public investments designed to boost the Congolese economy. - The Code sets general rules to be applied to domestic as well as foreign direct investments operated in DRC, and provides for particular provisions for SMEs and SMIs. - With the exception of mines and hydrocarbons, banking, insurance, reinsurance, arms and explosive production, trade and military activities, all business sectors are involved in the Code. - Unique system for all approved investments and equal treatment between domestic and foreign investors. - One-stop shop regarding investment : National Agency for Investment Promotion (ANAPI). - Tax and customs benefits. - Government guarantees and security to the investments implemented.

DRC:
INCENTIVE AND SECURINg INVESTMENT CODE
- Full exemption from duties and taxes on export of all or part of finished products, carved or semi-carved in good conditions for the balance of payments. - Full exemption from professional tax on income for profits made by newly approved investments. - Exemption from tax on land concessions and developed properties. - Exemption from tax on turnover inside the country for products and services bought from local producers. - Exemption from ad valorem duty when constituting or increasing the share capital of Limited Liability Companies.

5.6. Duration of granted benefits

The customs and tax benefits aforementioned are provided for the time periods set forth hereafter : -3 years : Economic zone A (Kinshasa City). -4 years : Economic zone B (Bas-Congo, towns of Lubumbashi, Likasi and Kolwezi). -5 years : Economic zone C (Bandundu, Equateur, Eastern Kasa, Western Kasa, Maniema, North-Kivu, Sorth-Kivu, Eastern Province and Katanga. Investment projects from Small and Medium-sized Enterprises (SMEs) and Small and Medium-sized Industries (SMIs) are eligible for Investment Code benefits with the proviso that the cost of the investment planned amount at least to 10,000 USD. SMEs and SMIs benefit, besides the exemptions related to the general system, from the advantages hereafter : - Full exemption from duties and taxes on import, for plant, equipment even of second hand, new spare parts not exceeding 10% of CIF value of the said equipment, the industrial inputs we need for the materialisation of the approved investment ; - Autorisation to deduct from their taxable profit, expenses made for training, improvement of the company leader or his staff, protection and conservation of environment, and to calculate their depreciation pursuant to a degressive mode ; - Exemption from duties on corporate or cooperative charters and on registration fees in the new Trade Register.

5.2. Investment Code target sectors

Agriculture, agribusiness, breeding, fishing, manufacturing industries, hotel-trade and catering, building and civil engineering, council houses, timber and forestry, air, road, sea and fluvial transports, telecommunications, information technologies, energy, textile, sundry services, etc.

5.3. Approval procedure

Owing to its simplification, approval procedure has to be conducted with promptness (time is money). - Submission of approval application file in one copy to ANAPI. - Prompt scrutinizing of the file by ANAPI. - Approval decision through Interministerial Decree (Planning and Finances) within 30 days. - Approval is taken for granted beyond the deadline. - Written and motivated decision in the event of refusal.

5.4. Eligibility conditions

Eligibility conditions to benefits of Investment Code get some relaxation from the new Code. They present as follows : - Be or be converted into a corporation subject to Congolese law. - Undertake to observe the regulations in terms of protection of environment and conservation of nature. - Undertake to train the local staff on specialized technical duties and those of guidance and responsibility. - The share capital should amount to 200,000 USD minimum. - Guarantee a value added rate equal to or exceeding 35%.

5.7. Obligations of approved companies

Approved companies should : Implement the approved programme ; Keep regular accounts ; Provide the staff with training ; Observe the regulations in terms of exchange, protection and conservation of environment ; - Pass on to ANAPI significant data relating to the achievement level of investment or the running every six months ; - Observe the regulations in force about employment ; - Comply with national and international standards to be applied to goods and services produced.

5.5. Granted benefits

Benefits provided to investments approved at the Investment Code system include : - Full exemption from duties and taxes on import for machinery, tools and new equipment, new spare parts not exceeding 10% of CIF value for public utility investments. - Full exemption from duties and taxes on import for machinery, tools, new equipment and new spare parts not exceeding 10% of CIF value of the said equipment.

5.8. Penalities
In the event of failure : - Withdrawing approval in case of ineffective formal notice. - Loss of benefits with backdated impact.

21

6.1.Taxes

DRC:
TAX SYSTEM COMPATIBLE WITH INVESTMENTS

The taxation system to be applied to DRCs companies presents broadly as follows :

Table n 17 : Summary of the congolese tax system

Nature of tax or levy Tax on rental income Deduction from rents Movable property tax Common law system 22% 20% 20% Implementation of the progressive scale without the total tax exceed 30% of the taxable income. 25% 40% Tax on turnover on import. 3% for capital goods, agricultural, veterinary and cattlebreeding inputs and specifically-named products in the tariff of duties and taxes on import. 13% for others. 6% for conveyance operations within the country. 15% for conveyance operations outside the country. 18% for provisions of services by natural persons or legal entities established in the country. 9% for provisions of services by banks and financial institutions as loans. 30% for provisions of technical assistance by natural persons or legal entities not established in the country. 18% for property work. 3% for the sale of capital goods and agricultural, veterinary and locally-made cattle-breeding inputs. 1% of transfer value ----0.5% for iron or ferrous metals. 2% for non ferrous metals. 2.5% for precious metals 4% for gems. 1% for industrial minerals, solid hydrocarbons and Services provided by the holder of mining right are taxable at common law rate (18%). 5% when the holder benefits from provisions of services related to his business. -- Tax system for mines (industrial sector and small scale exploitation) Ibidem Ibidem 10% for dividends and other distributions deposited by the Holder to his share holders. Ibidem 10% 30%

Professional tax on remunerations. Exceptional tax on expatriatespayments. Professional tax on profits

Not concerned ---

Tax on turnover inside the country.

Deposit on various taxes. Mining tax to be paid by the holder of the operating mining title, calculated on the basis of net value of the sales made.

---

Artisanal exploitation implies activities of small scale workers, dealers and approved desks. Approval for desks which purchase or sell roughly exploited mineral substances is granted by the Minister of Mines and is valid for a one-year period, endlessly renewable. During approval and at each renewal a fixed tax is paid.
Tax regime to be applied to small scale exploitation Small scale mining exploitation is a matter of unique taxation system regarding taxes 10% of turnover originating from the sales of market products. for which the holder of the mining title is liable for tax. Hence, the payment of that That inclusive taxation is due during sale. inclusive taxation exempts the holder from the payment of mining tax, movable tax, professional tax on profits, Tax on Expatriatesincome and Tax on turnover.

22

6.2. Customs regime on import

Table n 18 : Summary of customs regime on import (for investors)
Common law Equipment, machinery, plant, tools, heavy vehicles Agricultural and breeding inputs Raw materials Pharmaceutical inputs Spare parts Other inputs and intermediate products 8% 5% 5% 5% 10 % 10 % Investment Code Exemption (Note : 5 % administrative charges not exempted) 5% 5% 5% Exempted 10 %

DR CONgOs NEW IMAgE

The newly-elected SADC President, Joseph KABILA KABANgE, posing with his peers among which Jacob ZUMA of the Republic of South Africa during the 29th SADC summit of September 2009 in Kinshasa - DRC.

23

7.1. Key missions

Public technical institution provided with a legal status, ANAPIs basic missions are : - Various assistance to investors throughout investment process (before, during and after investment). - Provision of information related to Congolese market to investors. - Stabilization of investment climate. - Pro-active and multifaceted marketing for investors attraction. - Grant of customs and tax benefits to investors.

ANAPI:
PARTNER DEVOTED TO INVESTORS SERVICE
They are inter alia : Welcome from entry post (airport, port) Transportation Reservation in hotels Provision of various information Organising stays Approval to benefits of Investment Code Search of domestic and foreign partners Conviviality Search of land concessions and premises Help setting up companies (One-stop Shop) Obtaining of special licenses Obtaining of settlement visa Accompaniment within the country.

7.2. Some services provided to investors by ANAPI

As investors first-rank partner, ANAPI provides various services to investors with a view to rendering them competitive.

FREE ! ANAPIs services are all free

BITENU Jean-Adolphe

OLIGO MBELA OTTON

MWEMA MULUNGI MBUYU

Deputy Managing Director

Financial and administrative Manager Approval Department Manager

Prof. Dr Mathias BUABUA wa KAYEMBE

Managing Director

AMISI HERADY
Promotion Manager

MPEMBELE KISADILA
One-stop Shop Manager

SINGA KUSA
CPA Standing Secretary

ANAPI Management Committee Permanently available to service investors.

Some of ANAPI womens staff Giving satisfaction to investors is their main concern.

Investors are given much care : like this one warmly welcomed by ANAPI CEO
+243 99 99 25 026 +243 99 81 27 616 54, Av. Colonel Ebeya - Kinshasa / Gombe

24

anapirdc@yahoo.fr anapirdc@anapi.org

7.3. Statistics of investments attracted by ANAPI*

Table n 19 : Overall situation of investment projects attracted by ANAPI from 2003 to June 2009
2003 Branches Project Jobs Project number (USD) generated (USD) generated (USD) generated Cost to be number cost to be number cost to be Investment to be generated Number (USD) cost Investment of industry Jobs Project investment Jobs Project Investment Jobs Project number 2004 2005 2006 2007 Investment cost (USD) Jobs to be generated Project Number 2008

2009

CUMULATED TOTAL FROM 2003

(up to june)

TO JUNE 2009

Investment cost (USD)

Jobs

Project

Investment

Jobs

Project

Investment

Jobs

to be ge- Number

cost

to be ge-

Number

cost

to be ge-

nerated

(USD)

nerated

(USD)

nerated

1. Services

52

2 014 322 649

8 902

46

1 925 172 842

5 696

54

640 131 458

8 540

39

1 395 544 646

3 662

48

905 129 488

8433

58

1.365.375.094

6680

21

938.517.839

2946

318

9.184.194.016

45

2. Brewing industries 3. manufcturing industries 4. Food industries 5. Pharmaceutical industries 6. Chemical industries 0 0 0 2 1 033 804 88 4 8 059 590 504 2 14 754 598 203 0 17 20 589 073 993 14 21 363 975 966 9 26 250 399 22 1 916 90 673 849 2 129 21 134 743 288 4 935 29 63 431 922 3 158 105 379 201 2 1 907 000 148 2 48 567 497 50 0

105 153 932

185

313.733.803

5.584

28

145 050 587

2 371

25

62 809 207

1307

20

162.453.540

2937

51.584.113

358

149

710.746.506

15.953

742

11

85 415 657

852

14

75 772 123

2169

16

98.940.850

3778

29.098.193

201

84

357.430.270

9.701

3 969 200

109

2.210.858

50

10

28.994.246

866

1.033.804

88

7. Infrastructures

132 278 459

584

47 020 360

2 618

18 943 791

97

10

117 621 091

1 043

47 871 203

455

112.845.740

1456

34.991.453

98

32

511.572.097

6.351

8. Agriculture and forestry 9. Food-Processing Industries 10 37 077 093 1 690 23

101 165 681

2 993

38 229 418

1 127

34 896 500

1 411

22 979 015

697

10

245.610.209

3096

6.216.230

149

69

486.174.146

11.163

5.621.321

50

5.621.321

50

10. Miscellaneous

37.316.561

1036

37.316.561

1.036

Total

112 2 461 106 092

15 003

114 2 247 161 548

17 647

104 835 554 485

12 472

96 1 782 497 681

9 448

100 1 219 714 968

13 246

112 1.985.225.433

17.947

42 1.105.556.568

4.888

680 11.636.816.775

90.651

ANAPI, Approval Department, July 2009

Governed by a specific legislation, the mining sector is not included in these statistics.

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8.1. Who to apply to

Two key possibilities are presented to investors anxious to set up companies in DRC : - Apply to ANAPIs One-stop Shop. - Contact a Law Firm or a Trust company.

HOW SHALL WE SET UP A COMPANY IN DRC

ANAPI proves to be the right door, owing to the free service it provides and its promptness.

8.2. Major formalities

Trade License (Ministry of Economy and Foreign Trade) Authentication of statutes (Notarial Office) Registration in the New Trade Register (Commerce Court)

National Identification Number (Ministry of Economy and Foreign Trade)

Export-Import Number (Ministry of Economy and Foreign Trade)

Tax number (Government Tax Authority)

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