Research and consulting in Democratic Republic of the Congo

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Research and consulting in the Democratic Republic of Congo

Country overview:

IOA has earned its expertise on the Democratic Republic of Congo (DRC) through years of research and consulting projects focused on the country. One of the key findings by IOA’s analysts is that this vast nation – the largest Francophone country globally and Africa’s second-largest geographically – presents a substantial market for imports and a wealthy abundance of mineral products available for export to investors. The DRC’s mineral richness has fueled political instability and conflict for centuries, as domestic and foreign forces seek to exploit diamonds and precious minerals, while the majority of Congolese continue to live in poverty.

IOA’s research indicates that, although significant progress is still needed, recent years have seen advancements in education and literacy efforts. The DRC’s rivers and forests are acknowledged as vital “lungs of the world”, essential in the fight against climate change. Rising mineral prices have helped offset the increased costs of imported oil and food.

Key opportunities in the DRC:

  • The Central African nation holds vast reserves in natural resources, including cobalt, copper, diamonds, gold, and increasingly important strategic minerals such as coltan and tungsten
  • Comparable in size to Western Europe, the DRC has extensive arable land, providing considerable potential for agricultural development
  • Efforts are underway to broaden the country’s industrial base to diversify the economy beyond raw mineral exports

Key concerns/risks in the DRC:

  • Decades of conflict and warfare have left the Congolese population with lower health and education levels compared to global and African averages, resulting in a severe human capital crisis
  • IOA analysts have determined that Congolese women, in particular, represent an underutilised segment of the population in terms of human capital
  • Achieving security is essential in the DRC, where militant groups and foreign interests continue to destabilise the country in pursuit of its valuable minerals
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Tips on doing business in the DRC:

Starting a business:

  • Establishing a business as a non-citizen can be challenging due to frequently changing regulations, which can complicate compliance
  • The Guichet Unique serves as a central support hub for individuals seeking to establish a local enterprise
    (Read more at: https://www.investindrc.cd/fr/Investir-En-RDC)

Doing business:

  • The National Agency for Investment Promotion (ANAPI) supports prospective business owners interested in doing business locally by offering services that include customs duty and tax exemptions, available after submitting a business plan and a US$ 1,000 fee
  • To engage in diamond or gold trading, traders must provide evidence of royalty payments and meet minimum purchasing requirements
  • Given the DRC’s reputation for corruption, investors should conduct thorough due diligence to mitigate risks of involvement in corruption-related issues

Culture and society:

  • Infrastructure challenges are significant, with rural roads – especially in mining areas – often becoming impassable during wet seasons, leading to extensive travel delays
  • Violent crime and banditry pose serious risks in both urban and rural settings
  • Photographing in public is generally discouraged, as authorities may view it as suspicious behaviour

A sample IOA research report on the Democratic Republic of Congo: