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flag Democratic Republic of Congo Democratic Republic of Congo: Investing

FDI in Figures

Considering the country's potential, FDI flows in the Democratic Republic of Congo remain very low due to a certain number of factors: war, economic and political instability, corruption and anti-trade political decisions.

The situation in the east of the country, in spite of the end of the conflict with the rebels of M23, and the stormy relations with neighboring Rwanda are factors that contribute to the lack of stability in the country. Moreover, misappropriation of funds by the political figures and local cartels prevent the development of foreign investments. The business climate is very bad and foreign investors must face a number of challenges (corruption, lengthy administrative procedures, administrative fees) in order to install their business in DRC. As a sign of this difficult environment, the DRC ranked 183 out of 189 countries in the classification Doing Business 2014 issued by the World's Bank. Regardless of these obstacles, Asian countries, especially China, have launched several investment projects in the mining sector, infrastructures and agriculture. The country is rich in untapped mining resources such as diamonds, copper, cobalt, gold and uranium. It benefits from a large domestic market and it is has a strategic geographical location in the center of the African continent.

The mining sector attracts most of the investments, followed by the telecommunications sector. South Africa, Belgium and China are the main investing countries.

 

Country Comparison For the Protection of Investors

  Democratic Republic of Congo Sub-Saharan Africa الولايات المتحدة Germany
Index of Transaction Transparency* 3.0 5.0 7.0 5.0
Index of Manager’s Responsibility** 3.0 4.0 9.0 5.0
Index of Shareholders’ Power*** 4.0 5.0 9.0 5.0
Index of Investor Protection**** 3.3 4.5 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201020112012
FDI Inward Flow (million USD) 2,9391,6873,312
FDI Stock (million USD) 3,994.04,528.14,487.6
Performance Index*, Ranking on 181 Economies 1315-
Potential Index**, Ranking on 177 Economies -106-
Number of Greenfield Investments*** 1.012.0-
FDI Inwards (in % of GFCF****) 84.538.249.8
FDI Stock (in % of GDP) 30.328.225.1

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

 

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Tax Rates

Value-added tax (VAT) - Taxe sur la valeur ajoutée (Local name)
16%
Company Tax
35%
Withholding Taxes
Dividends: 20% (10% in the mining sector), Interests: 20% (0% in the mining sector), Royalties: 20%.
Bilateral Agreement
The Democratic Republic of Congo and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers
5%
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 
 

Individual Taxes

Personal income tax (IPR, Impôt Professionnel sur les Rémunérations) Progressive rates from 0 to 40%
CDF 0 - 524,160 0%
CDF 524,160 - 1,428,000 15%
CDF 1,428,000 - 2,700,000 20%
CDF 2,700,000 - 4,260,000 22.5%
CDF 4,260,000 - 7,260,000 25%
CDF 7,260,000 - 10,260,000 30%
CDF 10,260,000 - 13,908,000 32.5%
CDF 13,908,000 - 16,824,000 35%
CDF 16,824,000 - 22,956,000 37.5%
Above CDF 22,956,000 40%
 
 

Country Comparison For Corporate Taxation

  Democratic Republic of Congo Sub-Saharan Africa الولايات المتحدة Germany
Number of Payments of Taxes per Year 32.0 39.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 336.0 319.0 175.0 207.0
Total Share of Taxes (% of Profit) 339.7 57.8 46.7 46.8

Source: Doing Business - Last Available Data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Democratic Republic of Congo.
Useful Resources
National Agency for Investment Promotion (ANAPI)
Economic Developments and Prospects in Democratic Republic of Congo - African Economic Outlook
Egyptian Embassy in the Republic Democratic of Congo
519 AVENUE OUGANDA, GOMBE
8388 KINSHASA
Phone: (+243) 5110137
Fax: (+243) 8803728
Contact the Embassy via Email.
Business Portal for Africa
 

Business Setup Procedures

Setting Up a Company Democratic Republic of Congo Sub-Saharan Africa
Procedures (number) 10.00 8.00
Time (days) 58.00 34.00

Source: Doing Business.

 
 
 

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Last Updates: July 2014

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