Democratic Republic of Congo: Investing

FDI in Figures

FDI inflows have been very slow but they experienced a strong increase in 2007-2008. As a consequence of the global recession, the flows petered out in 2009 and despite the revival, they still remain too low when compared to their potential. The war, economic and political instability, corruption, and anti-trade political decisions have discouraged foreign investments. Refugees and soldiers from Rwanda continue to be a destabilizing factor. Moreover, political interference and local cartels hinder foreign investments. However, the reforms supervised by the IMF have produced some stability into the investment framework. The country has an enormous potential: it is rich in mining resources largely unexploited such as diamonds, copper, cobalt, gold and uranium; it benefits from a significant domestic market; and it is located at a strategic position in the center of the African continent.

The mining sector attracts most of the investments, and it is now followed by the telecommunications sector. South Africa and Belgium are the two main investor countries.

	Democratic Republic of Congo	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	3.3	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	1,727	664	2,939
FDI Stock (million USD)	2,520.5	3,058.0	3,994.0
Performance Index*, Ranking on 141 Economies	12	24	-
Potential Index**, Ranking on 141 Economies	130	-	-
Number of Greenfield Investments***	15.0	5.0	-
FDI Inwards (in % of GFCF****)	61.4	15.8	-
FDI Stock (in % of GDP)	21.7	27.5	-

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.

Tax Rates

Sales tax: 13%
Company Tax: 40%
Withholding Taxes: Dividends: 20% (10% in the mining sector), Interests: 20% (0% in the mining sector), Royalties: 14%.
Bilateral Agreement: The Democratic Republic of Congo and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 5%

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, 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.

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