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DRC: 16 strategic directions for an efficient investment policy!

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The DR Congo needs to define a coherent investment policy that can boost the volume of foreign and domestic direct investment. Its implementation will have the advantage of boosting the economic and industrial development of the country and consolidate the efforts undertaken for years to clean up the business climate and attract investment creating jobs, wealth and endogenous economic growth.

At the National Agency for the Promotion of Investments (ANAPI), the reflection is matured and possible solutions are recommended. These are, in fact, strategic orientations resulting from the expert analysis of this state technical structure and in line with the vision of the Head of State, Felix Tshisekedi, declined in his inaugural speech.

They consist inter alia of:
1. Placing the process of implementing business climate reforms at a high state level for stronger anchoring;

2. Establish at the state level, a real policy of implementation of systemic and in-depth reforms focused on competitiveness at regional and global level;

3. Standardize the legal regime of incentives in DR Congo in the Investment Code alone;

4. Review the Investment Code by opting for the declarative regime instead of the current approval regime, in order to significantly reduce the duration of the granting of incentives to investors;

5. Promote local preference for the creation of a middle class;

6. Reduce the strong interaction existing between the Administration and the applicants by the dematerialization of the various administrative and fiscal procedures;

7. Accelerate the process of creating Special Economic Zones and review the related legal framework;

8. Strengthen the power of ANAPI by placing it under the tutelage of the President of the Republic as is the case with most promotional agencies of other countries;

9. Extend the scope of ANAPI to the export promotion component like other agencies such as Ghana, Benin, etc.

10. Revisit the Agricultural Code especially with regard to Articles 16 and 73;

11. Set up agricultural and development banks to finance the investments of nationals;

12. Set up guarantee funds or investment funds to encourage investment by national SMEs and especially start-ups;

13. Establish a sovereign investment fund from the natural resource rent for the revival of the economy by building basic infrastructure and equity participation in companies to create a joint venture;

14. Realize a reform of the public administration, which is responsible for implementing and implementing the reforms initiated;

15. To erect all industrial and agricultural zones in all the Provinces of the Republic in order to facilitate access to land for new investors etc.

16. Implement and implement the recommendations of the Tax Forum and the Revenue Revenue Forum.

It should be recalled that, despite reforms initiated in the context of the improvement of the business climate and the country’s high potential index, the DRC’s investment rate remains very low: 3, 5% on average.

As such, the growth of the economy remains largely dependent on the extractive sector. Official figures indicate that the contribution in 2017 was 99% of the value of exports accounting for 34% of total state revenue and two points in GDP growth.

Hence, the need and urgency of a coherent investment policy to meet the challenges of inclusive and sustainable endogenous economic growth.

Eric TSHIKUMA

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DRC: FEC’s Lionel Kabeya calls for adoption of Startup Act

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Representing the Fédération des Entreprises du Congo (FEC), and at the same time a committed player in the Congolese entrepreneurial ecosystem, Lionel Kabeya took part this Thursday, October 20, 2024, in the inauguration of the Pan-African Data Center named Silikin village.

In his address, Lionel Kabeya delivered a poignant speech on the crucial importance of the Startup Act in the Democratic Republic of Congo, recalling the need to take measures to implement Ordinance-Law no. 22/030 of September 08, 2022 on the promotion of entrepreneurship and startups. This ordinance was adopted in the hope of creating an environment conducive to the emergence of national champions. Unfortunately, two years after its signature, this law remains a dead letter.

Retracing his career path, Lionel Kabeya spoke of the many challenges facing Congolese entrepreneurs.

“Among these challenges are limited access to financing, complex administrative procedures and lack of networks. Difficulties that are holding back the development of many promising initiatives”, he enumerated, before
before calling for urgent action.

“I therefore appeal to the public authorities, to players in the ecosystem and to all Congolese to ensure that the Startup Act is finally implemented. Because this law is an essential lever for creating jobs. Startups are engines of growth and employment. It will also foster innovation. New technologies, new products and services to improve everyone’s lives”, he added.

This expert is of the opinion that this creation will also enhance the country’s attractiveness. A dynamic entrepreneurial ecosystem attracts foreign investors and strengthens the DRC’s international reputation.

Untapped potential

Lionel Kaveya also pointed out that the DRC has immense entrepreneurial potential, with almost 600,000 SMEs by 2022. However, this figure is still well below that of Nigeria, which has over 35 million SMEs.

“The benefits of a Startup Act are not limited to startups. It’s a virtuous circle that benefits everyone: job creation, social impact, improving the daily lives of entrepreneurs and citizens alike. The Startup Act represents a unique opportunity for the DRC to strengthen its economic fabric and become a major player in African innovation. It’s time to turn promises into reality and give Congolese entrepreneurs the means to succeed. “To Pesa Startup Act Chance”, he asserted.

Startup Acts are new, comprehensive legal instruments designed to encourage the creation and development of startups by taking into account their specific needs.

AGNES KAYEMBE

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World: USD 21 billion needed to provide 400 million people with access to electricity

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Stakeholders across the globe should adopt an investment agenda of US$21 billion to realize the potential of “off-grid” solar energy, contributing to universal access to energy.

This estimate comes from a new report by the Energy Sector Management Assistance Program (ESMAP), in partnership with the World Bank and the Global Off-Grid Lighting Association (GOGLA).

Entitled “Off-Grid Energy Market Trends Report 2024”, the source notes that mini-grids would have the potential to supply electricity to 500 million people by 2030.

In the opinion of the report’s authors, off-grid solar power is the most cost-effective way to provide electricity to 41% of the world’s people who still have no access to electricity by 2030, and the sector has already secured 55% of new connections in sub-Saharan Africa between 2020 and 2022, where more than 80% of the non-electrified population lives.

Without concrete action, the current trajectory is likely to persist, leaving 660 million people without electricity by 2030.

Despite galloping inflation and extreme currency devaluations, among other factors, over 50 million off-grid solar products were sold in 2022 and 2023.

Market sales reached USD 3.9 billion in 2022 and USD 3.8 billion in 2023.

Flory Musiswa

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DRC: at the end of September 2024, the Treasury recorded a surplus balance of USD 28.3 million

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The execution of the Government of the Democratic Republic of Congo’s (DRC) cash flow plan at the end of September 2024 revealed a surplus of 80.8 billion Congolese francs (CDF), or 28.3 million USD, well below the 169.8 billion CDF forecast for this fiscal year.
This counter-performance raises questions about the country’s financial management and budget forecasts.

“At the end of September 2024, the execution of the Government of the Democratic Republic of Congo’s cash flow plan resulted in a surplus of 80.8 billion Congolese francs (CDF), compared with the programmed surplus of 169.8 billion Congolese francs (CDF)”, states the Central Bank of Congo.

The cash-flow plan, designed to rationalize public spending, was put in place following recommendations from the International Monetary Fund (IMF).

Experts believe that this surplus could be attributed to less effective revenue mobilization than expected.

Fluctuations in the prices of raw materials, essential to the Congolese economy, also had an impact on forecasts.

However, the Congolese government has promised to improve transparency and management of public finances. Reforms are underway to strengthen revenue collection and optimize spending.

Critics also point to a lack of anticipation in the face of economic challenges. The need for better budget planning has become apparent to avoid such deviations in the future.

International support, notably from the IMF and the World Bank, remains crucial. These institutions condition their aid on structural reforms and better economic governance.

The DRC must therefore navigate cautiously in this uncertain economic context.

The current surplus could provide an opportunity to strengthen budgetary capacities, but this will depend on the central government’s compliance with its financial commitments.

Although the cash surplus is a positive sign, it must be interpreted with caution. The authorities must ensure that it does not mask structural weaknesses in public finance management.

Mitterrand MASAMUNA

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