The Democratic Republic of the Congo boasts some of the most abundant natural resources on the planet. With a strong economy, rich farmland and bountiful mineral wealth, the DRC is progressively building towards a brighter future.
The DRC’s investment agency namely the National Agency for Investment Promotion (ANAPI), provides investment facilitation services for initial investments over $200,000 and is mandated to simplify the investment process, make procedures more transparent, assist new foreign investors and improve the image of the DRC as an investment destination. A current investment regulation prohibits foreign investors’ from engaging in any informal small retail commerce referred as petit commerce and restricts foreign majority-ownership in agricultural industry.
Visas for foreign workers are limited to six consecutive months and cost between $300 (single-entry) and $400 (multiple-entry). Following approval of the initial “temporary” work visa, which normally is not difficult to procure, a foreign worker may qualify for a more expensive “establishment visa” with a minimum of one year validity. To encourage local employment, salaries paid to expatriates are taxed at a higher rate than local’s staff.
INDUSTRIES
There are 9 industries that the DRC Government has been focused on to ensure the growth of the economy which will create jobs for the Congolese people. The DRC is known for its mining and has plans to diversify its investment areas including but not limited in the following:
LEGISLATION
In 2002, the government passed new laws to improve the Central Bank’s role as regulatory and supervisory authority and increase its independence. To facilitate mass banking and the establishment of a sound financial system inclusion, the Central Bank also defined a specific legal framework for microfinance. Act 11/020 of 15 September 2011 defines rules relating to the activity of microfinance. A new insurance legislation, Act No. 15/005 of 17 March 2015, was adopted with the objectives to liberalize the insurance sector and attract private insurance companies. This legislation has allowed the creation and the effective establishment of the Insurance Regulatory and Control Authority (ARCA – Autorité de Régulation et de Contrôle des Assurances) this year.
TAXES
Tax and Customs incentives
The Investment Code provides customs and tax exemptions to investors who submit their investment projects to ANAPI (business plan), and once the project is approved by ANAPI, the investor will receive benefits for a maximum period of 30 days from the customs, aside from the fiscal and para-fiscal advantages hereunder listed:
(1) Exemption from duties and taxes on imports of machinery, materials and equipment (excluding administrative fee of 2% and VAT (to be paid upstream by the promoter, but to be reimbursed by the tax authorities); (2) Tax exemption on profits; (3) Exemption from property tax; (4) Exemption from ad valorem duty on the setting up of LLC or increase of their share capital.
LAWS
Investment Code
Within the framework of the new government economic policy, the country’s new Investment Code intends to facilitate and secure investments that promotes the development of the country and nation. The Investment Code simplifies the approval procedure to grant customs and tax benefits that provides investors with a profitable support likely to guarantee their competitiveness. The Government has also established a State structure namely ANAPI (National Agency for Investment Promotion) to ensure seamless process for investors.
Learn about Setting up support structures for investors, procedure for approval to the investment code benefits repositories, and investment protection mechanisms.