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AGRICULTURE

The DRC has more available farmland than any other country in Africa, with an agricultural potential to feed close to two billion people. DR Congo has and estimated 80 million hectares of available arable land with 10% of this land is currently being used. The agricultural sector contributes 18 percent of GDP and accounts for over 60 percent of new jobs.

Approximately 1.5 million square miles.

The average rainfall is a little over 58 inches (147 centimeters) per year.

The second largest rainforest after the Amazon, which is the largest rainforest in the world.

DRC Prime crops: Cassava, plantains, maize, groundnuts/peanuts tobacco, coffee, sugar cane, cocoa and rice. Rubber is also extracted from rubber trees and palm oil from the kernels of palm trees.

Soil is ferrasols, sandy clay soils with clay tasks, sandy soils, recent volcanic soils, alluvial plain soils, ancient rocks soil, areno-ferrals, hydro-kaolisols, and more.

The dry season lasts for less than four months, except in the most southern region. A monthly average temperature of 23 to 27 degrees applies to 90 percent of the country.

Crop planting

Cultivation

Fishery, land and wildlife conservation

Fertilizer, herbicides, pesticides, and fungicides

Farm equipment leasing and financing

Agricultural industrial park

The Government’s goals include but not limited to:

Enhance the contribution of agriculture to economic growth.

Restore the country’s food security.

Reduce poverty and insecurity in rural areas.

Increase production of food and sustainable products.

Encourage import-substitution.

 

The right to use a land fund is called “concession” and is legally established by a registration certificate of land granted by the State. It is unassailable after 2 years from the date of its establishment.

The two kinds of concessions: Perpetual concession, reserved for Congolese (without time limit); and Ordinary concessions available for Congolese and foreigners (for a period of 25 years renewable without limitation).

Steps to obtain an ordinary concession for agricultural use:

a. General step Identification of land;

Signature of an agreement with traditional authority of the area against payment of a sum of money and goods in kind according to custom;

Land vacancy inquiry and demarcation by the government relevant departments (local departments of the Ministry of Agriculture and the Ministry of Land Affairs);

Signature of the concession contract (Registrar of Real Estate Titles);

Establishment of the registration certificate by the Registrar of Real Estate Titles.

(contact the Ministry of Land Affairs or ANAPI)

b. Specific Step Depending of the area acquired, the authorities that process the concession’s approval require:

The contract to be approved by a law for the blocks of equal or superior to 2000 ha land;

The contract to be approved by order of the President of the Republic for the blocks of land above and below 1000 ha to 2000 ha;

The contract to be approved by the Ministry of Land Affairs for blocks of land over 200 ha not exceeding 1000 ha;

The contract must be signed by the Governor of the Province for the blocks of land at or below 200 ha.

The Provincial Governor may delegate his powers to the Registrar of Real Estate Securities for land under 50 ha.


LEGAL FRAMEWORK

The NEW INVESTMENT CODE [Investment Code (cfr. Act No. 004/2002 of 21/02/2002)] has the following objectives:

a) Promote the establishment of civil engineering companies responsible for construction and maintenance of roads and highways as well as movements of people and goods, whether land transportation, river or air;
b) Promote investments that develop agriculture and agribusiness through mechanization in order to ensure food self-sufficiency and therefore reduce imports of commodities and allow both income growth in rural areas, improving the supply of food industries with raw materials and finally, enlargement of the domestic market of consumer goods;
c) Promote the heavy investments to establish a strong industrial base that will support sustainable economic growth; and
d) Encourage investment for developing the national natural resources on site in order to increase the added value and the exportable volume. Decree 13/049 of 10.6.2014 relating to the tax regime to be applied to companies eligible for the Strategic Partnership on the chain of value.

The above-mentioned Decree aims to establish a tax system of development as part of the legal framework for economic promotion and revival of the national industrial units likely to improve the living conditions of the national communities. This is an instrument of economic promotion that will assist the Government and the private sector to direct, organize and carry out investments of partnership programs in the areas and sectors that have significant potential for integration of which the realization allows a large segment of the population to take part in the economic and social activity on well-defined geographical areas.

AGRICULTURAL CODE (LAW NO. 11/022 OF 24 DECEMBER 2011 ON FUNDAMENTAL PRINCIPLES RELATING TO AGRICULTURE)

The agricultural Code aims to:
a) Promote the sustainable development of potentialities and agricultural space integrating social and environmental aspects;
b) Boost agricultural production by establishing a special customs and tax regime in order to achieve, inter alia, food self-sufficiency;
c) Boost exports of agricultural products to generate significant resources for investment;
d) Promote the local industry for processing agricultural products;
e) Bring new renewable energy technologies;
f) Get the province, the decentralized territorial entity and the farmer involved in the promotion and implementation of agricultural development.

Agriculture Act (Law Nr. 11/022 of 24 December 2011).
Key provisions on investment include the following:

• Expenses incurred by investors to build a road connection to their farm from a main road are tax deductible.
• Discounts on water and energy prices to farmers (electricity and petroleum).
• Water and energy produced by a farm for its own consumption are exempt from tax.
• Industrial farmers can make a non-taxable provision not exceeding 3% of their turnover for land rehabilitation, major risks and agricultural calamities. This provision is re-integrated to the taxable basis if it is not used within two years.
• Farming inputs are exempt from import and export duties.
• Exemption from property tax for land used exclusively for agriculture.
• Vehicles used exclusively for agriculture operations are tax-free.
• All combined administrative fees payable to government services at the border must not exceed 0.25% of the value of exported goods.