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AGRICULTURE

AGRICULTURE (10)

The Democratic Republic of Congo (DRC) should produce 3.9 million tonnes of cereal this year, up 3.2% from last year. The United Nations Food and Agriculture Organization (FAO) disclosed the forecast in a report issued on November 8.

In detail, rice production is projected at 1.6 million tonnes, while stocks of other cereals, including maize, sorghum, and millet, are expected to total 2.3 million tonnes.

While the forecast is promising, the projected output will not be enough to meet domestic demand. The FAO estimates the country must import 770,000 tonnes of cereals in 2024 to meet this demand, against 745,200 tonnes in 2023. According to the UN body, the country remains one of the most food-insecure nations in Africa and Central Africa.

According to the latest analysis from the Integrated Food Security Phase Classification (IPC), approximately 25.6 million people—about 22% of the population—are projected to be acutely food insecure between July and December 2024.

It is worth noting that this year’s grain output forecast compares with a five-year average of around 3.8 million tonnes.

 

Posted On lundi, 11 novembre 2024 16:03 Written by

Congolese PresidentFélix-Antoine Tshisekedi asked his government to include a new component in the second phase of the Local Development Program for 145 territories (PDL 145T).  The leader instructed his team during the November 1 Council of Ministers. This component would develop 2,000 hectares in each territory, with 1,000 hectares set aside for oil palm plantations, translating into creating 145,000 hectares of palm groves across the country.

Tshisekedi stated that the goal of this project is "to boost biodiesel production from palm oil throughout the country." Previously, as instructed by the President, the government financially backed the construction of a biodiesel plant in Vanga, Kwilu province. The plant was built by Chrisnovic Sarl

Two years ago, Julien Paluku, the then-Industry Ministry, claimed that boosting biodiesel production would help the DRC “align with countries fighting global warming”. He added that this initiative is part of the Industrialization Master Plan adopted in 2021, which aims to increase industrial production and reduce imports at a cost of over $58 billion. Paluku spoke while visiting Chrisnovic’s facilities.

Cut fuel imports

According to the Services des Entreprises Pétrolières Congolaises (SEP Congo), petroleum product consumption in the DRC is expected to reach about 4 billion liters by 2025. Currently, most of this demand is met through imports. With an average yield of 3.8 tonnes of palm oil per hectare, the planned 145,000 hectares of palm groves could produce between 626 and 988 million liters of biofuel each year. If producing biodiesel is cost-effective, this project could help reduce fossil fuel use, lower imports, and increase the country’s energy self-sufficiency.

Creating and operating these palm groves will also create many jobs. Worldwide, similar projects have generated between 29,000 and 72,500 direct jobs in plantations and related industries, benefiting local communities.

However, the project's success will depend on its economic viability and effective implementation. The President has assigned the Yangambi Research Center to prepare palm nut seeds for the project. He also asked the Presidential Advisory Council of the National Pact for Agriculture and Food (CCP-PNAA) to support the development of these palm groves in all 145 territories. Félix-Antoine Tshisekedi urged the government to actively work on this project and provide "tax incentives" to ensure its success.

Challenges

The minutes of the Council of Ministers do not indicate whether the President's directives are based on a feasibility study for the project. However, spreading it across 145 territories could be challenging, especially given the poor quality of the country's road network, which complicates travel and raises transport costs.

Additionally, there is limited information about the second phase of PDL 145T, which includes integrating the palm grove project for biodiesel production. After a meeting with Planning Minister Guylain Nymb, Finance Minister Doudou Fwamba, and UNDP Africa Director Ahunna Eziakonwa, it was announced that this phase will begin in early 2025.

In August 2023, then-Planning Minister Judith Suminwa Tuluka, now Prime Minister, estimated that this phase would primarily focus on constructing and rehabilitating agricultural feeder roads for $1.25 billion. It is unclear if this estimate still stands or how the funding for this second phase will be secured.

Anticipating potential criticism from environmental groups that view industrial palm cultivation as a cause of deforestation, the President announced plans to create 145,000 hectares of palm groves alongside establishing a 100,000 km² protected area of primary forest. This reserve, called "Couloir Vert, Kivu-Kinshasa," will be located between the eastern and western parts of the country.

Pierre Mukoko

Posted On jeudi, 07 novembre 2024 16:46 Written by

During the Council of Ministers held on October 18, 2024, the Congolese government approved a pilot project to boost DR Congo’s poultry output. "This project will cover eight areas across the country and aims to organize the poultry sector and connect modern and traditional farming to ensure food security and self-sufficiency in poultry products (meat, eggs, and derivatives)," read the Council’s minutes, published by the Communication Ministry.

According to the Minister of Fisheries and Livestock, the project will run for 24 months, starting this year. While specific details were not provided, reports suggest the project will focus on training producers, improving access to quality supplies, and developing poultry farming infrastructure.

According to the Central Bank of Congo (BCC), the DRC's poultry flock was estimated at over 18.9 million birds in 2023. However, since the local production fails to meet demand, the country has been importing more.

Data from the Trade Map platform shows that Congolese poultry meat imports have grown by an average of 3.72% per year over the past five years, rising from 122,964 tonnes in 2019 to over 142,300 tonnes in 2023. Over this period, import costs have also increased by an average of 8.05% per year–from $66.4 million in 2019 to nearly $91 million in 2023.

Stéphanas Assocle, Ecofin Agency

Posted On jeudi, 24 octobre 2024 16:44 Written by

Initially scheduled for June 2024, the Forests and Savannas Restoration Investment Program (PIFORES) was launched on October 14 in Kinshasa. The launching ceremony was attended by Anna Bjerde, the World Bank's Managing Director of Operations. 

The PIFORES aims to improve land-use planning, forest management, and the livelihoods of local communities in seven provinces: Kinshasa, Kongo Central, Kwilu, Kasaï, Kasaï Central, Kasaï Oriental, and Lomami. The World Bank loaned the DRC $300 million for the project.

According to official documents reviewed by Bankable, the loan breaks down into several components: $17 million for improving land-use planning and governance for natural resource management, $215 million for developing agroforestry and forestry value chains; here, the goal is to foster sustainable landscape management and enhance local livelihoods. Another $25 million will support the development of a sustainable value chain for energy and clean cooking. Finally, $13 million will be invested in innovative approaches for measurement, reporting, verification, and results-based climate financing. $30 million is set aside for project implementation, monitoring, and evaluation.

To implement the components related to agroforestry and forestry value chains as well as clean energy initiatives—accounting for most of the project budget ($240 million)—micro-grants will be awarded to projects focused on forestry, agroforestry, and improved cookstove production. These grants will supplement the project owner's funding, with specific percentages and maximum amounts detailed in the program manual. In a previous program, the owner's contribution ranged from 40% to 60%, with co-financing between $100,000 and $1 million. Beneficiaries may include SMEs, smallholders, private operators, and farming households selected through bidding.

Submitted forestry and agroforestry projects must cover between 50 and 1,000 hectares. Applicants must present a business plan showing an acceptable return on investment, taking into account the subsidy. Here, projects must also meet socio-environmental standards and demonstrate a positive social impact on neighboring communities through employment or investment benefits. For small private landowners, plantation areas should range from about 10 to 50 hectares; farming households should have between 1 and 50 hectares. All project owners must have a land title.

The World Bank and the DRC government are behind the PIFORES project. They said the program should benefit around 4.5 million people, including 50,000 from indigenous communities. Regarding potential impacts on poverty reduction, the initiators referred to a similar program (also in agroforestry) that boosted beneficiaries’ income by 18% —about $448 per year—along with significant non-monetary benefits. Additionally, the PIFORES aims to bring over 4 million hectares of land under sustainable use practices, helping to reduce deforestation in targeted areas by about 10% while sequestering or preventing emissions of 30 to 35 million tons of CO2.

Pierre Mukoko

Posted On mercredi, 16 octobre 2024 16:22 Written by

In the Democratic Republic of Congo (DRC), the African Development Bank (AfDB) will support a staple farming project with $260.4 million. The Congolese Council of Ministers approved the financing on October 11, 2024. 

The project aims to boost the production of rice, corn, and cassava, the main food products in the DRC. It will include building storage facilities and providing financial support to producers and other stakeholders in these areas.

The funds will be allocated across several regions: the Western Axis, which includes Kongo Central, Maï-Ndombe, and Kwango; the Central Axis, covering Kasaï Oriental and Lomami; and the Eastern Axis, primarily in Sud-Kivu.

Environmental studies have been completed at the intervention sites, and certificates of conformity have been obtained for both production zones and storage infrastructure.

The AfDB plans to implement the project between 2024 and 2029. Funding will mainly come from the African Development Fund ($250.4 million) and the African Transition Facility ($10 million). The Congolese government will also contribute $51.2 million, bringing total funding to $311.6 million—well above the $163 million allocated for agricultural investment from 2025 to 2028.

This project aims to address food security challenges in the targeted regions. For instance, in the cassava sector, a staple for about 70% of the population, current availability is only 47 kilograms per person per year, while needs are estimated at 144 kilograms.

According to the World Bank, in 2022, 56% of the DRC's workforce worked in agriculture. However, the sector contributed only $51.7 billion to the economy between 2013 and 2023, despite the country having vast arable lands. The World Bank’s investments in the DRC’s agricultural sector currently stand at around $322 million. 

Georges Auréole Bamba

Posted On lundi, 14 octobre 2024 14:46 Written by

The Democratic Republic of Congo (DRC) imported about 14,500 tonnes of pork, mostly cuts and offal, in 2023.  The figure, disclosed in the latest annual report of the Brazilian Animal Protein Association (ABPA), is over 28% higher than that recorded in 2022. That year, the DRC imported 11,300 tonnes of pork.

The surge placed the DRC as Brazil’s third-biggest pork buyer in Africa. Angola and Côte d'Ivoire are the top two. Increased demand for Brazilian pork highlights the potential for local producers to enter this market and develop a national supply.

Pork is widely consumed in the DRC, both in rural areas and urban outskirts. However, FAO data shows that national production remains low; it grew from 24,622 tonnes in 2012 to 27,415 tonnes in 2022.

To bolster the sector, many experts believe several interventions are needed, especially in production and marketing. These include educating farmers on good hygiene practices to ensure safe products for consumers. It's also important to improve access to essential inputs to lower production costs and introduce mechanisms for farmers to sell pork and by-products to restaurants, hotels, delicatessens, and supermarkets.

Espoir Olodo

 

Posted On jeudi, 03 octobre 2024 06:20 Written by

Mole Group, a Swiss firm specializing in trading agricultural commodities, wants to set up an agro-industrial park in the Democratic Republic of Congo (DRC). The firm has dispatched a delegation to the African country to present the project to various senior Congolese officials. Meetings between both sides began on Sept. 23. 

According to reliable sources, the park should be established in Mbanga-Ngunzu, close to Lufu, an important supply market for the DRC and Angola. The site is also near National Road No. 1, which connects Matadi, the DRC's main port, to Kinshasa,  the capital. 

The project integrates production, processing, and conservation activities, and should be set up in partnership with experts in processing, storage, and modern production techniques. 

The investment’s amount is not known, presently, but it could be worth hundreds of millions of dollars. The park targets an output of 750,000 tonnes of food annually, primarily cassava, corn, and sugar.

According to Congolese Minister of Economy, Daniel Mukoko Samba, the DRC faces an annual shortfall of 10 million tonnes of corn against a domestic demand of 13 million tonnes. Other products like manioc and sugar are also in short supply. The International Trade Centre reported that the country imported $222 million worth of cereals in 2023.

At the Africa-China summit, the DRC's agricultural strategy was strengthened with export targets that allow the country to sell up to one million tons of agricultural products to China. 

Mole Group is already active in the DRC with a fair-trade cocoa project and aims to prioritize the local market. The company plans to improve food supply and living conditions for farmers and local communities while incorporating renewable energy and technology transfer into its project.

Georges Auréole Bamba

Posted On mardi, 24 septembre 2024 17:15 Written by

In the Democratic Republic of Congo (DRC), the parliament is reviewing the draft of the 2025 finance bill. During the bill’s presentation to the deputies, Congolese Prime Minister, Judith Suminwa noted a 13% increase in the budget for agriculture. "There is a 13% increase in resources for agriculture," she said.

For now, it is not known if the increase will apply only to agricultural production or if it will also cover inputs purchase, building storage and processing infrastructure, and transport routes.

In her budget guidance letter to government members, PM Suminwa said the resources allocated to agriculture should help increase the sector’s share to 10% of gross domestic product (GDP), in line with the Maputo Convention. The official stressed the importance of considering the entire value chain and maintaining and constructing 10,000 kilometers of agricultural roads across the country.

The Ministry of Agriculture is one of seven ministries eligible for results-based budget management with program budgets. The Ministry of Rural Development as well.

From 2024 to 2026, these two ministries will receive 7,316 billion Congolese francs (around $2.6 billion). The government's ability to effectively use these funds for agricultural development will be crucial. Although recent reports from the Minister of Finance highlighted some efforts, challenges remain, such as high wage expenditures and the need to improve actual payment processes.

Compared to 24, the draft finance bill for 2025 proposes a 21% budget increase, bringing total resources and expenditures to 49,847 billion Congolese francs (just over $18 billion). To meet these goals, the government plans to enhance tax revenue collection and benefit from higher commodity prices to increase royalties.

Georges Auréole Bamba

Posted On mercredi, 18 septembre 2024 16:34 Written by

The Democratic Republic of Congo will export over a million tons of agricultural products to China under a new deal. Congolese Minister of Foreign Trade, Julien Paluku Kahongia, facilitated the agreement. On this occasion, Kahongia emphasized that the State acts as a regulator, not a direct trader. “It creates opportunities and fosters a conducive business environment,” the official noted. 

Under the new deal, the DRC will export one million tons of soybeans, 20,000 tons of sesame, 10,000 tons of chili peppers, 5,000 tons of coffee, and 3,000 tons of cocoa. The move follows China's decision to eliminate tariffs on products from low-income countries, which includes 33 African nations.

Minister Kahongia claimed the deal will significantly contribute to President Tshisekedi's ambition to diversify the DRC's economy, which heavily relies on mining.

China is the world’s top soybean importer. Between January and July 2024, it bought for $29 billion of soybean, according to Statista. In 2023, 60% of global soybean imports were captured by China. This appetite for the crop explains the deal and is good news for the DRC. 

Other sectors like coffee and chili pepper should also get more exposure due to the agreement. Indeed, chili peppers are highly sought after by the growing Chinese middle class. As for coffee, the DRC produces around 73,000 tons per year, most of which are exported.

While the new deal with China could help bolster the DRC's agricultural value chains, challenges remain. One such challenge is financing. Since the sector is relatively risky, it needs suitable funding models. Also, to take full advantage of the agreement and the opportunities it offers, Congolese farmers must understand the preferences of Chinese consumers and be ready to adapt to the Chinese market, as it can be volatile.

Georges auréole Bamba

 

Posted On jeudi, 12 septembre 2024 11:40 Written by

In the Democratic Republic of Congo (DRC), robusta coffee producers are poised to benefit from rising global prices. After a 58% increase in 2023, prices have surged another 63% in 2024, reaching a record $4,667 per ton in July. This trend is driven by strong demand from coffee roasters and declining exports from Vietnam, the world's largest robusta producer, which is facing severe drought conditions.

Vietnam's coffee sector has been significantly impacted, with forecasts indicating a 20% drop in exports for the 2023/24 season due to the worst drought in over a decade. This situation has created a supply gap that has contributed to the increase in robusta prices on the global market.

The price hike presents an opportunity for the DRC's coffee industry to attract investment in robusta plantations. This variety is more resilient to dry conditions and accounts for over 70% of the country's total coffee production. In 2022, DRC produced 23,130 tons of robusta coffee, making it the fifth-largest supplier in Africa (after Uganda, Côte d'Ivoire, Tanzania, and Cameroon).

Additionally, the global coffee market is expected to see a 2.2% increase in consumption during the 2023/2024 season, further supporting robusta coffee prices. 

According to the United Nations Conference on Trade and Development (UNCTAD), the DRC cultivates coffee on approximately 200,000 hectares.

Espoir Olodo

 

Posted On lundi, 02 septembre 2024 09:54 Written by

 
 

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