News (82)
Belgium's ambassador to the Democratic Republic of Congo (DRC), Roxanne de Bilderbing, met with Minister Jean-Lucien Bussa, responsible for public enterprises, on October 2, 2024. During their meeting, the ambassador learned about the government's plans to improve the governance, management, and strategy of public enterprises.
"The reform of public enterprises is fundamental to support the country's economic growth," she said after the meeting while voicing Belgium’s readiness to support the DRC in the process.
Since the new government took office in May, the ministry has been very active. Minister Bussa faces two major challenges: legal issues affecting state-owned companies and improving their performance.
"The repeated seizures of these companies' accounts have had disastrous economic and social consequences," Bussa noted at a conference on September 26, 2024. The conference focused on a decree aimed at securing the assets of public companies to protect them from financial threats.
The Minister also emphasized the need to enforce a 2008 decree requiring all executives of state-run companies to sign contracts that outline their terms of office, rights, and obligations.
The reform mainly aims to restore public companies as key players in the DRC's economic development. However, there is still much work to be done.
A study from 2022 by the Conseil Supérieur du Portefeuille shows that public companies are vital to the Congolese economy. By the end of 2021, their book value was $14.3 billion, making up about 26.14% of the country's GDP, down from 29.6% in 2020.
Regardless, many public companies are heavily in debt, often exceeding their asset values. Their poor operating results limit their ability to repay creditors, and they face significant cash flow challenges. In 2024, their short-term financing needs were estimated at nearly one billion dollars.
Cooperation with Belgium could significantly help revitalize these companies by providing short-term solutions to improve production infrastructure.
There are opportunities to reduce the public sector deficit through debt restructuring and long-term plans in partnership with the financial sector. Similar successful initiatives have been carried out in Cameroon for state-owned companies like AES Sonel (electricity) and Sonara (oil refining).
Georges Auréole Bamba
DRC: Pepsi Bottler Varun Beverages Wants to Build a New Beverage Factory in Kiswishi City, with $50M
Varun Beverages, Pepsi Cola’s Indian bottler, plans to invest $50 million to build a new beverage production plant in the Democratic Republic of Congo (DRC). The plant will be built within the Special Economic Zone (ZES) of Kiswishi City, in Lumumbashi.
Spanning 15 hectares, the facilitate aims to leverage the logistical advantages of the Likasi road for shipping products to consumers in Lubumbashi and the surrounding region. This is Varun's second major investment in the DRC. It previously built a plant in the Maluku Special Economic Zone, near Kinshasa, the capital. This other project produces 1.2 million bottles per day.
"Varun's expansion will meet the growing demand for Pepsi beverages in the DRC and support our long-term growth trajectory in Africa," said Ravi Kant Jaipuria, president of Varun Beverages.
With the new project, Varun wants to helps boost the DRC’s agri-food industry and tap into the potential of the Congolese market. The country's youth population, which makes up 60% of the total population, offers a large consumer base for soft drinks.
Besides the DRC, Varun Beverages operates in Zimbabwe and Zambia and holds franchise rights for various PepsiCo products in Morocco.
ES
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
President Félix Tshisekedi began a three-day visit to Hungary on September 29, 202. According to the DRC presidency, his trip will include political discussions, as Hungary currently holds the presidency of the Council of Europe. Observers believe this could be an opportunity for the DRC to ask Hungary to speak out against "Rwandan aggression" in the eastern part of the country.
The visit will also focus on economic matters. "To bolster their partnership, Hungary and the DRC will sign economic cooperation agreements in priority sectors such as agriculture, infrastructure, and energy production in the DRC," stated the Congolese presidency.
Tshisekedi is with several ministers, including the ministers of Foreign Affairs, Agriculture, Infrastructure, and Hydraulic Resources, as well as executives from the Congolese lithium company. The Congolese leader will also visit Hungarian industries, especially those involved in technological innovation.
While it's unclear if lithium battery production is a main focus of Tshisekedi's agenda, Hungary has valuable experience to share in this area. In recent years, the European nation has become a leading producer of lithium batteries.
The DRC aims to build a value chain around resources linked to the energy transition, such as lithium. The African country has recently established a Battery Council to develop conditions for producing essential components for electric mobility.
Georges Auréole Bamba
Microsoft co-founder, Bill Gates, met with the President of the Democratic Republic of Congo (DRC), Félix Tshisekedi, on September 24. During the meeting, Gates explored the possibility of improving satellite internet connectivity to bolster education in the DRC. According to the Ministry of Health, the American billionaire requested the audience.
If the project moves forward, Gates might implement his satellite internet solution on a large scale using technology from Kymeta, a company in which Microsoft invested $85 million in 2020. This would give Gates an edge over Elon Musk, whose Starlink services are currently banned in the DRC due to licensing issues.
Bill Gates expressed interest in the DRC's agricultural sector, which needs substantial investment to meet national demand and develop its potential as a food exporter. He also mentioned support from the Gates Foundation for public health initiatives, particularly in fighting diseases like polio.
Few days before the meeting, Congolese Minister of Higher Education Marie-Thérèse Sombo launched the "One student, one computer" project. This project aims to make university training more innovative. "This project aims for inclusiveness and equity, as it grants the same opportunities to all students, without distinction," the official said, quoted by Radio Okapi.
Though it was not reported, Gates and Tshisekedi may have also talked about mining. In November 2023, KoBold, a company active in Zambia's copper sector, expressed interest in expanding into the DRC. KoBold's main shareholder is Breakthrough Energy Ventures, which includes several billionaires like Gates and Jeff Bezos.
Georges Auréole Bamba
American investors are "strongly interested" in a project to set up a cobalt refinery in Lualaba province, southeastern Democratic Republic of Congo (DRC). The Mines Minister Kizito Pakabomba made the statement after a roundtable held on September 23, 2024, in New York. The meeting was organized by the Foreign Policy organization and Buenassa, the government's partner in the Lualaba refinery project.
During the roundtable, participants talked about the sustainability and resilience of supply chains for minerals essential to the global energy transition. The president of the US Export-Import Bank was present.
"It is in the interest of this country (the United States) to secure its supply of critical minerals," said Congolese Minister of Mines, Kizito Pakabomba.
The meetings in New York followed the recent Battery Forum held on September 17-18, 2024. During that event, Minister Kizito announced that the DRC was close to producing its first battery from local mining resources. However, he acknowledged that significant investments are still needed in infrastructure such as roads and energy to attract more investors.
Commenting on the project in February, Eddy Kioni, Managing Director of Buenassa, said it “will play a crucial role in developing an integrated value chain around battery and electric vehicle manufacturing, in line with the government's commitment to responsible industrialization and green economic development.”
The cobalt refinery project has received a $3.5 million grant from the DRC government through the Fonds de promotion de l'industrie (FPI). This grant is the first installment to prepare for the project's completion. Buenassa, the government’s partner in the project, has engaged with development finance institutions like the African Development Bank and Afreximbank through support from the United Nations Economic Commission for Africa.
Buenassa expects the refinery to come online by the end of 2027, with an initial production target of 30,000 tonnes of copper cathodes and 5,000 tonnes of cobalt sulfate per year.
Georges Auréole Bamba
The Presidents of Poland and the Democratic Republic of Congo met on September 19, 2024, in New York, on the sidelines of the UN General Assembly. After the meeting, the Congolese presidency reported that several Polish and Congolese experts had been working for weeks on draft cooperation agreements related to digitalization, digital transformation, and border surveillance.
Over the past 20 years, Poland, a member of the European Union since 2004, has made massive investments in telecommunications infrastructure, including fiber optics, high-speed Internet, and modernizing mobile networks. Consequently, Poland became one of Europe's leaders in digital transformation.
A partnership with Poland would allow the DRC to benefit from its technical expertise in key projects, such as deploying submarine cables and improving mobile infrastructures in rural areas. This would be crucial in boosting connectivity in underserved regions while modernizing the national network.
Relative to digitizing public services, Poland's experience could be vital for the DRC. According to the European Commission's E-government Benchmark report, Poland is one of the European countries that has made the most progress in digitizing public services since 2020. By following Poland’s example, the DRC could accelerate the development of government platforms accessible via mobile, thus promoting transparency and combating corruption, particularly in the delivery of official documents.
Recently, the DRC has made considerable efforts to combat corruption in this sector by launching the banking of legal fees. A report by the Cour des Comptes revealed that magistrates, clerks, police officers, and others involved in judicial administration were directly charging fees to the detriment of the public treasury.
Thanks to its advances in cybersecurity, Poland could provide strategic support to the DRC in securing its borders and strengthening its digital defense capabilities.
OS
Guylain Nymbo and Doudou Fwamba, respectively Deputy Prime Minister for Planning and Minister of Finance of the Democratic Republic of Congo (DRC) recently met with a UNDP team in New York, during the UN General Assembly. The UNDP team was led by its Regional Director for Africa, Ahunna Eziakonwa.
Participants mostly focused on the Local Development Plan for 145 territories (PDL 145T). "The Congolese government expressed its wish to accelerate the remaining work before the end of the year and launch the second phase, focusing on agricultural feeder roads. The UNDP has reaffirmed its commitment to supporting the DRC in this ambitious project aimed at improving the living conditions of local populations," reported the Ministry of Planning. The second phase of the project is scheduled to begin in early 2025.
Initiated by President Félix Tshisekedi, the PDL 145T aims to develop the DRC’s 145 closed localities that lack basic infrastructure. The UNDP oversees the project’s implementation in 54 territories. Implementation in the remaining territories is steered by the Cellule d'exécution des financements en faveur des États fragiles (CFEF) and the Bureau central de coordination (BCeCO)(43 and 48 territories respectively).
As of June 2024, 631 infrastructure projects were either under construction or nearing completion. These include schools—some equipped with solar kits—and health centers in remote locations. The UNDP has also helped contract 20 organizations (18 companies and 2 NGOs) for nearly $168.2 million worth of work, creating 35,000 jobs across nine provinces, including over 10,000 for women.
An important contribution from the UNDP is a baseline study that outlines the development situation in nine provinces, highlighting areas with significant agricultural and mining potential. This study was conducted by a team led by Samba Daniel Mukoko, now Minister of the Economy.
GAB
During his speech at the United Nations General Assembly on September 25, 2024, President Félix Tshisekedi stated that the Democratic Republic of Congo (DRC) needs $32 billion in annual investment to meet the Sustainable Development Goals (SDGs) by 2030. "The Democratic Republic of Congo, which has already affirmed its commitment to ambitious climate action, stresses the crucial importance of increased financial and technical support to strengthen its efforts to achieve the goals of the Paris Agreement," he said.
Tshisekedi outlined the DRC's economic vision, highlighting its role in combating climate change. "The Democratic Republic of Congo has abundant resources, including essential minerals such as cobalt, lithium, nickel, and graphite, which can facilitate a sustainable energy transition," he noted. This declaration emphasizes the DRC's goal to turn its natural resource exploitation into a means for sustainable and inclusive development.
The fight against climate change is central to Tshisekedi's vision for the DRC. As part of the Congo Basin forest, the country aims to be a key player in biodiversity preservation and promoting a green economy. He mentioned national initiatives to cut greenhouse gas emissions in agriculture and energy and emphasized the importance of the Trilateral Alliance for Cooperation on Tropical Forests.
However, Tshisekedi acknowledged that instability in eastern DRC hinders these ambitions. He pointed to the "aggression of the M23 group," which has led to significant population displacement. "The resurgence of the M23 terrorist group, supported by Rwanda, has caused an unprecedented humanitarian crisis, with nearly 7 million internally displaced people. This aggression constitutes a major violation of our national sovereignty."
Tshiseked asked the international community to condemn these actions and impose sanctions against Rwanda for its alleged involvement in the conflict. He also addressed the long-term effects of "genocide for economic gain" (Genocost) in the DRC and stressed the need for recognition and justice for victims. He affirmed that security is essential for sustainable economic development and reiterated the DRC's commitment to implementing the Disarmament, Demobilization, Community Rehabilitation and Stabilization Program (P-DDRCS).
Through this speech, Tshisekedi expressed the DRC's aspirations to play a significant role internationally, especially in energy transition and climate change efforts. Internally, this is reflected in government policies aligned with these objectives. In addition to participating in annual meetings, he and his teams continue to engage with various stakeholders.
Georges Auréole Bamba
Augustin Kibassa Maliba, Minister of Telecommunications and Digital Technologies of the Democratic Republic of Congo (DRC), is also in New York, US, for the ongoing 79th UN General Assembly. On the sidelines of the event, Maliba said he will explore innovative solutions for digital cooperation with various government partners and international organizations at Google's office in Manhattan.
The Congolese official also said he will promote investment opportunities in the DRC's digital sector. Minister Maliba will participate in a bilateral meeting between Congolese President Félix Tshisekedi and Polish President Andrzej Duda at the Polish consulate in New York.
Digital technology is a key part of the DRC’s economic diversification strategy. Under this strategy, the Congolese government plans to improve broadband connectivity, enhance digital inclusion, transform public services, and attract international investors in high-value digital products and services.
Minister Maliba's trip to the U.S. follows his recent visit to China, where he presented business opportunities in the Congolese digital sector to potential investors. The national digital plan aims to "use the digital sector as a lever for integration, good governance, economic growth, and social progress." The DRC needs expertise and funding to achieve this. The talks in New York could help the country in this regard.
Muriel Edjo
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Cobalt prices hit their lowest level since January 2016 last week, according to Fastmarkets. On September 19, 2024, cobalt was trading between $22,046.2 and $26,014.5 per tonne, continuing a downward trend started over two years. This decline is primarily due to an oversupply from the Democratic Republic of Congo (DRC), the world's leading cobalt producer.
The Cobalt Institute reported that global cobalt supply reached 210,000 tonnes in 2023 and is expected to rise to 245,000 tonnes this year. Congolese production is projected at around 140,000 tonnes in 2023, a 21% increase from the previous year, largely driven by the Chinese company CMOC, which operates the Kisanfu and Tenke Fungurume mines and reported a 178% increase in cobalt production in the first half of 2024.
Global demand for cobalt was 197,000 tonnes last year and is expected to grow to 237,000 tonnes in 2024. No price increases are anticipated in the short term due to demand not exceeding supply. Earlier this year, the DRC considered implementing export quotas to help stabilize prices, as falling cobalt prices directly impact its economy.
In a July 2024 report, the IMF warned that declining cobalt prices "are likely to weigh further on the country's external position" in 2024. This could lower the DRC’s export revenues, reduce foreign currency reserves, and complicate import financing. Current prices, however, remain above the IMF's projected $21,305.4 per tonne for 2024.
Despite the price drop, the long-term outlook for cobalt is positive due to the global energy transition and expected growth in electric vehicle production. The International Energy Agency predicts that global demand for cobalt will double by 2030, reaching 410,000 tonnes.
Emiliano Tossou, Ecofin Agency
Last Friday, the Congolese government approved two projects to boost tourism in the Democratic Republic of Congo (DRC). Both projects were drawn by the Ministry of Tourism. One involves a partnership with the Italian soccer club AC Milan. The other involves creating tourist villages.
Tourism Minister Didier M'Pambia Musanga said the project with AC Milan will leverage the club’s global presence to market the DRC as a top tourist destination. Concretely, an international marketing campaign aligning the DRC's image with AC Milan’s will be carried out to attract tourists interested in nature and culture.
Last July, Minister M’Pambia was in Italy. During his stay, a memorandum of understanding with AC Milan’s management. Financial details were not disclosed. AC Milan is a strategic choice given its fame. The club has nearly 500 million fans across Europe, Asia, and America, all key tourism markets.
Besides the partnership with AC Milan, the Congolese government approved plans to create tourist villages. These villages aim to enhance tourism by connecting urban and rural areas while preserving local cultures. Commenting on the project, Minister M'Pambia said it would help maintain traditions and create sustainable jobs in rural communities.
Earlier this month, the DRC approved its national tourism policy, which outlines four main goals to achieve by 2030: developing partnerships, promoting sustainable tourism, diversifying tourism offerings, and strengthening institutional capacities. The plan aims to generate $7 billion in annual foreign exchange earnings and create between 200,000 and 500,000 jobs in the sector by 2030.
This strategy aligns with recommendations from the African Development Bank (AfDB), which highlighted the importance of promoting ecotourism to leverage the DRC's rich natural resources. The AfDB points out that events like the centenary celebrations for Virunga Park in 2025 present excellent opportunities to showcase this natural wealth and strengthen the DRC's position in ecotourism.
Tourism contributes about 5% of the DRC’s GDP, compared to 10% in neighboring Tanzania.
Olivier de Souza
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
On September 16, 2024, the World Bank announced a $200 million funding commitment for climate risk prevention and management in the Democratic Republic of Congo (DRC). This financing was yielded by a 2022 partnership agreement to help the country fight climate better. The deal is valid until 2026.
According to the Congolese Ministry of Interior, the funds will be managed by the World Bank and used to support the country's National Adaptation Plan (PNA). This plan includes installing early warning systems to prevent future disasters and rebuilding damaged infrastructure.
World Bank Country Director Albert Zeufack emphasized the need for preventive investments, noting that the DRC faces increasing risks from climate hazards like flooding, soil erosion, and drought. In late 2023 and early 2024, extreme rainfall affected 18 of the 26 provinces, leading to record levels of the Congo River. UNICEF reported over 300 deaths and two million displaced people due to floods that destroyed nearly 100,000 homes, 1,325 schools, and 267 health centers.
However, the $200 million from the World Bank may not be enough for the DRC to effectively address climate risks. The country ranks fifth globally in exposure to climate change and has very low adaptive capacity. To meet its goal of reducing greenhouse gas emissions by 21% by 2030, the DRC can only fund 2% of what is needed; the rest relies on external support.
Overall, Africa needs $331 billion for adaptation measures by 2030, according to the State and Trends in Adaptation in Africa Report 2021 How Adaptation Can Make Africa Safer, Greener and More Prosperous in a Warming World.
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