The Congolese government has ordered four ferries to enhance its river transport services. Transport Minister Jean-Pierre Bemba announced the order last Wednesday, in an interview with the local channel Top Congo FM. He said the boats are being built, without indicating when they will be delivered. 

"Four new boats will be coming out. They cost $250,000 each and can carry between 150, 180, and 300 people," Bemba said, stressing that the investment would be sustained, as the goal is to have a 100-boat fleet. 

The purchase is part of recent government reforms to improve river transport and reduce the frequency of shipwrecks in the DR Congo. Indeed, shipwrecks have been on the rise in the country. The reasons include mainly using makeshift vessels, overloading, and the absence of stringent regulations. 

The country’s river transport sector is officially managed by Société Congolaise des Transports et Ports (SCTP), also known as Office National des Transports (ONATRA). However, the sector is dominated by private operators, because the ONATRA has a small fleet.

Besides expanding the ferry fleet, the Ministry of Transport spearheads a crackdown on substandard boats–especially boats practicing overloading or with no passenger lifejackets. "There is also the dredging and beaconing of the Congo River that needs to be done," said Jean-Pierre Bemba, without providing further specifics.

Last September, the government inked a memorandum of understanding with China Harbour Engineering Company (CHEC) to modernize river transport. This agreement includes in-depth studies initiated in October to assess the necessary work for modernizing and developing this sector; however, it remains unclear whether current measures are directly influenced by these studies.

The initiative to enhance river transport comes amid ongoing challenges related to safety and infrastructure. The DRC has faced numerous incidents involving poorly maintained and overloaded vessels, leading to fatal accidents. The government's commitment to improving safety standards and expanding its fleet aims to address these pressing issues while facilitating better connectivity across its vast waterways.

This article was initially published in French, by Henoc Dossa (Ecofin Agency).

Edited by: Ola Schad Akinocho

The prices of necessities sold in the Democratic Republic of Congo (DRC) will be reduced on December 10, 2024. The importers of the Fédération des Entreprises du Congo (the employers' association) disclosed the measure on December 5, just after meeting with the Minister of National Economy, Daniel Mukoko. 

This price reduction follows numerous discussions with the government and is backed by a decree signed by Prime Minister Judith Suminwa on September 19. The decree suspends VAT collection on essential items such as meat, poultry, fish, milk powder, rice, corn, and sugar. It also abolishes customs duties and other administrative levies on maize and maize flour while reducing these levies for other products from 25% to 50%. This scheme will remain in effect until the end of 2025. Minister Mukoko Samba assured that "the reforms undertaken will continue and some will be perpetuated."

As part of the current reform efforts, the government plans to identify and list existing stocks of goods and calculate outstanding VAT and other taxes already paid to convert them into tax credits for future imports. The government has also pledged to assist importers in identifying opportunities to reduce costs. "The battle for purchasing power is not won in a single day; it is won over time," said Mukoko.

Regarding their stocks, importers have assured that they have sufficient stocks to avoid any supply disruptions, with at least three months' worth stored in warehouses across Kinshasa, Lubumbashi, Goma, Mbuji-Mayi, and Kananga, as explained by John Mwenda, Managing Director of Cowbell.

Favorable International Climate

It is worth noting that the Congolese government has been striving to lower the rising cost of living in the country. Other efforts include ensuring a continuous and reliable food supply while boosting local production. The government’s efforts may be fostered by a favorable global environment next year. 

Indeed, global prices for several products are expected to decline in 2025. This does not include corn, which is projected to cost slightly more. Freight costs, by sea, are also anticipated to decrease by up to 70%, aided by lower global fuel prices and potentially reduced demand due to ongoing trade tensions between Europe, China, and the United States.

The dollar could also weaken due to declining global demand and shifting economic relations among BRICS countries (Brazil, Russia, India, China, South Africa), which are gradually moving away from US influence.

Still, DR Congo has many issues that contribute to the high cost of living problem. These include an infrastructure network that requires improvement, unpredictable trade facilitation costs (such as transport and control barriers), and a complex parafiscal levy system that accounts for nearly 25% of the price of goods arriving at warehouses.

In addition, the government has decided to exclude foreigners from small-scale distribution in favor of local players. While this measure may strengthen local businesses in the long term, it could also increase operating costs and influence prices in a context where regulatory controls may become more challenging.

Overall, as Tradex prepares for its entry into the DRC market amidst these developments, it faces both opportunities and significant logistical challenges that will require careful navigation to ensure successful operations in this complex environment.

This article was initially published in French by Georges Auréole Bamba.

Edited by: Ola Schad Akinocho

A mystery disease has killed 92 people, mostly children under 15, in the Democratic Republic of Congo (DRC) since October 24, 2024. According to the Congolese Ministry of Health, which reported 376 cases, the disease is concentrated in the Panzi region, about 700 km southeast of Kinshasa, the capital. The undiagnosed illness shares symptoms with the flu, including fever, headache, runny nose, cough, difficulty breathing, and anemia. 

Health Minister Samuel Roger Kamba told the press on December 5 that the illness has a mortality rate of 8%, which means it is unlikely to be Covid. However, he said the Ministry is on “maximum alert” and has dispatched a team to the affected area.  

The team regroups agents from the Institut national de la santé publique (INSP) and the Centre des opérations d'urgence de la santé publique (COUSP). They manage reported cases, collect samples for laboratory analysis, and conduct field investigations to diagnose the illness. The World Health Organization (WHO) has also sent a team to assist with laboratory investigations.

Fighting the new disease will put more pressure on DR Congo which already deals with Mpox. According to the WHO, the latter might have already claimed 1,000 lives, out of over 47,000 reported cases.

Both crises will strain the country’s public finances like Covid did a few years ago. Indeed, the pandemic had caused DR Congo’s health spending to explode by 1,348%.

The situation could also stress DR Congo’s foreign currency reserves, as most equipment, medicines, and vaccines to tackle epidemics are imported. To facilitate foreign purchases, countries must possess currency accepted in the purchasing territory—usually obtained through exporting goods or services or through borrowing.

Congolese health authorities are currently focused on identifying the source of the mystery illness, to see if it is viral or bacterial. According to Dieudonne Mwamba, director general of the National Public Health Institute.

In the meantime, the Health Ministry warned people in the affected area to avoid large gatherings and maintain healthy hygiene practices. They were also urged to report suspected cases to local health authorities. 

As health officials remain on high alert regarding both outbreaks, they emphasize the need for rigorous hygiene practices and community cooperation to manage the public health threats, effectively.

This article was initially published in French by Pierre Mukoko.

Edited by: Ola Schad Akinocho

China has banned the export of several critical minerals to the US. Announced and implemented on December 3, the move covers minerals like gallium and germanium. It is a response to U.S. restrictions on technology sales to China. This is good news for the Democratic Republic of Congo (DRC), which could position itself as a rival of China as a germanium supplier.

The DRC aims to supply 30% of the global germanium demand, according to Gécamines, the State-owned mining company leading this effort. In a July 2023 interview with Reuters, Gécamines President Guy Robert Lukama said Chinese restrictions present opportunities for the DRC. China's earlier measures had already disrupted supplies of critical minerals such as germanium. 

“The move by China will create some scarcity in the market, which means that our germanium which is not yet committed could have more value [...]There are no customers yet, but there is interest, it's been there since we started the project and we are quite sure that we will get more interest on our germanium shortly.”

In May 2024, Gécamines announced a partnership with Belgium's Umicore to process germanium from the "Big Hill" tailings site in Lubumbashi. The first germanium concentrate exports to Belgium started in October 2024. Increased disruptions from Beijing's recent measures may help Gécamines attract more customers and encourage investment in other Congolese tailings sites. 

The Lubumbashi hydrometallurgical plant, which has an annual production capacity of 30 tonnes of germanium, was built with a $75 million investment and is expected to be completed in 2023. In addition to germanium, the plant will produce zinc oxide, copper, and cobalt.

Emiliano Tossou