ABOUT DEMOCRATIC REPUBLIC OF THE CONGO (DRC)

Amongst all the countries in the African continent, the Democratic Republic of the Congo (DRC) is the second-largest country in the region by area, only smaller than Algeria, and the fourth-biggest country in the African region in terms of population. The capital of DRC is Kinshasa, which is the highest populated city in the country and one of the largest in Africa. According to the report of the World Bank, the DRC has been classified as a Low-Income Economy. The official currency of the DRC is the Congolese Franc (CDF), though the US Dollar is also widely used for large transactions. The population of the DRC is approximately 10.2 crores as of 2023. The neighboring countries of the DRC are Republic of the Congo, Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia, and Angola. The most commonly spoken language in the country is French, which is the official language, along with four national languages: Kikongo, Lingala, Swahili, and Tshiluba. The majority of the Congolese population practices Christianity (primarily Catholic and Protestant), but other religions and traditional beliefs are also followed. The DRC has a small coastline on the Atlantic Ocean and numerous airports, though international air travel primarily goes through N’Djamena, Kinshasa, and Lubumbashi. Due to its vast size and access to the Atlantic, the DRC has a few commercial river ports and one seaport at Matadi, which fulfil the trade requirements of the country.

The Corporate Income Tax (CIT) rate is generally 30% of taxable profit. A minimum corporate tax of 1% of the annual turnover is also applied. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in the DRC has to be done with utmost care, keeping in mind the laws of the country. The DRC is a member of the Organization for the Harmonization of Business Law in Africa (OHADA), which provides a modern and harmonized legal framework. A foreign investor who is planning to start his business in the DRC can form many different company types, such as a Limited Liability Company (SARL), a Public Limited Company (SA), or a Simplified Joint-Stock Company (SAS). A Limited Liability Company (SARL) formed and registered under OHADA law allows foreign investors to own 100% of the company in most sectors.

In case an investor is planning to establish a Limited Liability Company (SARL) or a corporation business setup in the DRC, Opesh Group will be helping you in taking the right decision for setting up your business and we will also guide you on how to follow the procedure while formulating your company.

Types of Business which can be started in DRC:

• Mining: DRC holds the world’s largest reserves of cobalt and substantial reserves of copper, gold, diamonds, tin, and coltan. This sector is the primary driver of the economy and offers vast opportunities in exploration, extraction, processing, and supplying equipment and services.
• Renewable Energy/Hydroelectricity: DRC possesses the largest hydroelectric power potential in Africa, notably the Grand Inga site. Investment is critically needed in developing this potential to provide power for the country and export to the continent. Opportunities also exist in solar energy solutions.
• Agriculture & Agro-Processing: The DRC has over 80 million hectares of arable land, with only a small fraction currently under cultivation. Investment is needed in commercial farming, food processing (e.g., cassava, maize, rice, coffee, cocoa), and agro-industrial parks to reduce the country’s dependence on food imports.
• Infrastructure & Construction: Years of conflict and underinvestment have left a major deficit in infrastructure (roads, rail, ports, housing). This creates massive opportunities for construction and civil engineering companies, especially in public-private partnerships (PPP).
• Forestry: The DRC contains the second-largest rainforest in the world (the Congo Basin). Sustainable forestry, timber processing, and wood transformation industries (plywood, furniture) present opportunities.
• Information & Communication Technologies (ICT): The country has low internet and mobile penetration outside major cities. Investment in expanding fiber optic networks, mobile infrastructure, and developing digital services (e-commerce, fintech, mobile money) is a booming market.

Advantages of Starting Business in DRC:

• Immense Natural Resources: The DRC is arguably the most resource-rich country in the world, with minerals vital for the global energy transition (cobalt, lithium, copper).
• Vast Untapped Market: With a huge and rapidly growing population, and many sectors (like agriculture, energy, and services) underdeveloped, the DRC offers an untapped market with high potential for growth and low initial competition.
• Strategic Central Location: Its central location in Africa provides access to multiple regional economic blocs (SADC, COMESA), making it a potential regional trade hub.
• OHADA Membership: Being part of the OHADA framework offers a harmonized, stable, and modern business law system, which reduces legal complexity for foreign investors.
• Favorable Investment Incentives: The government offers incentives under the Investment Code, including tax breaks and customs duty exemptions for investments in priority sectors and Special Economic Zones (SEZs).

Business Opportunities for Indians in DRC:

The DRC offers significant opportunities for Indian investors, particularly given India’s expertise in sectors that align with the DRC’s needs. Indian companies can capitalize on the demand for large-scale infrastructure, mining services, and pharmaceutical/FMCG products.

• Mining Services and Equipment: Indian expertise in providing mining equipment, technology, and services (drilling, geological surveying, logistics) is highly sought after to support the massive mineral extraction industry.
• Imports & Exports: The DRC is a large importer of various goods.
  • Major items which are exported from DRC to India (Directly and Indirectly): Copper, Cobalt, Diamonds, Gold.
  • Major items which are imported in DRC from India: Pharmaceutical goods (a strong Indian sector), Iron or Steel Products, Machinery and Mechanical Appliances, Rice, and Textiles.
• Manufacturing (Import Substitution): Opportunities exist to set up local manufacturing plants for items currently imported, such as pharmaceuticals, construction materials (cement, steel structures), and consumer goods (FMCG).
• Power and Energy Projects: Indian companies can invest in and execute hydroelectric and solar power projects to address the massive electricity deficit.
• Infrastructure: Indian construction and engineering firms can bid for large-scale projects in road, rail, and urban infrastructure development.

Major Indian companies which are currently working in DRC include those in the mining, telecommunications, and trading sectors.

Congo (DRC) – 2027 Economic Projection

• GDP: ~$88.2 billion

• GDP Growth: ~6.2% annually (assumed constant)

• GDP per Capita: ~$902

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