Sunday, June 23

Democratic Republic of Congo

DRC Congo, Banks in Congo, Cobalt in Congo
  • DRC’s economy is rising with real GDP growth at 8.9 percent in 2022 and projected to 6.8 percent in 2023.
  • Macroeconomic imbalances have, however, emerged piling inflationary pressures.
  • The roiling conflict in the East and upcoming elections complicate macroeconomic management.

The International Monetary Fund (IMF) has outlined a number of tough measures for war-tone DRC as it seeks $200 million financing. The funds are part of the country’s Special Drawing Rights (SDR), the supplementary forex reserves maintained by the IMF. They are units of account for the IMF, and not a currency per se. What’s more, they represent a claim to currency held by IMF member countries and DR Congo can access about $200 million.

An IMF team led by Mercedes Vera Martin met with the authorities in Kinshasa between April 19–May 3. This was on the fourth review of the three-year arrangement under DRC’s Extended Credit Facility (ECF).

Macroeconomic

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  • Analysts have termed Central Africa as a sleeping Giant, yet to awaken as the region recorded the least funding for startups in 2022. 
  • In 2022, Central Africa was by far the region where start-ups raised the least funding through deals worth $100,000 and over with a total of $51 million according to the latest report by The Big Deal. 
  • While the region represented only 1.1 percent of the funding raised on the continent, Year on Year growth was commendable, as start-ups raised more than double the amount that had been raised in 2021 ($24 million). 

Analysts have termed Central Africa a sleeping giant, yet to awaken as the region recorded the least funding for startups in 2022. 

Max Cuvellier from The Big Deal says there is a huge potential in the region despite the depressed numbers. 

“This is not to say that there isn’t talent or potential in the DRC,

Energy Resources across Africa.Source Research Gate Oghomwen Igbinovia

As Africa’s role in the global economy continues to garner prominence, it’s imperative for the continent to seal the gaping hole in its power supply.

Lack of universal power access remains a major roadblock that has retrogressed industrialization and socio-economic development. Statistics from the World Bank indicate that Africa remains the least electrified region in the world, with 568 million people lacking access to electricity.

The Bretton Woods institution, further notes that the Sub-Saharan Africa’s share of the global population without electricity, jumped to 77 per cent in 2020 from 71 per cent in 2018, whilst most regions saw declines in their share of access deficits. It has become a Hobson’s choice for African governments to prioritize the power sector, which is the epicenter of industrialization, working towards Goal 7 of the UN SDGs; which advocates for universal access to affordable, reliable and modern electricity services.

Currently, Africa’s power is …

Let’s market East Africa as a single investment destination- EABC Pic

The opportunities for trade in the DRC are huge for the EAC—the value of goods the country imported in 2019 stood at US$6.6 billion.  EAC exports to the DRC in 2018 stood at US$855.4 million, representing 11.5 % of total DRC imports while China dominated as the top exporter with a 31.2% share. 

In June 2019, through a letter to the EAC Chairman, Congo officially made a request for its admission into the EAC.  This is obviously because the country wants to reap from the benefits presented by the bloc as it has tremendously expanded in the past two decades, growing from the original three partner states which are Kenya Uganda and Tanzania to its present six member states. 

 …

Dutch FMO makes its first investment in Democratic Republic of Congo’s financial sector

The financial sector in the Democratic Republic of Congo (DRC) has not been one of the most sought after in the continent. The DRC has 18 banks, five of which are local, four pan-African and nine foreign. The DRC’s ratio of bank assets to GDP at 7% lags regional peers, while only 7% of the population holds a bank account.

Similar to steps taken in markets such as Zambia and Ghana, the Central Bank of Congo (BCC) has directed that all banks must raise their minimum capital to $50 million by the end of 2020. Banks have a number of options, to sell and exit, to merge, to raise capital or to step down the regulatory hierarchy to be a non-bank lender or microfinance institution.

It is such a move that is seeing foreign banks seeking new partnerships and ventures to help them remain in business.

Dutch entrepreneurial development bank …

Uganda, DRC settle on trade and roads deal

Uganda and the Democratic Republic of Congo (DRC) plan to jointly construct 1,200 kilometres of roads.

Uganda’s President Yoweri Museveni and DRC President Felix Tshisekedi signed the agreement at the first Joint Business Forum held at the Speke Resort Munyonyo in Kampala. The aim of the forum was to promote bilateral trade, investment and connectivity between the two countries.

The project is set to ease the movement of goods and people, bilateral trade and investment between the two countries.

The project includes 24 kilometres Bunagana-Goma road up to Rutshuru in DRC, a 180 kilometres road from Goli in northern Uganda to Beni and 977 kilometres road from Mpondwe border post in western Uganda to Beni in DRC.

Also Read: DRC tops informal trade scale with Rwanda

Official trade data cited by Uganda’s Foreign Affairs Minister Sam Kutesa during the forum launch showed that DR Congo is one of the key …

How D.R. Congo will change its road network using nanotechnology

Australian Nanotech, a subsidiary of Canadian road technology company NTI Nanotech Corp., has announced that it has signed a $1.6 billion contract to construct 3,200 kilometres of roads in D.R. Congo using their proprietary green nanotechnology.

The emerging technology has been deployed around the world in several countries for the past ten years and has proven to be cost-effective, environmentally beneficial and better quality than typical alternatives.

The Province Mai-Ndombe will be one of the first regions of Sub-Saharan Africa to use this disruptive technology. 

“We are very excited to proceed with AusNanotech. Not only have they brought to us a product that is environmentally superior, they exceed required standards and for a better price,” said Mr. Paul Mputu Boleilanga, the Province’s Governor, adding Additionally the company has shown a tenacity to our country and a dedication to conducting business that benefits the citizens of my Province and the …

KCB eyes DRC and Ethiopia for regional expansion

Kenya Commercial Bank (KCB ) plans to venture into Ethiopia and the Democratic Republic of Congo (DRC) as it seeks to grow its regional footprint.

The bank is looking at additional markets for expansion while it awaits a licence to operate in Ethiopia, where it already has a representative office that was opened in 2015.

“We are talking about two markets in trying to scale up our businesses so the market we are looking at is Congo and Ethiopia because they are very much aligned to our business,” said Joshua Oigara chief executive.

“For us, there is a chance to really grow our business to reach the psychological height of Sh1 trillion of balance sheet size which is a strong size,” he added

Mr Oigara did not provide a timeline for when the bank will enter DRC. The bank also operates in Uganda, Tanzania, Rwanda, Burundi and South Sudan. (…

How Aga Khan and UK are building renewable energy in East and Central Africa

UK’s Department for International Development (DFID) run and managed CDC, the mission is to support the building of businesses throughout Africa and South Asia, to create jobs, and to make a lasting difference to people’s lives in some of the world’s poorest places.

The public limited company has been working with various entities in the continent to develop structures for harnessing renewable energy in East Africa. This has been necessitated by the rising energy needs in the region as well as need for cleaner green energy worldwide.

In 2017, CDC invested in a joint venture alongside the Aga Khan Fund for Economic Development (AKFED) and Industrial Promotion Services (IPS) to develop and finance power projects in sub-Saharan Africa, mobilizing project funding of over US$ 1billion.

The platform’s flagship development project is the creation of the 147 MW Ruzizi III hydropower project to be located in the Great Lakes region (Rwanda, …

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