VZCZCXRO9099
RR RUEHDU RUEHJO RUEHMR
DE RUEHKI #0439/01 0740935
ZNR UUUUU ZZH
R 150935Z MAR 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 3410
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUCPCIM/CIMS NTDB WASHDC
RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

UNCLAS SECTION 01 OF 09 KINSHASA 000439 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA 
TREASURY FOR LKOHLER 
USDOC FOR ITA/SMATHEWS 
STATE PASS OPIC FOR ZHAN 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ETRD ECON ELAB KTDB OPIC PGOV
CG, Investment 
SUBJECT: DRC: 2006 INVESTMENT CLIMATE STATEMENT 
 
REF:  05 STATE 201904 
 
¶1. Summary: In the almost three years since the Global 
and Inclusive Accord was implemented with the 
installation of a transitional government, the 
Democratic Republic of the Congo (DRC) has done much to 
improve the country's investment climate.  While there 
is still much more to do, the pacification and 
reunification of the country has led to greater 
political and economic stability that is encouraging 
foreign investment in the DRC.  This in turn is spurring 
the Congolese authorities to normalize DRC regulatory 
practices in compliance with international norms.  End 
summary. 
 
------------------ 
Background/Context 
------------------ 
 
¶2. The DRC has made significant political and economic 
advances during its transition.  The DRC is now 
preparing for elections, following the approval of a new 
constitution in a December 2005 national referendum. 
This period of relative political and economic stability 
has led to steady improvement in the country's 
investment climate. 
 
¶3.  The government of the Democratic Republic of the 
Congo (GDRC) has capitalized on the country's increased 
political stability to maintain and improve the 
country's macroeconomic environment.  Despite the return 
to double-digit inflation at the end of 2004 and the 
first half of 2005, overall inflation for 2005 was 21 
percent, with little or no inflation during the second 
half of the year.  At 430 Congo francs (CF) per USD, the 
Congo franc was stronger at year-end than had been 
projected for 2005 (488 CF/USD), and it remains stable, 
with the Congolese franc even appreciating slightly 
against the dollar.  New Customs and Forestry Codes were 
promulgated in 2005 and are now being implemented.  The 
GDRC is taking steps to reform its public enterprises 
and administrative agencies in line with IMF 
conditionalities. 
 
¶4.  The implementation of these reforms, however, still 
requires additional time, effort, and dedication from 
transitional government authorities, who are now 
focusing on upcoming legislative, local, and 
presidential elections, due to take place in the first 
half of 2006.  The Congolese justice sector is 
extraordinarily weak.  The structure of the current 
transitional government (a president and four vice 
presidents representing different factions) is 
inefficient and ineffective, but will end with the 
installation of a democratically elected government in 
¶2006.  Public enterprises and state revenue-collecting 
agencies were apportioned to various groupings in the 
transitional government in accordance with the power- 
sharing arrangements governing the transition.  Many of 
these institutions are riddled by corruption involving 
the collection and expenditure of funds that should go 
into the national treasury. 
 
 
------------------------------ 
Openness to Foreign Investment 
------------------------------ 
 
¶5.  The DRC seeks to attract foreign investors in order 
to boost production and increase economic growth.  To 
overcome previous hurdles and to simplify and facilitate 
investment, the GDRC has created a one-stop agency 
called the National Agency for Investment Promotion 
(ANAPI).  This agency is using provisions of the new 
Investment Code to simplify new investments and to make 
the procedure more transparent. 
 
¶6.  Congolese investment regulations, both in the 
official Investment Code and in practice at ANAPI, do 
not discriminate against foreign investors, except in 
some specific cases dealing with labor and related 
taxes.  For example, under the terms of the U.S.-DRC 
Bilateral Investment Treaty (BIT), a U.S. investor must 
pay an additional tax on any non-Congolese staff holding 
 
KINSHASA 00000439  002 OF 009 
 
 
management positions.  All businesses in the DRC face 
multiple, burdensome, and sometimes fictitious taxation. 
 
¶7.  There are no formal limits or screening mechanisms 
imposed upon foreign ownership of businesses in the DRC. 
In some sectors, however, foreign investors must compete 
for exclusive rights to what are considered finite 
resources, such as mineral ores and telecommunications 
bandwidth.  The granting of permits and licenses in 
these lucrative sectors often suffers from 
arbitrariness, lack of transparency, and corruption. 
 
¶8.  The World Bank (WB) and the International Maritime 
Organization (IMO) have helped the DRC to improve the 
movement of goods.  With the assistance of the WB, the 
GDRC is improving border clearance procedures for 
imports and exports by the creation of the "guichet 
unique" - a one-stop customs and duties approach. 
Security upgrades in compliance with the International 
Port Security (ISPS) Code, as required by the IMO and 
monitored by the U.S. Coast Guard, have improved the 
security at the main maritime ports in the country, in 
and around Matadi, but operations remain very 
inefficient.  A similar project is underway at the 
principal overland border post at Kasumbalesa, on the 
border with Zambia in the south. 
 
¶9.  GDRC administration of the minerals sector, with the 
new Mining Code in place and through the work of the 
Mining Registry or "Cadastre Minier" (CAMI), appears to 
have improved.  The new mining code is being implemented 
according to plan, and both longtime and new mining 
investors appear to be complying with it.  Full and fair 
application of the code, however, has yet to be 
achieved. 
 
¶10.  All investors in the DRC suffer from multiple 
audits by various government enforcement agencies 
seeking evidence of violations of tax laws or price 
controls.  Foreigners and Congolese alike suffer the 
consequences of nonfunctional judicial institutions. 
Current efforts to reform public administration and the 
judiciary should bring improvement. 
 
-------------------------------- 
Conversion and Transfer Policies 
-------------------------------- 
 
¶11.  The DRC has adopted a freely floating exchange 
policy for its currency to support the liberal economic 
policy it began implementing in 2001.  The DRC has 
lifted restrictions on business transactions throughout 
its territory.  International transfers of funds take 
place freely when transacted through a local commercial 
bank.  The bank declaration requirement and payments for 
international transfers now take less than one week to 
complete, on average. 
 
¶12.  The Congolese franc has benefited from the 
political and economic advances in the country.  It has 
remained relatively stable for over three years, and the 
currency exchange rate has been virtually harmonized 
throughout the country on both the formal and parallel 
markets, ending previous de facto separate monetary 
zones within the country. 
 
¶13.  The IMF and the WB are assisting the Congolese 
Central Bank (BCC) with its monetary and fiscal 
policies.  The BCC has been successful recently in 
controlling inflation.  The largest banknote in 
circulation currently is the 500 Congo franc note, but 
it is expected that larger denominations (1000 Congo 
francs and 5000 Congo francs) will be put into 
circulation after the new government takes office in mid- 
¶2006.  The only currency restriction imposed on 
travelers is a USD 10,000 limit on the amount an 
individual can carry when entering or leaving the DRC. 
 
------------------------------ 
Expropriation and Compensation 
------------------------------ 
 
¶14.  There have been no expropriatory actions in the 
recent past.  Post is aware of seven existing claims 
 
KINSHASA 00000439  003 OF 009 
 
 
that date from 1991 to 2002, most of which have been 
taken to arbitration (see Dispute Settlement section 
below).  Arbitration judgments against the GDRC, 
however, have not been paid in a timely manner, if at 
all.  The GDRC has no tendency to discriminate against 
U.S. investment, companies, or representatives.  There 
are no laws forcing local ownership, although 
parastatals in the petroleum and mining sectors maintain 
minority shares of most foreign-owned projects. 
 
------------------ 
Dispute Settlement 
------------------ 
 
¶15.  The U.S.-DRC Bilateral Investment Treaty (BIT) 
provides for International Center for Settlement of 
Investment Disputes (ICSID) conciliation or binding 
arbitration in the case of investment disputes. A number 
of U.S. firms pursued claims against the GDRC for 
damages resulting from civil disturbance by military 
mutinies in 1991 and 1993.  Two investors have won 
settlements from ICSID.  In early 2004, a claimant under 
the BIT won a settlement from ICSID but has not yet 
collected payment from the GDRC.  The other investor, 
who successfully collected the compensation awarded by 
ICSID, received damages in 1999. 
 
¶16.  On paper, the DRC's official policies are 
satisfactory and even attractive to business, but in 
recent years they have often been inoperative in 
practice due to problems with the judicial system. 
There is no transparent and responsible hierarchy for 
public order; courts are marked by a high degree of 
corruption; public administration is not reliable; and 
both expatriates and nationals are subject to selective 
application of a complex legal code.  Official channels 
often do not provide direct and transparent recourse in 
the event of property seizure, for which legal standing 
can rarely be determined.  Seizures have been made via 
the police and/or military, often supported by 
questionable decisions from the courts.  Foreign 
enterprises may have slightly better security of 
ownership due to the presence and intervention of their 
diplomatic missions.  Many Congolese business contracts 
provide for external arbitration, but this is an 
expensive and time-consuming option with little value 
for resolving routine, day-to-day business problems. 
 
¶17.  The GDRC's structural reform program includes the 
creation of a commercial court with jurisdiction over 
all commercial disputes.  This court, however, has not 
yet become operational. 
 
-------------------------------------- 
Performance Requirement and Incentives 
-------------------------------------- 
 
¶18.  The new DRC Investment Code is a simplified and 
improved version of its predecessor.  Performance 
requirements are not included as obstacles to foreign 
investors.  There are, however, investment conditions 
that must be agreed upon with the GDRC.  These 
conditions are discussed and agreed upon initially with 
the DRC investment agency, ANAPI (see para 5), which 
assures the same procedure for all qualified foreign 
investments.  The DRC has shortened this agreement 
procedure to approximately 30 days, and has created a 
number of incentives to attract foreign investment to 
the country. These range from tax breaks to duty 
exemptions granted for three to five years, and are 
dependent upon the location and type of enterprise, the 
number of jobs created, the extent of training and 
promotion of local staff, and the export-producing 
potential of the operation.  The Ministry of Labor 
controls expatriate residence and work permits.  For 
U.S. companies, the BIT assures the right to hire staff 
of their choice to fill some management positions, but 
the companies agree to pay a special tax on expatriate 
salaries. 
 
¶19.  Performance requirements agreed upon initially with 
ANAPI include a timeframe for the investment, the use of 
Congolese accounting procedures and periodic authorized 
GDRC audits, the protection of the environment, periodic 
 
KINSHASA 00000439  004 OF 009 
 
 
progress reports to ANAPI, and the maintenance of 
international and local norms for the provision of goods 
and services.  The investor must also agree that all 
imported equipment and capital will remain in place for 
at least five years.  There are no discriminatory or 
excessively onerous visa, residence or work permit 
requirements designed to prevent or discourage 
foreigners from investing in the DRC. 
 
¶20.  By the terms of the Investment Code, the GDRC may 
require compliance with an investment agreement within 
30 days of notification.  Continued violations of an 
agreement may result in sanctions, including repayment 
of benefits received (such as tax exemptions) and 
eventual nullification of the agreement. 
 
¶21.  In the case of a dispute between a U.S. investor 
and a GDRC agency, the investor is subject to the 
Congolese civil code and legal system.  If the parties 
cannot reach agreement, under the terms of the U.S.-DRC 
BIT the dispute is taken to the ICSID or to the Paris- 
based International Chamber of Commerce (ICC). 
 
¶22.  GDRC public administration reforms implemented 
since 2002 have allowed foreign investors to bid on 
government contracts just as domestic investors, with no 
discriminatory terms.  Foreign firms may even be favored 
in the bidding process because they are able more easily 
to access and present international insurance funding 
guarantees. 
 
-------------------------------------------- 
Right to Private Ownership and Establishment 
-------------------------------------------- 
 
¶23.  The recently approved DRC Constitution (chapter 2, 
articles 34-40) protects private ownership without 
discrimination between foreign and domestic investors. 
It also protects investments against takeover, unless 
the investment conflicts with some overriding public 
interest.  In this case, there are legal provisions for 
equitable and appropriate compensation for the parties 
involved. 
 
¶24.  The GDRC has restricted one category of small 
businesses to Congolese nationals.  This covers 
artisanal production sector activities, small public 
transport firms, small restaurants, and hotels with 
fewer than ten beds. 
 
¶25.  With the sponsorship and technical assistance of 
the WB, a tender board now works under the supervision 
of the Ministry of Budget.  Foreign investors and 
private domestic companies may bid on public/government 
contracts on an equal basis with interested public 
companies.  Normally, however, public companies and/or 
parastatals do not participate in the bidding process, 
due to the financing guarantees required beforehand. 
 
----------------------------- 
Protection of Property Rights 
----------------------------- 
 
¶26.  Despite the new DRC Constitution and attempts to 
enforce existing legal provisions, protection of 
property rights still depends upon a currently 
dysfunctional public administration and judicial system. 
Some senior-level officials are making efforts to 
restore and improve the legal and administrative 
frameworks but the challenge will be to implement these 
changes at a practical level. 
 
¶27.  Ownership interest in movable properties (e.g. 
equipment, vehicles, etc.) is secured and registered 
through the Ministry of the Interior's Office of the 
Notary.  Real estate property (e.g. buildings and land) 
is secured and registered at the Ministry of Land's 
Office of the Mortgage Registrar. 
 
¶28.  In principle, intellectual property rights are 
legally protected in the DRC.  Because of poor- 
performing administration and judicial systems, however, 
this protection does not always exist in practice.  The 
country has signed on to a number of international 
 
KINSHASA 00000439  005 OF 009 
 
 
agreements with organizations such as the World 
Intellectual Property Organization (WIPO), and the Paris 
Convention for Protection of Intellectual Properties, 
which protects trademarks and patents.  The DRC is also 
a member of the Berne Convention that protects 
copyright, artistic works, and literary rights.  The 
maximum protection that these conventions provide is 20 
years for patents and 20 years, renewable, for 
trademarks, beginning from the date of registration.  If 
it is not used within three years, a trademark can be 
cancelled.  The DRC has not yet signed the WIPO Internet 
Treaties. 
 
¶29.  The GDRC's Ministry of Industry and Small/Medium 
Enterprises is currently working on IPR-related 
legislation in order to comply with all existing 
international agreements. 
 
--------------------------------- 
Transparency of Regulatory System 
--------------------------------- 
 
¶30.  Implementing a transparent regulatory system is 
still a challenge in the DRC.  The GDRC is making some 
effort to improve the situation.  This appears to be a 
priority for the GDRC, which has made generally good 
decisions and has had appropriate legislation enacted by 
the parliament.  Implementation and compliance, however, 
are still far from securing a complete legal and 
regulatory framework for the orderly conduct of business 
and the protection of investment. 
 
¶31.  There are no formal or informal provisions by any 
private or public structure, in any business-related 
environment, used to impede foreign investment. 
Problems encountered within the GDRC tend to be 
administrative and/or bureaucratic in nature since 
reforms and improved laws and regulations are often 
poorly or unevenly applied. 
 
¶32.  Proposed laws and regulations are not published in 
draft format for public discussion and comments.  They 
are normally discussed only within the governmental or 
administrative entity that drafts them and then again at 
the parliament prior to a vote.  The Congolese public, 
as well as foreign and domestic investors, are not given 
adequate opportunity to discuss or comment on these 
proposals. 
 
¶33.  The IMF and the WB are working with the GDRC to 
bring the country into compliance with international 
business norms for accounting, legal, and regulatory 
systems.  Examples include the recently promulgated 
Customs and Forestry Codes, and the creation of a 
harmonized procedure manual for a one-stop customs 
clearance office (see para 8) soon to be functioning at 
the port of Matadi.  The GDRC recently announced its 
intention to join the Organization for the Harmonization 
of Business Law in Africa (OHADA).  This will help the 
DRC to improve its legal standards. 
 
¶34.  To attract foreign direct investment, the DRC 
continues to make efforts to provide a well-defined, 
transparent business environment.  Foreign investors are 
encouraged to contribute their industrial and business 
experience to help the GDRC set standards for investment 
and production.  The GDRC authority on business 
standards, the Congolese Office of Control (OCC), 
oversees participation by foreign businesses. 
 
--------------------------------------------- ----- 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
¶35.  The local capital market in the DRC is in recovery 
mode, but it still has a long way to go.  Efforts are 
being made to reinvigorate financial market and credit 
instruments.  Economic growth in the DRC since 2002 (6.6 
percent GDP growth in 2005) has increased the flow of 
money in the finished goods and raw materials market. 
Credit markets also are becoming more active, mainly in 
the commercial project and medium-term project sectors. 
All economic operators, foreign and domestic, have 
access to credit markets in the DRC without 
 
KINSHASA 00000439  006 OF 009 
 
 
discrimination, as long as they can provide credible 
guarantees.  Foreign investors, though, are more likely 
to benefit from this type of credit, since they are able 
to provide guarantees and collateral secured by foreign 
banks. 
 
¶36.  The commercial banking system has undergone a full 
reorganization, although there is still only one bank 
branch for each 1.5 million Congolese.  The BCC and the 
IMF are working together on a program of banking 
reforms.  Two main objectives are to restore confidence 
in the commercial banks and to promote the intermediary 
role of the banking system in the DRC.  In a country of 
nearly 60 million inhabitants, there are only 10 
commercial banks and a mere 45,000 bank accounts.  Total 
assets within the banking system amount to about USD 700 
million.  Bank credit to the economy amounted to 1.5 
percent of GDP while bank deposits were less than five 
percent of GDP in 2004. 
 
¶37.  Business practices in the DRC are still at a fairly 
rudimentary level.  Cross-shareholding and stable 
shareholding arrangements are not common in the DRC. 
There are occasional complaints about unfair competition 
between investors in profitable sectors such as mining 
and telecommunication. 
 
------------------ 
Political Violence 
------------------ 
 
¶38.  Congo has suffered bouts of civil unrest and conflict 
for many years. Large-scale military looting in 1991 and 
1993, for example, resulted in a significant loss of 
economic productive capacity. In addition, widespread 
looting and destruction associated with wars in the Congo 
from 1996-1997 and from 1998-2003 further damaged Congolese 
economic activity. The new government under President Joseph 
Kabila initiated a number of reforms after assuming power in 
January 2001, and peace accords that established a 
transitional government in June 2003 called for the 
installation of a democratically elected government by mid 
¶2006. 
 
¶39.  There have been no incidents of politically motivated 
damage to projects or installations during the transitional 
period.  The possibility of political violence exists, 
however, during the 2006 run-up to elections and in their 
immediate wake. In addition to political demonstrations, 
strikes by civil servants and teachers over salary and 
benefit issues have occurred and continue to pose a 
potential source of social upheaval.  Military and police 
personnel remain poorly paid and trained.  Censuses of civil 
servants, teachers, and military are ongoing and will likely 
upset those who profit from the existence of "ghost 
workers."  Central government control over eastern Congo is 
still incomplete, with GDRC and MONUC forces working 
together against local militia and remaining pockets of 
rebel groups. 
 
---------- 
Corruption 
---------- 
 
¶40.  U.S. businesses often complain about corruption in 
the DRC, noting that it is among their main business 
constraints.  The Mobutu regime created a culture of 
corruption in the DRC during more than 30 years of rule. 
This ingrained culture permeated the private, public, 
administrative, and business environments and has been 
difficult to root out.  The DRC was rated as the 
thirteenth most corrupt country out of 156 nations on 
Transparency International's 2005 Corruption Perception 
Index. 
 
¶41.  In principle, there are legal provisions to fight 
and sanction corruption.  The DRC is a member of the UN 
Anti-Corruption Convention and passed its own anti- 
corruption law in 2004.  Additional legislation includes 
the 2004 Money Laundering Act, under which the DRC 
cooperates with African and European crime-fighting 
organizations.  Despite these reform efforts, however, 
bribery is still routine in public and private business 
transactions, especially in the areas of government 
 
KINSHASA 00000439  007 OF 009 
 
 
procurement, dispute settlement, and taxation. 
 
¶42.  Bribery is illegal in the DRC and in principle it 
is investigated and prosecuted.  The law calls for 
imprisonment and fines for both parties to the bribery 
no matter the circumstances.  Despite numerous 
obstacles, enforcement is becoming more successful.  At 
the end of 2005, a handful of high-level staff from 
public and private sector entities were in detention 
awaiting trial for criminal acts related to the alleged 
fraudulent use of tax credits. 
 
----------------------------- 
Bilateral Investment Treaties 
----------------------------- 
 
¶43.  The United States and the DRC (then-Zaire) signed a 
Bilateral Investment Treaty (BIT) in 1984 that entered 
into force in 1989.  This treaty guarantees reciprocal 
rights and privileges to each country's investors.  The 
BIT provides for binding third-party arbitration in the 
event of an investment expropriation dispute. 
 
-------------------------------------------- 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
¶44.  The DRC is a member of the World Bank's 
Multilateral Investment Guarantee Agency (MIGA), which 
offers insurance on new foreign investments to protect 
against foreign exchange losses, expropriation, and 
civil unrest.  Recently, MIGA agreed to provide 
insurance to a mining concern in Katanga province.  The 
GDRC is negotiating now for complete resumption of the 
MIGA program, which would allow for investment insurance 
in other sectors of the economy.  The DRC is also a 
member of the African Trade Insurance Agency, which also 
provides political risk insurance. 
 
¶45.  The U.S. Overseas Private Investment Corporation 
(OPIC), which provides political risk insurance and 
project financing to U.S. investors and non-governmental 
organizations, ceased operations in the DRC for a time 
following the events of 1991.  Since the establishment 
of the transitional government in June 2003, OPIC has 
granted three political risk insurance contracts in 
2004, another in 2005, and is currently reviewing 
additional applications by American-owned companies.  In 
March 2006, the DRC signed an accord with OPIC that will 
expedite the process of obtaining political risk 
insurance and financing. 
 
¶46.  The projected annual rate of exchange for the 
purposes of the 2006 DRC national budget is 500 CF/USD. 
The average annual rate for 2005, and the current rate 
of exchange, is 435 CF/USD.   The U.S. Embassy purchases 
local Congolese currency at the official rate for 
payroll and administrative needs.  The exchange rate has 
been stable over the second half of 2005, with a slight 
appreciation of the Congo franc against the dollar. 
This rate, despite the DRC budget projection of 500 
CF/USD, can be expected to remain stable for 2006, based 
upon current macroeconomic conditions and barring a run- 
up in GDRC deficit spending. 
 
----- 
Labor 
----- 
 
¶47.  Congo's large urban population provides a ready 
pool of available labor, including a significant number 
of high school and university graduates, a few of whom 
have studied at American universities.  Employers 
cannot, however, take diplomas at face value.  Skilled 
industrial labor is in short supply and must often be 
trained by individual companies. 
 
¶48.  The GDRC sets regional minimum wages for all 
workers in private enterprise, with the highest pay 
scales applied in the cities of Kinshasa and Lubumbashi. 
Wages have not kept pace with the DRC's rate of 
inflation.  While most foreign employers pay higher 
wages than the official minimum, the average Congolese 
worker has had to cope with falling real wages for over 
 
KINSHASA 00000439  008 OF 009 
 
 
a decade. 
 
¶49.  The country's labor legislation was modified by the 
October 2002 Labor Code, which is in compliance with the 
conventions and recommendations of the International 
Labor Organization.  The code provides for tight control 
of labor practices and regulates recruitment, contracts, 
the employment of women and children, and general 
working conditions.  Strict labor laws can make 
termination of employees difficult.  The code also 
provides for equal pay for equal work without regard to 
origin, sex, or age.  The new code formally permits a 
woman to gain employment outside of her home without her 
husband's permission. 
 
¶50.  Employers must cover medical and accident expenses. 
Larger firms are required to have medical staff and 
facilities on site, with the requirements increasing 
with the number of employees.  Mandated medical benefits 
are a major cost for most firms.  Employers are 
obligated to provide family allowances based on the 
number of children, as well as paid holidays and annual 
vacations, based upon the years of service.  Employers 
must provide daily transportation for their workers or 
pay an allowance in areas served by public 
transportation.  Outside the major cities, large 
companies often assist by providing infrastructure 
including roads, schools, and hospitals. 
 
¶51.  Many labor regulations have been only sporadically 
enforced in recent years, due to the economic crisis and 
administrative corruption.  Large layoffs, however, 
generally lead to labor disputes that can cause serious 
bureaucratic difficulties for the employer.  The 
Ministry of Labor must grant permission for staff 
reductions.  Generous pension and severance packages are 
required by the labor code. 
 
-------------------------------- 
Foreign Trade Zones / Free Ports 
-------------------------------- 
 
¶52.  The DRC does not take part in any free trade zones 
or have any free ports.  The DRC is a member of the 
Southern African Development Community (SADC) and the 
Common Market of Eastern and Southern Africa (COMESA), 
but does not yet participate in the COMESA free trade 
area. 
 
------------------------------------- 
Foreign Direct Investments Statistics 
------------------------------------- 
 
¶53.  Obtaining reliable statistical data on foreign 
direct investment (FDI) is still a challenge in the DRC. 
There are two available sources -- the BCC and the 
National Agency for Investment Promotion (ANAPI). 
 
¶54.  BCC statistics are based on funds reported to the 
bank from actual investment projects underway, and are 
more accurate than those of ANAPI.  These figures, 
however, may not capture all FDI flowing in to the DRC, 
therefore the quality of the BCC data is undetermined. 
Actual FDI amounts are probably slightly higher than the 
BCC figures shown here.  For the last three years, BCC 
has published the following totals: 
 
FDI (in USD million) 
 
          2003      2004      2005 (thru 11/05) 
 
Total     352.6     241.6     458.9 
 
 
¶55.  ANAPI registers data obtained from initial 
proposals by potential foreign investors.  2005 data, 
while very fragmentary, indicates that the service 
sector (mostly telecommunications companies) leads all 
investment sectors with 80 percent of the entire 
investment portfolio.  The following FDI figures do not 
reflect actual investment flows or stocks, and they 
should not be considered as accurate measures of FDI in 
the DRC.  Mining sector investment statistics are not 
included.  The Mining Register of the Ministry of Mines 
 
KINSHASA 00000439  009 OF 009 
 
 
compiles these figures and reports them to the BCC. 
 
FDI (in USD million) 
 
Sector              2003      2004      2005/June 
 
Services            1,615     1,760       136 
Infrastructure         20        47         0 
Food                    9.5      12         3 
Pharmaceuticals         8        14         0 
Beverages/Brewery       0.2       0.1       0 
Agriculture/Forestry   33        57        19 
Manufacturing          80       103        13 
                    -------   -------   ------- 
Total               1,765.7   1,993.1     171 
 
 
MEECE