The document discusses investment opportunities and challenges in Eastern DR Congo. It provides an overview of the country's economy, noting low human development indicators despite recent GDP growth. Eastern DR Congo has significant opportunities in agriculture, mining, oil/gas, with over 250 investment projects agreed from 2008-2014. However, challenges to long-term investment include ongoing security issues, lack of infrastructure, and improving the business climate. Stakeholders must address these challenges to realize Eastern DR Congo's economic potential.

1. Investing in Eastern DR Congo:
Perspectives and Opportunities
Laure Gnassou, Economic Affairs Officer
gnassou@un.org
MONUSCO
23rd October 2014
Kinshasa, The DR Congo

2. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
OUTLINE
INTRODUCTION: The DR Congo at Glance
1. Investing in the DR Congo: Reviewing the Country’s
Attractiveness
2. Framework Conditions for Private Sector in the DR Congo
3. Eastern DR Congo: Land of Business Opportunities
4. Key Challenges: Securing Long Term Investments in
Eastern DR Congo
CONCLUSION

3. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
INTRODUCTION: The DR Congo at a Glance
1. Total Population (in 2013 (e)): 80.46 million
2. Key Macroeconomic Indicators
* Real Gross Domestic Product (GDP)
* Growth (in 2014): 8.7%
* Annual Inflation Rate (12/10/2014): 1.28%
* Exchange Rate (21/10/2014): USD 1= CDF 926.023
Graph 1. Geography of the DR Congo
In 2014, DR Congo ranks 186 out of 187
countries in terms of Human
Development Index (HDI)- UNDP
Non Inclusive Economic Growth

4. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
(in 2012)
USD 3,312,000,000
USD 50,041,000,000
or 6.61% of total FDI
directed to Africa
(in 2013)
USD 2,098,000,000
1. Investing in the DR Congo: Reviewing the Country’s
Attractiveness
Foreign Direct Investment (FDI) Inflows to the DR Congo
Inflows to Africa
Inflows to the DR Congo
USD 4,598,000,000
USD 1,687,000,000
(in 2011)
Inflows to the DR Congo

5. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
In USD Million
FDI Inflows
Economic Fact
September 1990:
Looting in main
cities of Zaire
Economic Fact
January 1993:
Looting in main
cities of Zaire
Political Fact
*: Transitional
Government:
“ 1+4”
Economic Fact
September 1990:
Looting in main
cities of Zaïre
Economic Fact
January 1993:
Looting in main
cities of Zaïre
Political Fact*:
“Guerre de
Liberation”by
AFDL (1)
Political Fact
*:
“Guerre
d’agression” by
RCD (2), RCD
KML
(3), MLC (4)
Political Fact*:
First Presidential
election Economic Fact
Impact of the
International
Financial Crisis
Economic Fact
Concerns expressed by
investors about the
second
Presidential election
Insecurity in Eastern DR CongoWar
Source: Laure Gnassou, Economic Affairs Officer, MONUSCO, on basis of UNCTAD, The 2013 World Investment Report, June 2013.
(1): AFDL: “Alliance des Forces Démocratiques pour la Libération du Congo” led by Laurent-Désiré Kabila, former Head of State (May 1997- January 2001).
(2): RCD: “Rassemblement Congolais pour la Démocratie” led by Azarias Ruberwa, former Vice-President during the Transition (2003-2006)
(3): RCD KLM: “Rassemblement Congolais pour la Démocratie/ Kisangani Mouvement de Libération” led by Antipas Mbusa Nyamwisi, former Foreign Affairs
Minister during the Transition.
(4): MLC: “Mouvement de Libération du Congo” led by Jean-Pierre Bemba, former Vice-President during the Transition (2003-2006).
Graph 2. Foreign Direct Investment (FDI) Inflows to the DR Congo from 1990 to 2012

6. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
Source: Professor Bua Bua, Director of the ANAPI, “De la promotion des investissements et de la relance des investissements nationaux en RDC”,
2013.
Nationality/
Investors
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total
South
African
7 7 9 4 9 4 8 2 5 6 61
South
Korean
1 0 3 5 2 4 11 4 6 5 41
French 3 3 6 2 4 4 6 4 0 4 36
Chinese 1 0 1 2 6 3 5 5 5 6 34
Indian 3 3 4 5 2 5 2 2 1 1 28
American 3 2 4 2 5 2 0 3 3 3 27
Italian 3 4 3 1 5 1 2 2 0 1 22
Canadian 1 1 1 4 2 5 1 1 1 2 19
Japanese 1 3 2 2 1 1 1 1 0 3 15
German 1 2 0 3 2 0 0 0 0 1 9
24 25 33 30 38 29 36 24 21 32 292
Table 1. Top 10 of Investors Delegations Visiting the DR Congo from 2003 to 2012

7. * Rating Agencies and the DR
Congo
Moody’s B3 Rating (6 September
2013)
Standard & Poor's B- (13 December
2013)
* Ease of Doing Business: the World
Bank
The DR Congo ranking (in 2013):
183 out 189 countries
Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
Rating Agencies versus the World Bank
6

8. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
* Organization for the Harmonization of Business Law in Africa (OHADA). Since
12 September 2012, the DR Congo’s accession to OHADA, which provides a
harmonized legal framework for doing business in 17 African Member States in
views of ensuring greater protection for investors
* Multilateral Investment Guarantee Agency (MIGA) to mitigate the political,
security and economic risks: In 2014, MIGA coverage estimated at USD 124.6
million for 3 projects
* On 26 June 2013, the DR Congo: 150th State of the New York Convention
(Enforcement of foreign arbitral awards, a positive signal for securing FDI in the
DRC)
Legal Risk and Mitigation of Investments Risks
2. Framework Conditions for Private Sector in the DR Congo

9. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
* Conflict between
Environment and the
development of Extractive
Industries: Virunga
National Park (North Kivu)
3. Eastern DR Congo: Land of Business Opportunities
Graph 2. Geography of Eastern DR Congo
128 investments projects
agreement from 2008 to 7
May 2014 potentially USD
2,152,622,288 with 7,318 in
term of job creation

10. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
Province Number of
Investments
Projects
Cost
in USD
Job
Creation
South Kivu (SK) 44 1,188,208,111 2,015
North Kivu (NK) 48 487,341,783 3,693
Maniema (M) 20 241,673,118 280
Province Orientale (PO) 16 235,399,276 1,330
Total ((SK)+(NK)+ (M)+(PO)) 128 2,152,622,288 7,318
Katanga 127 3,325,554,364 18,288
Total Eastern DR Congo 255 5,478,176,652 25,606
Total DR Congo 80717,454,637,820 101,450
Table 2. Local and Foreign Investment Projects with the National Agency for Investment
Promotion (ANAPI) Agreement from 2008 to 7 May 2014 in Eastern DR Congo
Source: Statistics obtained following a meeting with Professor Bua Bua, Director of the ANAPI and his team, 8 May 2014.
Note: (1): The investment projects receiving the ANAPI agreement will obtain custom and fiscal benefits according to the
2002 investment code.

11. 9
Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
Second Sector
Extractive Industries
Mining
Oil
Methane GasFirst Sector
Agriculture
Tertiary Sector
including
Banking
Telecom
Tourism
* Mining Code of 2002 under
review
* Hydrocarbon code under
construction (Article 87 of Law-
Ordinance n° 81/013 of 2 April 1981)
*Agriculture Code
(Law n° 11/022 of 24
December 2011)
*Telecommunication
(Law n° 013/2002 of 16
October 2002)
Investment Code
(Law n°004/2002 of 21 February 2002)
Key
elements
of the legal
framework
Economic
Growth
generated
by
Eastern DR Congo: Overview of Economic Activities

12. 10
Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
Security
Ongoing FARDC operations
+ UN Support for peace and
security in Eastern DR
Congo
Development of Infrastructure
Industrialization
Electricity - Plant
Roads
Economic and Financial Issues
Improvement of the business
climate Private Sector
Social Issues
Corporate Social
Responsibility –Enterprises
Developing a minimum
welfare State – National and
provincial levels
4. Key Challenges: Securing Long Term Investments in
Eastern DR Congo

13. Investing in Eastern DR Congo: Perspectives and Opportunities, Laure
Gnassou, Economic Affairs Officer, MONUSCO, 23rd October 2014
CONCLUSION
Stakeholders Purposes
Private Sector
Development in Eastern
DR Congo, including job
creation
A decentralization of
ANAPI activities in Eastern
DR Congo
Security & Judicial
Authorities
Economic
Operators
Political Authorities
Security Sector
Reform (SSR)
Negotiation and
Diplomacy
Ongoing Economic
Reconstruction in
Eastern DR Congo
Restoration of
State Authority
Thank you