February 2025
Investments in the Democratic Republic of Congo (“DRC”) are governed by the investment code, enacted by Law No. 004 of February 21, 2002, and its implementing decree, No. 12/046 of November 1, 2012 (“Investment Code”).
In the early 2000s, the DRC was emerging from a prolonged economic crisis caused by the “Second Congo war”. This conflict, which pitted the Congolese government, backed by several allied African countries in the region, against various rebel groups operating in the east of the country, lasted from 1998 to 2003. The country’s economic performance was severely impacted, prompting the Congolese legislature to adopt an ambitious economic strategy. This initiative led to the introduction of incentive-based investment regulations, targeting key sectors identified by the government to support the achievement of its development program objectives.
This article focuses on the eligibility criteria for the Investment Code regime, the benefits granted to investment projects, and the key sectors its targets.
I. Scope
The Investment Code does not differentiate between national and international investments, as it does not grant less favorable treatment to investment projects from non-Congolese investors. All investors, whether domestic or foreign, engaging in lawful activities within the scope of the Investment Code, benefit from all the advantages provided for by it.
Sectors covered
The Investment Code covers a broad range of strategic economic sectors crucial for the country’s development, particularly the mining and natural resources sector, agriculture and agribusiness, infrastructure, energy, industry and processing, transport and telecommunications, tourism and hospitality, health and education, the cultural and creative industries, and information and communication technologies.
Eligibility Criteria
For an investment project to qualify for the benefits provided for by the Investment Code, it must, in addition to being related to a sector that is not excluded from the scope of application, meet the following key criteria:
- Amount: The minimum investment amount must be US$200,000, or US$10,000 for SMEs or SMIs.
- Implementation within Congolese territory: Projects must be executed and physically established in the DRC. This means the investment must be direct, rather than a mere financial transaction or investment abroad.
- Compliance with local regulations: Projects must adhere to local regulations, particularly in terms of national staff training and environmental considerations.
The Investment Code differentiates between approved investments, which receive customs, tax and parafiscal advantages, and those that do not. Approved investment projects are entitled to various benefits and incentives for a period of three to five years, depending on their region of implementation.
Although they are not intended to benefit from the advantages of the Investment Code, non-approved projects must still be registered with the National Agency for the Promotion of Investments ("ANAPI"), the central administration for investments.
II. Exemptions granted to Approved Projects
Exemption from customs duties: Approved projects are granted an exemption, which may be total, from import duties and taxes on some equipment and products necessary for the implementation of the project. Additionally, investors planning to export finished products from approved investment projects may also benefit from an exemption from export duties and taxes.
Exemptions from local taxes: Approved projects may also be exempt from local taxes, such as property tax, and benefit from an exemption from proportional duty when forming the company carrying out the project or increasing its share capital. Additionally, they are entitled to a reimbursement from value-added tax paid, as well as exemption from professional income tax.
III. National Agency for the Promotion of Investments
ANAPI, a public institution under the supervision of the ministry of Planning, serves as an interface between investors and the public administration to reduce bureaucratic obstacles and accelerate the implementation of investment projects in the DRC.
It is the central authority for all investment projects in the DRC. It receives requests for approvals of projects that fall within the scope of the Investment Code, for review and decision. Once an investment project is approved, exclusively by its Approval Council, ANAPI forwards the file relating to the approved investment project to the ministries of Planning and Finance for validation of the approval. The validation is formalized through an interministerial decree, signed by both ministers.
ANAPI provides administrative assistance to all investors, regardless of whether their projects are approved.
It also ensures the monitoring and support of approved investment projects, aiming to identify challenges that investors may encounter, which could hinder project execution of s. Additionally, it ensures compliance with the commitments made by investors.
For investment projects governed by specific laws, i.e. those that do not fall under the scope of the Investment Code, it simply issues technical opinions following their review at the time of their registration in its records.
ANAPI also provides information and all necessary assistance to investors during the business prospecting phase in the DRC, helping them to bring their projects to fruition.
IV. General Observations on Investment Sectors
The data and insights in ANAPI’s statistical report on projects approved between 2019 and 2023 provide potential investors with valuable information to identify investment opportunities and gain a deeper understanding of promising sectors.
According to the report, the agricultural sector shows significant growth potential, with the volume of approved investments consistently increasing since 2021. It rose from $32.1 million in 2021 to $61.4 million in 2022, reaching $481.4 million in 2023.
Over the period 2019 to 2023, the industrial and services sectors have generally attracted the majority of FDI. In in terms of volume, however, the industrial sector leads with 42.4%, followed by services sector at 33.3, and infrastructure sector at 22.9%.
The infrastructure sector also demonstrated notable performance. Although the number of projects approved during this period was significantly lower than that of the services and industry sectors, it ranked first in terms of volume both in 2021 and 2022, with US$1.38 billion and US$1.44 billion, respectively.
As for the industrial sector, it serves as the cornerstone upon which the government plans to build a resilient economy in the DRC. Investments in this sector primarily come from abroad, with FDI accounting for 92.2% of the total approved volume, compared to only 7.8% allocated to national investors.
Regarding the distribution of investments in approved projects, the three main beneficiary economic regions are Haut-Katanga, Kinshasa and Lualaba, which together account for 77.8% of the total approved volume from 2019 to 2023.
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