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- Top Democratic Republic of Congo government officials woo Emirati investors at the 2023 annual investment conference in Abu Dhabi.
- From mining to agriculture to energy, the Democratic Republic of Congo is a global hub for key industries worth billions of dollars.
- In February 2022, logistics giant DP World began construction of a banana port near Kinshasa.
The Democratic Republic of Congo is inviting investors from the United Arab Emirates to make big bets on the country’s vast investment opportunities. From mining to agriculture and fisheries to health, the Democratic Republic of Congo is a global hub for key industries worth billions of dollars. The Democratic Republic of the Congo is the second largest country in Africa and is rich in natural resources.
The country’s ongoing legal and tax reforms are making the country business-ready, senior DRC government officials said in a speech at the 2023 annual investment conference in Abu Dhabi.
The 12th annual investment conference was held in Abu Dhabi, United Arab Emirates, attracting participants from 170 countries.
At the forum, Jean-Lucien Boussa, Minister of Trade of the Democratic Republic of the Congo, praised the country’s continued economic ties with the UAE. Mr Bussa expressed hope for a more fruitful partnership through trade and investment in the coming years.
Mr Busa pointed to the country’s young population and border access to nine countries as key selling points as a top investment destination. “We are removing non-tariff barriers,” Mr. Bussa said.
Attracting large ships from Asia and Europe
Boussa said that since Felix Tshisekedi took office as president in 2019, his government has moved to attract international investors, raising hopes for growth.
The UAE’s influence in the Democratic Republic of Congo has been growing. In February 2022, logistics giant DP World began construction of a banana port on the Congo River near the capital Kinshasa. The port is expected to attract large ships from Asia and Europe, connecting the Democratic Republic of the Congo to international supply chains.
The project includes the construction of a deep-water port, container terminals and other important logistics infrastructure.
Using the latest technology, DP World is building a 600-meter-long pier with a draft of 18 meters, suitable for berthing giant ships. Banana Port has an annual container throughput capacity of approximately 450,000 TEUs (twenty-foot equivalent units) and has a 30-hectare container yard.
Turn Banana Port into a modern logistics hub
Overall, DP World aims to transform Banana Port into a modern logistics hub that will facilitate international trade and attract investment to the region. The Democratic Republic of Congo explained to investors that ports, roads and rail systems are part of new investments in the country’s infrastructure aimed at bolstering investment in other industries.
2018, DP World Signed an agreement with the government of the Democratic Republic of Congo to develop and operate a banana port.
Natural resource industries have historically attracted the majority of foreign direct investment in the Democratic Republic of the Congo. With more than 1,500 minerals, including copper, coltan, diamonds and nickel, the UAE’s mining industry can dazzle investors.
Globally, the Democratic Republic of Congo is rich in mineral resources, including lithium and cobalt. Lithium is used in the production of lithium-ion batteries for the electric vehicle industry, which is expected to exceed $850 billion by 2027.
Lithium is also a widely used component, powering the roughly $500 billion smartphone industry. In addition, it is used to make portable electronics including laptops, a market worth approximately $160 billion.
The world’s largest cobalt producer
The Democratic Republic of the Congo has significant lithium reserves, mainly in the southern region of the country. While lithium is an important element in lithium-ion batteries, cobalt is another key ingredient.
The Democratic Republic of Congo is currently the world’s largest producer of cobalt, a mineral that often occurs alongside lithium ores. Copper-cobalt deposits in the country’s Katanga region are particularly rich in cobalt.
The mining industry in the Democratic Republic of the Congo, including the extraction of lithium and cobalt, is often associated with informal or artisanal mining activities.
Artisanal mining involves small-scale and often unregulated mining systems that can lead to environmental degradation, poor working conditions and human rights issues.
Like other mineral extraction processes, lithium extraction has environmental impacts. It involves the use of large amounts of water, energy and chemicals, which if not managed properly can lead to water pollution and habitat destruction.
Promoting responsible mineral sourcing
There have also been concerns previously about a lack of transparency and accountability in Congolese mineral supply chains. This lack of transparency makes it difficult to ensure that mining operations are free from human rights abuses, child labor and environmental degradation.
We are working to address these challenges and promote responsible mineral sourcing,” Anthony Kamole, managing director of the Democratic Republic of Congo’s National Investment Promotion Agency (ANAPI), told investors.
Trade Minister Boussa added that the Democratic Republic of Congo is also undertaking fiscal reforms to simplify the business environment. Ongoing initiatives will improve the country’s competitiveness in attracting investment.
Initiatives such as the Responsible Minerals Initiative (RMI) and the Global Battery Alliance (GBA) already aim to increase transparency, sustainability and ethical practices in the battery supply chain.
The world stands to gain more from producing lithium batteries in the Democratic Republic of Congo, according to a 2021 study by BloombergNEF with support from the United Nations on unifying African supply chains.
The Democratic Republic of the Congo is adjacent to cathode raw materials
The investigation pointed out that building a cathode precursor factory with an annual output of 10,000 tons in Congo would cost US$39 million. This is three times cheaper than the cost of a similar plant in the United States. By comparison, building a similar factory in China and Poland would cost about $112 million and $65 million respectively.
Research by Bloomberg New Energy Finance shows that pollution associated with battery production could be reduced by 30% by building factories in the Democratic Republic of Congo. This is due to the DRC’s proximity to cathode feedstock and its heavy reliance on hydroelectric power plants.
Also read: Top business leaders gather in Abu Dhabi for annual investment conference
According to the battery front-wheel production costs in the DRC report, the market size of the electric vehicle industry will reach US$7 trillion by 2030, and may reach US$46 trillion by 2050.
Artisanal miners, often working in informal conditions, account for a large portion of the country’s cobalt production. Growing awareness of the ethical and sustainability issues of cobalt mining has led to the introduction of relevant regulations and measures.
Developing natural gas reserves in the Democratic Republic of the Congo
For example, the Organization for Economic Co-operation and Development (OECD) has developed Due Diligence Guidelines for Responsible Supply Chains of Minerals, including Cobalt, from Conflict-Affected and High-Risk Areas.
Companies and organizations including the battery and electric vehicle industries are working towards responsible sourcing and contributing to the sustainability of the cobalt supply chain.
On the energy front, the Democratic Republic of the Congo highlighted 100,000 megawatts of electricity generated from 780 power plants located in the heart of Africa. The Democratic Republic of Congo has produced 44,000MW. The country is also seeking investors to tap into its natural gas reserves to boost the revenue contribution of its energy industry.
The International Monetary Fund predicts that the Democratic Republic of the Congo’s GDP will grow by 9.2% by 2023, with proven reserves of 180 million barrels. However, current production from the country’s coastal basins is about 25,000 barrels per day.
In January, the country’s hydrocarbons ministry issued licenses to three companies to exploit three natural gas blocks in Lake Kivu.
Invite investors to enter the agricultural industry
In agriculture, the Democratic Republic of the Congo requires investors to take advantage of more than 80 million hectares of arable land. Officials say that of the land available for agriculture, 4 million hectares are irrigable.
“Their (provincial) governors can give you land. So, you don’t need to override anyone. They have the power given by the constitution,” Mr Kamole told investors.
agriculture While it provides employment to about 6% of the population, its GDP accounts for about 20% of the Democratic Republic of the Congo.
The country also has pasture resources to support a cattle industry of more than 40 million head. Inland fisheries resources can supply millions of tonnes annually from both marine and inland fisheries.
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