Legal framework for investment in the agricultural sector in the Democratic Republic of Congo

1. Legal framework

The Investment Code (Cfr. Law n° 004/2002 of 02/21/2002).

The new investment code pursues the following objectives:

a) Promote the establishment of civil engineering companies responsible for the construction and maintenance of roads and highways as well as those for the public transport of people and goods, whether by land, river or air;

b) Promote investments that will develop agriculture and agro-industry through mechanization in order to ensure food self-sufficiency in order to reduce imports of basic products and allow both the increase of incomes in the communes rural areas, improving the supply of raw materials to agro-food industries and finally, expanding the domestic market for everyday consumer goods;

c) Promote heavy investment to establish a solid industrial base on which sustainable economic growth will be based;

d) Promote investments for the development of national natural resources on the spot in order to increase their added value and exportable volume.

Decree No. 13/049 of 06/10/2014 on the tax regime applicable to companies eligible for the Strategic Partnership on the value chain

The aforementioned Decree aims to establish development taxation as an integral part of the legal framework for economic promotion and the revival of national industrial units capable of improving the living conditions of national communities.

It is an instrument of economic promotion which will help the Government and the private sector to orient, structure and carry out investment partnership programs in the sectors and sectors which present significant potential for integration, the realization of which allows the participation of a large section of the population in economic and social activity, in well-defined geographical areas.

Agricultural Code (Law No. 11/022 of December 24, 2011 on fundamental principles relating to agriculture)

The Agricultural Code aims to:

Promote the sustainable development of agricultural potential and space integrating social and environmental aspects;

Stimulate agricultural production by establishing a special customs and tax regime with the aim of achieving, among other things, food self-sufficiency;

Boost exports of agricultural products in order to generate significant resources for investments;

Promote the local agricultural product processing industry;

Attracting new renewable energy technologies;

Involve the province, the decentralized territorial entity and the farmer in the promotion and implementation of agricultural development.

2. Potentials and assets

The Democratic Republic of Congo offers several investment opportunities in the agricultural sector ranging from production to marketing, in order to create a competitive value chain at the sub-regional level.

With its exceptional agronomic potential and an area of agricultural land unequaled in Africa, the DRC is able to feed 2 billion people.

Indeed, the DR Congo has more than 80 million arable land of which less than 10% is currently exploited. The diversity of climates, supported by an important hydrographic network, makes it possible to practice a varied range of agricultural speculations.

The expanses of grassland and savannas are likely to support a breeding of more or less 40 million head of cattle. The tropical forests which occupy 135 million hectares, or 52% of the territory, constitute an important reserve of biodiversity and developable land.

While the irrigation potential is estimated at 4 million hectares, currently this practice is still modest.

The fishing potential, located in the Congolese parts of the Atlantic Ocean, the Congo River and all the lakes is estimated at 707,000 tonnes of fish per year.