Congo: Investing

FDI in Figures

In the recent years, the Republic of Congo has regularly been attracting FDI into its territory. Even though the country has adopted a new investment law in order to attract foreign capital, its political instability, inadequate infrastructures, high cost of labor and raw materials, as well as low productivity are factors that discourage foreign investors.

The country's natural resources are its main advantages. Oil, timber and plywood are the main sectors that attract FDI (China is the first timber buyer from Congo, followed very close by France). To compensate for the reduction in oil production, the emphasis has been focused on the mining sector which attracts more and more investors, such as the investment of Xstrata, a giant Anglo-Swiss mining company with a project that should be done by 2014. Moreover, Congo will play an important role in the core of the Central African region due to the modernization of its transport corridor between Brazzaville and Pointe Noire.

Country Comparison For the Protection of Investors

	Congo	Sub-Saharan Africa	United States	Germany
Index of Transaction Transparency*	6.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	1.0	3.4	9.0	5.0
Index of Shareholders’ Power***	3.0	5.0	9.0	5.0
Index of Investor Protection****	3.3	4.4	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	2,483	2,083	2,816
FDI Stock (million USD)	11,083.1	13,166.6	15,982.6
Performance Index*, Ranking on 141 Economies	3	3	-
Potential Index**, Ranking on 141 Economies	92	-	-
Number of Greenfield Investments***	-	3.0	-
FDI Inwards (in % of GFCF****)	65.9	9.6	-
FDI Stock (in % of GDP)	104.5	154.3	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 18%
Company Tax: 36%
Withholding Taxes: Dividends: 20%, Interests: 22%, Royalties: 20%.
Bilateral Agreement: Congo and Lebanon are not bound by a Double Taxation treaty.
Social Security Contributions Paid By Employers: 23%

Country Comparison For Corporate Taxation

	Congo	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	61.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	606.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	65.5	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

Investment Opportunities

Tenders, Projects and Public Procurement: DgMarket, Tenders Worldwide
Tradeinvest Africa, Tenders in Africa
African Tenders
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Congo.
Useful Resources: Guide for investors
Economic Developments and Prospects in Congo - African Economic Outlook
Embassy of Lebanon in Kinshasa, Congo (Democratic Republic)
3 ave des l'Ouganda
BP 628
Kinshasa
Congo (Democratic Republic)
City: Kinshasa
Phone: (+243) (12) 82469

Business Setup Procedures

Setting Up a Company	Congo	Sub-Saharan Africa
Procedures (number)	10.00	8.90
Time (days)	160.00	45.20

Source: Doing Business.

Any Comments About This Content? Report It to Us.

Learn more about Investing in Congo on Globaltrade.net, the Directory for International Trade Service Providers.

TERMS & CONDITIONS | SITEMAP | FAQ | VIDEOS | CONTACT