Nr: 25 / April- 2015
ECONOMIC NEWSLETTER
EMBASSY OF
THE KINGDOM OF THE NETHERLANDS
IN KINSHASA
ECONOMIC NEWSLETTER OF THE EMBASSY OF THE KINGDOM OF THE NETHERLANDS IN KINSHASA & BRAZZAVILLE
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The Netherlands finance a drinking water supply project in Inkisi (Bas-Congo)
The Ambassador of the Kingdom of the Netherlands, Mr. Gerard Michels, signed together with the Congolese Minister of
Finance, Mr Henri Yav, the first grant agreement to the “ Inkisi Water Supply” project. The ceremony was held in the conference room of the Ministry of Finance in Kinshasa. This project is funded by the Dutch infrastructure programme ORIO,
and will rehabilitate the water supply system in the town of Inkisi (Bas-Congo Province). This signature marks the launch of
the development phase, the duration of which is estimated at about 10 months. The signing ceremony took place in the
presence of the Bas-Congo Minister of Planning, the Deputy Managing Director of REGIDESO and the Country Director of
the Dutch development organization SNV.
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Headlines
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Kinshasa hosted the AgriBusiness Forum from 22 to 25 March
UK lawmaker calls for investigation into Soco over bribery allegations
The government announced an economic growth rate of 9.5% in 2014
Mobile Communication: Will operators join hands?
Economic growth does not benefit the entire population, according to the IMF
Kinshasa, Lubumbashi and Kisangani will soon be connected by optical fibre
Economic Activities
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Congo’s banking sector set for two flat years after fast growth
Canadian firm MHI will provide technical assistance to SNEL
The construction of Inga, the largest dam in the world, is struggling to start
Greenpeace denounces the “organized chaos” in the wood sector
The agroindustrial park of Bukanga Lonzo bursts into three companies
Hilton Worldwide opens its first hotel in the Democratic Republic of Congo
South Sudan, DRC interested in Ugandan crude oil export pipeline
Congo-Brazzaville
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The government imposes a tax on inter-network communications
Increase of 9% in the non-oil sector
Brazzaville hosted a conference on financial inclusion in Africa
Fishery: Towards an agreement between Congo and the Dutch manufacturer DAMEN
Equatorial Congo Airlines confirms its ambitions in West Africa
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Ever heard of... PUM Public?
•
Contact
ECONOMIC NEWSLETTER OF THE EMBASSY OF THE KINGDOM OF THE NETHERLANDS IN KINSHASA & BRAZZAVILLE
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Connecting business to african market !
2
Headlines
UK lawmaker calls for investigation into Soco Kinshasa hosted the AgriBusiness Forum from 22 to 25 March
over bribery allegations
A cross-party anti-corruption group of British MPs called for UK
and US authorities to investigate claims that Soco International,
a London-listed oil company, may have breached anti-corruption legislation in Africa’s oldest national park in DRC. Analysis by
Global Witness, based in part on footage shot by the makers of
the Oscar-nominated ‘Virunga’ documentary, showed that Soco
and its contractors apparently paid off armed rebels and talked
dismissively about the ecosystem of Virunga National Park.
Soco’s oil block overlaps with Virunga, a UNESCO World Heritage
site that is home to around a quarter of world’s remaining mountain gorillas. Soco denies the allegations made against it in the
documentary and in Global Witness’report. DRC’s prime minister
has said that his government wants to find a way to explore for
oil in the Virunga national park, and will engage in negotiations
with UNESCO to “explore judiciously”. (Source: Global Witness &
The Guardian)
The government announced an economic
growth rate of 9.5% in 2014
This annual meeting highlights the importance of agriculture business opportunities in Africa. It welcomed nearly 400 representatives from over 50 countries of small producers and farmers associations,
but also of trade and agricultural chambers, development banks, civil society, NGO’s and policy makers as
well as people of the field of scientific agriculture. This year the city of Kinshasa hosted this international
meeting, in which the Embassy of the Netherlands was a partner.
For Ms Idith Miller, vice president of EMRC, the main organizer of the forum, these meetings are an opportunity for entrepreneurs to discuss investment projects in the field of agriculture. The AgriBusiness Forum
is an international business platform created to strengthen the agro-food sector in Africa, by encouraging
partnerships and exchange of best practices and by attracting investments. This year, the forum addressed
the theme: “Towards an inclusive growth: a new vision for agricultural transformation in Africa.” (Source:
ACP & Radio Okapi)
Mobile communication: Will operators join hands?
The economy of DRC recorded a growth of 9.5% in 2014,
one of the best performances since the country’s independence of 1960, announced Augustin Matata Ponyo, the
Congolese Prime Minister. Mr Matata Ponyo also said that
for 2015 the government expects “a double digit” growth,
though he didn’t enter into detail.
“According to the United Nations Development Programme,
if we keep this pace of wealth creation, DRC could become
an emerging country within 13 years,” he said. Forecasts
of the Congolese government are slightly more optimistic
than the International Monetary Fund (IMF), which estimated last December that Congo is expected to have an economic growth of 9% in 2014 and 9.1% in 2015, thanks to
the increase in mining production. (Source: Agence Ecofin /
photo: radiookapi.net)
There is a reconciliation going on between Vodacom, Bharti Airtel and Millicom International Cellular
SA as part of a telecom infrastructure sharing project in Africa. According to the Ecofin Agency, these
operators with top positions on the DRC market seek to jointly achieve lower telecom network maintenance and expansion costs.
The reconciliation reveals a major challenge for these operators who continuously expand their network coverage over large areas. True, these are big investments and they are essential for providing
a high quality in communication. On 31 December 2014, the estimated number of subscribers is 61
million for Vodacom, 75 million for Bharti Airtel and 25 million for Millicom. (Source: Central Africa Information Agency)
Kinshasa, Lubumbashi and Kisangani will soon be connected by optical fibre
Economic growth does not benefit the entire population, according to the IMF
On a DRC visit, the first deputy head of the IMF, David Lipton,
welcomed the state of the Congolese economy, and particularly its growth. But he said that this growth does not benefit
the entire Congolese population.
“The government has been considerably successful in stabilizing the economy. The very high inflation of about 10
years ago is under control, and has been reduced to very
low numbers. The exchange rate has remained stable over
the last three years. Growth reached a rate of 9% “, said David
Lipton. He recognized the need to “expand the benefits of
this growth to the entire population.” To get there, David Lipton has advised the government to invest in education and
health. (Source: Radio Okapi)
The regional programme for broadband telecommunications networks in Central Africa was
launched in Kinshasa on Thursday 19 March. This project should connect the cities of Kinshasa,
Lubumbashi and Kisangani, the main economic centres of DRC, by optical fibre, and it should interconnect DRC with its nine neighbours.
The broadband network, called CAB 5, is part of the fifth phase of this regional programme. It is
funded by the World Bank for $ 92 million, and consists of the construction, the management and
the marketing of optical fibre cable. This project is also supposed to ensure the development of the
digital economy in DRC, to increase high-speed Internet connection and to reduce telecommunication prices so that a greater access can be allowed to new information technologies. The network
that connects the three cities will be added to the 3,300 kilometres of optical fibre connecting
Moanda, Kinshasa and Kasumbalesa. (Source: Radio Okapi / photo: vanves.fr)
3
Canadian firm MHI will provide technical
assistance to SNEL
Economic Activities
Congo’s banking sector set for two flat years after fast growth
The Congolese government and the Canadian company Manitoba Hydro International (MHI) signed a service
contract. The company will provide technical assistance
to the National Electricity Company (SNEL) to improve its
performance. According to the Congolese Budget Minister, since the corporatization of SNEL in 2010, several
projects were launched to clean up its assets and financial position before actually opening its capital to private
investment.
It is in the context of SNEL’s recovery that MHI will provide
experts in fields of production services, transportation,
distribution, finance, procurement and technical control. According to the head of the MHI team, the service
contract will cover a period of 18 months with funding
from the World Bank estimated at more than $ 10 million.
(Source: Radio Okapi)
The construction of Inga, the largest dam in
the world, is struggling to start
Having started from one of the world’s lowest banking participation rates, banking assets in Congo, home to
over 65 million people, rose from around $ 300 million in 2002 to more than $ 4 billion at the end of 2013, as a
degree of stability emerged in a post-war economy. “In the next two years, nothing will happen. We will just try
to manage the existing situation,” told Michel Losembe, president of the banking association and CEO of BIAC.
Losembe said that after growing by 35 % in 2012, Congo’s banking sector expanded by 12 % in 2014, below the
rate he would expect given the overall economy’s growth of 9.5 % last year and a forecast 10.4 % for 2015. “I’m
afraid in 2015 the growth of the banking sector will be below the GDP growth,” he said. “We should still be able
to grow in multiples of the GDP growth because we’re growing from so small.” But Losembe remained positive
on longer-term prospects. “If we succeed in the elections in 2016, we will see a lot of things happening,” he said.
“Companies will be investing like crazy.” (Source: primature.cd / photo: mediacongo.net)
Greenpeace denounces the “organized chaos” The agro-industrial park of Bukanga Lonzo
in the wood sector
bursts into three companies
It is a monumental construction with a total investment cost
estimated at $ 80 billion. The world’s largest dam, on the banks
of the Congo River, will have a production capacity of 40,000
megawatts. Enough to power more than half of the African
continent. The project is supposed to enter its first phase within a few months, but donors aren’t particularly lining up at the
gate. $ 80 billion are needed for the entire project.
No financing plan has yet been made public, while the construction of Inga 3 is scheduled to begin in October 2015. Only
the group of the African Development Bank consented to a
funding of $ 68 million for the Inga dam 3. South Africa, on the
other hand, is ready to import 2,500 megawatts, which is half
of the electricity generated by the dam, while the rest is for the
Congolese mining companies. (Source: FranceTV Info / photo:
info-afrique.com)
Hilton Worldwide opens its first hotel in the
Democratic Republic of Congo
Hilton Worldwide announced the signing of a franchise agreement with Africa Hospitality Investments to open its first hotel
in DRC. Dubbed DoubleTree by Hilton Kinshasa-The Stanley,
this property is set to open in 2016 after extensive renovations.
It will offer 96 rooms and a business centre, three meeting
rooms and a fitness centre.
The hotel also provides three dining outlets, including a restaurant serving food all day, a coffee lounge and a panoramic
restaurant. Premises of the DoubleTree, which were formerly
those of the French Embassy, are located in Gombe. With more
than 9 million inhabitants, Kinshasa is the third largest urban
area in Africa and is right next to Brazzaville, capital of Congo.
(Source: Agence Ecofin)
According to Greenpeace, the organization for nature de- The Steering Committee of the agro-industrial parks profence, the RDC timber industry which is still trying to rebuild gramme in DRC has created three companies around the
agro-industrial park of Bukanga Lonzo. According to the Minafter decades of war, is very poorly regulated.
ister of Economy Modeste Bahati Lukwebo, the three separate companies are: “one for the agro-industrial park itself, the
According to the NGO Transparency International, in 2014 second for the use of the site and the third will be responsible
nd
DRC was ranked 152 out of 175, among the worst perfor- for marketing products harvested at Bukanga Lonzo, namely
mers in the sector. Illegal timber widespread in this country at the international market in Kinshasa. “
that is sorely lacking in regulation, and where 90% of the
wood is produced without any legal framework.
For the Congolese Government, the capital of the three companies will be open to the private sector to promote a public
In 2002 DRC reformed its forest code. Although it contains - private partnership. Three types of shareholders will have to
some rules of good conduct, the text is far from complete. A set up the companies: the Congolese state, the South African
bunch of implementing measures are still missing. The Con- partner Africom and the Congolese private sector. For the
golese government lacks capacity, but also the political will operationalization and development of agricultural activities
in Bukanga Lonzo, Africom is already hard at work. (Source:
to regulate the timber sector. (Source: RFI)
Primature.cd)
South Sudan and DRC interested in Ugandan crude oil export pipeline
South Sudan and DRC have shown an interest in the construction and development of the proposed 1,300-km (806-mile)
crude pipeline to the Kenyan coast, said Ugandan Minister for Energy and Minerals Development Irene Muloni (photo).
The pipeline development is a regional project where Uganda, Kenya and Rwanda agreed to have carried out a feasibility
study by Toyota Tsusho, Muloni said. “This study is expected to
be completed by April 2015 and discussions with Congo and
South Sudan about their participation are already going on.
There are interests from South Sudan and Congo which the
government is going to take into consideration,” she said.
Uganda and other East African nations want to capitalize on
a string of oil and gas discoveries that could turn the region
into a major exporter, but production has been hampered
by, among other issues, disputes over export routes. (Source :
Platts / photo : newtimes.co.rw)
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Congo-Brazzaville
Increase of 9% in the Congolese non-oil
sector
Brazzaville : The government imposes a tax on inter-network
communications
The expanding economy reconfirms foreign investors that
Minister of Planning Jean Jacques Bouya invites to invest
in his country.
Antoine Ngakosso, the General Director of Taxes and Areas of Congo (Brazzaville), launched the popularization campaign of tax provisions adopted by the government for 2015. The state now deducts 10 CFA francs
per minute for a call made by a subscriber to another network. For each SMS sent to other networks, the state
will charge 1 CFA.
“The non-oil sector has achieved an average growth rate
of about 9% during the period 2011-2013,” he said. “Agriculture and animal husbandry, manufacturing, construction and public works, transport and telecommunications,
trade, restaurants and hotels have contributed to the gross
domestic product (GDP) to 24% in 2014” Bouya added.
“With a sustained growth rate of 5%, Congo is on an
economic path that assures more than one investor,” he
continued. According to the minister, this growth creates
confidence because it no longer depends exclusively on
the oil sector. (Source: Le Point / photo: journaldebrazza.
com)
Brazzaville hosted a conference on financial
inclusion in Africa
The telecom operators will be the ones to pay the new taxes. Anticipating the consumer’s fear about a possible rise in prices of telecom services, M. Ngakosso said that this new taxation “will not influence the cost of
the call because the sampling rate is very simple”. In addition to the tax on inter-network communications,
mobile operators will also have to pay a new flat annual tax on telecom towers. The amount, set at 1 million
CFA francs per pylon, will be levied for the benefit of local communities. (Source: Agence Ecofin / photo:
defimedia.info)
Fishery: Towards an agreement between Congo and the Dutch manufacturer DAMEN
DAMEN Shipyards will sign an agreement with the Congolese Government on the construction of professional flat-bottomed fishing boats. The objective is to increase the country’s fish supply and to contribute to
food security. The already well advanced project was presented to the Minister of Fishery and Aquaculture,
Bernard Tchibambelela by Mr. Jan van der Vorm, who is the Regional Director for DAMEN.
The boats will be used on the Congo River and on the rivers Alima, Léfini, Niari, Likouala Likouala Mossaka and
still many other rivers in order to increase fish supply, “said Bernard Tchibambelela. “ Next to the fishing boats
we will build a few surveillance boats to provide security on the Congo River from north to south,” added Mr.
van der Vorm. (Source: Central African Information Agency)
Equatorial Congo Airlines confirms its ambitions in West Africa
The meeting, co-sponsored by the International Monetary
Fund (IMF) and the Bank of Central African States (BEAC),
was aimed at the study of the prospects of financial inclusion in Central Africa and of the options for governments to
promote this record.
At the opening of the conference the Minister of State Gilbert Ondongo, who is in charge of Economy, Finance, Planning, Public Budgeting and Integration, recognized that
financial inclusion in Central Africa lags behind. The Congolese situation is not isolated and we find the same causes in
most sub-Saharan African countries with these challenges.
With the appearance of two new routes to Bamako and Dakar, a few weeks after the opening of the destination Libreville and the establishment of the daily flights Brazzaville / Paris and Brazzaville / Dubai, Equatorial
Congo Airlines wants to strengthen its presence on the continent. “This year, as part of the expansion of
our network and our fleet, we want to transform the airport of Maya-Maya in a real Central-African hub. We
did this by offering our passengers many rotations and high-end service,” said Fatima Beyina-Moussa, CEO
of Equatorial Congo Airlines.
“The three main causes are identified: the low level of national income and real GDP per capita, the underdevelopment of financial services and the difficult access to banking
services,” said Minister Ondongo. (Sources: Ecofin Agency &
The Voice of America / photo: zenga-mambu.com)
Indeed, this new service is a crucial and strategic step in the company’s growth process and should
strengthen the exchanges and cooperation between Congo, Mali and Senegal, more generally, with the
rest of West Africa. These two new destinations complete the offer of Equatorial Congo Airlines, which
already serves on the regional network, Cotonou (Benin), Douala (Cameroon), Libreville (Gabon) and Kinshasa (DRC). (Source: Afrique Inside / photo: Samuel Dupont)
POST SCRIPTUM
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P R A C T I C A L
I N F O R M A T I O N
- - - - - - - - - - - - - - - - - - - - - - Embassy in Kinshasa
Contact
11, avenue Nzongotolo
Immeuble Residence 55, Kin-Gombe
Phone:
Emergencies:
Fax:
E-mail: +243 99 6050 600
+243 99 818 62 24
+243 99 6050 629
[email protected]
Postal address
Lokatie 309 / ZMA Kinshasa
Postbus 12200 - 2500 DD Den Haag
Opening hours
Monday - Thursday
Friday
08:00 – 16:30
08:00 – 13:30
Opening hours consular department
Monday & Wednesday 09:00 -12:00
Otherwise by appointment only
---------------------------------------------------------------
Consulate in Brazzaville
Innovative knowledge for the public sector
As the Dutch have hardly any natural resources apart from natural gas, they have always invested
in knowledge, research and education. This has put them in the premier league in terms of prosperity but also has given rise to one of the most stable nations in the world. This stability and the
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How to apply
Contact the Embassy of the Netherlands in DR Congo with your request. PUM will match your
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About PUM Netherlands senior experts
For over 35 years, volunteers of PUM Netherlands senior experts have shared knowledge and
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Please contact the Embassy of the Kingdom of the Netherlands in Kinshasa: [email protected] or
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ECONOMIC NEWSLETTER OF THE EMBASSY OF THE KINGDOM OF THE NETHERLANDS IN KINSHASA & BRAZZAVILLE
Address
30, Blvd Denis Sassou N’Guessou
B.P 277 M’Pila - Brazzaville
Opening hours
Monday - Friday 09:00-16:00 (Consulate)
Tuesday & Thursday 09:00-12:00 (Consular affairs)
Honorary Consul
Ms. Hilly-Anne Fumey
Phone: +242 069 241 407
E-mail: [email protected]
For comments, suggestions and remarks on this
Newsletter, or any others business, please contact
the Embassy’s economic policy officer:
Phone: +243 99 060 50 627
E-mail: [email protected]
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It is merely a resume of news articles, from both
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Mr Gerard Michels (Ambassador)
Mr Norbert Moerkens (Deputy Head of mission)
Mr Francis Wilanga (Economic policy officer)
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