congo, democratic republic of - unctadunctad.org/sections/dite_fdistat/docs/wid_cp_cd_en.pdf ·...

Congo, Democratic Republic of A. Definitions and sources of data Data on the annual flows of foreign direct investment (FDI) in the Democratic Republic of Congo (DRC) were gathered from the tapes provided by the Organization for Economic Cooperation and Development, Development Assistance Committee and International Development Statistics On-line databases. The country has not compiled any FDI statistics. The International Monetary Fund does not provide data on FDI in the country in its balance-of-payment statistics either. The Investment Code of (Ordinance-Law No. 86-028 of 1986) of the DRC (former Zaire) does not define FDI specifically. The investment climate in the DRC is dismal but improving. Rampant cases of nationalization were instituted in the 1970's, and the two wars fought in the country during the past four years have caused a sharp drop in economic activities. The fact that the country has a large reserve of natural resources has kept the economy going and attracted some FDI. The formal economy is dominated by copper and cobalt mining, together with the exploitation of diamonds. In addition, there is timber in the Equateur province, immense hydroelectric potential in Bas-Congo, and gold and coffee in Oriental and Nord-Kivu. The mining industry is strapped for cash and in serious need of new investment. DRC also has extensive energy resources, including hydroelectric potential estimated at 100,000 megawatts. The Inga dam alone, on the Congo river, has a potential capacity of 40,000-45,000 megawatts, sufficient to supply all of Southern Africa’s electricity needs. Only a fraction of this amount has been developed at Inga. Actual production is estimated at no more than 650-750 megawatts, largely because two-thirds of the turbines at Inga are not functioning. The country exports hydroelectricity to Congo (Brazzaville), and South Africa through the Southern African electricity grid. A proposal has been developed to increase production at Inga and export this to the region. A South African utility, Eskom, has been involved in the rehabilitation of the Inga dam. The Government of DRC cooperates with a large number of African countries and considers regional integration as an important element of its economic success. As a result, it participates in many of these schemes. The most prominent ones are: the Communauté économique et monétaire de l’Afrique centrale, the Union économique et monétaire ouest-africaine, New Partnership for Africa's Development and the African Union. DRC is also an eligible member of the new twenty-year partnership agreement for the renegotiation of the Lomé Convention offering a group of African, Caribbean and Pacific countries preferential trade and aid links with the European Union and the United States market access initiative for African countries - the African Growth and Opportunity Act. DRC is signatory to the convention that established the multilateral investment guarantee agency and the World Trade Organization.

B. Statistics on FDI and the operations of TNCs

Table 1. Summary of FDI

(Millions of dollars)

Variable Inward Outward1. FDI flows, 2002-2005 (annual average) 408.5 -0.52. FDI flows as a percentage of GFCF, 2002-2005 (annual average) 44.9 -0.13. FDI stock, 2005 2 333.4 ..4. FDI stock as a percentage of GDP, 2005 32.5 ..Source: Based on tables 3, 4 and UNCTAD, FDI/TNC database.

UNCTAD WID Country Profile: CONGO, DEMOCRATIC REPUBLIC Of of 13

Table 3. FDI flows, by type of investment, 1980-2005


Inward investment Outward investment

Year

1980 .. .. .. 109.6 .. .. .. ..1981 .. .. .. 69.6 .. .. .. ..1982 .. .. .. -2.4 .. .. .. ..1983 .. .. .. -192.8 .. .. .. ..1984 .. .. .. -32.5 .. .. .. ..1985 .. .. .. 69.2 .. .. .. ..1986 .. .. .. 5.6 .. .. .. ..1987 .. .. .. -55.1 .. .. .. ..1988 .. .. .. -3.9 .. .. .. ..1989 .. .. .. -6.1 .. .. .. ..1990 .. .. .. -14.5 .. .. .. ..1991 .. .. .. 12.4 .. .. .. ..1992 .. .. .. -0.7 .. .. .. ..1993 .. .. .. 6.9 .. .. .. 0.91994 .. .. .. -1.5 .. .. .. ..1995 .. .. .. -22.4 .. .. .. 0.21996 .. .. .. 24.8 .. .. .. 19.31997 .. .. .. -44.4 .. .. .. 17.21998 .. .. .. 61.3 .. .. .. -1.21999 .. .. .. 11.3 .. .. .. -1.12000 .. .. .. 23.1 .. .. .. -1.82001 .. .. .. 82.0 .. .. .. 0.92002 .. .. .. 117.0 .. .. .. -1.92003 .. .. .. 158.0 .. .. .. ..2004 .. .. .. 15.1 .. .. .. ..2005 .. .. .. 1 344.0 .. .. .. ..

Source : UNCTAD, FDI/TNC database. Note: FDI inflows: OECD for 1980-2000 and 2004, IMF country report April 2004 No. 04/97 for 2001-2003 and estimate for 2005. FDI outflows: Proxy for 1993, 1995-2002. Proxy is based on investmentsreported by the following economies: 1993 and 1995 France, 1996 Belgium and Luxembourg and France,1997 Belgium and Luxembourg, France and the United States, 1998 Belgium and Luxembourg and theUnited States, 1999-2001 Belgium and Luxembourg, 2002 Belgium.

Equity Reinvested earnings

Intra-company

loansTotal Equity Reinvested

earnings

Intra-company

loansTotal


Table 4. FDI stock, by type of investment, 1980-2005


Inward Investment Outward Investment

Year1980 .. .. .. 709.2 .. .. .. ..1981 .. .. .. 778.9 .. .. .. ..1982 .. .. .. 776.5 .. .. .. ..1983 .. .. .. 583.7 .. .. .. ..1984 .. .. .. 551.3 .. .. .. ..1985 .. .. .. 620.4 .. .. .. ..1986 .. .. .. 626.0 .. .. .. ..1987 .. .. .. 570.9 .. .. .. ..1988 .. .. .. 567.0 .. .. .. ..1989 .. .. .. 560.9 .. .. .. ..1990 .. .. .. 546.4 .. .. .. ..1991 .. .. .. 558.8 .. .. .. ..1992 .. .. .. 558.1 .. .. .. ..1993 .. .. .. 564.9 .. .. .. ..1994 .. .. .. 563.4 .. .. .. ..1995 .. .. .. 541.1 .. .. .. ..1996 .. .. .. 565.9 .. .. .. ..1997 .. .. .. 521.5 .. .. .. ..1998 .. .. .. 582.9 .. .. .. ..1999 .. .. .. 594.1 .. .. .. ..2000 .. .. .. 617.3 .. .. .. ..2001 .. .. .. 699.3 .. .. .. ..2002 .. .. .. 816.3 .. .. .. ..2003 .. .. .. 974.3 .. .. .. ..2004 .. .. .. 989.4 .. .. .. ..2005 .. .. .. 2 333.4 .. .. .. ..

Source : UNCTAD, FDI/TNC database. Note : FDI inward stock: Estimated by accumulating inflows since 1970. FDI outward stock: Notavailable.

Equity Reinvested earnings

Intra-company

loansTotal Equity Reinvested

earnings

Intra-company

loansTotal


Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Belgium / Luxembourg -26.8 9.2 -0.7 -1.9 .. -2.7 10.4 6.8 .. 1.1 4.6 -1.8 .. .. ..Belgium .. .. .. .. .. .. .. .. .. .. .. .. -7.5 .. ..France 1.5 0.2 .. -0.2 .. .. 0.2 -0.2 .. 20.2 .. .. .. .. ..Germany -12.1 1.2 22.5 .. .. -54.6 55.9 -9.0 2.2 .. .. -7.2 -5.6 -4.5 -1.2Netherlands -3.6 4.7 .. -9.5 1.2 -5.5 -3.9 -1.1 8.9 10.7 .. .. .. .. ..Portugal .. .. .. .. .. .. 0.1 .. .. -0.3 .. .. .. -0.1 0.1Sweden .. .. .. .. .. .. .. .. .. .. 11.9 .. .. .. ..United States -29 10 -8 24 -16 -5 2 -39 58 -37 -11 -16 -36 -26 8Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.

Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Belgium / Luxembourg 4.9 10.1 -5.8 2.3 0.8 1.8 19.5 6.8 -2.2 -1.1 -1.8 -0.9 .. ..Belgium .. .. .. .. .. .. .. .. .. .. .. .. -1.9 ..Bulgaria .. .. .. .. .. .. .. .. .. .. .. .. .. ..China .. .. .. .. 0.1 .. .. .. .. .. .. .. .. ..France -1.3 2.1 0.4 0.9 .. 0.2 -0.2 9.4 .. .. .. .. .. ..Germany .. .. .. .. .. .. -1.3 .. .. .. .. .. .. ..Portugal .. .. .. .. .. .. .. .. .. .. .. .. .. 0.1United States .. .. .. .. .. .. .. 1.0 1.0 .. .. .. .. ..Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.

Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004France .. .. .. .. .. .. .. .. 330.8 .. .. .. .. .. ..Germany 26.8 19.1 20.4 31.9 26.5 39.8 52.7 32.9 12.0 .. .. .. .. .. ..Portugal .. .. .. .. .. .. 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 ..United Kingdom .. .. 7.6 .. .. .. .. .. .. .. .. .. .. .. ..United States 33 39 35 54 69 65 66 28 77 101 102 96 70 55 75Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.

Economy 1996 1997 1998 1999 2000 2001 2002 2003 2004Portugal 0.1 0.1 0.2 0.1 0.1 0.1 0.2 0.3 ..United States .. 2 2 2 2 2 2 2 2Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.

Table 12. FDI stock in the host economy, by geographical origin, 1990-2004


Table 15. FDI stock abroad, by geographical destination, 1996-2004(Millions of dollars)

Table 6. FDI flows in the host economy, by geographical origin, 1990-2004


Table 9. FDI flows abroad, by geographical destination, 1990-2003



Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Germany 8 9 8 6 7 6 6 5 4 .. .. .. .. ..Italy .. 1 .. 2 .. 2 .. 2 .. .. .. .. .. ..United States 7 7 7 8 9 9 9 9 8 7 8 8 8 8Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.

Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Germany 66.9 .. .. 57.9 64.6 69.8 64.3 55.8 59.8 .. .. .. .. ..United States a 167.0 182.0 182.0 257.0 257.0 326.0 386.0 470.0 189.0 184.0 236.0 213.0 232.0 337.0Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.a Majority-owned affiliates of United States TNCs.

Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Belgium .. .. .. .. .. .. .. .. .. .. .. 0.2 .. ..Germany 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 .. .. .. .. ..Italy .. 0.7 .. 0.9 .. 0.9 .. 0.8 .. .. .. .. .. ..United States a .. 1.4 1.4 .. 1.6 1.1 .. 0.4 0.4 0.4 0.4 0.2 0.2 0.2Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.a Majority-owned affiliates of United States TNCs.

Table no. Variable 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 200340 Wages and salaries a 8.0 12.0 9.0 9.0 6.0 6.0 9.0 14.0 6.0 7.0 6.0 6.0 9.0 10.050 Value added a .. .. .. .. 61.0 53.0 85.0 71.0 31.0 24.0 51.0 31.0 53.0 96.0

Source : UNCTAD, FDI/TNC database.Note: Data are based on information reported by the United States.a Majority-owned affiliates of United States TNCs.

Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Germany 61.9 60.3 64.0 .. 61.6 69.8 66.5 .. .. .. .. .. .. ..Italy .. 25.2 .. 20.4 .. 22.1 .. 18.2 .. .. .. .. .. ..United States a .. .. .. .. .. .. .. .. 87.0 106.0 160.0 129.0 123.0 139.0Source: UNCTAD, FDI/TNC database.Note: Data are based on information reported by the economies listed above.a Majority-owned affiliates of United States TNCs.

Table 45. Sales of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003(Millions of dollars)


Table 23. The number of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003

Table 30. Assets of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003


Table 35. Employment of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003

(Thousands of employees)

Tables 40 and 50. Wages and salaries and Value added of affiliates of United States TNCs in the Democratic Republic of Congo, 1990-2003


Table 88. Largest affiliates of foreign TNCs in the host economy, 2004

(Millions of dollars and number)

Company Name Home economy Industry Sales Employees

A. Industrial

Perenco France Petroleum 350 3 000Utexafrica Belgium Precision instruments 117 1 850Zetah M & P Congo France Petroleum 2 37 a

Agip Recherches Congo Italy Petroleum .. 70 000 b

Zaire Services des Entreprises Pétrolièrers Belgium Petroleum .. 2 500 a

Société Congolaise Industrielle de Bois Germany Wood and wood products .. 1 700 b

Congolaise de Raffinage Congo Petroleum .. 1 200 b

Brasseries Limonaderies et Malteries du Zaire Switzerland Food products, beverages and tabacco .. 924 b

Totalfina Elf E&P France Petroleum .. 640 b

BAT Congo United Kingdom Food products, beverages and tabacco .. 500 b

Taba Congo United Kingdom Food products, beverages and tabacco .. 500 b

Société du Terril de Lumumbashi United States Mining and quarrying .. 370 b

Anvil Mining Congo Australia Mining and quarrying .. 10 b

Société Minière du Congo Canada Mining and quarrying .. 5 b

Safbois Belgium Wood and wood products .. ..

B. Tertiary

Groupement d'Entreprises de Transport Maritime et Aériens France Transport and storage 118 10 c

Tractafric Congo France Wholesale trade 25 120Sait Telecom Egypt Telecommunications 17 120Congo Korea Telecom Republic of Korea Telecommunications 5 150 a

Laborex Congo France Wholesale trade .. 900 b

Foberd Congo Cameroon Wholesale trade .. 250 b

Auto Transport Compagnie Congo Wholesale trade .. 40 b

Agence Africaine de Distribution de Materiel France Distributive trade .. 20 b

Japan Petroleum Congo Japan Wholesale trade .. 1 a

Safricas Zaire Belgium Construction .. ..Iveco Italy Wholesale trade .. ..Egab Belgium Construction .. ..BASF Germany Wholesale trade .. ..

C. Finance and Insurance Assets Employees

Banque Commerciale Belgium Finance 78 281 d

a 2002. b Estimate. c 2000. d 2001.

Sources: The Banker's Almanac , 2003 (London, Reed Information Services Ltd, 2003); Thomson Analytics(http://analytics.thomsonib.com/); Who Owns Whom database (https://solutions.dnb.com/wow).


C. Legal frameworks for transnational corporations Congo, Democratic Republic of had adopted a number of legal instruments at national, bilateral and multilateral levels to regulate the activities of transnational corporations and foreign direct investors in the country. The key instruments include the following: I. National framework The Investment Code of Zaire, Ordinance-Law No. 86-028; effective on 5 April 1986. Source: Journal Official de la Republique du Zaire, Numero special, April 1986. Ordinance-Law No. 81-010 creating a Free Zone Regime of Industrial Development; effective on 2 April 1981. Amendment: Ordinance Law No. 83-008, effective on 21 February 1983. Source: Journal Official de la Republique du Zaire, 15 April 1981. Administration of the INGA Free Zones Regime, Ordinance Law No. 81-066; effective on 30 April 1981. Amendment: Ordinance No. 83-060; effective on 21 February 1983. Source: Journal Official de la Republique du Zaire, I May 1981. Patents: Loi No. 82-001 de janvier l982 régissant la propriété industrielle. Law No. 82-001, January 1982 (Inventions: arts. 1 to 105). Ordonnance No. 89-173 d’août 1989 portant mesures d’exécution de la Loi No. 82-001. Ordinance No. 89-173, August 1989, implementing Law No. 82-001. Source: WIPO (http://www.wipo.org). Industrial Designs: As above, under Patents, Law No. 82-001, (Industrial Designs: arts 106 to 126). Source: WIPO (http://www.wipo.org). Copyright: Ordonnance-Loi No. 86-033 d’avril 1986 portant protection des droits d’auteur et des droits voisins. Legislative Ordinance No. 86-033, April 1986. Source: WIPO (http://www.wipo.org). Appellations of Origin / Geographical Indications / Indications of Source: Law No. 82-001, January 1982, as above, under Patents (Geographical and Commercial Denominations: arts. 153 to 163). Source: WIPO (http://www.wipo.org). The Investment Code, Law n° 004/2002, of February 21, 2002. Source: Journal Officiel de la RDC, Numéro 6, 15 mars 2002 The Mining Code, Law n° 007/2002 of July 11, 2002. Source: Journal Officiel de la RDC, Numéro Spécial du 15 juillet 2002 The Forest Code, Law n° 011/2002, of August 29, 2002. Source: Journal Officiel de la RDC, Numéro Spécial du 31 Août 2002 The Labour Code, Law n° 015/2002, of October 16, 2002. Source: Journal Officiel de la RDC, Numéro Spécial du 25Octobre 2002 Exchange: New Regulation of exchange of February 13, 2003 Corporations: Décret du 23 Juin 1960 sur les sociétés commerciales Protection of Industrial property :- Loi n° 001 de 07 Janvier 1982 régissant la propriété industrielle.


Source : CEPI, Législation et réglementation économiques et commerciales, 3ème éd., Kinshasa 2003, Ordonnance n° 89-173 du 31 Août 1989 portant mesures d’exécution de la Loi n° 001 de 07 Janvier 1982 régissant la propriété industrielle. Source : CEPI, Législation et réglementation économiques et commerciales, 3ème éd, Kinshasa 2003 Land Property: Loi n° 80-008 du 18 Juillet 1980 modifiant et complétant la loi n° 73-021 du 20 juillet 1973 portant régime général des biens, régime foncier et immobilier et régime des sûretés. Source : Journal Officiel de la RDC, Numéro 15 du 1er Août 1980. Patents : Ordonnance-loi n° 86-033 du 5 Avril 1986 portant Protection des droits d’auteurs et des droits voisins. Source : Journal Officiel de la RDC, Numéro spécial, Avril 1986 II. International Framework A. Democratic Republic of Congo is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900, Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967, and as amended in 1979). Signed in 1994. Convention on the Settlement of Investment Disputes between States and Nationals of other States of 1965. Entered into force on 14 October 1966 Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, which entered into force on 7th June 1959. Convention on the Settlement of Investment Disputes between States and Nationals of others States of 1965, entered into force on 14 October 1966. Convention Establishing the Multilateral Investment Guarantee Agency of 1985, entered into force on 12 April 1988. Treaty for the Establishment of the Economic Community of Central African States ECCAS), 1982 Investment Code of the Economic Community of the Great Lakes Countries (CEPGL); 1982. Fourth ACP-EEC Convention (Lomé IV) of 1989, entered into force on 1st March 1990. Southern Africa Development Community (SADC). Common Market for Eastern and Southern Africa (COMESA) Convention Establishing the Multilateral Investment Guarantee Agency (MIGA) of 1985, entered into force on 12 April 1988. Agreement establishing the Trade Insurance Agency in Africa of 18 May 2000. Partnership Agreement between the Members of The African, Caribbean and Pacific Group of States, of the one part and the European Community and its member states, of the other part signed in Cotonou, Benin on 23 June 2000.


B. Bilateral treaties 1. Bilateral investment treaties for the protection and promotion of investments: Germany 1969, France 1972, Switzerland 1972, Belgium / Luxembourg 1976, United States 1984, Israel 1985, Korea, Republic of 1990, Greece 1991, China 1997, Egypt 1998, South Africa 2004. 2. Bilateral treaties for the avoidance of double taxation: …


D. Sources of information Official Banque Central du Congo (www.bcc.cd). Secondary Economist Intelligence Unit (EIU) (2002a). Country Profile: Congo (Democratic Republic of) (London:

EIU Ltd.).

___________________(2002b). Country Report: Congo (Democratic Republic of) (London: EIU Ltd.) September.

___________________(2005a). Country Profile: Congo (Democratic Republic of) (London: EIU Ltd.).

___________________(2005b). Country Report: Congo (Democratic Republic of) (London: EIU Ltd.) September.

International Monetary Fund (IMF) (1996). Aftermath of the CFA Franc Devaluation (Washington D.C.: IMF).

___________________(2006). IMF's Sub-Saharan Africa Regional Economic Outlook, March 10, 2006. (Washington D.C.: IMF).

MacGaffey, Janet et al (2000). Congo-Paris: Transnational Traders on the Margins of the Law (Paris: International African Institute).

MacGaffey, Janet and Vwakyanakazi Mukohya (1991). The Real Economy of Zaire: The Contribution of Smuggling and Other Unofficial Activities to National Wealth (Pennsylvania:University of Pennsylvania Press, Philadelphia).

Morisset, J. (2001). "Foreign direct investment in Africa: policies also matter", OECD Global Forum on

International Investment (Paris: OECD). OECD (2002). FDI from Developing Countries: A Vector for Trade and Development (Paris: OECD). Meditz, Sandra and Tim, Merrill (eds.) (1994). Zaire: A Country Study, Library of Congress Research

Division (Washington D.C.: Area handbook series). United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in Least Developed

Countries at a Glance (Geneva: UNCTAD) (www.unctad.org/en/subsites/dite/LDCs/ pdfs/Countries/chad.pdf).

____________________(2005a). Investor-Disputes Arising from Investment Treaties: A Review.

UNCTAD Series of International Investment Policies for Development (UNCTAD/ITE/IIT/2005/4).

____________________(2005b). A Survey of Support by Investment Promotion Agencies to Linkages.

Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12). ____________________(2005c). FDI in least developed countries at a glance: 2005/2006

(UNCTAD/ITE/IIA/2005/17). United States Department of State, Bureau of African Affairs (1995). "Investment climate report: sub-

Saharan Africa" (Washington D.C.: United States Department of State).


United States Trade Representative (2006). 2006 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa Growth and Opportunity Act: The Sixth of Eight Annual Reports, May 2006. (Washington D.C.: US Government).

World Bank (1995). A Continent in Transition: Sub-Saharan Africa in the mid-1990s (Washington D.C.: World Bank).


congo, democratic republic of - unctadunctad.org/sections/dite_fdistat/docs/wid_cp_cd_en.pdf ·...

Documents