A Challenging but Promising Business Destination The Democratic Republic of Congo (DRC)

Publié par Hugo Komba dans DR Congo · 25 Juin 2023
Tags: Insights, Analysis, Smart, Lawyer, Blog, Business, Destination, Democratic, Republic, of, Congo, DRC, sub, Saharan, Africa, Western, Europe.

DRC: A Challenging but Promising Business Destination The Democratic Republic of Congo (DRC) is the largest country in sub-Saharan Africa, with an area the size of Western Europe.

It has exceptional natural resources, including mineral deposits (cobalt, copper, etc.), great hydroelectric potential, vast arable land, tremendous biodiversity, and the second largest tropical forest in the world(trade.gov). Its strategic location in Central Africa makes it a potentially attractive market for American companies.

The DRC's economy is largely dependent on commodity prices, particularly the prices of copper, cobalt, tin, tungsten, and tantalum. Most raw mineral deposits remain untapped and have an estimated value of $24 trillion(trade.gov).

The DRC is Africa's largest producer of copper and the world's largest producer of cobalt, a strategic metal used in battery manufacture(trade.gov). Prices for both metals have risen sharply in the past year. Despite its vaunted wealth, the country remains one of the poorest and least developed in the world, mired in armed conflict in the eastern part of the country for a quarter century.

However, there are evident gaps in the market that foreign investors are keen to fill. Starting a business in the country is relatively easy(expatarrivals.com), a hopeful sign for future investment and entrepreneurship. The dominant sectors of the local economy are agriculture, fishing, mining and forestry.

There is also some manufacturing, particularly of textiles, cement and wood products(expatarrivals.com). The main centres of business are the capital, Kinshasa, and Lubumbashi, in the mining district of Katanga.

When considering the DRC as a potential country to move to or a foreign market to do business in, there are some key elements of business culture to bear in mind.

Business etiquette

• French is the language of business in the DRC(expatarrivals.com). Local languages, including Swahili, Lingala, Kikongo and Tshiluba, are also widely spoken, particularly in rural areas(expatarrivals.com).

• A handshake is the usual greeting between business associates(expatarrivals.com). It's not unusual for people to touch each other on the shoulder or arm while talking to those they are familiar with(expatarrivals.com). When shaking someone's hand with their right hand, they may also hold their right forearm with their left hand(expatarrivals.com).

• Lightweight suits are best, given the warm climate(expatarrivals.com). For formal meetings, smart business attire is best(expatarrivals.com).

• A gift is acceptable when visiting an associate's home(expatarrivals.com), but with the prevalence of bribery and corruption, expats should consider their gift-giving carefully(expatarrivals.com).

Business culture

• Status is important in Congolese culture, including in business(expatarrivals.com). Elders and those in authority are respected(expatarrivals.com). Likewise, business structures in the DRC are hierarchical(expatarrivals.com). Although the ideas of the team are typically welcomed, the final decisions are normally made from the top(expatarrivals.com).

• Communication is often indirect and polite(expatarrivals.com). Expats should avoid confrontation or criticism in public(expatarrivals.com). Humour and small talk are appreciated as a way of building rapport(expatarrivals.com).

• Relationships are crucial for doing business in the DRC(expatarrivals.com). Expats should invest time and effort in getting to know their potential partners and clients personally before engaging in any transactions...etc.