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A Diamond In The Rough
The Democratic Republic of Congo (DRC) is set to emerge as the fastest growing economy in Africa, clocking growth rates of 8.7% and 8.5% in 2014 and 2015, respectively.

Globally, only Turkmenistan has higher global rates, according to The International Monetary Fund latest World Economic Outlook.

The IMF expects growth to accelerate in the DRC as massive investments in infrastructure and mining gets under way. The country saw foreign direct investment worth USD 3.3 billion flow into the country in 2012 - fourth in the Sub-Saharan Africa region, after Nigeria, South Africa and Mozambique.

DRC has been the second fastest-growing market in terms of new project investments, rising 47.6% annually between 2007 and 2011, second only to Ghana's 50.8% growth.

The robust growth rates come after a period when the economy contracted by 4.5% annually from 1991-2002. The country of 75 million people has been ravaged by civil wars, political and social instability.

After insurgencies and counter-insurgencies that lasted more than a decade, a U.N.-backed accord to stabilise the DRC was signed in February2013 by 11 African countries -- Angola, Burundi, Central African Republic, Congo, the Republic of Congo, Rwanda, South Africa, South Sudan, Uganda and Tanzania.

The accord has allowed President Joseph Kabila to pursue some economic reforms and start the slow process of building the economy.

"With the support of international emergency assistance and improved prices for key export commodities, the DRC's macroeconomic situation has stabilised and the economy has recovered significantly," the IMF noted.

MINING MAGNET

The country - the largest in Sub-Saharan Africa in terms of area -- is rich in mineral and natural resources. Apart from its unique biodiversity thanks to 11,000 plant species and more than a 1,000 varieties of mammals and birds, the country also has abundant reserves of oil and numerous minerals.

More than 25 international mining companies operate in the country, drawn by its mineral and metal riches. By some estimates the total value of the DRC's mineral reserves could equate to USD 24 trillion.

While data is hard to come by for the DRC, the U.S. Geological Survey notes that by 2011 DRC's share of the world's cobalt production was 53%; industrial diamond 34%; tantalum 13%; gem-quality diamond 7%; copper 3%; and tin 2%.

"There are vast gold deposits - said to be the richest undeveloped gold deposits in Africa -in the Kilomoto concessions of Orientale province and around Twangiza in South Kivu," ," KPMG said.

The government is pushing major mining companies such as Glencore Xtrata Plc., AngloGold and Randgold to increase royalties. Companies are resisting the move, especially as the country suffers from electricity shortages which often hurt the sector's productivity.

BLANK CANVAS

DRC has a long way to go before its fragile recovery can take hold and investors - beyond the extractive industry - start to pay attention.

The country is like a blank canvas - fully of uncharted opportunities, but also daunting due to lack of infrastructure. Only 2% of the national network is paved and only 11% of the country's rural road network is in an acceptable condition.

The rail network, once extensive, is barely operational, and only 10% of the population has access to electricity.

Overall, the institutional framework to attract investors is also lacking. The DRC is ranked 183rd in World Bank's 2014 Doing Business Survey of 189 countries. The country fell 34 places from its 2013 ranking and performed poorly in virtually every aspect of business process, according to the World Bank data.

Absence of a conducive environment for private initiatives, legal insecurity and relative quality of labor, the infrastructure gap (transport and energy) and inefficiency of logistic services result in major economic costs; and the weakness of public governance have all contributed to the malaise, the World Bank said.

"The main development challenge is to continue to lay the foundations for sustainable and inclusive growth, in partnership with the private sector," the AfDB said.

Trends over the past decade have revealed DRC's ability to achieve satisfactory results under adverse conditions.
 

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Meme chanson ....rien de nouveaux. Aucun impact sur la vie contidien de nos compatriotes. Soki tomeki ko developer .......oh faute ya 32ans. De l'autre cote , bazo vimba...... ba compte etondi , ba imeubles etc....

Ils faudrait commencer par combattre la corruption est l'impunite ...... deux handicapes majeurs pr un development juste et equilibrer.

Mulopwe
 

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Forever RDC
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The last 4 paragraphers demonstrate the current reality which DRC faces. All of us are firmly aware of DRC economical capabilities with the right leadership, we will get on the right path. Good to see more positive articles even though they don't really reflect the reality.
 

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Meme chanson ....rien de nouveaux. Aucun impact sur la vie contidien de nos compatriotes. Soki tomeki ko developer .......oh faute ya 32ans. De l'autre cote , bazo vimba...... ba compte etondi , ba imeubles etc....

Ils faudrait commencer par combattre la corruption est l'impunite ...... deux handicapes majeurs pr un development juste et equilibrer.

Mulopwe
It is normal since we are still at the beginning of the growth curve. Growth always starts to impact those on top and trickles down to the bottom as middle class expands. Same pattern happened in Congo during colonial times during Belgian colonial reconstruction from 1920's to 1950's or any rebuilding, developing country today. Let's keep in mind social policy of a government is separate from economic growth. Economic growth just measures economic activity growth from year 1 to year 2 and so on.

Setting up social programs help but the most effective way is to fight poverty is the expansion of the middle class, which in turn pulls the lower classes into the middle class and the country becomes more diamond-shaped rather than pyramid-shaped. Notice pyramid shape has a large lower class at the bottom and tiny rich class at top while diamond shape has a larger middle, thus middle class!

It is true that with the less corruption, the faster the development. So less corruption will fast track economic growth further in the same way, Top to bottom. So let's encourage positive growth numbers even if the majority of society does not see benefit yet. It is of no consequence that many countries wanting to work with DrCongo is partly based on those growth numbers Congo is putting up, even though it is not yet benefitting majority of population
 

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Meme chanson ....rien de nouveaux. Aucun impact sur la vie contidien de nos compatriotes. Soki tomeki ko developer .......oh faute ya 32ans. De l'autre cote , bazo vimba...... ba compte etondi , ba imeubles etc....

Ils faudrait commencer par combattre la corruption est l'impunite ...... deux handicapes majeurs pr un development juste et equilibrer.

Mulopwe
Pure demagogie de dire de combattre la corruption et l'impunite. Il faut exterminer un grand nombre de congolais pour avoir une luerur d'espoir a mettre fin a la corruption....:eek:hno::eek:hno::eek:hno::eek:hno::eek:hno::eek:hno::eek:hno:
 

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DRC should've been growing at least 10% every year! The country of its size and resources should be doing a lot better. Kanambe should also make sure DRC is in the top 60 easy to do business list. That will pretty much increase growth and investment. But i could only see the country changing at higher pace when Kanambe is out and someone like Katumbi is in.
 

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DRC should've been growing at least 10% every year! The country of its size and resources should be doing a lot better. Kanambe should also make sure DRC is in the top 60 easy to do business list. That will pretty much increase growth and investment. But i could only see the country changing at higher pace when Kanambe is out and someone like Katumbi is in.

You are absolutely correct! DrCongo should experience a lot faster economic growth than it is experiencing at the moment. The engine of growth now is too dependant on the mining sector. Gov must diversify quickly and get other sectors to become engines. Like World Bank said, DRCongo has many sectors that can fuel its growth
 

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DRC should've been growing at least 10% every year! The country of its size and resources should be doing a lot better. Kanambe should also make sure DRC is in the top 60 easy to do business list. That will pretty much increase growth and investment. But i could only see the country changing at higher pace when Kanambe is out and someone like Katumbi is in.
In addition, we must take into account that Congo was one of the hardest-hit countries in Africa during the world economic crisis of 2008-2010. But by 2013, an efficient administration should hit 10% growth already
 

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Mutu ya Chuma.
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Reason we're growing at a snail pace is we have this village leadership that has no priority whatsoever. There are a few people that are smart, but very powerless due to the absolute power by the so called Supreme commander and his click of the likes of Mende and then K. Mwanke, Mugalo, Gen Kalume etc... Very sad how people like these get in power.


Anyways; Agroculture alone would give us double digits growths. but it will have to be supported by infrastrucctures (Rail, Interstate Highways), Electrcity, subsidies and easy of starting business with at max 2 days to open a business.


These will allow people to spend less on food, but spend more on other consumer goods.

It will also allow more investments into Tourism, retail, real estate, construction and light manufacturing.



As long as the growth is not labour intensive, we're doomed to poverty.
 

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Reason we're growing at a snail pace is we have this village leadership that has no priority whatsoever. There are a few people that are smart, but very powerless due to the absolute power by the so called Supreme commander and his click of the likes of Mende and then K. Mwanke, Mugalo, Gen Kalume etc... Very sad how people like these get in power.


Anyways; Agroculture alone would give us double digits growths. but it will have to be supported by infrastrucctures (Rail, Interstate Highways), Electrcity, subsidies and easy of starting business with at max 2 days to open a business.


These will allow people to spend less on food, but spend more on other consumer goods.

It will also allow more investments into Tourism, retail, real estate, construction and light manufacturing.



As long as the growth is not labour intensive, we're doomed to poverty.
Agriculture alone will NEVER give you double digit economic growth in a span of a few years, I don't care what country you are referring to. You said it yourself that agriculture has to be supported by infrastructure in order to thrive. That infrastructure costs money, lots of money to build and it doesn't get built in 3-5 years. A country of the size of DRC and with the type of ecological environment (rain-forest and savanna) such as DRC presents tremendous challenges in building infrastructure. The construction of the barrage de katende is an example of that. Its construction is being slowed down because of the challenges to bring material to Kasai. Yes, you will say...so why doesn't the "useless government" (your favorite statement) just build a new railroad system to Kasai to transport the material. Well, guess what my friend, such an endeavor is HUGE and will take time and LOTS of money. This is kinda like the question of which came first? The egg or the chicken?

I am not making any excuses for for the current government but lots of us here make comments that are unbelievably unrealistic. You call an economy that grew at nearly 8% last year a snail pace economy? Do you realize that we were one of the three fastest growing economies in africa? You call a budget that went from barely a billion dollar to nearly 8 billion dollar a snail growing budget? Do the math and tell me what is the percentage growth of our national budget for the last few years. Now, is the pace of things sufficient to make up for the lost years? NOOOOOO, it is not sufficient. But it is definitely not what I would describe as a snail pace growth. I also would like to see things happen faster, a lot faster. The difference between us is that I look where we have come from and compare to where we are now. You, on the other hand, totally disregard where we have come from and want to see DRC at the level of South Africa (for example) overnight. That is just unrealistic, I don't care even if it was a different president than JKK running the country.
 

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DRC can get growth quickly by connecting East to West by a road network. Boma has to be a bigger Port city.

I think you have all you need to be the biggest economy in Africa eventually, it is a matter of time and organization.
 

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Mutu ya Chuma.
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Boma is smaller than Matadi....But Banana (a Deep Sea port on the Atlantic directly would be the largest and IMO, that zone should be a fREE tRADE/SPECIAL ECONOMIC ZONE/ENTITY LIKE hONG-kONG. AND WHAT IS GREAT ABOUT THAT oCEAN COAST IS THAT THERE IS ALREADY oIL FLOWING THERE, iNGA dAMS ARE JUST 160 KM AWAY, cEMENT FACTORIES ETC....AND IT'S drc'S WINDOW AND DOOR TO THE OUTSIDE WORLD DIRECTLY...SO YOU CAN IMAGINE THE SIZE OF THE POTENTIAL THAT AREA IS...IT'S MASSIVE
 

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Boma is smaller than Matadi....But Banana (a Deep Sea port on the Atlantic directly would be the largest and IMO, that zone should be a fREE tRADE/SPECIAL ECONOMIC ZONE/ENTITY LIKE hONG-kONG. AND WHAT IS GREAT ABOUT THAT oCEAN COAST IS THAT THERE IS ALREADY oIL FLOWING THERE, iNGA dAMS ARE JUST 160 KM AWAY, cEMENT FACTORIES ETC....AND IT'S drc'S WINDOW AND DOOR TO THE OUTSIDE WORLD DIRECTLY...SO YOU CAN IMAGINE THE SIZE OF THE POTENTIAL THAT AREA IS...IT'S MASSIVE
Honestly DRC is luck not to have a huge coast line, which requires a huge Navy :)

The coastline you have can have beach-side resorts & recreational areas, ports, some off-shore fishing, and will cost less to patrol.
 

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everyone is waiting for drc to take it's place as one of the big african economies that will drive the region alongside sa
it will take time but it will happen
I agree, actually all the big countries in Southern Africa have huge potential. Almost all have reasonably small populations compared to Asian countries. This means urbanization, and infrastructure development will lift people out of poverty faster.

To Butembo21: What is the land policy in DRC? Is land under Chiefs or is it privately owned as freehold?
 

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Finally. Drc is the last piece of the renewed africa and I look forward to it taking it's place at the top
 

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Mutu ya Chuma.
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I agree, actually all the big countries in Southern Africa have huge potential. Almost all have reasonably small populations compared to Asian countries. This means urbanization, and infrastructure development will lift people out of poverty faster.

To Butembo21: What is the land policy in DRC? Is land under Chiefs or is it privately owned as freehold?
I will say both , lol

If the government WA t to develop the coastal area, the chief won't opposite that really , they are not heavy handed....in facts in cities Chiefs have no authority or influence at all. So lands are individually owned in cities or urban areas, the CG or governors have the authority.....in rural areas, you must deal with chiefs.


Yeah, our coast is just 40 KM only, lol, I would have liked at least 100 km.
 
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