GUIDE FOR DOING BUSINESS IN THE DEMOCRATIC REPUBLIC OF

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					 ZAMBIA TRADE AND INVESTMENT ENHANCEMENT PROJECT
                      (ZAMTIE)

                   Contract Number 690-C-00-00-00283-00


Supported By:                    United States Agency for International
                                 Development (USAID)

Implementing Contractor:         Nathan Associates Inc
                                 2101 Wilson Boulevard, Suite 1200
                                 Arlington VA 22201

Sub-contractors:                 Independent Management
                                 Consulting Services Ltd
                                 Aurora Associates International, Inc
                                 Cargill Technical Services
                                 JE Austin Associates, Inc


               GUIDE FOR DOING BUSINESS
                          IN
          THE DEMOCRATIC REPUBLIC OF CONGO


                            Prepared with the help of

                        Lubumbashi Liaison Office


                               SEPTEMBER 2003


                            55 Independence Avenue
                         PO Box 39398, Lusaka, Zambia
                   Tel: (260-1) 251-177/251-127 Fax: 251-141
                Website: www.zamtie.org, E-mail: ronblack@coppernet.zm
        ZAMBIA TRADE AND INVESTMENT ENHANCEMENT PROJECT
                                 (ZAMTIE)
GUIDE FOR DOING BUSINESS IN THE DEMOCRATIC REPUBLIC OF CONGO


                             ABREVIATIONS


COMESA      -   COMMON    MARKET       FOR   EASTERN   AND    SOUTHERN
                AFRICAN COUNTRIES
DRC         -   DEMOGRATIC REPUBLIC OF CONGO
FEC         -   FEDERATION       DES     ENTREPRISES     DU     CONGO
                (FEDERATION OF CONGO ENTERPRISES)
LC          -   LETTER OF CREDIT
MT          -   METRIC TONNE
OCC         -   OFFICE DE CONTROLE CONGOLESE (CONGOLESE OFFICE
                OF INSPECTION)
OFIDA       -   OFFICE DES DOUANES ET ACCISES (CUSTOMS OFFICE)
RSA         -   REPUBLIC OF SOUTH AFRICA
US$         -   UNITED STATES DOLLAR (S)
USA         -   UNITED STATES OF AMERICA
USAID       -   UNITED   STATES        AGENCY    FOR    INTERNATIONAL
                DEVELOPMENT
ZAMTIE      -   ZAMBIA TRADE AND INVESTMENT ENHANCEMENT
         ZAMBIA TRADE AND INVESTMENT ENHANCEMENT PROJECT


                         GUIDE FOR DOING BUSINESS IN THE DRC


                                           TABLE OF CONTENTS




1.   INTRODUCTION ..............................................................................................1
2.   COUNTRY PROFILE........................................................................................2
3.   BORDER ENTRY PROCEDURES, LICENCES AND PERMITS.....................6
4.   FEES, DUTIES AND INFORMAL PAYMENTS ON TRADE TRANSACTIONS.
      .........................................................................................................................8
6.   POTENTIAL MARKETS FOR ZAMBIA PRODUCTS AND RECOMMENDED
     DISTRIBUTION CHANNELS.........................................................................15
7    PROCESSES AND PROCEDURES INVOLVED IN THE REGISTRATION OF
     A BUSINESS ENTERPRISE IN THE CONGO D.R. .....................................18
8.   OTHER TRADE SUPPORT SERVICES AND INFRASTRUCTURE .............20
9.   GENERAL COMMENTS ON THE COST OF LIVING AND PERSONAL
     SAFETY IN THE CONGO D.R. .....................................................................24
10. CONGO RD DATA PROFILE ………………………………………………… 29
                                                                               A ZAMTIE PUBLICATION




1.         INTRODUCTION

           The preparation and publication of this guide was facilitated by ZAMTIE1 in
           close collaboration with the Export Board of Zambia (EBZ)2. It is one of
           several initiatives being pursued by ZAMTIE to actively promote the
           Democratic Republic of the Congo (DRC) as a potential regional export
           market for Zambian enterprises.


           The guide provides basic information to assist Zambian enterprises seeking
           to do business in the DRC. This information was collected through an
           independent study based on the practical experiences of a Zambian
           entrepreneur who is presently based in the DRC. It covers procedures
           involved in the export of products into the Katanga Province of the DRC.
           These procedures include:


            I.      Transportation routes and recommended shipment logistics;
           II.      Border procedures and related formalities, such as licenses and
                    permits supported by indications of associated costs;
          III.      Structure of duties and fees levied on imports by the DRC
                    authorities;
          IV.       Facilities available for processing export/import transactions;
          V.        Procedures and costs of registering a business enterprise in the
                    DRC;
          VI.       Potential markets for a selection of Zambia’s non-traditional exports
                    in the Katanga province and available distribution channels; and,
         VII.       Trade support services and infrastructure that Zambian enterprises
                    can explore.


           This guide is however not an official publication of the Government of the
           DRC. Whilst every attempt has been made to ensure accuracy of the
           information contained in this guide, situations however change that may
           also affect the outlined procedures.

1
    ZAMTIE is a US $ 5m USAID project managed by Nathan Associates. See www.zamtie.org




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         Users of this guide are therefore advised to confirm procedures with
         relevant offices of the DRC authorities or trade support service providers
         whose contact addresses are also provided in this publication.

    2.        COUNTRY PROFILE




         General Information


         The DRC is a country of 2, 345, 410 sq Km with a population of 55, 225,
         478 million people3. It has a population growth rate of 2.79% (2002 est.). It
         borders Zambia along Luapula, Copperbelt and Northwestern provinces.
         Only one of its several provinces, the Katanga Province, borders Zambia
         from Lake Tanganyika to the tip of the Northwestern Province bordering
         Angola.       The eastern part of the Katanga Province is separated from
         Zambia by the Luapula River, which also acts as the official boundary


2
  The Export board of Zambia is a quasi-government body under the Ministry of Commerce, Trade & Industry. It is
tasked with promoting Zambian exports and exporters.
3
  0-14 years: 48.2% (male 13,369,493; female 13,256,174), 15-64 years: 49.3% (male 13,343,303; female 13,860,996),
65 years and over: 2.5% (male 581,568; female 813,944) (2002 est.)




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          between the two countries. The population found on both sides of the
          Luapula river share common tribal and historical linkages.


          The other parts of the DRC that are easily accessible to Zambia after the
          Katanga Province are two Kasai provinces, namely: Kasai Oriental
          (Eastern) and Kasai Occidental (Western). The Katanga Province has a
          population of 8 million whilst, the two Kasai provinces have a population of
          about 10 million. Lubumbashi is the provincial capital with a population of
          over 1.5 million. Other towns accessible from Zambia are Likasi, Kipushi,
          Kamina and Kolwezi. The two Kasai provinces are centers for diamond
          mining in Mbuji Mayi, Kananga and Tshikapa


          The DRC offers a huge market for imported consumer goods as most of its
          industries have largely remained underdeveloped. In 2001 Congo DR
          imports from within the COMESA region total US $51.31m4, whilst 2002
          exports to Congo DR from Zambia totaled ZMK 68,029,776,2255. Political
          and civil strife, especially since the mid 1990s, has also discouraged
          investment, whilst most of the existing industries have either been forced to
          close down or are lying dormant.


          The Katanga province is however rich in minerals and the mining industry
          is fairly well developed but suffers from serious production problems due to
          inability to source inputs. In addition to the absence of industrial activities,
          commercial agriculture is largely non- existent. This means that most basic
          food requirements and Industrial products are imported thus, offering a
          large market for Zambian exporters especially of agricultural products.




4
    source – www.comesa.org - COMESA in figures – intra-COMESA trade
5
    source – Central Statistics Office - Zambia


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           Transport Linkages and Border Entry Points.
           The Katanga Province is accessible to Zambia by air, road and rail
           networks.      The main access routes and transportation modes suitable for
           Zambian exporters into the Katanga Province of the DRC are indicated
           below.


           Air Links


           From Zambia it is possible to fly from Ndola International Airport to
           Lubumbashi in the Katanga Province. Airlines such as ITAB, Zambian
           SKYWAYS and Business Airlines are presently providing direct flights
           between Lubumbashi and Ndola. Airfreight is however an expensive option
           for shipping goods.


           Rail Link


           The rail runs from Ndola to Sakania border post through to Lubumbashi.
           From Lubumbashi the line runs up to Kambove then branches into two
           lines. One line goes to Kolwezi up to the border with Angola through to the
           port of Lobito. The other line goes up to Kamina and then further branches
           into two lines, i.e. with one line going up to the two Kasai provinces, while
           the other one goes to Kalemie on Lake Tanganyika.


           The Congolese National Rail System is linked to the Zambian Rail System
           through Sakania and Ndola. The Congolese National Rail presently
           maintains an office at the Ndola railway station. Exporters can therefore
           use the rail for bulk items such as: sugar, maize, cement, flour, rice and
           carbon fuels. The charges are US$1,377/40 MT wagon. It is estimated that
           it takes about 7 days6 from Ndola to Lubumbashi. The only problem is,
           once in a while, there are no wagons available.




6
    This is the time given by the Marketing Department of the Congolese National Rails in Lubumbashi DRC.


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                                                                A ZAMTIE PUBLICATION




       Road Links


       There are a number of road transport linkages between Zambia and the
       Katanga Province supported by official border posts in the Copperbelt. For
       example, an exit route exists from Mufulira using the Mokambo border post
       that leads directly to Lubumbashi. This is however a gravel road from
       Mokambo up to the main road going to Lubumbashi in the DRC.
       Lubumbashi can also be accessed from Chingola using the Tshisenda
       border post. A number of traders especially those importing sugar, cement,
       dried beans and fish use this route to avoid the congestion at Kasumbalesa
       (described below).


       From the North-western Province of Zambia, the DRC can be accessed
       through Solwezi by using the Kipushi border post that also leads directly to
       Lubumbashi. The Solwezi - Kipushi road is however not well maintained
       and few travelers use it. The border posts on both sides are also very
       small.


       The main road link of economic importance for Zambian exporters is
       through    the   Kasumbalesa       border   post   linking   Chililabombwe     to
       Lubumbashi. This route has an all weather (tarred) road, i.e. about 96 km
       from Kitwe to the Kasumbalesa border post and an equivalent distance
       from the border to Lubumbashi. Basic transit facilities are also offered at
       Kasumbalesa border post, including: parking for trucks, clearing and
       forwarding formalities.     All the major transporters from Zambia, RSA,
       Zimbabwe and Namibia use this border to access the DRC towns of the
       Katanga Province, especially Lubumbashi.


       Lubumbashi, therefore, plays a key role in the importation of goods into the
       DRC. It is the main distribution point, as well as being the industrial and
       commercial capital of the DRC. It has many trading houses and distribution
       facilities for imports, which are then bought by traders who come from the



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                                                             A ZAMTIE PUBLICATION




       interior to buy and transport upcountry by road or rail. It also services the
       Kasai Provinces with most of its requirements. In addition, it has
       international banks good telecommunication facilities, an international
       airport, and a rail station with goods handling facilities. Large warehouses
       for both refrigerated and non-refrigerated goods are also available in
       Lubumbashi.

3.     BORDER ENTRY PROCEDURES, LICENCES AND PERMITS

       Border Procedures


       Entry into the DRC is subject to a number of procedures and fees. These
       vary depending on the reasons for wishing to enter the country and mode
       of transport used. Set out below are procedures currently being applied for
       individuals and road shipment trucks using the Kasumbalesa border post
       through Chililabombwe.


       Visa Requirements – Private Visits


       All foreign persons entering the DRC are required to hold a valid visa. It is
       recommended that a visa is acquired prior to traveling to the DRC from the
       Embassy in Lusaka or Consular office based in Ndola at a fee of US $30.
       This type of visa allows a person to stay in the DRC up to 14 days.


       Since the end of January 2003, visas are only available from Lusaka and
       Ndola. Officially visas are not available at Kasumbalesa border except with
       prior arrangements. Probably a visa can still be obtained at the border
       since this measure is temporary due to security reasons but this is with
       some painstaking appeals to immigration officials. Where one succeeds in
       obtaining a visa at the border, a tourism fee at US $10 may also be levied.
       The tourism fee is however not applied every time, especially if a visa is
       obtained prior to travel in Zambia. A vaccination fee of US $10 is also
       charged if one has no international vaccination Yellow Card and is not
       vaccinated against cholera and yellow fever.



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                                                                  A ZAMTIE PUBLICATION




       Entry Fees for Commercial Vehicles


       Apart from the visa requirements, commercial vehicles entering the DRC
       (i.e. those carrying goods) are subject of various levies, set out as follows:


        TYPE OF LEVY            TRUCK        OF      2/3 SMALL         TRUCK
                                AXLES (US $)               (US $)
        Entry card                                 65.00                 25.00
        Insurance* 2 days                          60.00                 37.00
        Insurance* 7 days                          90.00                 70.00
        Container fee                              40.00
        Fumigation                                 50.00                 50.00
        Toll fee                                  300.00                100.00
       *If the vehicle has a COMESA yellow card insurance, then additional insurance is not
       required.


       As English is not widely spoken, it is recommended that travelers from
       Anglophone countries use good agents at the border to avoid complications
       and possible loss of money.


       A new Liaison Office has been recently established to provide assistance
       with border formalities to would be exporters. The Liaison Office was
       established during the last Zambian Exporters Trade Mission of October
       2002 to Lubumbashi DRC. This was sponsored by the EBZ with support
       from ZAMTIE. Its main functions are to coordinate between the Zambian
       business houses and Congolese buyers. The services are provided in
       conjunction with the Zambian Consulate in Lubumbashi through the office
       of the Trade Attaché.


       Entry of Goods into the Country, Licenses and Permits for Exports


       Due to the absence of a strong local industry, the Congolese economy is
       highly dependant on imports. Only a few goods like textiles and garments



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                                                                 A ZAMTIE PUBLICATION




       are restricted to protect the local textile industry. Because of this, export
       requirements in terms of paper work are not very onerous. In the case of
       agricultural products, such as dressed chickens, beef, stock feeds and day
       old chicks, the importing Congolese buyer is required to obtain an import
       permit from the Ministry of Agriculture, which costs US$50. This can also
       be obtained at the border.


       For the exporter, a bill of entry and an official invoice are required, which
       should clearly state the quantity (in number of units) and value in US$. For
       live animals, such as day old chicks, live chickens, goats and cattle, a
       phytosanitary certificate from the country of origin is required. If the live
       animals are from Copperbelt, arrangements for obtaining a phytosanitary
       certificate can be made with the Provincial Agricultural Offices in Ndola.


       Other important documents that are needed to clear goods can be obtained
       with the help of a clearing agent. Care must however, be taken that a good
       clearing gent is used to avoid being swindled. It is also possible for the
       importer/exporter to handle this part of the procedures personally, i.e.
       without use of clearing agents, especially where they can speak French
       and are familiar with the intricacies of relating to border officials.
4.     FEES,      DUTIES      AND      INFORMAL           PAYMENTS        ON    TRADE
       TRANSACTIONS.


       Duties and Fees on Imports

       The DRC system of clearing goods can be very demanding and at times
       confusing. Contracting a good and reliable clearing agent can be the best
       solution. Due to the high level of imports, clearing and forwarding
       companies have been formed and it is one of the major activities at the
       border. Many of such companies found at the border also have offices in
       Lubumbashi and can therefore facilitate expediting of goods.


       There are also a lot of “free lance” clearing agents at border posts, who
       seem to offer cheap service and claim to be able to reduce tariffs and taxes


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                                                             A ZAMTIE PUBLICATION




       on goods through “negotiations”. The Kasumbalesa border post, being the
       major entry point for imports from Southern and Eastern Africa is full of
       such “free lance” clearing agents. One has to be careful when dealing with
       such persons as they can mislead or swindle a first time exporter.


       Two major government organs are charged with clearing of goods, namely:
       OFIDA (Customs) and OCC which is the Congolese Office of Inspection.
       The latter is concerned with quality control and confirming the origin of
       goods, a role SGS sometimes performs in other countries. Its
       responsibilities include certifying the suitability of goods for consumption
       and use in the DRC in accordance with international standards. However,
       due to the general break down of the government system, the two organs
       are rife with corruption and charges can be negotiated. Two systems of
       clearing are used namely: at port of entry; and from a dry port after
       Customs officials have escorted a truck into Lubumbashi.


       Clearing at Port of Entry


       Due to the prevailing war situation, clearing at the border for containerized
       goods, goods in carton boxes and those under refrigeration are mostly not
       allowed. Only highly perishable goods like day old chicks, vegetables and
       non-bulk goods may be cleared at the borders. Table eggs can also be
       cleared at the border at times. But to reduce wasting time at the border,
       with the confusion involved, it is better to transfer the goods through a
       clearing agent to a dry port in Lubumbashi. There are many dry ports in
       Lubumbashi under Government supervision.




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                                                               A ZAMTIE PUBLICATION




       The basic charges for clearing the goods either at the border or in
       Lubumbashi, are: -


                       OFIDA – CUSTOMS DOCUMENTS AND CHARGES - I

                   •   I.D.    DEFINITIVE IMPORTATION                  US$16
                   •   E.U.    EMERGENCY REMOVAL                       US$20
                   •   I.E.    IMPORTATION IN EXEMPTION                US$20
                   •   E       DRYPORT DECLARATION                      US$8
                   •   S.D.     DEFINITIVE EXIT                         US$8
                   •   O.D.    ORDER TO DECLARE                        US$10
                   •   N.V.    Bill of payment                          US$1


                       SYSTEM USED TO CALCULATE ON DOCUMENTS - II

                   •   I.D.   (ID + OD + NV)                           US$26
                   •   EU/ID (EU + ID + OD + NV)                       US$46
                   •   EU/ IE (EU + IE + OD + NV)                      US$51


              Table I contains documents needed for exporting your goods there,
              and the charges they attract. Table II indicates how they aggregate
              the charges and what you will be finally required to pay. They do not
              necessarily reflect a sum total of the individual charges.
              Notes on Customs Documents


              1.       I.D. – This document is a declaration that the goods shall be
                       used and consumed in the DRC and will not be re-exported.
              2.       E.U. – This is a document for perishable goods or to clear the
                       goods quickly.
              3.       I.E. – this is for goods that are exempt from paying duty, e.g.
                       raw materials for agriculture.
              4.       E. – This is a document that allows the transfer of goods
                       under escort to a dry port in Lubumbashi.
              5.       S.D. – This is for goods that are going to be re-exported or
                       are in transit through the DRC.




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              Paying of Customs Fees


              •       CUSTOMS DUTY


                      This is calculated according to the value of CIF on the goods
                      being imported, i.e. using the percentage tariff on each
                      product.
                      ** 5 % value of CIF (in the case of exempt goods).


              •       OTHER TAXES ON IMPORTS.
                      - B.I.C.            5 % CIF
                      - F.P.I.            2 % CIF
                      - V.I.              8 % Import Document
                      - COMM EXT     US$60 Import Document
                      - CITE (Levy)       US$60 Truck

                      Definitions
                      B.I.C. –      Benefice a l’industrie et au commerce (Industrial
                                    and Commercial Benefit) – this is a form of tax
                                    charges on the CIF value of goods and all sales
                                    of items in the country
                      F.P.I -       Fonds pour la promotion de I’industrie (Funds
                                    for the promotion of the Industry) all imports are
                                    subject to this payment which is supposed to be
                                    put into a fund to lend to small industries
                      V.I -         Vente Impremee (sale of printed paper work)
                                    charge     on   all   government    used      printed
                                    documents
                      COMM EXT Commerce Exterieur Tas – Tax for the approval
                                    documents for external commerce
                      CITE          Tax for the Kasumbalesa municipality




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                   O.C.C. FEES
                   These are payable after the examination of the documents, as
                   follows:


                            Inspection fee                                   US$100
                            Tare                                             US$50
                            Lab fees7                                        US$90

           It is important to note that, apart from the published fees, there are also a
           number of other unofficial charges and levies that one may be required to
           pay to the intelligence, police and other security agencies of the
           Government at the border. For example, for documents to be signed, it is
           likely that one will be asked to pay the equivalent of US $20 just for the
           signature.     On live animals (as well as agricultural products) there are
           veterinary levies that also have to be paid, as follows:


                   Day Old Chicks                            US$0.75 / Box
                   Maize, Sugar                              US$40 / Ton

           Clearing from Lubumbashi Dry Port Using Clearing Agents.


           The above fees, applied for clearing at ports of entry, are the same for the
           Lubumbashi Dry Port, but additional levies charged in Lubumbashi are as
           follows:


                      Escort of truck                                US$20
                      Parking                                        US$8/day/truck
                      Storage                                        US$8/day/truck

            Most clearing agents charge between US$100 – US$250 as fees
            depending on the quantity and value of the goods. But at the border, a free
            lance clearing agent can be obtained for as low as US$50 to facilitate the
            clearance of goods.



7
    Lab fees are paid on goods that are consumables. e.g. food stuffs, fuel, paints, etc.


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                                                            A ZAMTIE PUBLICATION




       Tariffs for Some Imported Goods


       Set out below are examples of customs tariffs levied on some imported
       products. The list is not exhaustive but covers typical products that can be
       exported from Zambia.




                 ITEM                                          TARRIF
                 MAIZE                                         18.45 %
                 BREAD FLOUR                                   18.45 %
                 TABLE EGGS                                      46 %
                 MINERAL WATER                                   43 %
                 CIMENT PORTLAND                                36.5 %
                 CHEMICAL FERTILISER                           Exempt
                 DAY OLD CHICKS                                Exempt
                 AGRI – SEED                                   Exempt
                 POWDERED MILK                                  8.15 %
                 BISCUITS                                       8.15 %
                 RICE                                          18.45 %
                 CANE SUGAR                                      26 %
                 INDUSTRIAL GASES                                20 %
                 VITAMINS - PROTOMIN                           Exempt
                 CHEESE                                         46.9 %
                 COSMETICS                                      46.9 %
                 ASSORTED JUICE                                 46.9 %
                 PAINTS                                         8.15 %
                 TINNED FOODS                                  18.45 %
                 DRESSED CHICKEN                               18.45 %
                 BEEF                                            18 %
                 FROZEN FISH                                    8.15 %
                 WOODEN PRODUCTS                                 69 %
                 HARD LIQUOR                                   46.90 %
                 TEXTILE FABRIC                                 46.9 %
                 ELECTRONIC EQUIPMENT                          35.60 %
                 INDUSTRIAL GASES                              18.45 %
                 PHARMACEUTICAL PRODUCTS                       18.45 %
                 INDUSTRIAL PUMPS                              18.45 %




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5.     PROCESSING OF EXPORT/ IMPORT TRANSACTIONS


       Payment Systems.


       There are at present no restrictions on money transactions in the DRC.
       The rate of exchange has also been liberalized and a floating system is
       used against the US$. All prices of goods and services including
       Government rates are pegged to the US$ and are changed accordingly.


       This means that one can sell goods in the local currency, the Congolese
       Franc (FC) and change the money easily on the open market into         US$.
       Numerous Bureau De Change outlets operate in Lubumbashi and
       Kinshasa.


       Financial Services Available to Exporters


       For a long time now, the Congolese banking system has not performed to
       the expectations of its customers. The local currency is also not strong,
       therefore, services like LCs through a bank did not exist until recently with
       the establishment of First Bank Corporation of Zimbabwe in Lubumbashi.
       All trade transactions are however done in US$ cash or are given on credit
       and later paid for in US$ cash.


       One can now transfer money to any part of the world from Lubumbashi,
       using First Bank, within 48 hours. Bank charges on such transactions are at
       1%, but still a lot of trade transactions are by cash. Apart from First Bank
       Corporation in Lubumbashi and Stanbic Bank in Kinshasa, other money
       transfer services (such as Western Union) are available. These however
       normally attract a charge of about 10% and above on values transacted.




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6.     POTENTIAL MARKETS     FOR   ZAMBIA                         PRODUCTS         AND
       RECOMMENDED DISTRIBUTION CHANNELS

       The DRC market offers large potential for most Zambian products,
       especially for Copperbelt based companies. At present however, exporters
       from RSA, Namibia and Zimbabwe are exploiting this market more.
       Another observation noted is that competing products from RSA and
       Zimbabwe are much cheaper than those from Zambia.                  For example,
       Zimbabwe and Congo D.R. signed a bilateral Trade Agreement in 2002,
       which has made Zimbabwean goods even cheaper, as can be noted from
       the comparisons shown below.


                                        CIF + duty /LUBUMBASHI FROM
                  ITEM
                                        ZAMBIA (US$)             ZIMBABWE (US$)
     DRESSED CHICKEN                                      1.45                 1.15
     Table eggs/ tray                                      2.5                  1.5
     Day old chicks                                       0.58                 0.45
     Cement                                                  6                    4
     Stock feed                                            20                  17.5
     P.V.A. PAINT – 5 Litres                                 6                    4
     BEEF – KG                                               2                    1


       Prices of Zambian products need to be more competitive if they are to
       penetrate this market. Government intervention is required to negotiate a
       bilateral trade agreement with the DRC.            In addition, efforts should be
       made to reduce local taxes on goods designated for export, as this is the
       only way Zambian products will compete fairly on the Congolese market.
       This is particularly important as the demand for products that are also
       produced in Zambia is relatively high as can be noted from the example
       shown below8.


8
 Source :    CACTUS s.p.r.l., Clearing Agent,      57, Av. Mwepu, Batiment Mulongo, Tel:
243-97025810, 243-8898089, LUBUMBASHI/           DRC, E-mail: asguymus@hotmail.com,
cactusvoyage@yahoo.fr



Guide for Doing Business in the DRC                                            Page 15
Prepared with the help of the Lubumbashi Liaison Office
                                                                   A ZAMTIE PUBLICATION




      NAME OF PRODUCT                      ESTIMATED DRC REQUIREMENT
                                           PER ANNUM
      DAY OLD CHICKS                       600,000
      FROZEN CHICKEN                       500 MT
      STOCK FEEDS                          2,700 MT
      MAIZE GRAINS                         4,000 MT
      MAIZE MEAL                           4,000 MT
      TABLE EGGS                           600,000 - Trays

    Note: Demand for most other products is also high except that government departments like
    OFIDA and OCC could not provide the detailed statistics


       Recommended Distribution Channels for Products


       Poor internal road networks hamper the distribution and selling of products
       in the Congo. For Katanga Province, apart from the rail line, the only good
       road is between Kasumbalesa to Likasi, which is tarred and covers only
       220 Km of this huge Province. The rest of the roads are almost impassable
       except to lorries. Trading is thus mainly done from Lubumbashi, which, by
       itself is a large market.


       Some well established wholesale traders buy goods in bulk, which they
       later resell to small traders who carry them upcountry using all sorts of
       transport means. However, goods can be distributed into the Kasai
       Provinces through Kananga and Mbuji Mayi towns by rail.


       For the Zambian exporter, it is therefore more advantageous to have a
       representative office in Lubumbashi or have a resident business customer
       who can buy in bulk for resale. The exporter can also have a distribution
       agency appointed locally. As examples, Hybrid Zambia, Discount Steel,
       Zambeef, Morganite Zambia and Kabwe Industrial Fabrics are Zambian
       Companies which have established permanent offices in Lubumbashi for
       conducting business in the DRC.




Guide for Doing Business in the DRC                                                Page 16
Prepared with the help of the Lubumbashi Liaison Office
                                                             A ZAMTIE PUBLICATION




       Based on the information obtained from leading shops and trading houses
       (such as Gloria Trading, Av. Mama Yemo, Psaromatis Super Market and
       Manohah Butcheries), local retail prices for a range of products that can
       also be supplied from Zambia are indicated as follows:


                       PRODUCT NAME                       LOCAL PRICE IN $
                                                                 US
      1. NORMAL PORTLAND CEMENT 50 Kg Bag                               8.00
      2. WHITE SPOON SUGAR 50 Kg Bag                                   22.00
      3. BROILER DAY OLD CHICK/CHICK                                    0.65
      4. LAYER PULLET CHICK PER CHICK                                   1.20
      5. WHITE GRAIN MAIZE PER MT 250-                                300.00
      6. WHITE BREAD FLOUR 50 Kg                                       25.00
      7. WHITE MAIZE MEAL 25 Kg                                        10.00
      8. RICE – 50 kg                                                  25.00
      9. DRESSED CHICKEN PER KG                                         2.00
      10. MIXED CUT BEEF                                                4.00
      11. FROZEN FISH BREAM PER KG                                      3.00
      12. MAHEU 500 ml                                                  0.30
      13. TRAY OF EGGS                                                  3.00
      14. BROILER STATER - 50 Kg                                       25.00
      15. BROILER FINISHER – 50 Kg                                     24.00
      16. LAYERS MASH                                                  23.00
      17. GALVANISED IRON SHEET STANDARD                                9.00
      18. STANDARD DOOR FRAME                                          70.00
      19. P.V.A. PAINT - 5 LITRES                                         7
      20. GLOSS WHITE PAINTS – 5 LITRES                                  15
      21. HYDRATED LIME - 50 kg                                           7
      22. WIRE NAILS/ Kg                                                  2




Guide for Doing Business in the DRC                                      Page 17
Prepared with the help of the Lubumbashi Liaison Office
                                                            A ZAMTIE PUBLICATION




       The above price ranges are based on a January 2003 survey. From this
       illustration, it can also be noted that by comparison to local prices (in
       Zambia) for the above listed Zambian products, they sell at almost double
       the price on the Congolese Market.


7      PROCESSES AND PROCEDURES INVOLVED IN THE REGISTRATION
       OF A BUSINESS ENTERPRISE IN THE CONGO D.R.

       The present DRC Government has adopted a liberalized market economy.
       So it is now possible to register a business enterprise even as a foreigner.
       What is however missing is a clear policy on investment. An investment
       policy has however been formulated and debated in parliament but its
       implementation is still awaited.


       The intending exporter wishing to establish a business concern in the DRC
       has to contend with local taxing systems, which at times can be irritating.
       To establish a business concern, the following documents are needed.


           -   N.R.C. N°- New Business Register
           -   I.D.N. - National Identification Number


       When registering a business enterprise, the file has to be introduced to the
       Clerk of the High Court through a lawyer. The Liaison Office can assist
       through its Legal Counsel, depending on which option works out cheaper
       with regard to legal fees.
       Company registration fees are as follows:


      1. N.R.C. N°                              700 $
      2. Memorandum of Ass. approx.           1000 $
      3. Depositing at Notary Office          1000 $
      4. I.D.N. N°                              500 $
      5. Processing fees approx.                800 $
      6. Legal fees                           1000 $
                     TOTAL                    5000 $



Guide for Doing Business in the DRC                                       Page 18
Prepared with the help of the Lubumbashi Liaison Office
                                                             A ZAMTIE PUBLICATION




When registering a general trading name for a foreigner the following are charged
as fees:
                DESCRIPTION                  AMOUNT
                                               (US $)
    1. N.R.C. N°                                 300
    2. Memorandum of Ass. N°                     200
    3. Depositing at Notary Office               500
    4. Processing fees                           400
    5. Operating License                         300
    6. Permit to open business                   300
    7. Legal fees                                200
                    TOTAL                       2,200


       If the foreigner applying for company registration or a general trading name
       intends to participate in the running of the company themselves in the
       DRC, then they will be required to provide the following:


       1.     Photocopy of the Resident Card
       2.     Certificate of Private Profession
       3.     Clear Police Record.
       4.     Notariate Status


       After one has obtained the certificate to operate, then there are certain
       taxes payable to the local authorities like:
       1.     5 Years operating License from the Ministry of Environment.
       2.     Single tax on establishment of a business activity from Town Council
              at US $50 per year.
       Despite the process looking demanding, it is possible to get all the above
       documents in a week’s time and easily commence business. Non-resident
       partners or shareholders can also register a company in the Congo and
       appoint managers to run it on their behalf.




Guide for Doing Business in the DRC                                         Page 19
Prepared with the help of the Lubumbashi Liaison Office
                                                             A ZAMTIE PUBLICATION




8.     OTHER TRADE SUPPORT SERVICES AND INFRASTRUCTURE

       Telecommunication Services
       From the year 2000, telecommunication systems have improved. Presently
       the following companies are offering both in-country and international
       services: -


                                               TELECOM SERVICES
           COMPANY                             LOCAL & INTERNATIONAL

           SOGETEL                             PHONE & FAX
           CELTEL                              PHONE
           VODACOM                             PHONE
           OASIS                               PHONE
           OCPT                                PHONE & FAX
           STARCEL                             PHONE & FAX



       The charges on international calls for the major telecommunication service
       providers are indicated below:


       STARCEL

                     Country                                      Tariff/Min

           a.        USA, Canada, Germany, Belgium, France,       US$0.40
                     Zambia, Zimbabwe, Greece and South
                     Africa

           b.        Earst Europe, Isreal UK                      US$0.50

           c.        The rest of the World                        US$0.70



       SOGETEL

                     Country                                      Tariff/Min

           a.        Asia Zone, Africa                            US$0.62

           b.        Europe, USA, RSA                             US$0.39




Guide for Doing Business in the DRC                                      Page 20
Prepared with the help of the Lubumbashi Liaison Office
                                                                           A ZAMTIE PUBLICATION




        VODACOM

                      Country                                                      Tariff/Min

             a.       Africa, Asia                                                 US$0.50

             b.       Europe, USA                                                  US$0.40



        CELTEL

                      Country                                                      Tariff/Min

             a.       Africa, Asia                                                 US$0.55

             b.       Europe, USA, World                                           US$0.45



        Local calls are US$0.26/min in the Country. Faxing documents in and out
        of DRC is still a problem since the national telecommunication lines are
        unreliable.     In addition, most mobile phone providers do not offer fax
        services. However, private companies that offer independent fax services
        exist.


        A very reliable Internet network system is available with cyber cafes all over
        and working well via satellite link. Professional courier service providers
        like DHL and EMS are also available.


        Trade Services


        Other support services are offered by the FEC (acts as the Congolese
        Chamber of Commerce)9. It helps to promote trade and facilitate interaction
        between the Government and the private sector. It also provides a channel
        to all its affiliates to interact with other business houses.




9
 The FEC is instrumental in organizing trade missions from countries intending to trade in the
DRC. It was the counterpart to the Zambia Trade Mission of October 2002 and the other previous
exhibitions. It provides the place and arranges the logistics for exhibitors such as; interpreters, and
clearing of goods for exhibitions.


Guide for Doing Business in the DRC                                                         Page 21
Prepared with the help of the Lubumbashi Liaison Office
                                                          A ZAMTIE PUBLICATION




       An exporter can find assistance at FEC to establish contacts with
       customers as well as obtaining the necessary legal documents to do
       business in the DRC. Moreover, the Liaison Office in conjunction with FEC
       and the Zambian Consulate’s Trade Attaché is able to give needed support
       to Zambian exporters in sectors such as:


       •      Telecommunications
       •      Marketing TV, radio and personal
       •      Interpreting services
       •      Escort services
       •      Cash transfer services
       •      Exporters representation services
       •      Market research
       •      Clearing and forwarding
       •      Legal consultancy services
       •      Other needed services




Guide for Doing Business in the DRC                                    Page 22
Prepared with the help of the Lubumbashi Liaison Office
                                                           A ZAMTIE PUBLICATION




       Useful Addresses for Trade Services and Enquiries


       F.E.C. is situated at:
       550 Av. Tabora – Lubumbashi
       Tel. : 00 243 23 42563
       Fax : 00 243 23 42563
       DRC


       Consulate General of the Republic of Zambia
       Trade Attaché/ Vice Consul
       Corner of Ruwe & Lufira Avenues BP 596.
       Tel:   243-23 42911
              243-23 42264




       Secretary to Consul General
       Tel:   00-243-97029082
       Lubumbashi, DRC


       LIASON OFFICE
       Av. Mwepu
       Lubumbashi:
       Att. Mr. Ade Lungu
       Tel. : 00243 97023492
       E-mail : mukunanga@yahoo.com.uk / geffmwa@hotmail.com


       For legal representation for acquiring legal documents, licences and
       permits to conduct business in Lubumbashi, the following legal consultancy
       firms can be contacted.




Guide for Doing Business in the DRC                                     Page 23
Prepared with the help of the Lubumbashi Liaison Office
                                                              A ZAMTIE PUBLICATION




        They also provide debt recovery services.


       1      NICO CONSULTANCY SERVICES
              C/o LIAISON OFFICE
              Tel.: 00 243 0815056732
              Attn: Mr NICOLAS FUTU
              E-mail : nicofutu@yahoo.fr
       2      BANZA & ASSOCIES
              Attn: Mr. Marie Louis Banza Kakudji
              ImmeubleInterfina 1st Floor
              Chausse Kabila
              Tel:    243-9958591, 243-815056779, 243-815056739
              B.P. 642,      Lubumbashi DRC
              e-mail :mlbanza@hotmail.com
       3      KASONGO & ASSOCIES
              Attn. : Mr. RICHARD MBIKAY
              Tel:    243-97032177
              Lubumbashi, DRC


9.     GENERAL COMMENTS ON THE COST OF LIVING AND PERSONAL
       SAFETY IN THE CONGO D.R.

       Living costs are high with food and accommodation being more expensive
       than prevailing price structures in Zambia. Prices change with the dollar
       fluctuations and the general population is accustomed to this situation. At
       times, prices can change even twice in a day. Prices are quoted both in
       local currency and in US $.          Payments may also be made in both
       currencies.


       Personal Safety and Hotel Accommodation Facilities


       On personal safety, generally there is good security in the Congo despite
       the fact that the country is technically at war. For foreigners it is advisable
       to live in the town center or in good high-class residential areas to avoid



Guide for Doing Business in the DRC                                         Page 24
Prepared with the help of the Lubumbashi Liaison Office
                                                              A ZAMTIE PUBLICATION




       common thieves. But in general, security is good. Armed robberies are not
       common and one can sleep and have their money safely kept. Lubumbashi
       in particular, is a calm and welcoming city so business can be conducted
       and language is not a major barrier.


       Visiting foreigners are advised to sleep in hotels in the city and avoid the
       cheap hotels in the townships. This is due to inconvenience caused by
       security and intelligence officials who have the habit of doing their routine
       check ups at 02-00hr in these cheep hotels. Below are some good hotels
       and their rates;


       1.     HOTEL HOLLY BOOM
              975, Av.Kilela Balanda
              Lubumbashi CONGO D.R.
              Tel: 243-970-30389, 243-970-29389, 243-970-28580
              Fax: 001-775-2052262
              E-mail: planethotel@ic-Lubum.cd
              Rates: 80 $ - 110$ Room plus Breakfast and DSTV
              120 $ - 240 $ plus air con, DSTV Apartment plus Breakfast.


       2.     PARK HOTEL
              Av. Kasai corner ex Mobutu – this hotel is in the Center of the city.
              Tel: 0024397032330
              Rates: From 70 $ single to 175 $ double rooms with Breakfast, Air
              conditioner and DSTV


       3.     HOTEL REKA
              Av. Kapenda N° 696
              Tél: 243-0818158685
              Room simple: 15 $ - 20 $
              Apartments: 28 $ - 41 $




Guide for Doing Business in the DRC                                         Page 25
Prepared with the help of the Lubumbashi Liaison Office
                                                          A ZAMTIE PUBLICATION




       4.     OXY-LAC HOTEL


              Off: Av. KASHOBWE
              Av. Chemin Public N° 5
              Tel:    243-97015629
                      243-97024191
                      243-97012775
              Rate – 40 $ per room inclusive of breakfast. Rooms have DSTV.
              This hotel has only five rooms.


       In Conclusion the Congo is a market open to Zambian business houses
       that needs to be vigorously tapped. It is possible to successfully do
       business in the Congo D.R. Despite the French language, Lubumbashi has
       many English speaking people. Since business is being done mainly with
       English speaking countries, most Congolese try to speak English. Zambian
       businessmen should be encouraged to go into the Congolese market.




Guide for Doing Business in the DRC                                   Page 26
Prepared with the help of the Lubumbashi Liaison Office
                                                                             A ZAMTIE PUBLICATION




                                   Congo, Dem. Rep. Data Profile
Click on the indicator to view a definition                  1997           2000           2001
People
Population, total                                      46.8 million   50.9 million   52.4 million
Population growth (annual %)                                   3.0            2.7            2.7
Life expectancy (years)                                       46.7           45.6           45.5
Fertility rate (births per woman)                              6.4            6.1            6.1
Infant mortality rate (per 1,000 live births)                128.0          128.0          129.0
Under 5 mortality rate (per 1,000 children)                      ..         205.0          205.0
Births attended by skilled health staff (% of total)             ..             ..             ..
Child malnutrition, weight for age (% of under 5)                ..             ..             ..
Child immunization, measles (% of under 12 mos)               20.0           46.0           46.0
Prevalence of HIV (female, % ages 15-24)                         ..             ..           5.9
Illiteracy total (% age 15 and above)                         42.6           38.6           37.3
Illiteracy female (% of age 15 and above)                     54.5           49.8           48.2
Primary completion rate, total (% age group)                     ..          39.8              ..
Primary completion rate, female (% age group)                    ..          34.2              ..
Net primary enrollment (% relevant age group)                    ..             ..             ..
Net secondary enrollment (% relevant age group)                  ..             ..             ..
Environment
Surface area (sq. km)                                   2.3 million    2.3 million    2.3 million
Forests (1,000 sq. km)                                           ..    1.4 million             ..
Deforestation (avearge annual % 1990-2000)                       ..           0.4              ..
Water use (% of total resources)                                 ..     23,809.0               ..
CO2 emissions (metric tons per capita)                         0.1              ..             ..
Access to improved water source (% of total pop.)                ..          45.0              ..
Access to improved sanitation (% of urban pop.)                  ..          54.0              ..
Energy use per capita (kg of oil equivalent)                 294.0          292.2              ..
Electricity use per capita (kWh)                              43.5           40.2              ..
Economy
GNI, Atlas method (current US$)                         3.9 billion    4.4 billion    4.2 billion
GNI per capita, Atlas method (current US$)                    80.0           90.0           80.0
GDP (current $)                                         3.3 billion    4.9 billion    5.2 billion
GDP growth (annual %)                                         -5.6           -6.0           -4.5
GDP implicit price deflator (annual % growth)                 57.4          630.1          386.6
Value added in agriculture (% of GDP)                         56.5           55.5           56.3
Value added in industry (% of GDP)                            16.5           17.8           18.8
Value added in services (% of GDP)                            27.0           26.7           24.9
Exports of goods and services (% of GDP)                      32.1           19.9           17.8
Imports of goods and services (% of GDP)                      34.0           18.7           16.7
Gross capital formation (% of GDP)                            27.9            4.2            5.1
Current revenue, excluding grants (% of GDP)                   9.4            0.0            0.0
Overall budget balance, including grants (% of GDP)           -1.5           -0.0           -0.0
Technology and infrastructure
Fixed lines and mobile telephones (per 1,000 people)           0.6            0.7            3.2
Internet users                                               100.0        3,000.0        6,000.0
Aircraft departures                                              ..             ..             ..
Trade and finance
Trade in goods as a share of GDP (%)                          70.7           37.0           34.2
Trade in goods as a share of goods GDP (%)                   148.1           50.5           45.6




Guide for Doing Business in the DRC                                                            Page 27
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                                                                                   A ZAMTIE PUBLICATION



Net barter terms of trade (1995=100)                               81.9            81.0              ..
Foreign direct investment, net inflows in reporting
                                                          -44,400,000.0     23.1 million   31.9 million
country (current US$)
Present value of debt (current US$)                                  0.0    10.9 billion   10.6 billion
Total debt service (% of exports of goods and services)              1.0            2.5            1.7
Short-term debt outstanding (current US$)                     3.3 billion    3.4 billion    3.4 billion
Aid per capita (current US$)                                         3.4            3.6            4.8
Source: World Development Indicators database, April 2003




Guide for Doing Business in the DRC                                                                  Page 28
Prepared with the help of the Lubumbashi Liaison Office