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Foreign Direct Investments in Democratic Republic of Congo

For a long time, the Democratic Republic of Congo (DRC) has been considered as a country unattractive for Foreign Direct Investments (FDIs). Since the 1990s, the country has experienced endless periods of violence that have hampered its political stability and economic growth. There are high rates of poverty and unemployment, especially among the rural populations. However, the country is also abundant in natural resources such as iron ore, phosphates, oil, wood, and potassium. This is in addition to its vast agricultural productive lands. On the other hand, DRC has a population that is heavily urbanized and has been lately trying to diversify its economy. Its goal is to become an emerging market economy by the year 2025 (FDI in the Democratic Republic of Congo, 2021). Towards this end, it is developing its infrastructure along four special economic or foreign trade zones.

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One of the special economic zones that DRC has opened for the FDI is in real estate. Incidentally, this is a sector that requires an abundant supply of building materials and finishing equipment such as doors and windows. Therefore, a global company involved in the manufacture of doors and windows will find a huge but untapped market in the DRC’s emerging real estate. The country’s capital, Kinshasa has a population of 14 million. The biting levels of poverty in rural areas is driving more people into cities. This implies that the populations in cities are bound to increase further. These people will need houses to live in, hence, the need to expand the real estate. Moreover, the government has limited and reduced the legal restrictions involved in the repatriation and transfer of investment-associated funds. Therefore, by partnering with the government to solve the housing crisis in the DRC, a global firm can be guaranteed state protection for FDI in the country.

Reference

Foreign direct investment (FDI) in the Democratic Republic of Congo. (2021). Lloyds Bank. Retrieved.

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StudyCorgi. (2023, January 17). Foreign Direct Investments in Democratic Republic of Congo. Retrieved from https://studycorgi.com/foreign-direct-investments-in-democratic-republic-of-congo/

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StudyCorgi. (2023, January 17). Foreign Direct Investments in Democratic Republic of Congo. https://studycorgi.com/foreign-direct-investments-in-democratic-republic-of-congo/

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StudyCorgi. "Foreign Direct Investments in Democratic Republic of Congo." January 17, 2023. https://studycorgi.com/foreign-direct-investments-in-democratic-republic-of-congo/.

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StudyCorgi. 2023. "Foreign Direct Investments in Democratic Republic of Congo." January 17, 2023. https://studycorgi.com/foreign-direct-investments-in-democratic-republic-of-congo/.

References

StudyCorgi. (2023) 'Foreign Direct Investments in Democratic Republic of Congo'. 17 January.

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