In this series, we take a look at Africa, country-by-country, and offer a (very) brief glance at the historical events, key industries, and current political situation shaping individual states.
Photo: Kinshasa, D. R. Congo. Night view of the Congolese capital, captured from the top of a building in the city center. (Abel Kavanagh for MONUSCO/ Wiki Commons)
Quick facts
Head of state: President Félix Tshisekedi (2019–present)
Capital/ largest city: Kinshasa
Population: 95.9 million (2021)
GDP: USD 55.4 billion (2021)
A (very) brief history
The Democratic Republic of Congo (DRC) has a long and complex history, dating back to ancient civilizations that flourished in the region as early as the 10th century. These societies, such as the Kongo kingdom, were known for their skilled art and ironworking, and trade with European explorers began to take shape in the 15th century.
However, this contact with European empires would prove catastrophic, as colonizers systematically fractured and dismantled these societies. King Leopold II of Belgium claimed the region as his personal property in the late 19th century, and his brutal reign of forced labor, slavery, and violence caused the deaths of an estimated 10 million Congolese, as well as international condemnation of his rule.
After Leopold's reign, the Belgian government took control of the colony, but political power was held exclusively by the European elite. This led to rising tensions and nationalist movements, including the Congolese National Movement (MNC) led by Patrice Lumumba. In 1960, Congo gained independence, but Lumumba's short-lived government was overthrown by a CIA-backed military coup, and he was assassinated.
In 1965, Joseph Mobutu seized power in another coup and ruled Congo for over three decades, renaming the country Zaire. Mobutu's regime was known for its corruption, human rights abuses, and political repression. After his ousting in 1997 by rebel forces led by Laurent-Désiré Kabila, Congo became the Democratic Republic of Congo.
Since then, the country has been plagued by ongoing conflicts and political instability, including two devastating civil wars that claimed millions of lives. Multiple foreign powers have been involved in the conflict, including Uganda, Rwanda, and Angola.
In 2018, then President Joseph Kabila (son of Laurent-Désiré Kabila) stepped down after 18 years in power, and the country saw its first peaceful transition of power in decades with the election of its current president Felix Tshisekedi. However, Tshisekedi's presidency has been marked by ongoing political turmoil and struggles to address the country's deep-seated political and economic troubles.
Photo: Meeting with President of the Democratic Republic of the Congo, Félix Tshisekedi (The Kremlin, Moscow/ Wiki Commons)
Today, the DRC remains one of the world's poorest and most conflict-prone countries, with ongoing issues related to corruption, governance, and human rights. Despite efforts to promote democratic governance and vast reserves of precious minerals that are vital for electronic and battery production, the country continues to struggle with a legacy of colonialism and ongoing conflicts over resources and power.
Key industries
DRC has experienced higher than average growth, even amidst the devastating effects of the pandemic. In 2021, its economy grew 6.2%, whereas its sub Saharan neighbors averaged 4.5%. According to the IMF, mining and services played a significant role in this trend.
Agriculture
Agriculture is the mainstay of the DRC's economy, with crops such as cassava, maize, and plantains being the main sources of income for small-scale farmers. The sector has faced a number of challenges in recent years, including a shortage of inputs such as seeds and fertilizers and a lack of investment.
In spite of these challenges, the country boasts significant arable land and hydropower potential, which could help it meet the sector’s energy needs if properly harnessed.
Mining
Mining is another important industry in the DRC, with the country having large, untapped reserves of minerals such as copper, cobalt, and diamonds. The US International Trade Administration estimates the total mineral wealth of DRC in the tens of trillions of dollars. In 2020, the country provided 41% of the world’s cobalt and was the sixth largest producer of industrial diamonds
Over the past two decades, the government has privatized many mines, leading to an influx of foreign companies and investment in the country, but the sector has faced a number of challenges in recent years, including challenges in financing expensive exploration phases, a lack of skilled workers, and corruption.
Services
Services, including finance, telecommunications, and transportation, are also important to the DRC's economy. The sector has been growing in recent years, driven by increased investment and the growth of the middle class.
A “Country Risk Conference” held in 2022 in Kinshasa attracted major companies from around the continent to discuss the strengths and weaknesses of the country, with Stanislas Zézé, CEO of the Bloomfield Investment corporation noting: “The DRC is a country with a lot of potential, with reforms that are being implemented but also with weaknesses.”
How politics affect the business environment
The government has been promoting foreign investment in the country, but this has not been without its pitfalls: A 2021 financial investigation by RAID revealed that the country had lost nearly USD 2 billion in revenue from “suspect mining and oil deals.”
A year later, DRC’s National Financial Intelligence Unit and Ministry of Justice in coordination with the U.S. Department of Justice fined mining firm Glencore USD 180 million for alleged corruption claims, indicating that the government may finally be committed to tackling these issues.
Photo: Luwowo Coltan mine near Rubaya, North Kivu in 2014. Luwowo is one of several validated mining site that respect CIRGL-RDC norms and guaranties conflict free minerals. (Sylvain Liechti for MONUSCO/ Flickr)
Additionally and importantly, ongoing violence in the eastern part of DRC remains a significant concern for the government, the Congolese, and businesses. Geopolitical noted in October 2022 that relations between the DRC and Rwanda “[had] soured over attacks carried out by M23 militants in DRC’s North Kivu and Kivu provinces.” (M23 is a breakaway militant group formed after the government signed a peace agreement with National Conference for the Defense of People (CNDP) in 2009.)
Foreign businesses interested in– or currently working in the country should pay close attention to their respective country’s Ministry of Foreign Affairs for guidance on how best to conduct operations safely.
Current political and economic situation
President Tshisekedi’s ascension to head of state has led to renewed hopes that DRC may finally be turning a corner politically and economically. The World Bank notes that the roll-out of free primary education, public sector reforms to combat corruption, and a stronger push to stabilize the east of the country, where more than one hundred armed groups are active, indicate a break from past leaders’ self-serving policies.
The country took a notable step forward in the international trade arena in January 2021 when it became eligible for the U.S.’s Africa Growth and Opportunity Act (AGOA), which provides preferential trade options. In spite of this, poverty and social development remain a persistent issue with two-thirds of Congolese (nearly 60 million) living on less than USD 2.15 per day in 2021.
And as noted above, while DRC continues to outperform its sub Saharan neighbors in terms of economic growth, this has not necessarily translated to proportional gains for its population.
Final note
The DRC is often painted as a monolithic country that is mainly underdeveloped and conflict-prone. While it does lag behind in development and violence is a persistent issue, it should be looked at in a more nuanced way: It has a diverse economy driven by agriculture, mining, and services, and while it has faced a number of political and economic challenges in its history, the current government appears to be making strides in combating corruption and opening to trade.
Its vast natural resources mean that it will be a country to watch in the coming years as the world will come to depend on it for minerals critical for new technologies. If the government can harness this global demand to promote national development and improve the quality of life in the country, it could yet prove to be an African success story.
Are you interested in knowing more about the DRC or another African market or sector? Get in touch with us today, and let us help you create a strategy tailored for your business or organization.
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