54 AFRICAN COUNTRIES

Principle Economic Sectors of DRC

Democratic Republic of Congo (DRC) has the third largest population and the second largest land area in Sub-Saharan Africa. It is rich in natural and human resources and is endowed with the second largest rain forest in the world, with fertile soils, ample rainfall, and considerable and varied mineral resources. In the past, mining (copper, cobalt, diamonds, gold, zinc, and other base metals) and petroleum extraction accounted for about 75 percent of total export revenues and about 25 percent of the country's GDP.

Despite there being abundant raw material, the country's economy did virtually collapse in the last few decades due to mismanagement and conflict.

With the support from the Breton Woods Institutions, in the year 2001 the government launched the implementation of economic, financial and structural reforms which aimed at stabilizing the macroeconomic situation and the creation of a climate conducive to private sector-led development. It managed to break the hyperinflation cycle and to stabilize the exchange rate. From a rate of 511% in 2000, the inflation declined to 135% in 2001, and fell further to 18% in 2006. In 2003, it decreased to 4.4 %. Reforms included the adoption of new investment, labor,  in mining, and forestry codes which are key sectors of DRC. The other prominent sectors are represented in the pie chart given below.

Agriculture Fisheries and Forestry Sector

The agricultural sector in DRC supports around two-thirds of the population. The major crops are cassava, yams, plantains, rice, and maize.DRC is not drought-prone but has other problems of poor internal transportation system, which impedes the development of an effective national urban food-supply system.The land under annual or perennial crops in DRC constitutes only 3.5% of the total land area. Agriculture is divided into two basic sectors: subsistence - which employs the vast majority of the work force and commercial - which is export-oriented and conducted on plantations.

Farming in the subsistence segment involves around 4million families on plots averaging 1.6 ha (four acres), usually a little larger in Savanna areas than in the rain forest. The subsistence farmers produce mainly manioc, corn, tubers, and sorghum.

Fish provides the country with the single most important source of animal protein in the DRC. Total production of marine, river, and lake fisheries in 2003 was estimated at 222,965 tons, all but 5,000 tons from inland waters. PEMARZA, a state agency, carries on marine fishing.

Forestry: Nearly 60 percent of the total land area is covered with forest. There is a vast amount of timber resources and commercial development of the country’s 61 million hectares (150 million acres) of exploitable wooded area is only beginning. The Mayombe area was once the major center of timber exploitation, but forests in this area were nearly depleted. The more extensive forest regions of the central Cuvette and of the Ubangi River valley have increasingly been tapped. Round wood removals were estimated at 72,170,000 cu m in 2003, about 95 percent for fuel. Some 14 species are presently being harvested. Exports of forest products in 2003 were approximately $25.7 million. Foreign capital is necessary in order for the forestry to expand and the government recognizes that changes in tax structure and export procedures will be needed to facilitate economic growth.

Mining Sector

The Democratic Republic of Congo is potentially one of the richest mining countries in Africa, based on its vast resources of copper, cobalt and diamonds. However, with DRC going through a civil war, an uncertain political situation, corruption and smuggling. This has resulted in the shortage of development capital that has stifled the development of the country's industries. The developments the DRC over the last two years has resulted in some optimism for the country. The response from the Government appear to be promising, especially relating to the country's mining industry, as it remains one of the pillars of the country's economy.Mining activities are concentrated in the southern and eastern parts of the country, where the famous Copper belt extends in to the DRC from Zambia near Lubumbashi. Geca mines controls the country's mining activities, in particular the copper and cobalt mines. Most interest shown by foreign companies’ remains focused on the enormous potential of the Copper belt, where several world class ore deposits remain to be exploited.

Diamonds

Diamonds, the country’s most valuable export, are one of several resources which have contributed to funding armed conflict in the DRC from 1998 to 2003.DRC since 2003, have been participating in the Kimberley Process (KP), an international diamond certification scheme designed to eliminate the trade in conflict diamonds. Its participation in this scheme is one element that has led to a significant increase in official diamond exports. However, the DRC still lacks a strong set of internal controls to ensure that it can track all diamonds from the mine to the point of export. Diamonds are still being smuggled out of the country, and diamonds from neighboring countries are being smuggled in

Oil & Gas

 Democratic Republic of Congo is rich in resources. Production from the upstream oil industry, mainly from offshore fields, is an important contributor to the national economy. The exploitation of the country's hydrocarbon resources, mainly from offshore fields, produces   approximately 25,000 bpd.The exploration for oil and gas in DRC began in the 60's along with the country’s 22 km Atlantic Ocean coastline at the estuary of the Congo River (Congo) which is sandwiched between the prolific offshore producing region of northern Angola and its oil-rich enclave of Cabinda.This exploration continued during the 70's and early 80's and by 1983, 41 wells had been sunk. Through these activities 5 operating oil fields and 1 gas field were discovered, the most significant finds being offshore. From these the Mibale field, discovered in 1973 by Chevron and contains 48% of the Coastal Basin's recoverable reserves and remains Congo's most productive field. The oil and gas industry is regulated by the Ministry of Mines and Energy which through its Energy Department controls the public and private companies in the petroleum and power industries.

Telecommunication

There are around 9700 fixed lines and an estimated 6.59 million mobile subscribers in the country DRC has one of lowest tele-density. The Office of Congolais des Postes et des Télécommunications (OCPT) is the public telecommunications and postal operator in the Democratic Republic of Congo since 1968 and is the only national fixed line operator in the country. The DRC was the first country in sub-Saharan Africa to introduce cellular services by granting a license in 1986 to Telecel International for an AMPS network.There are eight licensed mobile operators in the country with localized networks established in larger cities across the country. Kinshasa has the greatest concentration of subscribers. Although all licenses specify a national network rollout, in reality, venturing into rebel held territories in the east and north-east of the country can pose serious problems for network operators from the side of the Kinshasa government.Internet services in DRC are available in the major towns of Kinshasa, Lubumbashi, Matadi, Kikwit, and Kananga. The growth of internet services is hampered by the low PC penetration and no availability of fixed lines from the incumbent operator. Many connections are achieved through wireless access to ISPs or using cellular lines. There are a total of 4,000 subscribers in the country and an estimated 12,000 to 15,000 users.

Tourism

The government in DRC is giving priority to the development of the local tourism industry so that the country can win its fair share of the millions of visitors each year from around the world who want to experience firsthand some of the very special places that abound on the African continent.The tourism industry consists of both local and international operators. The capital city- Kinshasa is served by international airlines. Airports also provide charter services allowing visitors to access remote parts of the country not serviced by scheduled airlines. Some of the large American and European hotel chains have are also present in DRC. International six star ratings to primitive class all kinds of accommodations are present in the country. Tourism and leisure facilities are being developed. DRC has diplomatic representation from several countries.

For Further Reference

African Economic Outlook

BBC News