Interview with Anthony Nkinzo Kamole, Director General of the National Agency for Investment Promotion (ANAPI) and President of the International Network of Francophone Investment Promotion Agencies (RIAFIP) since June 2022.
Last year you celebrated the 20th anniversary of ANAPI. What is your assessment of this?
Reaching 20 years is a significant milestone in an individual's life, as well as in the life of an institution. Our celebration was not so much a festivity as a solemn opportunity to pause and take a frank, retrospective look at the journey we have traveled, which has never been easy.
Over the past two decades, ANAPI has initiated and/or coordinated several fundamental reforms in numerous areas, particularly fiscal, legal, and institutional, in the Democratic Republic of Congo. Successive governments and all reform agencies since 2002 have made significant efforts to equip the country with a legislative and legal framework that meets the standards of modern economies. The first signs of these results are visible today (the DRC's accession to OHADA, the liberalization of the insurance and electricity sectors, the creation of a One-Stop Shop for business creation, the promulgation of the Law on Public-Private Partnerships and the Law on Entrepreneurship, the establishment of provincial business climate units, the adoption of the Reform Roadmap validated by the Council of Ministers, etc.). But we must continue the momentum of reforms and go even further, as competition from developing countries has increased, not to mention that from rich countries, making it necessary to regularly upgrade the system for receiving foreign direct investment (FDI).
The 2002 Investment Code, from which ANAPI originated, certainly has weaknesses, but it remains the primary instrument for promoting investment in the DRC. While discussions are currently focused on its revision, we are nonetheless pleased with the results the country has achieved so far. It should be noted that between 2003 and 2022, 1,986 projects were approved under the general provisions of Law No. 004/2002 concerning the Investment Code, representing a total cost of USD 54.444 billion, and potentially generating approximately 250,000 direct and permanent jobs. The services sector leads with 972 projects, representing 48.941 TFPs, followed by industry with 800 projects (40.281 TFPs). Agriculture and Forestry with 137 projects (6,89%), and the infrastructure sector recorded only 77 projects in 20 years, or 3,88%.
Furthermore, in its 2022 annual report on foreign direct investment (FDI) in the world, the United Nations Conference on Trade and Development (UNCTAD) ranked the DRC among the top 10 most attractive African countries for FDI with an estimated flow of USD 1.87 billion in 2021, representing an increase of 13,331 TFPs compared to the previous year.
While all these achievements are significant, we recognize that much remains to be done. The DRC has certainly become attractive again. However, the country is not yet experiencing the massive influx of investment we might hope for, given the enormous potential the DRC possesses. Regarding the business environment, in many areas, the effective implementation of reforms remains a real challenge despite significant efforts. Nevertheless, the momentum has begun. The Head of State, His Excellency Mr. Félix A. Tshisekedi Tshilombo, is determined to rebuild the foundations of a modern Congolese economy with well-structured administrative mechanisms and where good governance is the norm. We are therefore staying the course. For its part, ANAPI is working, in accordance with its statutes, to remain at the heart of the socio-economic transformation of the DRC and the emergence of a genuine Congolese middle class. Our mandate, 20 years after the Agency's creation, is as urgent as it is crucial. However, it must evolve to allow us to fully play our role as a catalyst for development. Thus, ANAPI aspires to become an agency for the promotion and development of investments. Discussions on a critique of the current Investment Code have already begun, with a view to its revision in light of current challenges. Therefore, for the next five years, a focus will be placed on strengthening the Agency's human resources, seeking sectoral specializations, and ensuring that we offer the private sector the best possible support.
Will you strengthen the presence of ANAPI in all 26 provinces?
We do indeed aim to strengthen our presence throughout the country, in all provincial capitals, and internationally through hubs in strategic regions with strong economic growth. We believe this will allow the Agency to reach new audiences and gain greater visibility. This can also contribute to strengthening ANAPI's reputation and improving brand recognition.
Also, as part of this expansion strategy, we were able, over the past year, to revitalize our provincial office in Lubumbashi, Haut-Katanga, and then we opened a new office in Bukavu, South Kivu. This year, we plan to announce the opening of the Matadi office in Kongo-Central, where the process is well underway, and also launch exploratory missions in Goma, North Kivu, Kolwezi, Lualaba province, and Mbuji-Mayi, Kasai-Oriental.
However, this deployment across the country and internationally requires significant investments in time, resources, and expertise to successfully develop and adapt to the different environments in which ANAPI will have to operate. This is another challenge we will have to meet.
What will the African Continental Free Trade Area (AfCFTA) bring to your country in terms of investment?
The AfCFTA was created to try to reverse a historical anomaly observed on the continent, where most of the trade of our African countries is with the rest of the world and mainly concerns the export of raw materials, including extractive resources such as oil and minerals, as well as the import of manufactured products, such as automobiles, electronics and pharmaceuticals, among others.
Around the world, trade and investment have been the main drivers of growth in developing economies, lifting hundreds of millions of people out of poverty. However, the fragmentation of its domestic market has prevented Africa from fully participating in this movement. According to UNCTAD figures, intra-African trade accounted for 16.11 trillion CFA francs of total African trade in 2018, a figure significantly lower than that recorded in Europe (681 trillion CFA francs) and Asia (591 trillion CFA francs). Similarly, intra-African merchandise exports in 2019 reached $70 billion, representing only 14.41 trillion CFA francs of Africa's total exports. The African Continental Free Trade Area (AfCFTA) aims precisely to change this situation.
The African Continental Free Trade Area (AfCFTA) will help generate the financial resources necessary for Africa's economic development. Its objective is to establish an integrated African market where goods, people, services, and capital circulate freely, complementing regional integration efforts for the benefit of the continent's 1.3 billion inhabitants. Easier trade and investment, along with increased competition, would make Africa more attractive to regional value chain actors and investors. Furthermore, with its 100 million inhabitants, its geostrategic position in the heart of Africa, and the vast market it forms with its nine neighboring countries, the Democratic Republic of Congo is poised to become a logistics and financial hub for the continent. The DRC therefore has a crucial role to play in the development of regional value chains and in realizing the ambitions of the African Continental Free Trade Area. In parallel, the AfCFTA would also offer many advantages to the DRC, as to all countries on the continent, in terms of investment, notably by increasing our attractiveness to foreign investors through the simplification of customs procedures and administrative formalities for businesses; by stimulating economic growth and business creation through the efficiency of trade and the removal of obstacles to the free movement of goods, services and people; by promoting industrialization and economic diversification, facilitating access to raw materials and promoting local production of goods and services.
What advice would you give to future investors in the DRC?
The DRC is a promising market for investors for many reasons. And the country's economic outlook is extremely positive. The initiatives taken by the Government of the Republic have not only allowed the country to better withstand the Covid-19 pandemic (1.71 T/3T of real GDP in 2020), but above all, to rebound more quickly afterward (6.21 T/3T in 2021 and 6.61 T/3T in 2022). All country risk assessment indicators point to a stable long-term outlook for the Congolese economy, as indicated by the rating agencies Moody's, Standard & Poor's, and Bloomfield. Investment opportunities in the DRC are immense, that's undeniable. However, investors interested in investing there must have the right approach and follow the process as outlined in our legislation. I tell them, again and again: "Follow the process!" My advice to economic operators interested in the DRC is as follows. First, conduct your due diligence. It is important to thoroughly understand the economic, political, and social context of the country in which you wish to invest. Investors should research investment opportunities, associated risks, and applicable regulations. The DRC is a developing country with significant economic, political, and social challenges. Consulting professionals, such as specialized government agencies, lawyers, accountants, and consultants, is essential to help you navigate the investment process and comply with applicable laws and regulations.
Next, find local partners who will help you better understand local realities and identify investment opportunities on the ground. Finally, follow the process! Adhere to the ethical and environmental standards in force in the country. This includes adopting fair business practices, sustainable environmental practices, and corporate social responsibility.
I therefore invite companies interested in the DRC to learn about our laws, the positive changes that have taken place in recent years, such as the promotion of public-private partnerships, or the measures taken to combat corruption and economic crimes; and above all, to come and form their own opinion on the ground, to get to know the DRC beyond the narrative presented in foreign media. For this, they will find one of the best possible partners, namely ANAPI, ready to provide them with all the necessary support for developing their activities in the DRC. But I insist: the time to take a chance on the DRC is now! The future of the world is being shaped in Africa, but Africa's future is certainly being shaped in the DRC.