Democratic Republic of Congo - Economy, Business and Banking

The economy of the Democratic Republic of the Congo - a nation endowed with vast potential wealth - is slowly recovering from two decades of decline. Conflict, has dramatically reduced national output and government revenue, and increased external debt. Foreign businesses curtailed operations due to uncertainty about the outcome of the conflict, lack of infrastructure and the difficult operating environment. The war has intensified the impact of basic problems such as an uncertain legal framework, corruption, inflation, and lack of openness in government economic policy and financial operations. Malnutrition affects approximately two thirds of the country’s population. Conditions began to improve in late 2002 with the withdrawal of a large portion of the invading foreign troops. The transitional government reopened relations with international financial institutions and international donors, and President Kabila has begun implementing reforms, although progress is slow. The International Monetary Fund curtailed their program for the DRC at the end of March 2006 because of fiscal overruns. Much economic activity still occurs in the informal sector, and is not reflected in GDP data. Renewed activity in the mining sector, the source of most export income, boosted Kinshasa’s fiscal position and GDP growth. Government reforms and improved security may lead to increased government revenues, outside budget assistance, and foreign direct investment, although an uncertain legal framework, corruption, and a lack of transparency in government policy are continuing long-term problems. The Congo is the world’s largest producer of cobalt ore, and a major producer of copper and industrial diamonds. It has significant deposits of tantalum, which is used in the fabrication of electronic components in computers and mobile phones. Katanga Mining Limited, a London-based company, owns the Luilu Metallurgical Plant, which has a capacity of 175,000 tonnes of copper and 8,000 tonnes of cobalt per year, making it the largest cobalt refinery in the world. The $870m diamond industry provides work for around one million people, but many diggers earn less than $1 a day in dangerous conditions. The war has disrupted farming and the country lacks infrastructure to provide adequate food, clean water, healthcare and education. 

 

Mon-Fri 08:30 – 15:00 

  (some until 16:00)

Sat 08:30 – 13:30 

Please note that banks are closed on Sundays.

Mon-Fri 08:00 - 16:00 

Saturday 08:00 - 12:00

Mon - Fri 08:00 - 12:30 and 14:00 – 18:00

Sat 08:00 - 12:30

Mon – Sat 10:00 - 19:00 

Sunday 09:00 - 13:00 (only select shopping centres)

 

Certain banks are present in the country, mostly in the larger urban centers. Some of the better known ones are: Afriland, Procredit, Citybank, Commercial Bank of Congo, International Credit Bank, Union of Congolese Banks, Rawbank, Stanbic Bank, International Bank of Congo. They offer limited individual services. The contact details for the main banks are listed below:

Banque Commerciale du Congo, Blvd 30 juin, Gombe

 

B I A C, Ave Nioki No +243 81 700 9010

 

Rawbank +243 81 887 0010 or +243 99 982 0001

contact@rawbank.cd

 

ProCredit Bank Congo, 4b Avenue des Aviateurs

+243 81 700 6000 /301 3848

mail@procreditbank.cd or www.procreditbank.cd Stanbic Bank, 12 Ave de la Mongala +243 81 700 6000 or +243 81 301 3848

www.stanbic.com Member of Standard Bank of South Africa.

 

Banking hours are from Monday – Friday 08:30 – 15:00, Saturdays 08:30 – 13:30. A few branches in the major towns are open until 16:00. Please note that banks are closed on Sundays.

Before you go to a bank to open an account the following documents will be useful: 

3 months of statements from your last bank in which ever country you were in.

A reference letter/banking report from your bank describing the facilities you had with them and your credit rating.

A letter of appointment from your employer or a copy of your payslip.

Passport with valid work/ resident permit or another form of personal identification such as an ID card or drivers licence.

2 passport size photos.

To open an account go to the nearest branch of a bank along with the above documents, complete an application form and hand it over to a Personal Banker.

 

The national currency of the Democratic Republic of Congo is the Congolese Franc. 1 Franc Congo = 100 centimes. (CDF). The Franc comes in denominations of 500, 200, 100, 50, 20 and 10 (rare but they do exist!). Bills of less then 100CDF, have hardly any value at all. The US$ is regularly used alongside the FC throughout the country. Large change is usually given in Dollar bills and small change in CF bills. The dollar is generally accepted everywhere, but you should be aware that torn, tired looking notes will not be accepted nor bills fabricated before 1996 and many vendors do not accepts $1 bills. On the other hand, Congolese bills may be torn, stuck together with sticky tape and very dirty!

One should carry large bills and make a note of the bill number as your bill may well be taken away to be exchanged and later return as a counterfeit! 

The Congolese Franc (CDF), was introduced in 1998. The currency had to be gradually devalued following a 500% hyperinflation in 1999 and a sharp decline of exports. A new floating exchange rate system was established in May 2001 to respond to the increasing difference between the official exchange rate and the black market, 44% in 1998 to 545% in 2001. Following gains in lowering the inflation rate, the Congolese Franc has found some stability in recent years. 

 

Credit cards and travellers cheques are not generally accepted. Credit cards may be used in Grand and Memling Hotels and with Air France and SN Brussels. It is possible to withdraw cash with your card at Rawbank and BCDC, both banks are located on Blvd du 30 Juin, Gombe. ATMs are not available. This is mostly a cash economy, but credit cards are accepted at a few major hotels, restaurants and car rental firms (Amex is most widely accepted). Cash advances cannot be obtained from banks. It is now possible to exchange travellers cheques at Rawbank or have them cashed at commercial banks. Some travellers have complained about high fees, delays and unavailability of cash at commercial banks for travellers cheques.

Keep a record of all hotel transactions. Hotel bills should be scrutinized for discrepancies. 

 

All foreigners, resident and non-resident, must declare upon entry all amounts exceeding the equivalent of US$10,000. Similarly, foreigners leaving the country must declare all amounts exceeding the equivalent of US$10,000 in foreign currency. Visitors have three business days to deposit their foreign currency in bank-run exchange houses. These institutions will buy foreign currency deposited by travellers upon their arrival. However, it’s unclear whether or not they will sell foreign currency to travellers upon their departure. Local currency must be used for all commercial transactions, and there are criminal sanctions for non-compliance. Possession of any foreign currency is illegal.

 

Arranging adequate insurance coverage - medical, life, disability, driving, vehicle - is one of the most important things you should do before leaving your home country. Your current insurance most likely is not valid outside the country. You should carefully research your requirements before leaving and make arrangements to buy all the insurance you can afford. It is the best investment you can make. Insurance companies are not widely available in the DRC.