Efforts to boost competitiveness of DRC

The Democratic Republic of the Congo (DRC) is making significant efforts to boost its competitiveness and diversify its economy. Yves Kabongo, Vice Chairman of the Makutano Foundation, discussed these efforts in an interview with CNBC Africa. Yves highlighted the upcoming fifth edition of the Makutano Forum, scheduled for September 5th and 6th, where discussions will focus on innovative ways to boost the DRC's economy. The forum will cover various topics such as subcontracting activities, the digital economy, private partnerships with the state, and the role of women in business. The goal is to foster innovation in different sectors of the DRC economy to position it for future growth. One of the key sectors driving the DRC's economy is mining, followed by oil and gas, agriculture, telecoms, and services. To further develop the mining sector, Yves emphasized the importance of transforming production to add value and generate higher revenues. By exporting products with added value, the government can increase its income and strengthen the sector's contribution to the economy. Yves also discussed the need to diversify away from a heavy reliance on cobalt, which has seen price volatility in global markets. Diversification is essential for the DRC's economic growth, and Yves outlined the need to invest in mining inspections, exploration, and other sectors like copper, lithium, diamonds, gold, manganese, and more. He stressed the importance of reinvesting in the manufacturing sector to drive innovation and elevate the country's economic output. The Makutano Foundation aims to bring together stakeholders from the private sector and the government to collaborate on building a more diverse and sustainable economy. While the private sector has made some contributions to economic growth, Yves believes that more can be done. Collaboration between the government and businesses is crucial to implementing better laws, enhancing governance, and fostering dialogue between stakeholders. Geographical diversification is also a priority, along with investing in infrastructure, energy, and new technologies like artificial intelligence. Foreign Direct Investment (FDI) is crucial for the DRC's economic development, and Yves noted that investor confidence is growing due to favorable laws and a stable political environment. The country is attracting local investors who are taking risks in the manufacturing, energy, and mining industries. Yves expressed optimism about the potential for rapid economic progress in the DRC with the right investments and policy support. In terms of policy recommendations, Yves emphasized the need for transparency, anti-corruption measures, and labor law reforms to facilitate business operations. Encouraging local participation through initiatives like the local content concept is critical for ensuring inclusive growth and empowering Congolese citizens to benefit from economic opportunities. By fostering a conducive environment for both local and foreign investors, the DRC aims to position itself as a thriving hub for economic activity and innovation.