East African Business Council CEO on what makes the DRC attractive to investors

The Democratic Republic of Congo (DRC), often hailed as the 'Giant of Africa', has emerged as a significant trade opportunity for businesses. However, despite the vast potential, nearly half of the trade between the DRC and the East African Community (EAC) remains informal. High costs of doing business, attributed to non-tariff barriers, have impeded the optimization of trade prospects. Peter Mathuki, the Executive Director and CEO of the East African Business Council (EABC), shed light on the market potential and opportunities for small and medium-sized enterprises (SMEs) during a recent interview with CNBC Africa. Mathuki highlighted the significant growth in imports to DRC, with the value of imported goods escalating from 6.6 billion US dollars in 2018 to 7.4 billion US dollars in 2019. Notably, a large portion of these imports originated from China, Africa, and Zambia, while the East African community partner states' share accounted for only approximately 800 million US dollars. This stark contrast underlines the untapped potential that exists for businesses within the EAC looking to venture into the DRC market. The EABC CEO emphasized key sectors that present lucrative opportunities for investment in DRC, including processed foods, textiles, and plastics. Notably, Rwanda emerged as the leading East African partner state in terms of imports to DRC, followed by Uganda, Kenya, Tanzania, and Burundi. These statistics underscore the vast scope for bolstering trade relations between the EAC and DRC, ultimately fostering economic growth and diversification. In light of these promising prospects, Mathuki advocated for the inclusion of DRC in the East African Community, citing the benefits of leveraging the existing customs union, common market, and common regulatory framework. By facilitating DRC's integration, businesses could harness a conducive environment for growth and ensure market operations within the EAC framework. Despite the glaring opportunities, challenges persist in formalizing trade relations and enhancing infrastructure connectivity between the EAC and DRC. One of the core impediments lies in the lack of robust infrastructure to facilitate seamless transportation of goods from East African nations to various regions within the expansive DRC market. The absence of well-defined road and rail networks restricts accessibility to significant segments of the DRC populace, limiting the full realization of trade potential. Addressing these infrastructure limitations necessitates a concerted effort to bolster transportation networks and explore innovative solutions such as regional air cargo services. By enhancing connectivity and streamlining logistics, businesses can surmount barriers and capitalize on the burgeoning market opportunities present in the DRC. In conclusion, the DRC's emergence as a pivotal trade destination underscores the imperative for strategic collaboration between the EAC, DRC, and private sector stakeholders. By fostering dialogue, lowering production costs, and fortifying infrastructure linkages, the region can unlock the full spectrum of trade possibilities, paving the way for sustainable economic growth and prosperity.