View
57
Download
3
Category
Tags:
Preview:
DESCRIPTION
Economics in DRC. Overview. SADC Leadership Issues Logistics and Infrastructure Ethnic Diversity Mineral Resources Hydroelectric Telecommunications. DRC in AFRICA: A unique configuration. Nine neighboring countries. SADC REGION. DRC. Tanzania. Malawi. Angola. Madagascar. Zambia. - PowerPoint PPT Presentation
Citation preview
Economics in DRC
2
Overview
SADCLeadership IssuesLogistics and InfrastructureEthnic DiversityMineral ResourcesHydroelectricTelecommunications
DRC inAFRICA:A uniqueconfiguration.Nine neighboringcountries
4
SADC REGION
Angola
DRC
Zambia
MalawiTanzania
South Africa Mozambique
ZimbabweBotswana
Madagascar
LesothoSwaziland
Namibia
The Congo at a Glance• 3rd Largest country in Africa (size of Western Europe or the U.S. west of the Mississippi),
with the 4th largest population.
• One of the five poorest countries in the world.
• One of the ten richest countries of the world in terms natural resources
• Oil reserves of 180 million barrels
• 100,000MW Hydroelectric potential which would be sufficient for all of Southern & Central Africa’s needs
• Bordered by 9 countries
• Population (2004 est.): 58 million
• More than 200 ethnic groups
• Religions (2004 est): Roman Catholic 50%, Protestant 20%, other syncretic sects and traditional beliefs 10%, Kimbanguist 10%, Muslim 10%
• Language: Official--French. National languages--Lingala, Swahili, Kikongo, Tshiluba
Former Leaders of the Congo
The Transitional Government President and the Vice-Presidents
DR Congo is a Huge Countryas big as the US East of the Mississippi
Congo is a Country of Huge ChallengeHere are all of the Paved Roads of Congo.
Insufficient infrastructure
• Africa’s road density today is lower than India’s in 1960
– Colonial transport infrastructure was designed to exploit commodity resources, resulting in underdeveloped networks
• High transportation costs:To move 1 ton of fertilizer 1 000 km requires:
USD 15 in the United States USD 30 in India USD 100 in sub-Saharan Africa Double if truck returns empty
(Vijay Modi, Columbia University)To move 1 ton
of maize requires: USD 50 from Iowa to Mombasa (13 600 km) USD 100 from Mombasa to Kampala (900 km)
(World Bank)
The proportion of transportation costs of retail prices of cassava in Central Africa amounts to 60%
(IFAD)
Km KmUSA 20,987 Guinea 637France 12,673 Ghana 494Japan 9,102 Nigeria 230Zimbabwe 1,586 Mozambique 141South Africa 1,402 Tanzania 114Brazil 1,064 Uganda 94India 1,004 Ethiopia 66China 803 Congo, DR 59
Source: Encyclopedia Britannica, 2002
Kilometers of paved roads per million people in selected countries
Lack of Infrastructure Is Lack of Infrastructure Is Killing AfricaKilling Africa
One of those “paved roads”...
And an “unpaved road”
ALUR, AMBA, ASOA, AUSHI, AVOKAYA, BABANGO, BAKA, BALI, BALOI, BAMWE, BANDA, MID-SOUTHERN, BANDA, SOUTH CENTRAL, BANDA, TOGBO-VARA, BANGALA, BANGBA, BANGI,
BANGUBANGU, BARAMBU, BEEKE, BEMBA, BEMBA, BEMBE, BENDI, BERA, BHELE, BILA, BINJI, BOGURU, BOKO, BOLIA, BOLOKI, BOLONDO, BOMA, BOMASSA, BOMBOLI, BOMBOMA, BORNA, BOZABA, BUDU, BUDZA, BURAKA, BUSHOONG, BUYA, BUYU, BWA, BWELA, BWILE, CHOKWE,
DENGESE, DING, DONGO, DZANDO, EFE, ENYA, FOMA, FRENCH, FULIIRU, FURU, GBANZIRI, GBATI-RI, GILIMA, GOBU, HAMBA, HAVU, HEMA, HEMBA, HOLOHOLO, HOLU, HUNDE, HUNGANA, JOBA, KABWARI, KAIKU, KAKWA, KALIKO, KANGO, KANGO, KANGO, KANU, KANYOK, KAONDE, KARI, KELA, KELE, KETE, KITUBA, KOMO, KONGO, KONGO, SAN SALVADOR, KPALA, KUSU, KWAMI, KWESE, LALA-BISA, LALIA, LAMBA, LANGBASHE, LEGA-MWENGA, LEGA-SHABUNDA, LELE, LENDU, LENGOLA, LESE, LIBINZA, LIGENZA, LIKA, LIKILA, LINGALA, LOBALA, LOGO, LOMBI,
LOMBO, LONZO, LUBA-KATANGA, LUGBARA, LUNA, LUNDA, LUSENGO, LWALU, MA, MABAALE, MAMVU, MANGBETU, MANGBUTU, MAYEKA, MAYOGO, MBA, MBALA, MBANDJA, MBESA, MBO, MBOLE, MFINU, MITUKU, MOINGI, MONGO-NKUNDU, MONO, MONZOMBO, MPUONO, MÜNDÜ, MVUBA, NANDI, NDAKA, NDO, NDOBO, NDOLO, NDUNGA, NGANDO, NGBAKA, NGBAKA MA'BO, NGBANDI, NORTHERN, NGBANDI, SOUTHERN, NGBINDA, NGBUNDU, NGELIMA, NGIRI, NGITI,
NGOMBE, NGONGO, NGUL, NGUNDU, NKUTU, NTOMBA, NYALI, NYANGA, NYANGA-LI, NYINDU, NZAKARA, OMBO, OMI, PAGIBETE, PAMBIA, PELENDE, PHENDE, POKE, RUUND, RWANDA,
SAKATA, SALAMPASU, SAMBA, SANGA, SANGO, SEBA, SENGELE, SERE, SHI, SO, SONDE, SONGA, SONGE, SONGO, SONGOMENO, SONGOORA, SUKU, SWAHILI, CONGO, TAABWA, TAGBU, TALINGA-BWISI, TEKE, CENTRAL, TEKE, EASTERN, TEMBO, TEMBO, TETELA, TIENE, TSHILUBA, VANUMA,
WONGO, YAKA, YAKOMA, YAMONGERI, YANGO, YANSI, YELA, YOMBE, YULU, ZANDE, ZIMBA, ZYOBA
Congo is a Country of Great Diversitywith 218 Living Languages from “A” to “Z”
DEMOCRATIC REPUBLIC OF CONGO
Located at the heart of Africa, DRC is the third biggest country of that continent, after Algeria and Sudan, with following specificities:
• 2,345,410 sq km• 9 neighboring countries
(Congo, CAR, Sudan, Uganda,Rwanda,Burundi,Zambia, Angola, Tanzania)
• 47% of the all africa’s tropical forest
• 52% of the country covered by forest
• Many Mountains, Lakes and Rivers
DRC is a country blessed by Nature, considering its unlimited natural resources, spread in all over the country; among that:
• Copper• Cobalt• Coltan• Diamond• Petroleum• Gold• Uranium• Manganese• Tin• Iron
• Radium• Bauxite• Germanium• Silver• Zinc• Cadmium• coal• Timber• Coffee• Methane gaz
Among all DRC’s Natural Resources, the most important is definitely Congo River, 3,100 kilometers, the second river in the world after Amazon by its rate of flow, evaluated to 40,000 cubic meters per second.
Congo River is crossing twice the Equator. This configuration results to a very stable level of water during the year, which generates at the site of Inga, close to the embouchure, the most powerful potential hydroelectricity site of the world.
44,000 Megawatts of electricity will be produced at that site, at the final stage.
INGA DAM
Although blessed by Nature, DRC’s economy hasn’t been able to take off and drive a sustainable development. This is mainly due to political instability the country faced since Independence. Economic key parameters are as follow:
• Nominal GDP: 7.328 billions USD ( 2005)• GDP/ capita : 700 USD (2005)• Inflation rate : 13.20 % ( 2005)• Growth rate : 6.5 % (2005)• currency : FC ( Congolese franc) 1$ US= 490 FC
To grow, DRC must overcome critical challenges:
• National reconciliation• Building of basic
infrastructures(roads, bridges, railways, ports and airports)
• Development of telecommunications
• Relaunch of mining production and exportation
• Relaunch of Agriculture • Production of
hydroelectricity.
Among priorities, telecommunications stand as a key factor to drive the entire economy.
Telecommunications will overcome the lack of basic infrastructures like roads, railways, airports, and allow people to exchange useful information, idea, image, data and values for their development.
DRC’s telecommunication infrastructure, was totally obsolete and neglected.
This justified the option taken by the Government in 1988, to open this sector to Private Investors.
TELECOMMUNICATION OF DRCIN JANUARY 2000
• 2 GSM Operators: CWN, CELTEL• 2 AMPS Operators: TELECEL, COMCELL• 1 CDMA Operator: AFRITEL• 1 Land line Operator: OCPT• 1 Wireless Operator : SOGETEL• Total Subscribers base: 145,000• Total cities covered : 10• Penetration rate : 0,07% (1:1,300), (the
lowest of all Africa)
Hunting the mobile telephone signal: A public payphone on the tree in DRC
VODACOM CONGO(RDC)SPRL SUCCESS STORY 2
• 31/12/2003: 58 cities covered, 622,478 subs• 01/05/2004: 93 cities covered, 741,100 subs• 31/12/2004: 120 cities covered, 969,326subs• 21/01/2005: 1,000,000 Active subscribers• 01/05/2005: 143 cities covered, 1,056,000 subs• 31/12/2005: 183 cities covered 1,391,000 subs• 01/03/2006: 1,500,000 Active subscribers• 01/05/2006: 187 cities covered, 1,650,000 subs• 30/08/2006: 200 cities covered, 1,950,000 subs
NETWORK DEPLOYMENT• 200 CITIES COVERED• 328 BTS• 15 BSC• 5 MSC• 96 VSAT• 3 EARTH STATIONS
STANDARD B• 1 International
Gateway• MW Back bone 1760
KM
D9
Vodacom and Celtel
MSC
VODACOM CONGO (RDC) s.p.r.l.
A26
B16
A4
A10
A28
A21
A7
A14
A20
A13
A30
A8A23
A1A16 A11
A22
A15
A29
A27A5
A6
A12
A11
B6
B7
B22
B20
B2
B21
B5
B23
E10
E13
D13
E12
E9
E11
E8
E7
E4
E5
E6
E27
E37
E22
E20
E26
E23
E1
E25
E32
E14
F12
E31
E29
E17 E3
E15
E21
E16
E28
E19
E24
E18
E2
F7
F11
F9
F5
B14B15
B11
B1
F19
F17
F13
B12
F18
F10
F20
F15
F21
F22
F24
F23
B13
F16
F14
F4
F25
F3
F1
B17
B18
B9
B31
B30
B33
B26
B25
B27
B32
B8
B24
B28
C19
C6
C16
D21
C8
C17C10
C11
C7
C12
C23
C13
C24
D26
D4
D2
D20
D27
D18
D15
D10
D16
D14
D8
D11
D23
D25 D5
D6
D3
D12
D29
D22D7
D30D31D28
D1
D17
D19
D24
C14
C3
C27
C4
C26
C2
C25
C15
C21
C1
C29
D32
C22
C9
C5
C30
C18
(100)
C20
B4
A3A24
E30
E38
B34
E36
D25
Vodacom only
(C45)
F2
E33
Updated on 18th January 06
A17A9
B10
B29
A18
C21
D32
E34
C28
Cove
rage
Rol
lou
t
MSC: 4
BSC: 15
Sites: 298
Towns: 184
Democratization of the telephone: the voice of my son!
The Way Forward• Good Governance - including; the quality of the rule of law; the
absence of armed conflict or of a high risk of such conflict; respect for labor standards and human rights; recognition of and willingness to protect the rights of indigenous peoples; and government capacity to promote sustainable development through economic diversification.– Such a framework must be developed with public participation,
opportunities for public input, comment, and feedback – not drafted by consultants or hurried through as a condition of Bank procedure.
• Transparency - Companies and governments must be required to publish what they pay governments for the right to access and exploit natural resources.– including taxes, fees, royalties, production power agreements,
host government agreements, and other payments, including signature bonuses.
33
Outcomes Recommendations
• Human Capital and Skills Development• Harmonization of Policies, Legislation and
Regulations• Promotion of Foreign Direct Investment and
Indigenous Participation• Value addition and Sustainable Development
World Bank Portfolio in DRC• US$ 50 million Emergency Early Recovery Project (Approved 2001) financed a
limited set of priority activities that will provide the backbone of the assistance needed in the first phase of the Transition Support Strategy (TSS) .
• US$450 million Economic Recovery Credit I (Approved 2002) first tranche US$ 410 clear arrears, US$15 million forest code, US$25 Gecamines reforms.
• US $454 million Emergency Multisector Rehabilitation and Reconstruction project ( Approved in August 2002), to rehabilitate key infrastructure and social services delivery;
• US $120 million Private Sector Development and Competitiveness Project (Approved in July 2003, effective in December 2003) to restructure key public companies, and to provide partial guarantees to investors through the Africa Trade Insurance Agency (ATI);
• US $214 million Emergency Economic and Social Reunification Support project (approved in September 2003), to support balance of payments, institutional strengthening, infrastructure repairs, and community-driven development;
World Bank Portfolio in DRC• US $200 million Post Conflict Economic Recovery Credit II (approved in
February 2004, effective in May 2004) to support policies that stabilize the economy and pave the way to environmentally and socially sustainable growth and poverty reduction;
• US $102 million Multisectoral HIV/AIDS project (approved in March 2004, effective in October 2004) to mitigate the negative impact of the HIV/AIDS epidemic on the stabilization, recovery, and development of the country;
• US $100 million Emergency Demobilization and Reintegration project (approved in May 2004, effective in October 2004) to help consolidate peace and promote economic stability and sustainable development in DRC and in the Great Lakes region;
• US $60 million Emergency Social Action Project (approved in August 2004, effective July 2005) to improve access of the poor to social and economic services, and increase the availability and management of development resources at the community level;
• US $82 million Emergency Living Conditions Improvement Support project (approved in May 2005 and not yet effective).
Steady Deforestation in KisanganiDemocratic Republic of Congo
These images show slow but steady deforestation of dense forest cover
• 1975: The city and surrounding areas are clearly visible
• 2001: The cleared area around the city has grown and become consolidated, spreading along rivers and roads
Lake Kivu-one of Africa’s “killer lakes”Congo/Rwanda
These images show dramatic changes before and after the eruption of Mt. Nyiragongo in 2002
• 2001: Before the January 2002 eruption
• 2003: Shows the track of the lava flow
Current Mining Projects• Anvil Mining, a Canadian company, and has been in production
since 2002. – In April 2005 MIGA provides $13.3 million of political risk insurance
after Congolese and international civil society groups raised a number of concerns regarding labor problems, governance, development benefits, and security issues by letter to the Board.
– Board report states “illegal extraction of natural resources remains a main source of funding for groups bent on perpetuating the conflict in the eastern and northeastern parts of the country”.
– October 2004 Kilwa Incident - Allegedly Anvil Mining provided logistical assistance to bring in government troops to halt a rebel uprising. The government troops’ intervention turned very quickly to the massacre of “more 100 deaths”.
• Currently a CAO investigation into the due diligence process by MIGA instigated by Kilwa Incident of October 2004.
Dem. Republic of Congo
Village in Dem. Republic of Congo Ruzizi Valley
Fishing Net Across the CongoLarge wood netting across the Congo River near
Kisangani (formerly Stanleyville).
Women in a Dugout Canoe on the Congo
Congo River Village along the River
Barge TransportationA barge transports goods down thewaterways of the Congo
Trade• Africa is rich in natural resources such as minerals, timber and oil,
but trade with the rest of the world is often difficult. • Factors include poor infrastructure, government instability,
corruption and the impact of Aids on the population of working age. • Poorer countries and agencies such as Oxfam also argue that
international trade rules are unfair and favour the developed world. • They say rich countries "dump" subsidised products on developing
nations by undercutting local producers. • And they accuse the World Trade Organisation (WTO) of forcing
developing nations to open their markets to the rest of the World but failing to lower rich countries' tariff barriers in return.
• But the WTO says that low income countries receive special treatment, including exemption from some regulations that apply to richer nations.
Democratic Republic of Congo
• Coastline: 37 km
• 1300 personnel
• 5 patrol craft
Global Maritime Traffic FlowGlobal Maritime Traffic Flow
Recommended