From: OVERSEAS BUSINESS REPORTS (ZAIRE)
University of Missouri-St. Louis
Match 24 DB Rec# - 29,901 Dataset-MARKET
Source : USDOC, International Trade Administration
Source key :IT
Program key :IT MARKET
Program :Market Research Reports
Update sched. :Monthly
ID number :IT MARKET 111108829
Title :ZAIRE - OVERSEAS BUSINESS REPORT - OBR910400
Data type :TEXT
End year :1992
Date of record:09/17/1992
Keywords 1 :
| 9104
| CC766
| ECONOMY
| FINANCE
| INVESTMENT
| MARKET|ASSESSMENT
| OBR
| OBR9104
| ZAIRE
| ZEC
Country :
| ZAIRE
| AFRICA
| AFRICA, NEAR EAST AND SOUTH ASIA
| ANESA
| SUB SAHARA AFRICAN COUNTRIES
| SUB SAHARA AFRICAN GROUP
| SUB-SAHARAN AFRICA
Text :
ZAIRE - OVERSEAS BUSINESS REPORT - OBR910400
SUMMARY
Date: April 1991
Source: International Trade Administration, U.S. Dept of Commerce
Country: Zaire
Number of pages: 52
Subject: The report discusses the economic and commercial climate in Zaire,
with emphasis on information useful for potential U.S. sellers and
investors. It consists of the following sections:
Geography and Population
Trade Outlook
Economy
Transportation
Utilities
Trade Regulations and Documentation
Banking
Selling in Zaire
Investment in Zaire
Taxes
Guidance to Business Travelers
Appendix A: Useful References
Appendix B: Statistical Tables
CONTENTS
Page
Geography and Population . . . . . . . . . . . . . . . . 3
Trade Outlook . . . . . . . . . . . . . . . . . . . . . . 3
Economy . . . . . . . . . . . . . . . . . . . . . . . . . 4
Agriculture -- Mining -- Petroleum -- Manufacturing
Transportation . . . . . . . . . . . . . . . . . . . . . 16
Maritime -- River -- Rail -- Road -- Air
Utilities . . . . . . . . . . . . . . . . . . . . . . . . 19
Communications -- Electricity
Trade Regulations and Documentation . . . . . . . . . . . 20
Pre-Shipment Inspection -- Required Shipping Documents
-- Special Customs Provisions -- Labeling, Marking,
and Packing -- Free Trade Zone
Banking . . . . . . . . . . . . ... . . . . . . . . . . . 25
Selling in Zaire . . . . . . . . . . . . . . . . . . . . . 27
Marketing Aids -- Government Procurement -- Licensing
and Franchising -- Intellectual Property Protection
Investment in Zaire . . . . . . . . . . . . . . . . . . . 30
Investment Regimes -- Employment of Expatriates
-- Types of Business Organizations -- Labor
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Income Determination -- Other Taxes -- Tax Treaties
Guidance to Business Travelers . . . . . . . . . . . . . . 38
Appendix A: Useful References . . . . . . . . . . . . . . 41
Bilateral Diplomatic Representation
Other Representation in Kinshasa
Sources of Commercial Information
Commercial Banks
Transport to and within Zaire
Government Services
Principal Firms in Zaire
Appendix B: Statistical Tables 59
Mineral Production
Agricultural Production
Foreign Trade Indicators
Direction of Trade
U.S. Exports to Zaire
U.S. Imports from Zaire
Overseas Business Reports: $14.00 a year )$3.50 additional for foreign
mailing); single copy price varies. Order from any U.S. Department of
Commerce district office or from the Superintendant of Documents, U.S.
Government Printing Office, Washington, D.C. 204402.
GEOGRAPHY AND POPULATION
Zaire, located in central Africa, is the third largest African country
after the Sudan and Algeria. Its surface area is approximately 2.4 million
square kilometers, about five times the size of France. Its frontiers,
over 9,000 kilometers in length, border the Republic of the Congo and the
Central African Republic to the west and to the north; the Sudan to the
northeast; Uganda, Rwanda, Burundi, and Tanzania to the east; Zambia to the
southeast; and Angola to the southwest. Zaire is nearly landlocked. Its
40 kilometers of coast, situated at the estuary of the Zaire River,
provide Zaire with its only access to the Atlantic Ocean. Topographically,
Zaire is divided into three main regions: the central basin, the plateau,
and the highlands. Administratively, the country is divided into 11
regions: Bas Zaire, Bandundu, Equateur, Haut Zaire, North Kivu, South Kivu,
Maniema, Shaba, Kasai Occidental, Kasai Oriental, and Kinshasa. Zaire's
population is about 36 million, with an annual growth rate of 3 percent and
an average density per square kilometer of 15 inhabitants. Kinshasa is the
most populated city with over 4 million inhabitants, followed by Lubumbashi
and Mbuji-Mayi, with populations of more than 500,000 each.
TRADE OUTLOOK
Reduced availability of foreign exchange, rapidly increasing inflation, and
the failure to come to terms with an International Monetary Fund (IMF)
stabilization program at the end of 1990 have left prospects for economic
development and trade expansion in 1991 and beyond in question.
Nevertheless, Zaire has great potential and remains a market of importance
for U.S. firms.
The Zairean economy has performed unevenly in the last few years. After a
successful stabilization program in 1983-86, Zaire experienced serious
economic difficulties between 1986 and 1989. During this period, deficit
spending increased and inflation soared.
In 1989, the Government of Zaire sought to redress this situation and
undertook a structural adjustment package with World Bank (WB) and
International Monetary Fund (IMF) support. By the end of the year, the
inflation rate had declined, the gap between the parallel or black market
exchange rate and the official rate had been substantially narrowed, and
positive real interest rates were established. Export earnings from copper
and cobalt, with high prices in 1989, contributed to increased revenues and
the reduction of the budget deficit. A number of reforms, including price
liberalization and reductions in trade regulations, substantially improved
the business environment.
Despite these developments, GDP growth in 1989 was negative and, given the
country's 3 percent population growth, per capita income continued to
decline. As a result of this uneven performance, the government abandoned
the reform process in early 1990. This move in turn led to a pattern of
growing budget deficits, rapidly increasing inflation, and falling exchange
rates for the zaire in the latter half of 1990.
Short-term prospects are accordingly poor. While copper prices remain
firm, copper export earnings have declined due to decreases in production.
Without a structural adjustment program, the government has been unable to
restrain spending with worsening inflation as the result. Relations with
creditors are strained. Zaire has not been able to conclude a follow-on
agreement with the IMF and WB; the government has suspended debt payments
to Paris and London Club creditors; and important bilateral donors,
including the former colonial power Belgium, have cut back or eliminated
aid to Zaire.
Given Zaire's size and resources, its long-term prospects are more
favorable. However, Zaire's ability to move its economy towards sustained
economic growth will depend on its ability to mobilize the resources of its
multilateral and bilateral donors and to address the following major
internal constraints: a heavy and growing external debt burden; dependence
on primary export commodities which have poor price prospects; outdated and
deteriorated physical infrastructure; and an inadequate public investment
program.
Best sales prospects for American exporters continue to be in heavy mining,
agricultural, and road construction equipment. United States Embassy
reporting has highlighted opportunities for manually operated,
low-maintenance agricultural and food processing equipment; water pumps;
brick-making machinery; pharmaceuticals; and four-wheel drive vehicles.
U.S. wheat and rice find growing markets in Zaire. Sales prospects are
good for cosmetics, computers, and telecommunications equipment.
Investment possibilities include agro-business, forestry, mining, and
construction material production.
A recent development will encourage the importation of American machinery
into Zaire. The lowering of the tax on used machinery imports to 5 percent
opens opportunities for companies in Zaire to expand and update their
operations at a much lower cost. Industries that could benefit from used
equipment are mining, textiles, construction, and agro-food production.
ECONOMY
Agriculture
Agriculture in Zaire is two-tiered. Smallholder farming involves 4 million
families on plots averaging 4 acres each. Crops grown largely for
subsistence include corn, manioc, sweet and white potatoes, beans, and
rice. The second tier is made up of commercial farmers of various sizes.
Numbering some 300,000, with holdings between 12 and 250 acres, they
produce food for the cities and other crops for export.
The Government of Zaire (GOZ) has stated that the recovery of agricultural
production is a priority within its efforts to stimulate economic growth.
The government, reversing previous policies, has liberalized agricultural
pricing but at the same time has neglected the maintenance of Zaire's
network of feeder roads serving agricultural production, purchasing, and
distribution centers.
Foreign aid-funded projects playing an important role in the government's
agricultural development program include the U.S. Agency for International
Development's (USAID) agricultural commercialization projects in Bandundu
and in central Shaba, the World Bank's livestock and food crop project in
Haut Zaire, and a nationwide USAID/Peace Corps fish culture project.
The production of Zaire's principal commercial crops (coffee, rubber,
cocoa, palm oil, and tea) is mostly in private hands. Currently, two
American investors are finding profitable niches in Zaire's agro-industrial
sector. U.S. technical expertise and managerial skills are proving to be
the keys to turning around once unprofitable operations.
Coffee is Zaire's third most important export commodity after copper and
crude oil and its most important agricultural export. Zaire produces some
1.65 million bags of coffee annually; 80 percent of the production is
grown in the provinces of Haut Zaire, Equateur, and Kivu. Between 85 and
90 percent of production is robusta coffee; the remainder is arabica.
Estimates of total area under cultivation vary from 250,000 to 450,000
hectares. Zaire sells its coffee largely to buyers in Italy, France,
Belgium, and Switzerland.
The collapse of the International Coffee Agreement (ICA) in the summer of
1989 allowed Zaire to dramatically increase its coffee exports. The
termination of the agreement meant that Zaire was no longer bound by the
65,000 ton export quota imposed by the organization. As a result, Zaire
exported approximately 111,000 metric tons (MT) of robusta and 13,000 MT of
arabica in 1989-90.
However, the outlook for the coffee sector is poor. The surplus coffee
entering the world market in the aftermath of the collapse of the ICA drove
the price down rapidly. Coffee farmers in the interior were receiving only
10 cents per pound for their coffee when they sold to the first round of
collectors during 1989. Furthermore, coffee growers in the north have had
to face an outbreak of tracheomycose which has infected about 30 percent of
the robusta crop. The extremely poor state of Zaire's farm-to-market and
primary roads and increasingly common fuel shortages in the interior have
put additional strains on Zairean coffee producers.
In an effort to give Zairean exports a better position on the rapidly
changing world market, the government dropped export and statistical taxes,
removing a 13 percent price disadvantage that Zairean coffee had faced on
the international market.
Office Zairois du Cafe (OZACAF) is the parastatal that determines export
grades in an effort to maintain coffee quality, and, prior to the demise of
the ICA, assigned the ICO export stamps for the country's export quota.
OZACAF is the governmental entity which authorizes entities to export
coffee. OZACAF also manages the coffee warehouses in Goma in eastern Zaire
and in Kinshasa. Groupe Scibe (Societe Commerciale et Industrielle Bemba),
headed by Bemba Saolona, is the principal coffee exporter.
Forestry is the second most important agricultural sector in the Zairean
economy after coffee. Zaire's timber resources are enormous, and
commercial development of the country's 150 million exploitable acres is in
its infancy. Some 14 species are presently being harvested. Production,
running roughly 400,000 cubic meters per year is dominated by one major
company, Siforzal, with the balance of production provided for by six
smaller firms, whose names are listed in Appendix A. Zaire is reevaluating
its forestry policies with the aim of increasing investment and
productivity. The government is aware of the need for changes in the tax
structure and the export procedures as they apply to timber products.
Without such modifications, foreign capital necessary for the sector's
expansion will not be forthcoming.
Rubber is the third largest agricultural export by value after coffee and
timber. This plantation crop has been slow to recover from
zairianization. Only Plantations Lever au Zaire (PLZ) and Societe des
Cultures Zairoises continued replanting. Plantation owners are now more
optimistic about future prices and, at some plantations, replanting has
begun for the first time since the early 1970s.
Cocoa has experienced considerable increases in production in recent
years. It requires less investment than coffee or rubber and its exports
are not regulated. In 1988, 5,100 MT of cocoa were exported.
Unfortunately for cocoa growers, the price of cocoa fell dramatically
between 1986 and 1989, from over 1,700 British pounds per ton in 1986 to
660 at the end of 1986.
Palm oil production is centered in three large operations, two of which are
foreign-owned. The largest is a member of the Unilever Group, Plantation
Lever du Zaire (PLZ), producing some 38,000 MT per year. The second is an
American operation, Groupe Agro Pastoral (GAP), with annual production of
12,000 MT. The third is Societe de Cultures Zairoises, with an annual
production of 15,000 MT. Palm oil production remains profitable in Zaire
due to the continuing imposition of a 100 percent tax on competing imported
oil. Both PLZ and GAP expect to expand their acreage over the next several
years. Another Unilever subsidiary, Marsavco, is the leading producer of
palm oil products, such as margarine, cooking oil, and soap. Marsavco has
developed a modest export market for the glycerins resulting as a byproduct
of its soap manufacture.
The production of cotton engages some quarter million farmers, who produce
some 22,000-24,000 tons per year. Two companies, La Cotonniere and
Coton-Zaire, controlled by the Utexa Group, purchase nearly half of the
seed cotton produced by the smallholders for use in the group's spinning
and weaving mills. Local cotton production is not sufficient to meet the
needs of the country's seven main textile manufacturers that collectively
import another 15,000 bales. However, the end of PL 480 support from USAID
for cotton imports from the United States will likely mean higher costs and
lower production in 1991. The textile industry itself remains the largest
private sector employer in Zaire. Some 18,000 people work directly in
textile manufacturing and another 10,000 in sales and distribution.
Mining
Mining plays the key role in Zaire's economy. Zaire is the world's leading
producer of cobalt, the second largest producer of industrial diamonds,
and the sixth largest producer of copper. The four principal minerals --
copper, cobalt, industrial and gem diamonds, and petroleum -- provided 80
percent of the country's $2.19 billion in export receipts in 1989, with
copper accounting for approximately $1,036 million, cobalt about $354
million, petroleum more than $176 million, and diamonds about $172
million. Other mining production includes zinc, tin, manganese ore,
cadmium, silver, and gold.
Gecamines - La Generale des Carrieres et des Mines du Zaire (Gecamines) is
the huge government-owned mining firm which produces all of Zaire's copper,
cadmium, cobalt, and zinc, and a substantial part of its gold and silver.
The Gecamines concession covers 18,800 square kilometers and employs some
37,000 workers. Mining takes place at Kolwezi, Kisenda, Musoshi, Likasi,
and Kipushi. Mining is conducted in eight open-pit and five underground
mines. Concentrators are located in Musoshi, Kipsenda, and Kipushi in the
southern portion of the concession; in Kambove and Kakanda in the central
portion; and in Mutoshi, Ruwe, Kamoto, Kolwezi, Dikuluwe, Mashamba, and
Luilu in the western portion. Smelters are located in Lubumbashi in the
eastern portion, Panda and Shituru in the central segment, and in Luilu in
the western segment. Refineries are located in Shituru, Kolwesi, and Luilu.
Gecamines' annual production of copper has dropped sharply in recent years
from 470,000 MT between 1986 and 1987 to 340,000 MT in 1990. Maintenance
and production problems, most importantly a major cave-in at the Kamoto
mine in September 1990, had a significant impact on 1990 copper production
figures.
Gecamines' production of cobalt has declined sharply from the 12,000 to
17,000 MT produced annually in the late 1970s. Production since 1987 has
been declining by 1,000 MT a year and has exceeded 11,000 MT only once. At
current production rates, Gecamines has sufficient proven reserves to
support more than 60 years of mining, and potential reserves are estimated
at approximately twice this amount.
In the face of steady copper prices (averaging $1.24 per pound in mid-1990)
and rising cobalt prices, Gecamines' declining output is costing the
company and the country significant foreign exchange earnings and tax
revenues.
Gecamines itself negotiates the sale of its mineral products. It favors
long-term contract buyers with a price differential.
Gecamines' businesses in allied fields include the Luena coal works, a
metal-rolling mill, a cable-making factory, and a cement works. Gecamines
also owns a flour mill, and, in addition to the medical treatment it
provides for its own personnel, it runs a hospital available to the general
public. Gecamines subsidizes and controls the Center d'Execution de
Programmes Sociaux et Economiques, which is currently engaged in an
agricultural and livestock farming program, in public medical programs, and
in the development of local crafts. (Gecamines also provides primary and
secondary education for about 60,000 children.) The government and the
company currently are studying the possibility of restructuring certain of
these businesses. Under encouragement from the World Bank and the French
Caisse Centrale -- both major lenders to Gecamines, the mining parastatal
is divesting itself of some of its nonmining responsibilities.
While Gecamines must surrender 55 percent of its exchange earnings to the
Bank of Zaire, the company retains the right to keep for its own use 45
percent of hard currency earnings in order to reinvest in plant
maintenance, upgrading, and expansion. Gecamines' retention in normal
times of such a sizeable stock of foreign exchange means that it is able to
fund the key mining equipment and supplies which it needs to continue
operations. American mining equipment firms should consider Gecamines a
prime customer in Zaire.
Gecamines's current $1.5 billion rehabilitation project, which was supposed
to have been completed by the end of this year, has been extended into
1992. The aim of the project is to improve productivity and lower unit
costs of production. All stages of Gecamines production -- mining
extraction, concentration, and refining -- have been scheduled for
rehabilitation.
The most important components of the project and their current status are
as follows:
-- Install an in-pit crusher at Kov open-pit mine. This will take at least
two years; however, construction has not yet begun.
-- Extend by 1.5 kilometers the overhead trolley-assist line to power
trucks in the Dikuluwe open-pit mine. The extension is complete; the
number of trucks has been increased from 7 to 19.-- Purchase new mining
equipment -- one power shovel and eight 150 MT trucks -- for the open pit
and underground mines. Most of the equipment should be in place by
mid-1991. Two power shovels have been delivered and are being installed at
the Kolwezi open-pit mine.
-- Rehabilitate the Dima-II and Kolwezi concentrators. Kloeckner-Ina
(Germany) and Outoukumpu (Finland) have been contracted to rehabilitate
both. The Kolwezi concentrator should be completed by the end of 1991, the
Dima-II concentrator by the end of March 1991.
-- Install column flotation facilities to separate copper and other
minerals from waste rock at both the Shituru and the Luilu metallurgical
facilities. The project was to have been completed by the end of 1992, but
has not yet commenced.
-- Construct an anode casting plant and an electro-refinery room in Luilu.
The projects should be completed by September 1991.
In addition to completing the rehabilitation project to lower unit
production costs by 1992, Gecamines plans to expand production capacity
over the next five years and intends to begin exploiting the Tenke and
Fungurume deposits in mid-1992. Other development plans include the
following:
-- Double zinc ore extraction at the underground mine in Kipushi.
-- Build a zinc concentrate roasting plant in Kipushi to replace the
antiquated roasting plant in Shituru.
-- Build a sulfuric acid plant in Kipushi to take advantage of the sulfur
which will be produced as a byproduct of the new roasting plant.
-- Introduce a solvent extraction process to treat oxide ore from the Tenke
deposit and tailings from the company's concentrators. This process
leaches copper from crushed ore and tailings and will use sulfuric acid
produced by Gecamines.
-- Build a flash smelter in Kolwezi to treat sulfide ores. Currently,
sulfide ores from the Kamoto mine are concentrated at Kolwezi; the
concentrates are then transported by rail to the antiquated smelter in
Lubumbashi. The flash smelter in Kolwezi will eliminate the need to ship
concentrates to Lubumbashi, thereby saving time and reducing costs.
Gold -- Most of Zaire's annual gold production of over 4,365 kilograms
comes from the state-owned company, the Office des Mines d'Or de Kilo-Moto,
which mines deposits in two remote areas at Kilo and Moto in the northeast
of Zaire. A significantly smaller amount, slightly more than 500
kilograms, is produced by Societe Miniere et Industrielle du Kivu (Sominki)
at two mines in Kivu, while an even smaller quantity (160 kilograms) is
recovered during the final refining of Gecamines' copper in Belgium. All
of the directly produced gold receives its initial refining in Zaire.
Zairean law requires gold producers to sell 50 percent of their production
to the Bank of Zaire for zaires. The producers are permitted to sell the
balance of their output on the world market for hard currency.
In October 1990, an agreement was reached between the Government of Zaire
and Kilo Mining International (Kimin) for the mining of gold in the Upper
Zaire region. According to the agreement, a total of $162 million will be
invested over a five-year period to produce 8 tons of fine gold per annum.
Artisanal gold mining continues in Zaire. Private buyers may obtain
licenses from the central government to purchase gold directly from the
individual miners in the interior. Regrettably, no hard figures are
available on the amount of gold involved.
Diamonds -- With the coming on-stream of Australia's Argyle mine, Zaire
lost its position as the world's largest producer of industrial diamonds.
With its 20 million carats produced each year, Zaire is now the world's
second largest producer. Diamond extraction is carried out at two main
centers in Kasai. The Societe Miniere de Bakwanga (MIBA), a state-owned
company with a 20 percent interest held by a subsidiary of the Belgian
firm, Societe Generale, operates at Mbuji-Mayi in Kasai Oriental from which
come nearly half of the country's production. MIBA is also currently
conducting prospection on the Kasai River near Tshikapa with the hope of
installing a dredge there in 1991. The remainder of Zaire's diamond
production comes from artisanal diggers working in alluvial deposits in
Mbuji-Mayi and Tshikapa in Kasai Occidental. In 1990, overall revenue from
diamond activities was estimated at more than $236 million.
MIBA recovers diamonds from alluvial deposits and to a lesser extent from
kimberlitic pipes. On average, 75 percent of the diamonds extracted are of
an inferior industrial quality, known as boart, and are used in powder form
for various industrial purposes; 20 percent are of "near gem" quality and
may be used either for industrial purposes or in poorer quality jewelry;
and 5 percent are of gem quality. Gem quality diamonds account for 75 to
80 percent of MIBA's annual receipts.
MIBA's diamond production is sold to British Zaire Diamond Distributors
Limited (Britmond), the Zairean subsidiary of DeBeers, which sells the
diamonds through its diamond marketing subsidiary, Central Selling
Organization.
Diamond extraction at Tshikapa in Kasai Occidental is largely in the hands
of alluvial diggers. The stones recovered are 70 percent industrial and 30
percent gem quality.
To cut down on the smuggling of diamonds, the government licenses diamond
buyers, "comptoirs," to purchase stones in the diamond regions from
individual diggers. The value of the transaction is overseen by a
Britmond-trained assessor from the National Evaluation Center. Comptoirs
must pay to the government a licensing fee of $300,000, purchase at least
$10 million worth of diamonds a year, and pay to the government an ad
valorem tax of 1.5 percent a year. One of the 12 comptoirs operating in
Zaire is managed by an American.
Tin -- Sominki in Kivu and Zairetain in Shaba extract tin in small
quantities. In 1989, 2,000 MT of tin were produced. The known reserves
will support present production rates for another ten years. The Bureau de
Recherches Geologiques et Minieres (BRGM) has identified other scattered
tin deposits and has worked with the Government of Zaire to establish two
other smaller tin mining operations: SMDG at Kalimbi and Sderemi at Kania.
Due to the low world market price for tin, there are no plans for any
expansion of tin production in Zaire; in fact, Sominki has laid off most of
its workers.
Manganese -- Entreprise Miniere de Kisenge oversees a stockpile of 500,000
MT of washed manganese at Kisenge and another 600,000+ MT of ore awaiting
processing at the mill in Kisenge. The company has been unable to make
shipments of unrefined manganese since the Angola civil war closed the only
economically feasible transport route, the Benguela Railway, in 1975.
Coal -- Zaire produces about 100,000 tons of low calorie, high ash coal a
year from two deposits in eastern Zaire. Some 90 percent of production
comes from the Kaluku Mine of the Luena deposit in Shaba Province. The
Kaluku Mine is owned and operated by the Societe des Charbonnages de Luena
(SCL), which in turn is owned and operated by Gecamines. Gecamines is also
the major consumer of the coal, which is blended with another 55,000 tons
of metallurgical grade coal and 80,000 tons of coke to meet the company's
smelting needs. Given the unattractive energy characteristics of Zaire's
coal, and the scattered nature of the deposits, any large-scale
exploitation is unlikely in the medium term.
Development Possibilities -- In addition to those minerals currently being
exploited, Zaire possesses other undeveloped mineral deposits. Iron ore is
located in Shaba, Haut Zaire, and particularly in Kasai Occidental. Bas
Zaire contains deposits of phosphate, bauxite, and lead. Bituminous
sandstone and schists are found in Bas Zaire and Haut Zaire. These bitumen
deposits are believed to amount to 100 million MT and to have an economic
rate of recovery.
Petroleum
Production and Reserves -- Zaire's two production companies produced 10.6
million barrels of crude oil in 1990 from onshore and offshore fields near
the mouth of the Zaire River. The operating companies are joint ventures
with the Government of Zaire and international oil companies. Zaire Gulf's
three foreign partners are Chevron through Zaire Gulf (the operator),
Teikoku of Japan through Zaire Petroleum Company, and Union Oil of
California through its Muanda operating company; Zairep's two foreign
partners are Petrofina of Belgium (55 percent) and Shell of Great Britain
(45 percent), with Petrofina as the operator.
Commercial offshore oil production began in 1975. There are two principal
offshore fields located in the coastal basin which extends from Gabon to
Angola. The Mibale field accounts for over 80 percent of domestic oil
output, with reserves estimated at 7.6 million MT. The GCO field contains
reserves estimated at 380,000 MT. Three other offshore fields have also
been mapped out: Mwambe, Libwa, and Lukami. Four onshore fields have been
identified: Kinkasi, Liawenda, East Mibale, and Muanda-Basndana.
Recoverable, proven reserves in the offshore concessions total 127.7
million barrels; the onshore reserves amount to slightly less than that
figure: 101 million barrels. Nearly half of the offshore reserves are in
the Mbale field.
Exploration -- The right to explore for and to exploit onshore and offshore
oil reserves in Zaire is regulated by conventions negotiated between the
state and the various oil companies involved. These conventions determine
the companies' obligations regarding the length of time during which
specified sums of money are to be invested by the companies. These
conventions also outline tax holidays granted to the companies. Subject to
the due performance of the obligations laid down in their conventions, the
companies have the right to exploit any finds.
Several companies from both Europe and the United States are engaged in oil
exploration in Zaire, both along the traditional oil areas of the Atlantic
Coast, and in previously unexplored areas in eastern Zaire along the great
rift valley lakes. Three companies currently conduct oil exploration:
Zaire Gulf Oil Company, Amoco, and Petrofina. A now defunct partnership of
Fina, Shell, and Exxon was also exploring in the lake area of the
Zaire-Uganda border. This partnership broke up in 1989 and ceased activity
because of the then low price of crude, the lower than projected reserves
in the area, and the political problems posed by an oil field that
straddles the Zaire-Uganda border.
Imports, Refining, Marketing, and Distribution -- All domestically produced
oil is exported as crude since its technical characteristics prevent it
from being processed at the country's sole refinery, Societe
Zairo-Italienne de Raffinage (SOZIR), at Kinlao on the Atlantic coast.
SOZIR is jointly owned by the state and AGIP. Since 1987, Zaire has had
Chevron import Bonny light crude from its operations in Nigeria for
processing at SOZIR. SOZIR refined 400,00 MT of crude oil in 1989,
significantly less than its rated capacity of 750,000 tons a year.
Zaire's oil product imports consist of gasoline, kerosene, jet fuel,
aviation gas, fuel oil and ligquified petroleum gas. PetroZaire, a
state-owned company, has the monopoly on oil imports. Recently, the state
Petroleum Committee, made up of PetroZaire and representatives of the five
distribution companies, moved its import supply contract from Petrobas to
Elf Aquitaine. PetroZaire has taken over the government's shares in the
local distribution and production companies.
Distribution of oil products throughout Zaire is handled by PetroZaire,
Fina, Mobil Oil, AGIP, and Shell. The distribution of oil products has
proven to be a less than optimally profitable operation because the
government has insisted on control of retail prices for all petroleum
products. Adjustments are not made in a timely manner to reflect the rapid
devaluation of the zaire on the international market; the protracted price
adjustments, combined with the slow payment practices of the Zairean
Government, frequently causes the oil distribution companies to suffer
liquidity shortages and faltering profit levels. In the wake of higher oil
prices in 1990, the Government of Zaire reduced gasoline taxes to keep pump
prices low. This resulted in less revenue for the Office des Routes, the
government agency responsible for road maintenance programs, whose budget
is derived solely from gas taxes.
Manufacturing
The industrial sector, including agro-industry but excluding mineral
refining, generates approximately 2 percent of GDP and employs about
160,000 workers, representing about 22 percent of employment in the
monetized private sector of the economy.
The textile, food, brewing, and cement industries are the main sectors of
activity.
Companies are principally located around the two main industrial centers of
Kinshasa and Lubumbashi, and to a lesser extent at Kisangani.
There is also a high level of concentration within the industrial sector
with approximately 90 percent of the sector's added value being produced by
firms of more than 100 employees.
Despite the very low level of investment undertaken since 1975, aging
equipment, and lack of raw materials and spare parts which have severely
reduced capacity, the manufacturing sector retains considerable potential
and is capable of reacting to a recovery in the economy.
On the average, firms are operating below their production capacity. The
level of activity is spasmodic because of the scarcity of foreign exchange
which is needed to import supplies of raw materials, semifinished products,
and spare parts on which the manufacturing sector is so heavily dependent
and because buying power is so low.
The food and beverage industries together account for 35 percent of
industrial added value and are dominated by companies producing flour,
sugar, and beer.
The major wheat flour mill is the Minoterie de Matadi (MIDEMA), a
subsidiary of the American group, Continental Grain, which has an annual
capacity of about 200,000 MT. Much of its wheat supplied under the United
States PL 480 Aid and Export Enhancement Programs. The Minoterie Kakontwe
(MINOKA), part of the Gecamines Group, is the predominant producer of maize
flour.
Zaire has two major sugar producers: the Sucrerie de Kiliba (SUCRAF) in
southern Kivu, founded in 1956, with an annual production capacity of
24,000 MT and the Compagnie Sucriere in Bas Zaire, founded in 1926, which
has a capacity of 65,000 MT per year. Construction of a 13,000 MT sugar
refinery at Yawenda in Haut Zaire has been completed with Chinese technical
assistance. Two other sugar factories, each with a capacity of 50,000 MT,
are planned at Mushi Pentan in Bandundu and at Lubilash in Shaba, although
financing has not yet been arranged.
The brewing industry is one of the oldest and best established in the
country. The industry is dominated by three large companies: the
Brasseries, Limonaderies et Malteries du Zaire (BRALIMA, 70 percent owned
by Heineken); UNIBRA (60 percent Belgian owned); and Brasseries Simba
(BRASIMBA). There are three other smaller breweries, the largest of which
is Societe des Brasseries du Bandundu (SOBRABAN). The production capacity
of the brewery sector is about 6 million hectoliters per annum. The
dominant importance of the brewing industry is indicated by the fact that
the largest nonmineral manufacturing company in the country is BRALIMA.
Cigarettes are manufactured by Bat-Zaire and Tabazaire. Production in 1990
was 3.6 billion cigarettes.
The textile and clothing sector provides 20 percent of the overall added
value of the manufacturing industry and employs about 13,000 people. The
industry includes totally integrated mills, synthetic weaving mills, and
small knitting mills. There are six companies involved in the spinning and
weaving of cotton: Utexafrica (owned by Copbera, a Belgian-French firm,
through the holding company TEXSAF); Intexkin (formerly Amato Freres);
Filatures et Tissages Africains (FILTISAF, a subsidiary of Brasserie be
Kinshasa, which in turn is Belgian owned); Solbena (also owned by UTEXCO's
parent holding firm); Societe Textile de Kisangani (SOTEXKI); and Acher
Hasson et Frere. Aggregate capacity consists of about 128,000 spindles and
2,600 looms, capable of producing approximately 110 million square meters
of cotton cloth per annum.
The Utexafrica group consists of five textile-related companies. Utexco
runs a spinning and weaving factory. Zaireprint prints gray cloth produced
by Utexco. Otricot Super Star and Elitex produce ready-made clothing.
Textiles Export handles exports for the group; these are mostly comprised
of kitchen towels and shirts, which, because of Zaire's membership in the
Lome Convention, receive preferential access to the European Economic
Community market.
Printed cloth is manufactured by five companies, of which the most
important are Zaireprint, CPA Zaire, and SOTEXKI. Zaireprint focuses on
mass marketing of cheaper prints at prices 20 to 30 percent below those of
Sotexki. The latter, a Kisangani-based firm, manufacturers a higher
quality product. Production of synthetic cloth is largely carried out by
NOVATEX.
The American share of the Zairean textile machinery market is small:
probably no more than 6 percent. However, three of the largest cotton
mills are equipped with significant amounts of American machinery, and all
purchasers in the industry are acquainted with American equipment.
Stiffest competition for exports to this industrial sector comes from
Belgium, Germany, and Great Britain.
Other significant products manufactured in Zaire include shoes, cement,
soft drinks, tires, and plastic products. The shoe industry is dominated
by BATA-Zaire, which produced over 1.3 million pairs of shoes in 1990, up 2
percent from 1989. Cement is produced for the local construction industry
by six firms, two of which, CIZA and Cinat, produce 80 percent of the
country's total output. CIZA's production reached 220,00 MT in 1990. The
government and the Belgian conglomerate, Societe Generale be Belgique, play
dominant roles in this industry. The state owns Cinat; SCG has the
majority interest in Ciza and in three of the remaining four other
producers. Three battery plants also operate in Zaire: Ray-O-Vac by Hasson
et Frere; Sozabat, majority owned by Chloride (U.K.); and Sopirza which
entered into production during 1989.
TRANSPORTATION
Transportation in Zaire is of paramount importance to the economy because
mining and agricultural production centers are distant from population
centers and export outlets.
The country's multimodal transportation system, the Voie Nationale, or
National Route, stretching from Lubumbashi in Shaba, some 1,500 miles to
the sea at Matadi, combines rail and river transport to bring Zaire's
minerals to market, food to the cities' urban populations, and imported
goods to their up-country customers. River transport is based upon the use
of the Zaire and Kasai Rivers and their tributaries, which together provide
8,000 kilometers of navigable waterways for 70 inland ports. The
state-owned railway system has a total track length of over 5,200
kilometers. It consists in large measure of extensions of the waterways to
bypass unnavigable sections and to connect production centers to river
ports. The road network, which totals approximately 160,000 kilometers,
serves as a feeder to the river and rail systems.
Maritime Transportation
The country's export outlets are the seaports of Matadi, Boma, and Banana.
Matadi, the largest, is some 200 miles southwest from the capital city of
Kinshasa. The depth of the river's channel varies , from 24 to 27 feet
during the rainy season, down to 20 feet during the dry season. The
channel is subject to silting; the Regie des Voies Maritimes (RVM) is
responsible for dredging the river. RVM is in need of larger capacity
dredges, following the departure of such equipment from a contracted
Belgium firm. The port at Matadi, nearly 90 miles from the river's
entrance to the Atlantic Ocean, has ten quays; of which numbers 5,6, and 7
were recently rehabilitated by the African Development Bank and Fund (AFDB)
in 1987, and quays 1,2,3,4 are undergoing renovation in a second AFBD
loan. Efficiency at the port of Matadi has fallen significantly. The
container discharge rate is reported to be the slowest in the region, three
20 foot containers per hour. Storage space at the port is limited to
32,000 square meters in two warehouses. Only four transit agents are
allowed to transfer cargo to either the port's bonded warehouses or out of
the port for onward transport: AMIZA, AGETRAF, SOCOPAO, and ZAIRE
CONTAINERS.
River Transportation
The major inland ports are Kinshasa, Mbandaka, Ilebo, Lisala, and
Kisangani. Kinshasa is the rail/river transit point for all goods heading
for export or bound for the interior. With 1,200 meters of quay,
Kinshasa's port offers more covered storage, 40,000 square meters, than
does Matadi. River transportation is controlled for the most part by the
Office National des Transports du Zaire (ONATRA). ONATRA's operational
fleet in 1988 consisted of 957 barges and 200 self-propelled rigs for river
transport. ONATRA also operates three shipyards in the Kinshasa port
complex. Private competition, in the form of both small shipping companies
and industrial and agricultural producers' own shipping transport, accounts
for over 20 percent of the market and has been steadily increasing. The
privately owned firm Chanimetal also operates the more efficient shipyard
in Kinshasa. The smaller river ports of Ilebo and Kalemie are operated by
the state railroad company, SNCZ. Ilebo has a daily handling capacity of
2,000 tons of noncontainerized cargo a day; the corresponding figure for
Kalemie is 500 tons a day.
Railway Transportation
The railway network within Zaire is divided into two main segments. The
smaller first segment runs the 365 kilometers between the ocean port of
Matadi, around the first set of Zaire River cataracts to the river port of
Kinshasa. The Office Nationale des Transports du Zaire (ONATRA) operates
this line. The state railway company, Societe Nationale des Chemins de Fer
Zairois (SNCZ), operates the rest of the country's rail lines totalling
some 4,800 kilometers of track. More than 3,670 kilometers of the track is
1.067 meter gauge. Together, the two rail companies own approximately 184
locomotives, 117 shunters, and 8,994 units of rolling stock. A substantial
number of the locomotives are over 20 years old and are subject to frequent
breakdowns.
The railway network serving the Shaba mining area consists of two principal
systems. One of these connects Shaba to Ilebo and Kinshasa to Matadi and
forms part of the Voie Nationale. The second system completes another,
much longer, domestic route from Shaba to Matadi via the Lualaba and Zaire
rivers.
Two other railway routes also exit Shaba: across Lake Tanganyika from
Kalemie by steamer and then to the Indian Ocean port of Dar es Salaam in
Tanzania; and through Zambia, Zimbabwe, and South Africa to either Port
Elizabeth, Cape Town, or Durban in South Africa. The Benguela Railway
through Angola previously was the principal supply and export route used by
the country's mining industry; that route has been closed since September
1975. Should national reconciliation succeed in Angola, the Benguela will
need extensive rehabilitation before it can accommodate heavy mining
tonnages.
The SNCZ railway is undergoing two rehabilitation projects to improve
transportation and communication along its tracks. The first project began
in 1987 with $75 million provided by the World Bank, AFDB, Belgium, France,
and Germany. This project is at the halfway point in terms of committed
funding. Its object is the refurbishment of 263 kilometers of track
through the purchase of new rails and rebuilding of the track bed. The
plan also calls for the overhauling of 20 diesel locomotives and 38
electric locomotives, servicing and repairing 1,400 rail cars, buying both
new rail cars and materials to locally manufacture cars, and improving the
rail telecommunications net between Kamina and Ilebo. Most of this project
was completed by mid-1990. The second upgrading project is targeted for
completion by 1993 and involves some $197 million of multilateral and
bilateral funding from the AFDB, EEC, France, Belgium, and Germany.
Another 300 kilometers of track will be refurbished, seven electric and six
switching locomotives will be purchased, replacements for locomotives and
rail cars will be ordered, and a new telecommunications center will be
installed. Approximately $110 million remains for untied purchasing of
equipment. In spite of these investments, SNCZ service remains very poor.
Road Transportation
Zaire's road network is designed to provide the essential link with those
areas not accessible from the two main river-rail routes between Kinshasa
and the south. The road network extends to 145,000 kilometers. National
and regional roads account for 57,000 kilometers, of which 2,800 kilometers
are asphalted. Office des Routes (OR) is responsible for supervising the
maintenance of this segment of the road system. Actual contracts for
maintenance of specific segments of the network are let out by competitive
bidding to private firms. Heavy rain, coupled with limited funding, have
outstripped OR's ability to maintain Zaire's roads. The remainder of the
network is made up of local agricultural roads, under the administration of
the Agricultural Road Authority (SNRDA), which faces the same problems as
the OR.
Air Transportation
Air transportation has developed considerably in recent years owing both to
the size of the country and the inadequacy of the road, rail, and waterway
systems. Major airports are located at Kinshasa, Gbadolite, Lubumbashi,
Goma, and Kisangani. Small airfields and airstrips are estimated to exceed
100. Shortages of spare parts and fuel are a major problem affecting
internal transport. Only the airports at Kinshasa and Lubumbashi are
equipped for night landings, although other airports are now in the process
of installing night navigational aids.
The government-owned airline, Air Zaire (AZ), is the principal domestic
passenger carrier (AZ has 24 percent of the air freight business, but
nearly 60 percent of the air passenger business). The company's fleet
consists of one DC-10, two Boeing 737s, and one cargo DC-8. Chief domestic
competitors are Air Charter Service, Virunga Air Charter, Katale
Aerotransport, Fontshi Aviation Services, Merchandise Transport of Kivu,
SOCOTRA, Pan African Express, Transport Aerien Zairois, and SCIBE Zaire
(the largest). While they focus on freight, these companies have ventured
into the passenger business as Air Zaire has been unable to cover the
entire domestic route system.
UTILITIES
Communications
Day-to-day administration and management of Zaire's communications
infrastructure is provided by the National Post and Telecommunications
Office (ONPTZ) and the Zairean Office of Radio and Television (OZRT). They
are located in separate ministries which together set the country's
telecommunications policy. The respective ministries are, for ONPTZ, the
Department of Post, Telephone, and Telegraph (PTT); and for OZRT, the
Department of Information and Press. The country is linked internationally
by a Standard A earth station at N'Sele built by ITT; internal
communications are provided by Standard B earth stations built by France's
Thomson, Britain's IGTV, and most recently by the American firm, Scientific
Atlanta. Reseaux Zairois des Telecommunications par Satellites
(REZATELSAT), operates the country's network of earth stations, numbering
some 15.
Zaire has for the first time entered into a telecommunications sharing
arrangement with a private firm. Chevron Zaire will build two satellite
earth stations, one in Kinshasa and the second at its installations at
Moanda. Chevron will have private circuit connections with its U.S.
headquarters and will operate the stations for ten years under contract to
the Zairean PTT. Zaire will have title to the two stations, without
incurring the costs of building them, and will have access to additional
in-country and international communications lines.
Zaire's extensive telecommunications needs have been repeatedly studied.
The government is giving priority to: 1) the replacement of the N'Sele
earth station; 2) the purchase of a smaller portable earth station to be
used while construction is being completed at the larger N'Sele earth
station; 3) rehabilitation of the telephone system in four zones of
Kinshasa, with work on exchanges and cables contracted to Italian,
Japanese, French, and Belgian firms; 4) the introduction of a new U.S.
company in cellular telephones, and the expansion of this system into Goma,
Lubumbashi, and other cities later in 1991; 5) expansion of the national
television system throughout the country with the construction of more than
40 additional earth stations with two-way communications capability.
Electricity
Zaire's estimated hydroelectric power potential is very large -- in excess
of 100,000 megawatts (MW). Its current hydroelectric production capacity,
the result of considerable investment in recent years, is over 2,300 MW.
The Societe Nationale d'Electricite (SNEL), the state-owned electric
company established in 1970, is the entity charged with operating and
funding the national grid.
The major hydroelectric installation is at Inga in Bas Zaire. The
1800-kilometer long Inga-Shaba power line supplies electricity from Inga on
the Zaire River to Kolwezi, Shaba Province, where it is added to the Shaba
network, consisting of four smaller dams built in the 1930's and generating
some 460+ MW of electricity. Many companies in the interior remain
dependent on privately-owned diesel-fueled power plants.
The bulk of Zaire's electric production is consumed by industrial users.
Only about 2 percent of the population has electricity in their homes.
TRADE REGULATIONS AND DOCUMENTATION
Licenses are required for all transactions in foreign exchange, including
import transactions.
Import licenses are issued by the commercial banks under the guidelines of
the central bank and are in most cases easily granted. The purpose of the
import license is to collect statistical data on imports and foreign
currency flows and to monitor the use of scarce foreign currency to prevent
nonpriority expenditures of foreign exchange such as for importing luxury
goods. Country of origin plays no role in the import license issuing
process.
Applications for import licenses are sent to authorized commercial banks,
which, after certification, forward them to the Bank of Zaire for
approval. The commercial banks require an advance import deposit ranging
up to 110 percent of the transaction value in local currency prior to the
opening of an irrevocable letter of credit. In addition, the prospective
Zairean importer must deposit with the bank 80 percent of the expected
customs duties, fees and taxes before the letter of credit will be opened.
The Government of Zaire further requires that all import transactions be on
30-day or longer credit terms or, if on shorter terms, offer at least a 6
percent discount for cash. The import license application then is returned
to the authorized commercial bank for validation. Licenses remain valid
for customs clearance for three to six months. The validation period may
be extended if shipment has begun.
Special licenses are required for all importers of petroleum products. The
licenses are issued by the petroleum purchasing committee made up of the
in-country petroleum distributors and chaired by PetroZaire. The licenses
are issued only to suppliers who are under contract to the committee.
A special import authorization is applicable for certain foodstuffs,
including rice and sugar. The license is obtained from the central bank.
Zaire adopted the Harmonized System of tariff classification in July 1988.
The country maintains a one-column tariff applicable to products from all
countries. The majority of the tariffs are
ad valorem and are calculated on the c.i.f. rather than on the f.a.s. or
f.o.b. value of the goods.
The country's tariff rates generally are in the 10 to 30 percent range,
with higher protective rates of 40-80 percent on such items as clothing and
luxury items. A further narrowing of the tariff rate structure is expected
during the next two years.
In addition, three other taxes are levied. They are the Depot Preliminaire
du Tarif (DPT), the Droit d'Entre (DE), and the sales tax. Investors in
possession of a pre-January 1, 1990 tax agreement with the government may
be exempt from the first two. The DPT as of March 10, 1990 is a uniform
rate of 20 percent. The DE is 5 percent for intermediate products; on
finished products, the rate is 15 percent. A sales tax of 3 percent is
applied to imports of heavy equipment; goods imported for direct retail
sale face a sales tax of 20 percent; raw material imports are exempt from
the sales tax.
Due to the severe lack of foreign exchange in Zaire and to the large
backlog of commercial credits still unpaid by the central bank, it is
recommended that all sales to Zaire be on the basis of irrevocable
confirmed letters of credit. Zairean central bank regulations require all
Zairean commercial banks to confirm letters of credit they open with their
foreign correspondents. In some cases, large Zairean importers have
sources of foreign exchange outside Zaire and can offer credit documents
issued by non-Zairean banks.
To help U.S. exporters formulate sound credit policies applicable to local
markets, credit information on individual Zairean firms is available
through the U.S. Department of Commerce World Traders Data Reports,
available from any of the Department of Commerce's district offices. This
information may also be available from private agencies. Credit
information also can be obtained from American banks which serve as the
U.S. representatives for various Zairean banks.
Preshipment Procedures
Zaire has engaged the Swiss firm, Societe General de Surveillance (SGS), to
conduct a program of preshipment inspection of products to be shipped to
Zaire for price, quality, and quantity. SGS has offices in New York
(telephone: 218-482-8700); Baltimore (301-563-1822 or 301-285-7870);
Kenner, Louisiana (504-469-6401); and Houston (713-479-7170). It also has
agents at other ports.
The exporter provides to the importer a pro-forma invoice which contains a
description of the goods to be shipped; country, methods and date of
proposed shipment; price and insurance information; and a statement by the
exporter that he agrees to have his goods undergo preshipment inspection by
SGS Controls Services, Inc., in the United States. The proforma invoice,
in French and at least in triplicate, will be used by the importer to
support his application for an import license. Following the granting of
the license, SGS arranges for the inspection. If satisfied, SGS issues a
Bill of Clean Findings, or "Attestation of Verification," regarding
quantity, quality, and price of the shipment. This attestation is required
by the Bank of Zaire for all imports, and no goods should be shipped to
Zaire without such an attestation. Any exemption from attestation
requirements is given only on an ad hoc basis. No payment will be made by
the importer's bank unless the attestation is provided in all required
cases.
The SGS correspondent in Zaire is the Office Zairois de Controle (OZAC),
located at Avenue du Port, Gombe, B.P. 8614,
Kinshasa; tel: 22630, 23386, or 22256; telex: 21117. OZAC is also the
entity responsible for determining whether imported food is fit for human
consumption. A Zairean importer may put imported food items up for sale
only after he is in possession of the OZAC certificate of fitness.
Required Shipping Documents
The Zairean customs service requires all documents to be in the French
language. The documents usually required in shipments to Zaire are:
o Commercial Invoice (original plus two copies). The invoice must show
the names and addresses of the manufacturer or shipper and importer;
shipper's signature; description of the merchandise; gross and net
weights in kilograms; f.o.b. or c.i.f. price; itemized expenses;
country of origin; date of invoice; and number of the corresponding
import license, if known. An invoice in both French and English will
facilitate customs clearance. Chamber of commerce certification and
consular legalization are not required for French translations of
English invoices.
o Packing Lists. The following information should be included: marks
and numbers of packages, weight (gross or net) of each package, and an
accurate description of each package and its contents.
o Bills of Lading. This document should show the name and shipper, name
and address of consignee, port of destination; description of goods,
listing of freight and other charges, number of bills of lading in the
full set, and the date and signature of the carrier's official
acknowledging receipt on board of the goods for shipment. The
information should correspond to that on the invoice.
The air waybill replaces the bill of lading on air cargo shipments. It
is important to ascertain all relevant information pertaining to
airwaybill requirements from IATA and other appropriate agencies prior
to contract closure.
o Import License. The license is needed by the importer for all
transactions involving foreign exchange.
o Proforma Invoice. The proforma invoice is provided by the exporter to
support the importer's application for an import license.
o U.S. Shipper's Export Declaration. This document is necessary if the
value of the shipment is more than $500 or a validated export license
is required. The $500 exemption applies to goods under each Schedule B
number in a single shipment from one exporter to one importer.
o Insurance Certificate. The exporter is advised to follow instructions
of the importer or insurance company.
o Certificate of Origin. This certificate is sometimes required by
specific contractual clause. If so required, the document should be on
a standard form available commercially. The document should be
certified by a recognized chamber of commerce, which may require an
additional copy for its files.
Special Customs Provisions
Warehousing -- Not later than 15 calendar days after arrival at the port of
entry, merchandise must be declared for local consumption, transit passage,
or warehousing. If, after 15 days, the required declaration has not been
made, the merchandise concerned will be considered as abandoned and as
having no consignee.
Reexporting -- Goods on which duties have not been paid may be reexported
without payment of duties, but any warehouse or handling charges that may
have accrued must be paid. Duties paid on imports may be refunded if the
goods are reexported, provided identification of the goods as those
originally imported is confirmed. The customs authorities should be
notified at the time of original entry of the goods by importers
contemplating reexportation of all or part of a shipment of goods. The
government retains 10 percent of the original duties paid to cover
administrative costs. All goods reexported without modification are exempt
from all export duties.
Transit -- Two forms of transit are possible, either "ordinary" or
"direct." In both cases, a time limit is set and the posting of a bond is
required. For dutiable goods, the bond is equal to 125 percent of the
regular import duties; in the case of goods free from duty, only a nominal
sum is required. Shipments in ordinary transit may be declared wholly or
in part for internal consumption before the expiration of the time allowed
for transit, but all of a direct transit shipment must leave the country.
Samples and Advertising Matter -- Zaire is a member of the International
Convention to Facilitate the Importation of Commercial Samples and
Advertising Material. Samples of negligible value are admitted duty free.
Valuable samples are admitted temporarily duty free under bond. Small
quantities of printed advertising matter are admitted duty free.
Advance Rulings on Classification -- Customs officials are willing to
render advance rulings on goods which have not yet been shipped, provided a
sufficient description is given. Such rulings are not binding, and customs
assumes no responsibility for subsequent classification changes upon the
goods' arrival in Zaire.
Labeling, Marking, and Packing
There are no general requirements for labeling. However, special
requirements apply to any machine, box, tool, or object used in the
manufacture or packing of food products and to artificially colored
foodstuffs. Such machinery must show the trademark of origin.
Artificially colored foodstuffs must show the name and address of the
selling company and exact labeling is required for fruit juice, fruit
syrups, marmalades, and gelatins. Fruit syrups must be labeled "pur fruit"
or "syrop de fruit glucose" (sweetened fruit syrup) as the case may be. If
the fruit syrup is artificially colored, it must be so stated on the
container. Raw materials must be identified when used in the manufacture
of flour which is not pure wheat flour.
Zaire's specific requirements as well as IATA, ICAO, IMCO, and U.S.
regulations should be met in the labeling, packing, and shipment of any
hazardous or restricted materials.
The consignee's mark and port marks should be plainly inscribed on the
packages to facilitate arrival of the shipment. Packages should be
numbered unless the contents are such that they can be readily identified
without numbers. Net weight in kilograms should be shown to facilitate
customs clearance.
Cargo marked for shipment via Dar-es-Salaam, Tanzania, must bear a blue
cross with arms not less than 30 cm long on normal packages, but, depending
on the size and/or length of the package, large enough to be visible from a
distance. This requirement is in accordance with a color code system
introduced in Dar-es-Salaam to indicate the country of destination. The
port authority at Dar-es-Salaam will accept no responsibility for lost
packages resulting from improper color marking or failure to mark goods
according to the scheme and may levy sorting charges. Use of the colored
marks, however, is not intended to replace any of the normal marks and
numbers and other details of the consignee, but shippers and suppliers are
urged to eliminate as much advertising and wording as possible in order to
reduce confusion.
Special markings are required for goods shipped through Matadi to
destinations in the interior. Special letter destinations are to be used,
depending upon the region for which the case is destined. For containers
other than those cylindrically or otherwise oddly shaped, the designation
should be marked on three contiguous sides. In the case of cylindrical or
otherwise oddly shaped containers, the designation should be marked on the
bottom and top and twice on the cylindrical part itself. The shipper
should ascertain from the importer exactly what letter designations should
be used.
There are no specific regulations on packing, but goods should be securely
packed to withstand excessive tropical heat, moisture, rough handling, and
pilferage. Wooden cases bound with steel straps are generally advisable
when the cost of such packing is not prohibitive, as goods are usually
subject to several transshipments after leaving the port of entry. Items
subject to damage by humidity or heat should be protected by metal
containers, foil or waxed paper, or by dehumidifiers.
Free Trade Zones
Zaire has instituted a duty-free zone, Zone Franche d'Inga (ZOFI), to
attract potential investors, especially heavy industrial users of energy.
ZOFI offers generous economic inducements, but other than ample
hydroelectric power necessary infrastructure is lacking.
BANKING
The Zairean banking sector is composed of the Bank of Zaire, 11 commercial
banks, and 2 development banks. The Bank of Zaire performs all the normal
functions of a central bank such as monitoring all financial institutions,
administering national monetary and credit policies, and managing
international reserves.
Of the commercial banks in Zaire, the 5 local banks -- Banque Commerciale
Zairoise (BCZ), the Union Zairoise de Banque (UZB), the Banque du Commerce
Exterieur (BZCE), the Nouvelle Banque de Kinshasa (NBK), and the newly
formed Societe Zairoise de Banque (SoZaBanque) -- account for over 80
percent of the market. BCZ is the largest and oldest bank in Zaire.
Founded in 1909, the bank has 5 branches in Kinshasa and another 30
throughout the country. The two principal shareholders of BCZ are the
Zairean Government and Societe Generale de Banque. Morgan Guaranty has a
3.5 percent share. Among its correspondent network are two U.S. banks:
Morgan Guaranty of New York and European American Bank and Trust Company,
also of New York. There is minority Belgian ownership in the UZB as well.
BZCE and NBK are wholly owned by the Zairean Government. These latter
likewise have extensive branch networks throughout Zaire. SoZaBanque is
owned by the central labor union (UNTZA) and has its only office in
Kinshasa. The 6 foreign banks -- Citibank, Grindlays, Barclays, Banque
Internationale pour l'Afrique (BIA), the Banque Continentale Africaine au
Zaire (BACAZ), and the newly established Fransabank -- have considerably
smaller operations, with offices located only in Kinshasa and Lubumbashi,
and these banks focus on serving the country's large corporate clients. A
detailed listing of the banks and their addresses are in Appendix A to this
publication.
Two development banks also operate in Zaire. They are the Societe
Financiere de Developpment (SOFIDE) and the Banque de Credit Agricole
(BCA). SOFIDE, a joint banking venture with the Government of Zaire, the
International Finance Corporation, and private Zaireans, is the only
in-country source of nongovernment term foreign exchange. The bank is a
crucial source of investment capital and credit for the private sector. The
bank maintains offices in Kinshasa, Lubumbashi, Goma, Kananga, and
Kisangani. BCA, created by the government to focus on agricultural
lending, operates as a commercial bank, able both to receive deposits and
make loans. Its correspondent banks are Banque Bruxelles-Lambert, Dresdner
Bank, Societe des Banques Suisse, and Barclays Bank. Recently, both banks
have had serious financial problems and are undergoing
restructuring/reorganization. As a result of these problems, the lending
activity of both banks has declined.
The only participants in the country's foreign exchange market are the
commercial banks and the Bank of Zaire. Individuals and corporations must
purchase the foreign exchange they need from the commercial banks. The
commercial banks acquire foreign exchange primarily by purchasing it from
their own clients, residually from the Bank of Zaire, and only occasionally
from the interbank market. The Bank of Zaire obtains a significant share
of Zaire's foreign exchange from Gecamines, which surrenders at least 55
percent of its foreign exchange earnings to the Bank of Zaire from the oil
producers that pay their dividends to the government in foreign exchange;
and from Kilo Moto, which turns over half of its foreign exchange proceeds
to the bank.
In order to purchase foreign exchange, an importer must first obtain an
import license from OFIDA, the customs authority. On the basis of the
substantiating documents, the commercial bank validates the license after
receiving the required deposit. The bank then opens the letter of credit
and immediately purchases the necessary foreign exchange which is then held
offshore in a cover account. When the import transaction is completed and
the required documentation from the foreign supplier is furnished to the
importer's bank, the latter pays out the foreign exchange. At times,
foreign exchange is not available to importers at the official rate.
SELLING IN ZAIRE
The Zairean distribution system is both traditional and modern. A sizeable
portion of the domestic trade, particularly in the rural areas, is carried
on by small traders of several nationalities. They function as merchants
or itinerant traders who travel from market to market taking advantage of
surpluses in one area and shortages in another. Goods pass through many
hands between the sources and the final customer, the price usually varying
with each transaction. This traditional system provides an outlet for
agricultural surpluses and facilitates the exchange of handcrafted items
and the distribution of imported consumer goods.
Coexisting with the traditional distribution system is a modern
merchandising sector that caters to the foreign community and the Zairean
elite and which also operates as an importer-wholesaler to the small
traders mentioned above. This sector is dominated by large trading firms
that engage in a variety of commercial activities. They may be importers
on their own account, suppliers of capital goods for investment projects in
which they hold an interest, or buyers for other enterprises which wish to
purchase through them. They may act as wholesalers/retailers for a wide
variety of consumer goods and capital equipment; or they may specialize in
a single product line, managing their own sales and service outlets. Most
of Zaire's imports are channeled through a Kinshasa wholesaler.
The specific type of representation that a U.S. firm should establish in
Zaire must be tailored to fit the individual requirements of the product
and its potential market. The principal approaches to establishing a
presence in Zaire are employing the services of an agent, appointing a
distributor or dealer, and establishing a direct sales branch or subsidiary.
Marketing Aids
Although advertising has not yet achieved the sophistication typical of
European or North American markets, the U.S. exporter is offered a wide
choice of media for making his products known to potential customers.
Prior to April 1990, Zaire was served by three daily and two biweekly
newspapers, the largest of which were the government-controlled ELIMA and
SOLONGO. Since the announcement of liberalization measures on April 24,
1990, there has been a boom in the deregulated newspaper business. There
are presently 11 newspapers in Kinshasa, and most regional capitals boast 2
or 3 regional newspapers. Advertising rates vary considerably, depending
primarily on circulation. Total readership is considerably higher than
actual circulation figures, given the fact that papers are read by several
individuals.
Radio is the most important vehicle for communication with the Zairean
people. The audience encompasses virtually the entire population. Most
broadcasts on Zaire's national radio and television network, the Voix du
Zaire, are programmed in Kinshasa and airshipped on tape to regional
stations located in Kisangani, Lubumbashi, Mbuji-Mayi, Bukavu, Mbandaka,
and Kananga. This network broadcasts mostly news and music in French and
in one of the four most commonly spoken tribal languages. Broadcast
coverage is sufficient to reach the entire country. Radio advertising
rates are basically determined by the time of the day and day of the week
as well as the actual length of the commercial. Television advertising
rates vary according to whether one city or two city coverage is sought to
reach the populace in Kinshasa or Lubumbashi.
There are numerous market research organizations currently operating in
Zaire. Firms of which the Office of Africa is aware include Dr. Gahiga
Kari-Ngabo, B.P. 2691, Kinshasa I ; African Consult, Centre de Commerce
International du Zaire, Kinshasa-Gombe; Brain-Trust, Ave. du 30 Juin,
Kinshasa-Gombe; and Rent-a-Brain, BP 3685, Kinshasa I. In addition,
Zairean banks may provide assistance on market research.
Local support for market research projects may also be obtained through the
Bureau National pour la Promotion de l'Investissement and the Association
Nationale des Entreprises Zairoises.
Government Procurement
Parastatal procurement is the responsibility of the government entity,
Societe Nationale de Trading (SONATRAD). The firm's two addresses are:
SONATRAD, 15 Rue de la Loi, B.P. 052, B-1040 Bruxelles, Belgium; telephone:
(02)230-37-89; telex: 26444 B; fax:(02)2304762; and SONATRAD, Building
CCIZ, 22E Niveau, B.P. 15711, Kinshasa 1, Zaire; telephone 30592 and 30598;
telex: 21634; fax: 30592.
Sonatrad handles two types of purchases. The first is Biens specifiques;
these are valued at over $3 million and are for a specific parastatal. The
second is Biens Communs; these are tenders for a common item needed by
several different parastatals. Individual parastatals are responsible for
handling their own tenders in those instances when the tender's value is
less than $3 million. Sole sourcing is a common method of selection for
purchases falling under the $3 million ceiling. International competitive
bidding is the common method of procurement on projects funded by
international lending institutions. Such institutions fund approximately
60 percent of parastatal procurement.
Procurement for government ministries themselves is handled by the Regie
National d'Approvisionnement et Imprimerie (RENAPI), under procedures the
same as those used by SONATRAD.
Licensing and Franchising
Zairean law does not contain any specific provisions for franchising or
licensing. The primary consideration in either type of arrangement is the
formalization of a remittance procedure for any fees, royalties, purchases
of advertising materials, and related expenses to the franchisor or
licensor. This may be done by spelling out, in considerable detail, the
remittance requirements of the franchisor or licensor, and including these
details as part of the dossier submitted to the government for approval
under the Investment Code.
Intellectual Property Protection
The Republic of Zaire is a member of the Paris Union International
Convention for the Protection of Industrial Property (patents and
trademarks), to which the United States and about 85 other countries
belong. Zaire is also a member of the World Intellectual Property
Organization. American nationals are therefore entitled to receive the
same treatment in that country under its laws regarding the protection of
patents, trademarks, and other industrial property rights as that country's
own citizens (national treatment). American nationals are also entitled to
certain other benefits such as the protection of their patents against
arbitrary forfeiture for nonworking and a one year right of priority for
filing their patent applications (that is, one year after first filing a
patent application in the United States in which to file a corresponding
application in Zaire and receive for the latter the benefit of the first
U.S. application filing date). The priority right period for trademark
application is six months.
Zaire is a member of the Berne Union Copyright Convention. Although the
United States is not a member of this convention, U.S. authors may obtain
automatic copyright protection for a work in a Berne Union country by
publishing that work in a Union country, such as Canada, at the time it is
first published and copyrighted in the United States (simultaneous
publication).
Communications pertaining to patents, trademarks, and other industrial
property right matters should be addressed to the Department of National
Economy and Industry, Industrial Property Service, B.P. 8500, Avenue de la
Justice, No. 50, Kinshasa, Zaire.
Patents for inventions are granted for a period of 20 years from the
application's filing date. Inventions must be novel, that is, not
patented, used, or published in Zaire or abroad, in order to be
patentable. Applications are examined for form only. There are no
opposition proceedings. Patent grant does not guarantee novelty. No
required working or compulsory licensing provisions are in law. Patents of
importation are also issued based on a foreign patent and its duration, but
not exceeding 20 years.
Trademark registrations are granted after filing applications, by
inscription in a special register, and issuance of a certificate. There is
no examination or opposition procedure. Parties who wish to contest a
registration must do so in the courts, which will then decide rightful
ownership thereof based on the mark's first proven use. Duration of valid
registrations is unlimited. Industrial designs are registered for one,
three, or five years, or unlimited term, to be stated explicitly in the
application.
INVESTMENT IN ZAIRE
Over the past several years, Zaire has come to appreciate the value of the
free market and the profit motive. It is widely recognized that the
nationalization of the 1970s was a grave error, and it is unlikely that it
will be repeated. The policy of the Zairean Government is now to attract
foreign investment.
U.S. investment in Zaire has oscillated through the past two decades. A
significant investment presence, attracted by a growing economy based on
high copper prices, entered Zaire in the early 1970s. From 1975 through
1985 not only did no new firms enter, but several multinationals sold their
investments. Following Zaire's liberalization of its economy in the late
1980s, several U.S. firms invested in telecommunications, agribusiness, and
manufacturing enterprises under the joint protection of Overseas Private
Investment Corporation (OPIC) insurance and the implementation of a
U.S.-Zaire Bilateral Investment Treaty.
The largest U.S. investor in Zaire in 1990 is Chevron Oil, with its Zaire
Gulf Oil subsidiary. Other U.S. investors include Citibank,
Intercontinental Hotel, and Mobil. U.S. investments include Agronom (a
livestock biofeed project), a tire factory, a group of plantations and
ranches employing some 12,000, and a flour mill.
The Government of Zaire made a commitment to foreign investment in the
U.S.-Zaire Bilateral Investment Treaty (BIT) signed in 1984. The
government is favorably disposed towards American companies and is focusing
increased attention on attracting U.S. firms to Zaire. Zairean laws
covering investment, with minor exceptions, do not differentiate between
foreign and domestic enterprises.
Investors desiring the benefits afforded by Zaire's Investment Code must
apply to the Investment Committee of the GOZ. However, there is no
requirement that foreign investors use the investment code framework. With
the exception of a 200,000 zaires per year tax (as of January 1991, 2200
zaires = US$1) for permission to operate in Zaire, foreign-owned companies
are subject to the same taxes and labor laws as domestic firms.
New regulations have been enacted allowing for the transfer of dividends.
The GOZ does require payment of a dividend transfer tax. The BIT includes
provisions to guarantee the ability of U.S.-owned firms to transfer
profits. Under the treaty, a minimum of one-third of accumulated dividends
may be transferred in each of the three years following treaty
ratification. After that period, the treaty guarantees the right to
transfer all dividends in any subsequent year. However, in recent years
hard currency has not generally been available for transfer of dividends
through the commercial banks. The GOZ has committed itself to ensure that
any untransferred dividends may be reinvested. There are no restrictions
on reinvestment or on acquisitions or takeovers.
With the exception of the minerals extraction sector, the GOZ neither
requires nor generally seeks participation in foreign investments. New
commercial ventures are required to have up to 40 percent Zairean
participation, but this requirement can be waived. In the minerals sector,
the GOZ generally takes a 20 percent share in private investments in return
for concession rights, but does not participate in the management of the
venture.
The GOZ encourages foreign firms to minimize the number of expatriate
employees. It is official Zairean Government policy that as an investment
matures, the number of expatriates should diminish. The government
exercises control over expatriate employment through issuance of residence
and work permits. The BIT assures the right of U.S.-owned firms to fill
key management positions with personnel of their choice. They must,
however, pay a special tax on expatriate salaries.
Investment Regimes
The GOZ approved a revised Investment Code in April 1986. It provides for
three separate structures under which foreign investors can apply for
various concessions. They are the General System, the Conventional System,
and various special regimes. All requests for admission to a system are
submitted to the Department of Planning accompanied by 15 copies of the
supporting documents. The Department of Planning forwards the application
to the Investment Commission for application to the Commissioner of State
for Planning with its recommendation. The Commissioner of State for
Planning notifies the Commissioner of State for Finance, and, in the case
of applications under the Convention System, the Zairean Executive Council
(Cabinet).
In 1989, the GOZ Investment Commission approved 90 projects with an
approximate value of $2.2 billion. Of these, 46 were in the manufacturing
sector, 24 in the service sector, and 19 in agriculture. An estimated
9,125 jobs will be created.
Final approval for the applications under the General System is granted by
a joint decree of the Commissioners of State for Planning and Finance.
Admission under the Conventional System is granted by the Executive Council
and signed by the Commissioners of State for Planning and Finance, and,
where appropriate, by the Commissioner of State of the department directly
concerned with the project. The convention becomes effective after
issuance of a presidential decree.
General System -- Investments of more than 10 million zaires are eligible
for the General System. Investments approved under this system receive the
following concessions:
o Exoneration from the ad valorem duties and fixed taxes levied on the
capital of newly-created Zairean companies.
o Exoneration from taxation on the profits made by the new enterprise for
a period of up to five years.
o Exemption from the special tax levied on the salaries of expatriate
personnel of the enterprise for a period of up to five years.
o Exemption from the tax on company dividends for a period of up to five
years.
o Exemption from income taxes on jobs created for a period of up to five
years
o Exemption from the tax on real property for a period of up to five
years.
o Exemption from export duties for export-oriented investments.
o Exemption from import duties on the machines, plant, and equipment
required for the project. (This exemption is available only when local
industry is unable to supply such equipment at the same quality and
price. If local equipment is purchased, the exemption is available for
the turnover tax.)
Conventional System -- An investment entered under this system must satisfy
the conditions of the General System, and be of more than 500 million
zaires. Under this system, however, the GOZ Executive Council has the
authority to negotiate and grant, with presidential approval, a wide range
of concessions for a period of up to 10 years. The types of concessions
granted are extended on a case-by-case basis and depend upon the
contribution of the investment to the social and economic development of
the country and the obligations contracted by the investors.
Special Regimes -- Several special regimes provide benefits to investments
meeting certain conditions such as investments by small and medium-sized
enterprises, investments in less developed areas, and investments making
use of local agricultural products. Special regimes of interest to
American investors include:
1) Existing enterprises which undertake an investment can obtain up to
30 percent of the investment in tax credits to be applied in the five
years following the investment.
2) Mining enterprises are exempted from the income tax on reinvested
profits.
The GOZ has minimal performance requirements for foreign firms seeking to
invest in Zaire. The Investment Code states that projects must commence
within one year of the date set forth in the interdepartmental decree or
convention. The investment program must be followed, subject to GOZ
approval of any modifications. Lack of compliance will result in the
withdrawal of the approval and termination of the convention by the Zairean
Executive Council. The GOZ discourages the importation of materials for
foreign firms that are available in the local economy and which meet the
quality standards of the company.
Employment of Expatriates
Zaire requires expatriate employees to be properly documented with respect
to passport, visa, resident card, and work permit. Foreign employees are
required to have contracts with government organizations or with legally
established private firms. The employer must apply for the foreign
worker's permit for each expatriate to the Department of Labor and Social
Security. The permit is valid for two years and is renewable.
Individuals wishing to establish themselves in Zaire for more than six
months to pursue an independent venture must specify the venture's precise
nature and must demonstrate the availability of sufficient financial
resources to carry out their activities. The use of foreign labor in
occupations for which Zaireans are available is prohibited.
Types of Business Organizations
Those foreign companies wishing to conduct operations in Zaire and then
leave need only register at the Registry of Commerce. To register, the
foreign firm must show that it has at least 50,000 zaires on deposit in a
local bank. If the firm plans to work entirely for a company already
registered or incorporated in Zaire, the foreign firm may temporarily work
under the host firm's registry number. If the firm is to work for a
government agency, it is eligible to obtain an exemption from registering.
There are other laws on the books affecting the operations of foreign firms
interested in operating temporarily in Zaire, but they are not being
enforced.
From a legal point of view, a Zairean company is deemed to be any company
established according to applicable Zairean legislation that has its office
and its principal administrative establishment in Zaire. The company's
accounting must be carried out in Zaire and its general meeting must be
held there. The company's accounting year must coincide with the calendar
year.
Five types of companies may exist. These are the Societe Privee a
Responsabilite Limitee (SPRL), the Societe par Actions a Responsabilite
Limitee (SARL), Societe Cooperative (SC), the Societe en Nom Collectif
(SNC), and the Societe en Commandite Simple (SCS).
The SPRL is a limited liability company that combines the character of a
partnership and corporation. The shares cannot be ceded to persons outside
the company. The liability of the shareholders is limited to the nominal
value of the shares of each holder. Usually SPRL's are small and
medium-sized businesses.
The following steps are needed to set up a SPRL: 1) The applicant submits
the organization's articles of association to the Public Notary, (Notaire
de la Ville de Kinshasa, Division Urbaine de l'Administration du
Territoire, B.P. 99. Kinshasa I, Tel. 22921, ext. 151); and 2) After the
notary's approval has been received, the SPRL must be enrolled in the
Register of Commerce kept by the Court of the First Instance at the Palace
of Justice. The Kinshasa address is: Greffier Divisionaire pour
l'Inscription au Registre de Commerce, Tribunal de la Grande Instance
Greffe, B.P. 3087, Tel 32598.
The following documents are necessary: 1) a statement of good standing by
the police authorities in the applicant's last place of
permanent residence; 2) a statement of province and country of residence by
the Zairean Zonal Commissioner in the applicant's place of residence; 3) a
copy of the applicant's Zairean identity card; 4) a statement by a Zairean
bank that the applicant has a bank account of no less than Z50,000 if an
individual or a statement that the company has share capital of no less
than Z100,000; 5) three copies of the approved articles of association; 6)
a police statement attesting to the good standing of the company's proposed
manager, statement of his residence and identity card; and 7) an
identification card and statement of the company's good standing in the
latter's home state and country.
After registering, the applicant must obtain a National Identification
Number from the State Commissioner for National Economy, Trade and Industry
(Division des Etudes Economiques, Department de l'Economie Nationale,
Commerce et Industrie, B.P. 8500. Kinshasa I, Tel 24307).
The following documents must be submitted to obtain that number: 1) a
photocopy of the entry in the Registry of Commerce; 2) a copy of the
applicant's identity card; 3) a copy of the approved articles of
association; and 4) a fee of Z100.
The SARL is a joint stock company that is a corporation. Shareholders are
liable only for the amount of their subscription of equity. The SARL may
issue shares to the public. Its board of directors is responsible to the
shareholders for management. Usually joint stock companies are large
private businesses. The creation of a SARL requires the enactment of a law
by the chief of the executive branch. The draft ordinance is presented to
the Office of Economic Legislation, Department of National Economy, Trade
and Industry (Bureau de la Legislation des Societes, Division de la
Legislation Economique, B.P. 8500, Kinshasa I, Tel 22620 and 25630).
Following that office's approval, the draft is transmitted to the Director
of the Office of the President of Zaire for final enactment. The address
is Director du Bureau du President de la Republique, B.P. 13396, Kinshasa
I, tel. 31305. After the decree has been enacted, the company must
register with the Registery of Commerce and obtain a National
Identification Number, in the same manner as the SPRL. Once these final
two steps have been completed, the SARL may be eligible for the benefits of
the Zairean Investment Code as described on page 31.
The SC is a joint company. It may jointly import, operate plantations, or
manufacture. Members of a cooperative company buy stock in the company.
Each has one vote regardless of the amount of stock held.
The SNC, a form of simple partnership, and the SCS, a form of limited
partnership, both appear to be seldom used in Zaire at present.
Labor
Zaire's large urban population provides a ready pool of available labor,
including a significant number of high school and university graduates.
Skilled industrial labor is in short supply and must often be trained by
individual companies.
Minimum wages are set by the government on a regional basis for all workers
in private enterprise, with the highest scales applicable in Kinshasa and
Lubumbashi. Wages have risen slower than the country's rate of inflation,
and, while numerous employers pay wages higher than the minimum, the
average Zairean worker has coped with falling real wages for a decade.
The country's labor legislation is embodied in the 1967 Labor Code, which
is in compliance with the conventions and recommendations of the
International Labor Organization. The code provides for tight control of
labor practices and regulates recruitment, contracts, the employment of
women and children, and general working conditions. Strict labor laws can
make termination of employees difficult. The maximum work day is 8 hours
and the workweek 48 hours. A minimum rest period of 24 hours must be
provided weekly to all employees. The code also provides for equal pay for
equal work without regard to origin, sex, or age.
Medical and accident expenses must be covered by employers. Larger firms
are required to have medical staff and facilities on site, with the
requirements increasing with the number of employees.
Employers are obliged to pay family allowances calculated on the number of
children, as well as paid holidays and annual vacations, with the length of
the latter dependent upon years of service. In addition, employers must
provide daily transportation for their workers or pay an allowance in areas
served by public transportation. Outside the major cities, large companies
often become involved in providing infrastructure including roads, schools,
and hospitals.
Until the political reforms of the last year, the only recognized labor
union in Zaire was the Union Nationale des Travailleurs du Zaire, which
acted as a collective bargaining agent at the national, regional, and
company level. Since April 1990, more than 20 labor unions have been
formed, although none have yet been officially recognized. Two unions in
particular seem to have garnered popular support: the Syndicat Libre du
Zaire (SYLIZA) and the Christian Democratic Union of Congolese Workers.
While strikes are theoretically prohibited, wildcat work stoppages do
occur. In recent years the number of unauthorized work stoppages has
increased.
TAXES
The Zairean income tax structure is divided into three schedules: 1)
professional income, combining both company and individual incomes; 2)
interest and dividend income; and 3) rental income. Companies are taxed on
the basis of their net profits excluding net rental income. The tax rate
is 50 percent. Depreciation is straight line. Annual depreciation rates
generally accepted by the Zairean Revenue Department are as follows:
buildings (3-5 percent); furniture, office equipment, machinery, vehicles
(10-15 percent); and small tools (33 percent). Losses may be carried
forward against profits for two years.
The petroleum and mining industries are closely controlled and each venture
has its own tax provisions fixed by an agreement signed with the
government. Mineral and hydrocarbon concessionaires are subject to a
surface area tax; the rates vary upon whether permission is for
exploration, exploitation, or both.
Domestically produced products are subject to a variety of taxes, including
a domestic turnover tax and an excise tax. Petroleum products are subject
to an excise tax.
Capital gains from the sale of fixed assets are included in the definition
of net income and taxed at the same rate. Unrealized capital gains
reported in the company's books are exempt from tax if they are credited
directly to a capital reserve account and as long as they are not treated
as profits (that is, distributed).
The company income tax is paid in three provisional installments. The
first two installments are each 40 percent of the estimated amount due.
The third and final installment is 20 percent. The penalty for late
payments is 40 percent.
Forty percent of the profits of local establishments of foreign companies
is deemed to be distributed and is subject to a 20 percent tax
(contribution mobiliere).
Income Determination
The following background is presented on income determination for tax
purposes in Zaire. Inventory methodology and figures for tax reporting
purposes must be the same as the ones used and recorded by the company in
its own internal books. There are no specific tax regulations on inventory
valuation. The lower of cost or market valuation is the most usually
accepted basis. To date, the Revenue Department has permitted LIFO
methods, but there is no special ruling on this.
Intercompany dividends received from locally based subsidiaries or other
locally affiliated corporations are excluded from the profits tax base to
the extent of 90 percent of the effective revenue. Dividends from
foreign-based subsidiaries or other locally affiliated corporations are not
taxable in Zaire.
Income is subject to the profits tax only when it arises from activities
carried out in -- or from capital invested or real estate located in --
Zaire. Foreign-sourced profits (for example, income from foreign
investments or from foreign branches of subsidiaries) are not taxable. The
excess of sale price over the net book value (as eventually revalued in
accordance with the provisions of revaluation law) is taxed as normal
trading income. Under the mining legislation, mineral and oil concession
holders may claim a depletion allowance.
Royalties and service fees paid to foreign affiliates are only allowable if
proved to relate to genuine transactions and to be of an amount
commensurate with the service rendered. To qualify for deduction, the
service must be unobtainable in Zaire. In general, assistance fees should
be substantially less than 5 percent of turnover (sales). Interest payable
on loans from foreign affiliates is deductible provided the rates are
reasonable.
Personal income rates are progressive reaching 60 percent on incomes over
Z300,000. Various exemptions and deductions are allowed.
Dividend and interest income is taxed at a rate of 20 percent. Included in
this category by the Zairean Government are capital distributions,
directors' fees, and royalty and patent fees. The latter two receive a
standard deduction of 30 percent.
Rental income from real estate is assessed at a progressive rate ranging
from 4 percent on income up to Z3,000 to 60 percent on income over Z58,200.
Other Taxes
A payroll tax is levied on all employers on the gross salaries of their
expatriate staff. The current rate is 20 percent.
Payments for services rendered by nonresidents are subject to a turnover
tax at the rate of 30 percent withheld at the source.
A property tax is assessed on the surface area of land and the floor area
of buildings. Farm buildings and rural land are exempt. The tax rate
varies depending upon locality. For undeveloped land, the rates are from
Z1,200 to Z10,000; for developed land, the rates are from Z3,000 to
Z150,000.
Tax Treaties
The GOZ has not ratified any tax treaties, although it is understood that
some countries accept pre-independence treaties negotiated with Belgium as
still valid for income earned in Zaire.
GUIDANCE TO BUSINESS TRAVELERS
Business travelers will need a Zairean visa for a visit to Zaire. Visas
are issued by both the Zairean Embassy, Washington, D.C. and the Zairean
Mission to the United Nations. Business visitors must be in possession of
a U.S. passport with at least six months remaining validity. Visa
applicants must submit three completed, dated, and signed visa forms; three
passport photos; an international health certificate containing a valid
yellow fever vaccination; and a letter, with two copies, from the employing
company assuming all financial responsibility for the traveler and stating
the purpose of the visit. The business visa, valid for a period of six
months and permitting multiple entries, costs $60. Business visa
applicants residing in the District of Columbia and Maryland must pay the
visa fee in cash. Residents of other jurisdictions may pay by money
order. The visa application is to be accompanied by a self-addressed
stamped envelope for the return of the passport containing the visa. Hours
of the consular section at either location are 9 a.m. to noon Monday
through Friday. The processing of a visa takes a minimum of 48 hours.
Entry requirements for persons desiring residence or seeking long-term
employment are most stringent. An establishment or settlement visa is
given for a stay of either an unlimited or fixed length of time.
Generally, unlimited visas are not given. Establishment visas for a fixed
duration, usually the length of a contract, are given to those persons
whose industrial, business, or other activities while in Zaire will serve
the best interests of the country.
The climate in Zaire is tropical and humid. High temperatures in Kinshasa
throughout the year vary no more than six degrees: from 80 degrees in July
to 86 degrees in January. Average lows present a slightly wider range,
from 59 degrees in July to 70 degrees in January. Temperatures in the
eastern plateau encompassing Lubumbashi present a greater range, rarely
exceeding 80 degrees but falling into the high 30's during the evenings of
the cool season from May through August.
International direct dial service is available to Zaire. The country code
is 243. The Kinshasa city code is 12, that of Lubumbashi is 11. Service
is often erratic; lines can be crowded; international facilities can suffer
breakdowns. In-country phone connections are even less reliable. When
placing calls to Zaire, U.S. callers should bear in mind that Kinshasa is
six hours ahead of Eastern Standard Time; Lubumbashi is seven hours ahead.
Business personnel traveling to Zaire should make note of the following
holiday schedule to maximize their visit: January 1 (New Year's Day);
January 4 (Day of the Martyrs for Independence); May 1 (Labor Day); May 20
( Anniversary of the Movement of the Revolution Party); June 24
(Anniversary of the new constitution); June 30 (Independence Day): August 1
(Parents' day); October 14 (President's Birthday); October 24 (Three Z
Day); November 17 (Armed Forces Day); November 24 (Anniversary of the
Regime); and December 25 (Christmas).
Banks are open from 8 to 11:30 a.m., Monday through Friday and are closed
on Saturdays. Business establishments and government offices are generally
open from 9 a.m. to 5 p.m. with at least a two hour break from around noon
to around 2:30 p.m. U.S. Embassy hours are from 7:30 a.m. to noon and
from 1 to 4:30 p.m., Monday through Friday.
Hotels available in Kinshasa include the Hotel de la Gombe, the Hotel
Invest, the Intercontinental, the Memling, the Okapi, and the Regina; those
available in Lubumbashi include the Karavia and the Hotel Shaba.
All persons traveling to Zaire must be vaccinated against smallpox and
cholera and innoculated against yellow fever and must carry International
Health Card Certificates. Travelers are advised that malaria is present in
Zaire and malaria suppressants should be taken before, during and after
one's visit. The water throughout the country is not potable. Imported
bottled waters are available in the larger cities; beer and soft drinks are
always available.
APPENDIX A: Useful References
Bilateral Diplomatic Representation
In the United States:
Embassy of the Republic of Zaire
1800 New Hampshire Avenue, NW
Washington, D.C. 20009
Tel: 202-265-9717
U.N. Mission of the Republic of Zaire
866 Second Avenue, 7th Floor
New York, NY 10017
Tel: 212-754-1966
In Zaire:
American Embassy
310 Avenue des Aviateurs
Kinshasa, Zaire
Tel: 243-12-25881
Telex: 21405 USEMBZR
Mailing Address: APO New York, NY 09662
American Consulate General
1029 Blvd. Kamanyola
Lubumbashi, Zaire
Tel: 243-11-222324
Mailing Address: APO New York, NY 09662-0006
Other Representation in Kinahasa
Algeria Argentina
5052 Ave.Col Ebeya Blvd. 30 Juin Bldg PLZ
Tel: 22470 Tel. 25485
Austria Belgium
Galeries President Bldg. Cinquantenaire
6th etage Place du 27 Octobre
Tel: 22119 Tel: 24424
Benin Brazil
3990 Ave. Cliniques 227 Ave du Aviateurs
Tel: 30444 Tel: 24010
Bulgaria Burundi
105 Ave. des 3Z Blgd. KOL
17 Avenue du Port
Tel: 25225
Cameroon Canada
1165 Ave. Tombalbaye Bldg SHELL
Tel: 22607 Ave. Wangata
Tel: 22706
Central African Republic China
11 Ave. Pamdu 49 Ave. Commerce
Tel: 30417 Tel: 24645
Congo Cyprus
179 Blvd. 30 Juin 32 Blvd. 30 Juin
Tel: 30220 Tel: 23138
Czechoslovakia Denmark
Ch. Riviera-Parc Bldg. Niok 6th Floor
HD4-Joli Parc Ave. Port
Tel: 24170
Egypt Ethiopia
519 Ave. Ouganda Blgd. INSS, 6th Floor
Tel: 30296 Tel: 26606
France Gabon
Ave. Rep. du Tchad Ave. 14 Novembre
Tel: 22669 Tel: 68343
Germany Ghana
201 Ave. Lumpungu 206 Ave. 24 Novembre
Tel: 26933 Tel: 31766
Greece India
72 Ave. 3Z 18 Ave. des Batetela
Tel: 31189 Tel: 30418
Iran Italy
76 Blvd. du 30 Juin 8 Ave. Mongala
Tel: 31052 Tel: 22575
Ivory Coast Japan
68 Ave. Justice Bldg. Coreman
Tel: 30440 Ave. Wagenia
Tel: 22118
Kenya Korea, North
5002 Ave. Ouganda Aue Ouganda
Tel: 30117 Tel: 59249
Korea, South Kuwait
Bldg. PLZ Chambre 232
181 Bldv. du 30 Juin Inter-Continental Hotel
Tel: 25287 Tel: 31800
Liberia Libya
Barclay's Bank Bldg. Bldg. Cinquantenaire
9 Ave. Equataeur Place du 27 Obtobre
Tel: 24782 Tel: 24724
Mauritania Morocco
Ave. de la Source 4497 Ave. Lubefu
Tel: 59668 Tel: 30255
Netherlands Nigeria
11 Ave. Zongo Ntolo 141 Blvd. du 30 Juin
Tel: 30638 Tel: 31229
Pakistan Poland
4429 Blvd. du 30 Juin 63 Ave. de la Justice
Tel: 31606 Tel: 30643
Portugal Romania
21 Ave. Tombalbaye 5 Ave. Ouganda
Tel: 22418 Tel: 30577
Rwanda Senegal
60 Ave. Col. Tshatshi 4 Ave. des 3 Z
Tel: 30108 Tel: 31351
Spain Sudan
Bldg. No. 2, Entree D, Apt.18 83 Ave. des 3 Z
Blvd. du 30 Juin Tel: 31113
Tel: 30752
Sweden Switzerland
17 Ave. du Port Resid. Flamboyants
Tel: 23105 Ave. Lumpungu
Tel: 22285
Tanzania Togo
293 Ave. Flambeau 3 Ave. de la Vallee
Tel: 30031 Tel: 30666
Tunisia Turkey
67-69 Ave. du Cercle Ave. Pumbu 18
Tel: 31632 Tel: 32869
Uganda United Arab Emirates
Aves. Tombalbaye et Travailleurs 4519 Ave. Haut Commandment
Tel: 22740 Tel: 69370
United Kingdom U.S.S.R.
9 Ave. Equateur 80 Ave. de la Justice
Tel: 23483
Yugoslavia Zambia
181 Ave. Mungala 54 Ave. de l'Ecole
Tel: 24759 Tel: 23038
Sources of Commercial Information
Association Nationale des Enterprises Zairoises
B.P. 7247
1 Avenue des Aviateurs
Kinshasa
Tel: 22286; Telex: 250ANEXAKIN
Coopers and Lybrand
B.P. 10279
UZB Center, 5th Floor
Kinshasa
Tel: 25845
Department of Foreign Affairs and International Cooperation
Ave. de Fleuve et Place de l'Independence
B.P. 7100
Kinshasa
Tel: 30665
Department of Mines
B.P. 13
Kinshasa
Tel: 32071
Department of National Economy, Industry, and Commerce
Bldg. ONATRA
Bldv. du 30 Juin
Kinshasa
Tel: 24370
Cabinet Mitchell
Ave. Ouganda
B.P. 12368
Kinshasa
Tel: 32071; Telex: 7394
Price Waterhouse and Company
10th Floor, Galleries Presidentielles, Place du 27 Octobre
B.P. 10195
Kinshasa
Tel: 26451
Commercial Banks
Banque Commerciale Zairoise (BCZ)
B.P. 488
Avenue du 30 Juin
Kinshasa
Tel: 26401; Telex: COMBANK KIN 21159
Banque Continentale Africaine au Zaire
Ave. de la Justice, Gombe
Kinshasa
Telex: 21508 BACAZ ZR
Banque Internationale pour l'Afrique au Zaire
B.P. 8725
Corner Avenues du Port et de la Douane
Kinahasa
Tel: 26910; Telex: 2135 BANCAFZR
Banque Zairoise de Commerce Exterieur
B.P. 697
Boulevard du 30 Juin
Kinshasa
Tel: 25161; Telex: 21108; 21306; 21387; 21389 ZR
Societe Zairoise de Banque
B.P. 7295
Ave. Col. Ebeya #54
Kinshasa
Tel: 21855
Banque Grindley Internationale au Zaire
B.P. 16297
Galeries Presidentielles
Kinshasa
Tel: 26557; Telex: 21413 BGIZR
Citibank (Zaire)
B.P. 9999
Centre du Commerce Internationale du Zaire
Kinshasa
Tel: 32021; Telex: 21622
Fransabank
B.P. 9497
Kinshasa 1
Tel: 20121; Telex: 21430
Barclays Bank
B.P. 1299
191 Avenue de l'Equateeur
Kinshasa
TEl: 22578; Telex: BARCLAKIN 21113
Nouvelle Banque de Kinshasa
B.P. 8033
Place du Marche
Kinshasa
Tel: 23461; Telex: BAKINZR 21304
Union Zairoise de Banque
B.P. 197
Corner Avenues des Aviateurs et de la Nation
Kinshasa
Tel: 25801; Telex: UZBANKZR 215
Transport to and within Zaire
International Airlines
Air Afrique Aeroflot
c/o UTA c/o SAID
B.P. 857 B.P. 375
Blvd. du 30 Juin Ave. de la Poot
Kinshasa Kinshasa
Tel: 26995 Tel: 26139
Telex: TELUTA KIN 265
Air Zaire Alitalia
B.P. 8552 c/o Hotel Memling
4 Ave. du Port Ave. de la Republique du Tchad
Kinshasa Kinshasa
Tel: 24985 Tel: 24291
Telex: 21156
Ethiopian Airlines Iberia
B.P. 7585 B.P. 9351
Blvd. du 30 Juin Blvd. du 30 Juin
Kinshasa Kinshasa
Tel: 23862 Tel: 22574
Lufthansa Sabena
B.P. 438 B.P. 8225
Blvd. du 30 Juin 13 Blvd. du 30 Juin
Kinshasa Kinshasa
Tel: 25233 Tel: 25651
Swissair TAP
B.P. 9433 B.P. 10870
Blvd. du 30 Juin Blvd. du 30 Juin
Kinshasa Kinshasa
Tel: 24682 Tel: 25891
UTA
B.P. 857
4 Blvd. du 30 Juin
Kinshasa
Tel: 26718
Domestic Airlines
African Air Charter Air Vivres
B.P. 405 B.P. 236
Limete/Kinshasa Kinshasa
Tel: 77277; Telex: 28783 Tel: 24410; Telex: 21125ZA
International Air Charter LUKIM Air Services
B.P. 15859 B.P. 14005
Kinshasa Kinshasa
Tel: 26498; Tel: 78662; Telex: 21539
OTRAG Air Service SCIBE-Zaire
B.P. 20555 B.P. 614
Kinshasa Kinshasa
Tel: 32071; Telex: 20136 Tel: 23562; Telex:21003 ZR
TRAMACO TRANSAIR Cargo
B.P. 15898 B.P. 11017
Limete/Kinshasa Kinshasa
Tel: 30534; Telex: 297 SGA Kin Tel: 32071; Telex: 709
Tropical Airlines VIRUNGA Air Charter
B.P. 20698 c/o CAPACP, Beni, Kivu
Kinshasa Goma Airport
Tel: 32071, Ext. 7778 Tel:
Zaire Aero Service
B.P. 1445
Kinshasa
Tel: 31948; Telex: ZASKIN 21507
Zairean National Transport Companies
Compagnie Maritime Zairoise (CMZ)
Building AMIZA
B.P. 9496
Kinshasa
Tel: 25156; Telex: 21626 CMZ KIN ZR
Office National de Transport (ONATRA)
Building ONATRA
Boulevard du 30 Juin
B.P. 98
Kinshasa
Tel: 22421; Telex: 21017 NROffice National des Routes
Avenue de Camp
B.P. 12639
Kinshasa
Tel: 32145; Telex: 21327 ORTFED ZR
Office des Transports en Commun du Zaire (OTCZ)
B.P. 1897
Kinshasa
Tel: 68321; Telex: 2410 OCTZ Kinshasa
Regie des Voies Areiennes
B.P. 6574
Kinshasa
Tel: 24812; Telex: 926
Regie des Voies Fluviales (RVF)
B.P. 11697
Avenue Lumpungu
Kinshasa
Tel: 24471; Telex: 20433
Regie des Voies Maritimes (RVM)
B.P. 13999
Avenues Kasai et Commerce
Kinshasa
Tel: 24885; Telex: 21130
Societe Nationale des Chemins de Fer (SNCZ)
B.P. 297 B.P. 10597
Place de le Gare Blvd. du 30 Juin
Lubumbashi Kinshasa
Telex:302374 GCM LISHI Tel: 26810; Telex: 21627 SNCZ DG
Societe de Transport de Kinshasa
B.P. 11696
Kinshasa
Shipping Companies/Freight Forwarders
AMIZA
B.P. 7597
Ave. des Aviateurs
Kinshasa
Tel: 24602; Telex: 218
Government Services
Office des Douanes et des Assizes
B.P. 8248
Kinshasa
Office de Gestion du Fret Maritime
B.P. 8038
Kinshasa
Telex: 21697 OGM ZR
Office National des Postes et Telecommunications Zairoises
B.P. 8623
Kinshasa
Telex: 23428
Office Zairois de Controle
B.P. 8806
Kinshasa
Telex: 21117
Office Zairois de Radio Television
B.P. 3171
Kinshasa
REZATELSAT
Cite de la Voie du Zaire
B.P. 3171
Kinshasa
Tel: 21583; telex 21583 VOZAKIN.
REGIDESO
B.P. 15599
Kinshasa
Tel: 28857; Telex: 21077
Societe Nationale d'Assurances
B.P. 3443
Kinshasa
Societe Nationale d'Electricite
B.P. 500
Kinshasa
Tel: 31856; Telex: 21347 ZR
Principal Firms in Zaire
Forestry
Siforzal
Tel: 23724
Telex: 21753 DANZKIN ZR
Socobelam
B.P. 7281
Kinshasa
Forescom
B.P. 7348
Kinshasa
Telex: 21392 FOREKIN ZR
Agrifor
Ave. des Magons, No. 5661
Quartier Funa
B.P. 9534
Kinshasa/Limete
Tel: 78843
Industries Zairoises des Bois
No. 2325 Ave. de l'Ouganda
B.P. 9732
Kinshasa
Tel: 32427
Sokinex
No. 2165 Ave. de l'Industrie
B.P. 2359
Kinshasa
Tel: 24770
Food Processing
Amato et Cie
B.P. 8324
Kinshasa
Tel: 22645; Telex: 21016
Bralima
B.P. 7426
Kinshasa
Tel: 21662; Telex: 21662 BRALIM ZR
Brasimba
B.P. 300
Lumbumbashi
Tel: 225226; Telex: 41046 ZR
Gecamines Developpement
B.P. 25048
Kinshasa
Tel: 21062; Telex: 21147
Marsavcco
B.P. 1423
Kinshasa
Tel: 22135; Telex: 21100 OMOZR
Midema
B.P. 11487
Kinshasa
Tel: 24001; Telex: 21324
Quo Vadis
B.P. 1668
Kinshasa
Tel: 1668; Telex: 20081 ZR
S.B.K.
B.P. 10661
Kinshasa
Tel: 7700; Telex: 20060 ZR7
Sorgeri
B.P. 2226
Kinshasa
Tel: 27032; Telex: 21550 SOREZA ZR
Unibra
B.P. 10199
Kinshasa
Tel: 22840; Telex: 21067 ZR
Upak
B.P. 2692
Kinshasa
Tel: 27480; Telex: 21220
Agriculture
BAT-Zaire SA
B.P. 621
Kinshasa
Tel: 77285; Telex: 20073 ZR
Cacoyeres du Zaire
Gosuma
Compagnie de Commerce et de Plantations
B.P. 86
Kinshasa Telex: 21672 HUILAN ZR
Compagnie Sucriere
B.P. 8816
Kinshasa
Tel: 28656; Telex: 21085 ZR
Cultures et Elevages du Zaire
B.P. 16796
Kinshasa
Telex: 21276 CELZA ZR
DAIPIN
B.P. 10598
Kinshasa
Tel: 31614; Telex: 21570
JVL
B.P. 199
Kinshasa
Tel: 26628; Telex: 21119 ZR
La Cotoniere
B.P. 1675
Kinshasa
Telex: 21194 CLT ZR
Office National du Cafe
B.P. 8931
Kinshasa
Telex: 97444
Plantations Lever au Zaire
B.P. 8611
Kinshasa
Telex: 21053
CIB
B.P. 1300
Kinshasa
Tel: 25048; Telex: 21147
Societes Cultures
B.P. 2334
Kinshasa
Telex: 21568 ZR
Sotexco
B.P. 1807
Kisanangi
Telex: 21523
Tabazaire
B.P. 42
Kinshasa
Telex: 21112
Petroleum
PetroZaire
B.P. 7617
Kinshasa
Tel: 25356; Telex: 21006 EPZ DG ZR
ZaireGulf
B.P. 7189
Kinshasa
Tel: 23109
ZaireSep
B.P. 2197
Kinshasa
Tel: 22573; Telex: 21626 CMZKN ZR
Zairep
B.P. 2197
Kinshasa
Tel: 24584; Telex: 21528 ZR
Sozir
B.P. 1487
Kinshasa
Tel: 22683; Telex: 21119 ZR
Minerals
Gecamines Exploitation
B.P. 450
Lubumbashi
Tel: 225130; Telex: 23575 B
Kilo Moto
B.P. 8498
Kinshasa
Telex: 21876 OKIMO ZR
MIBA
B.P. 377
Mbuji-Mayi
Tel: 106; Telex: 21063 MIBA ZR
SODIMIZA
B.P. 3853
Lubumbashi
Tel: 222000; Telex: 41078 ZR
SOMINKI
B.P. 2988
Kinshasa
Tel: 22694
Zairetain
B.P. 7129
Kinshasa
Telex: 21741 ZATAIN ZR
Manufacturing
Amato Freres
B.P. 8324
Kinshasa
Tel: 22645; Telex: AMATEX Kin 214
Bata-Zaire
B.P. 598
Kinshasa
Telex: 21208 BATA ZR
Shoes
C.P.A. Zaire
B.P. 384
Kinshasa
Tel: 25004; Telex: 21047 ZR
Textiles, printing
CartoZaire
B.P. 597
Limete/Kinshasa
Paper products
CINAT
B.P. 12198
Kinshasa
Tel: 22821; Telex: 21058 ZR
Cement
CIZA
B.P. 7598
Kinshasa
Tel: 24250; Telex: 21060 CIZAKIN ZR
Cement
Cyclor
B.P. 2
Kinshasa
Telex: 23466 CYCLOR ZR
Bicycles
Deco Meubles
B.P. 733
Limete/Kinshasa
Furniture, wood case goods
E.N.M.A.
B.P. 1967
Limete/Kinshasa
Furniture
Eternit
B.P. 3193
Kinshasa
Telex: 21562
Construction supplies
Genie Mechanique Zairoise
B.P. 11199
Kinshasa
Tel: 22370; Telex: 21595 ZR
Motor vehicles
Copneuza
B.P. 13499
Kinshasa
Tel: 77015; Telex: 21373
Tires
Groupe Textile de Kalemie
B.P. 8331
Kinshasa
Tel: 32071; Telex: 21436 FILKIN ZR
Textiles
Subsidiaries: Bonaf, Filtisaf, Texco, Texindaf
Hasson Groupe
B.P. 8703
Kinshasa
Tel: 26321; Telex: 21105 ZR
Textiles
Subsidiaries: Elre, Novatex
L.L.I.
B.P. 12993
Kinshasa
Tel: 23256 LAD ZR
Leather processing
Meferco-Zaire
B.P. 7881
Kinshasa
Telex: 23474 MEFER ZR
Metal Products
Multiplast
B.P. 3050
Kinshasa
Telex: 21147
Plastic products
Otricot
B.P. 13257
Kinshasa
Tel: 22774
Textiles
Scierie Lignakin
B.P. 139
Limete/Kinshasa
Plywood
Solbena
B.P. 1200
Kinshasa
Tel: 22857; Telex: 21009
B.P. 2174
Lubumbashi
Telex: 240 SOLEMBA LUSHI
Textiles
Subsidiaries: Solprint, Soltex
Sosider
B.P. 15696
Kinshasa
Stell
Stexki
B.P. 14897
Kinshasa
Tel: 30648; Telex: 21453
Textiles
Tissakin
B.P. 4936
Kinshasa
Tel: 31709; Telex: 21791 ZR
Jute sacking
TricoZaire
B.P. 7027
Kinshasa
Tel: 77106
Textiles
Tubetra-Zaire
B.P. 703
Limete/Kinshasa
Telex: 23477 TUBETRA ZR
Metal products
UTEXAFRICA
B.P. 3085
Kinshasa
Tel: 31537; Telex: 21115
Textiles
UZAM
B.P. 7539
Kinshasa
Furniture
Zaireprint
B.P. 3262
Kinshasa
Tel: 31530; Telex: UTEXCO ZR 21115
Textiles
Zaitex
B.P. 3168
Kinshasa
Tel: 21826
Textiles
Other
Safricas
B.P. 1100
Kinshasa
Tel: 31714; Telex: 21062 SAFKIN
Construction
Auxeltra Beton
B.P. 2199
Kinshasa
Tel: 26240; Telex: 21118 AUXBET ZR
Construction
Chanimetal
B.P. 8512
Kinshasa
Telex: 21163
Shipyard, heavy equipment, metal products
Groupe Damseaux
B.P. 1598
Kinshasa
Tel: 22428; Telex: 21607 ZR
Road transport, importing, ranching
Scibe Zaire
B.P. 614
Kinshasa
Tel: 26237; Telex: 21003 ZR
Coffee and gold exporting, importing
APPENDIX B: Statistical Tables
Table 1
Mineral Production, 1985-89
(In thousands of metric tons, unless otherwise specified)
1985 1986 1987 1988 1989
Copper 502.2 507.6 494.1 468.4 442.8
Cobalt 10.7 14.3 11.9 10.0 9.3
Zinc 136.9 81.3 87.5 61.0 54.0
Gold 2.2 2.1 3.8 3.8 1.8
Diamonds 1/ 19.9 22.3 19.5 18.2 17.6
Crude Oil 2/ 12.2 11.9 11.5 10.7 9.8
1/ millions of carats
2/ millions of barrels
Source: IMF
Table 2
Agricultural Production
(In thousands of metric tons)
1985 1986 1987 1988 1989
Palm oil 89.4 81.6 89.8 65.5 76.1
Robusta coffee 76.6 79.4 79.6 91.0 109.9
Arabica coffee 9.5 11.0 12.1 8.2 11.5
Cocoa 4.5 4.2 6.4 6.2 5.0
Tea 4.0 4.1 4.3 3.1 3.1
Rubber 16.1 15.6 15.7 11.7 11.5
Cotton fiber 7.8 6.7 6.8 6.2 6.5
Sugarcane 640.9 642.7 700.0 890.7 907.1
Tobacco 2.4 3.2 3.5 2.8 2.9
Timber logs 1/ 390.0 380.0 385.0 416.5 418.6
1/ 1,000 m3
Source: IMF
Table 3
Foreign Trade Indicators
(1980 = 100)
1986 1987 1988 1989 1990
Exports
Value, US$ 81.4 76.3 96.1 101.5 92.7
Volume 149.7 129.3 121.4 116.3 114.2
Imports
Value, US$ 84.5 90.5 107.7 110.2 99.6
Volume 92.5 88.3 100.4 102.1 88.2
Terms of trade 59.5 57.7 73.8 80.8 71.9
Source: IMF
Table 4
Direction of Trade
(millions of US$)
1984 1985 1986 1987 1988
Exports
Total 1003 947 1097 971 ....
Of which:
Belgium 464 500 568 582 768
France 102 84 124 101 81
Germany 171 191 203 178 205
Italy 100 122 154 169 148
Japan 77 46 51 58 66
United States 471 377 217 291 349
Imports
Total 676 788 875 756 ....
Of which:
Belgium 236 260 299 307 339
France 98 135 146 164 187
Germany 109 97 113 150 132
Italy 67 62 69 95 137
Japan 45 48 53 53 67
United States 91 115 115 114 138
Source: IMF
Table 5
U.S. Exports to Zaire
(F.A.S. value, thousands of dollars)
1987 1988 1989 1990
Total 103,001 122,208 121,859 138,444
Top 15 items:
Wheat 14,240 17,824 16,957 19,961
Aircraft 352 72 80 17,300
Parts for derricks 8,672 6,313 3,731 10,482
Cotton 4,951 4,510 2,055 8,195
Automobile parts 2,088 1,753 7,728 6,409
Dumpers 588 9,767 13,411 6,148
Used clothing 5,220 3,900 4,925 4,855
Parts for boring eq. 2,238 4,755 9,747 4,723
Hooks & coupling devices 578 771 598 4,662
Excavators 0 0 0 3,951
Rubber waste 0 0 1,890 2,472
Casings for drills 0 51 354 1,914
Computers 18 24 143 1,834
Polyethylene 1,326 2,113 663 1,605
Transmission apparati 402 670 994 1,244
Source: U.S. Department of Commerce
Table 6
U.S. Imports from Zaire
(Customs value, thousands of dollars)
1987 1988 1989 1990
Total 307,987 365,303 331,618 316,471
Top 10 items:
Crude oil 130,850 162,728 157,467 169,593
Industrial diamonds 30,824 29,035 58,075 64,056
Unrefined copper 0 7,059 13,689 64,056
Cobalt 64,204 29,206 19,327 16,226
Unworked ind. diamonds 8,258 11,518 11,842 13,979
Zinc 12,098 21,460 20,546 13,569
Refined copper 13,432 26,830 27,864 8,065
Niobium 608 810 1,124 1,916
Bran from wheat 1,786 2,774 0 1,783
Nonindustrial diamonds 6,010 20,936 4,262 1,463
Source: U.S. Department of Commerce
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This file extracted from Dept. of Commerce National Trade Data Bank (NTDB)
CD-ROM SuDoc No. C 1.88:993/12. Processed 12/01/1994 by software developed
by RCM (UM-St. Louis Libraries) / OBR_0023