From: OVERSEAS BUSINESS REPORTS (ZAIRE)
Dep Lib Icon UM-St. Louis
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 
 
 
 
 
 
 
 
 
--------------------------------------------------------------------------
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