USAID Invest in DRC

USAID Invest opens its doors in Lubumbashi, Haut-Katanga. Have you heard the news? USAID Invest has a new office in Lubumbashi! This new office is an opportunity for the Activity to build relationships with firms looking for investment opportunities in the Haut-Katanga region and beyond. Check out our FAQ document on how to collaborate.

On June 17, 2024, the USAID's Investment Facilitation Activity (USAID Invest) hosted an interactive masterclass in Lubumbashi, DRC. The masterclass was an opportunity for SMEs operating in the agribusiness, energy, and mining sectors, that are looking for an investment of 0.5 to 10 million USD, to better understand the different financial instruments for each value chain sector. Through case studies, participants actively discussed the fundraising process, eligibility criteria by type of investor and existing sources of financing for SMEs (Banks, mixed financing, DFIs, Funds impact, non-bank financial institutions, Private Equity, etc.). USAID Invest provides transaction advisory support to investors and DRC based firms, and aims to facilitate $100M in investment in the DRC in five years, while strengthening the business climate for investment. #USAIDInvest #InvestmentFacilitation #AgSMEs #MasterclassLubumbashi USAID/Democratic Republic of the Congo

USAID Invest participated in a panel at the Africa Tech Invest Conference, held on June 20, 2024, in Kinshasa, which focused on “The role of private equity in the development of digital and new technologies in the DRC’’.  Our Investment Facilitation Team Lead, Jules Ndambu, and representatives from Proparco, Verdant Capital, and Rawbank, engaged in insightful discussions about the importance of venture capital and private equity for the provision of vital financial support in the form of equity to early-stage businesses in the DRC. All panelists agreed on the need for reforms to support VC and PE activities in the DRC. Jules Ndambu highlighted USAID Invest’s support to the Central Bank of Congo (BCC) to develop a reform roadmap for the development of a legal and regulatory framework attractive to investment funds and asset managers in the DRC. He underscored how critical this work is for the emergence of a vibrant investment ecosystem that can meet the pressing investment needs of tech businesses and unlock the full potential of digital technologies in the DRC. #USAIDInvest #DigitalTechnology #PrivateEquity #VentureCapital #PrivateSectorEngagement USAID/Democratic Republic of the Congo

USAID Invest a eu le privilège de participer à la semaine minière de la RDC à Lubumbashi du 12 au 14 juin 2024. Le rassemblement a été une occasion passionnante de réseauter avec de nouveaux partenaires et de mieux partager notre approche d'investissement et sur les opportunités que le secteur minier de la RDC offre pour une croissance économique inclusive. Au cours d'un panel sur les risques miniers et les opportunités financières, la directrice générale d'USAID Invest, Lucine HAPI LE MOAL, a partagé la scène avec des représentants des principaux acteurs du système bancaire de la RDC pour souligner la nécessité de réduire les contraintes financières et de développer l'infrastructure afin de débloquer des opportunités d'investissement substantielles en RDC. Au cas où vous l'auriez manqué, voici nos principales conclusions lors de la DRC Mining Week 2024: 🔹 La croissance des pays est généralement tirée par les PMEs. Mais l’accès au crédit reste une contrainte majeure pour les PMEs en RDC et est l'une des plus faibles d'Afrique subsaharienne, malgré la forte liquidité du pays (15 milliards de dépôts) et le fait que les banques commerciales de RDC soient suffisamment bien capitalisées. 🔹 Pour répondre aux besoins d'investissement des entreprises congolaises, nous devons avoir dans l'écosystème financier une variété d'instruments financiers et d'instruments financiers spéciaux long terme, nous avons besoin d'acteurs comme les fonds d'investissement, les institutions de prêt spécialisées, et nous devons faire les réformes réglementaires pour attirer les véhicules d’investissement en RDC. 🔹 Pour les fonds d'investissement et les fonds d'impact, la RDC a longtemps été comme une boîte noire et à cause de la qualité des transactions et le coût d’origination & de réalisation des transactions. Si nous voulons que les investisseurs investissent dans des entreprises en RDC, y compris dans le secteur minier, il est essentiel que nous puissions leur présenter de bonnes opportunités, bancables et bien structurées, et que nous les assistons dans le processus de transaction (due diligence, conseil en transaction, structuration, négociation, etc.), et c'est ce que fait USAID Invest. 🔹 Chaque projet à chaque étape nécessite différents types de financement. Il est donc important de structurer des véhicules spécifiques à chaque étape du développement des projets miniers, depuis l'exploration et la préfaisabilité jusqu'à l'exploitation et même le raffinage. Avec une stratégie d'investissement claire, la RDC peut certainement tirer le meilleur parti du fonds souverain existant (FOMINE) et du fonds de pension comme la CNSS, et mobiliser certaines de ces ressources pour financer des projets dans les chaînes de valeur minières, et même pour financer certains véhicules financiers spécifiques ciblant les entreprises qui créent davantage de valeur ajoutée au niveau local.

USAID Invest was privileged to participate in DRC Mining Week in Lubumbashi from June 12-14, 2024. The gathering was an exciting opportunity to network with new partners and share more about our investment approach and what opportunities the DRC’s mining sector holds for inclusive economic growth. During a panel on Mining Risks and Financial Opportunities, USAID Invest's Managing Director, Lucine HAPI LE MOAL shared the stage with representatives from major players in DRC’s banking system to highlight the need to reduce financial constraints and develop infrastructure to unlock substantial investment opportunities in the DRC. In case you missed it, here are our top takeaways from #DRCMiningWeek 2024: 🔹 Countries' growth is usually driven by SMEs. But A2F remains a major constraint for SMEs in the DRC and is one of the lowest in Sub-Saharan Africa, despite the country's high liquidity (15 billion in deposit), and the fact that commercial banks in the DRC are sufficiently well-capitalized. 🔹 To match the investment needs of Congolese businesses, we need to have in the investment ecosystem a variety of financial instruments and long-term special financial instruments, we need actors like investments funds, impact funds and specialized lending institutions, and we need to enact regulatory reform to attract investment vehicles in the DRC. 🔹 For investment funds and impact funds, the DRC has been like a black box and the issue has been the quality of deal flow and the cost of originating and closing deals. If we want investors to invest in DRC-based firms, including in the mining and mineral sector, it is critical that we present them with the right opportunity that is bankable and well-structured, and support them in the transaction process (due diligence, deal structuration, negotiation, etc..). This is what USAID Invest is doing. 🔹 Projects at different stages require different types of funding. Therefore, it is important to structure specific vehicles at each stage of development of mining projects, from exploration and prefeasibility studies to operations and even refinery. With a clear investment strategy, the DRC can make the most of its existing sovereign fund (FOMINE) and pension funds like CNSS, and not only leverage some of those resources to provide development capital for projects in critical mineral value chains, but also finance some specific vehicles targeting companies that are doing local value addition. #DRCMiningWeek #DMW2024 #PrivateSectorEngagement USAID/Democratic Republic of the Congo

USAID Invest attends DRC Mining Week in Lubumbashi! Will you be at DRC Mining Week? Come by the USG Pavilion to meet our team and be sure to check out the panel on Mining Risks and Financial Opportunities for the Banking System in DRC where USAID Invest’s Managing Director will share insights. #DMW24 #Mining #DRC

Interested in exploring investment opportunities in the DRC? Looking for a formal guide to assist you in taking the first step? USAID Invest developed the Capital Map Report to demystify investment in the DRC. It includes an overview of the landscape of investors in the DRC, the investment trends, USAID’s Invest’s engagement process with investors, risks investors could face, mitigation strategies and a brief analysis of the DRC startup ecosystem. Check it out below!

📣 USAID Invest is on LinkedIn! 📣 Our activity aims to unlock the investment potential of Congolese businesses in agribusiness, energy and mining. We support firms in the DRC to develop bankable projects and raise funds from local and international investors. We connect investors and high-potential businesses in the DRC. Interested in learning more? Check out our Fact Sheet and progress to date via our One Pager!