Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 7/24/2017

In general, the DRC’s commercial banking system is reluctant to engage in project financing.  Several banks, including Rawbank, BIAC, ProCredit, BCDC, and Trust Merchant Bank, among others, offer financing to micro, small and medium-sized enterprises.  Most of these banks get lines of credit from international finance agencies or other outside sources of finance that encourage them to provide funding, specifically to SMEs.  For example, in recent years, Rawbank benefited from a $15 million credit line from the World Bank’s International Finance Corporation to allocate credits to reliable SME projects. 

In FY2011 the U.S. Agency for International Development (USAID) launched a new U.S. Government Development Credit Authority (DCA) loan guarantee agreement to help catalyze the availability of credit in the agricultural and small enterprise sectors (See Chapter 6). The DRC’s commercial banking system also provides a limited amount of trade financing. Most foreign business ventures in the DRC are financed privately because continuing political risk generally precludes other sources of financing. Local sources of commercial credit remain scarce, but are available to established businesses. However, only a handful of Congolese firms are usually considered good credit risks, and most traders operate on the basis of irrevocable Letters of Credit Insurance, which remains expensive.
Several bi-lateral and multi-lateral organizations fund infrastructure and development projects, including USAID, the World Bank, the United Nations Development Program, the European Commission (EC), China EXIM bank, African Export-Import Bank and the African Development Bank (AfDB). U.S. investors should investigate procurement opportunities through these organizations.

Power Africa: Launched in 2013, Power Africa is a market-driven, U.S. Government-led public-private partnership to double access to electricity in sub-Saharan Africa. It also serves as a one-stop shop for private sector entities seeking tools and resources to facilitate doing business in Africa’s power sector. In 2016, the Electrify Africa Act unanimously passed both houses of Congress and was  signed into law, institutionalizing Power Africa and establishing two goals: to add 20,000 MW of generation capacity and expand electricity access to 50 million people in sub-Saharan Africa by 2020. In bringing together more than 140 of the world’s top companies, development institutions, and financial entities, Power Africa employs a transaction-centered approach to directly address key constraints to project development and investment in the power sector. These interventions aim to de-risk investments and accelerate financial close -- from facilitating project bankability with financing and risk mitigation, to providing technical and transaction support, to engaging with host-government counterparts. Learn more about the full Power Africa Toolbox or other opportunities offered by Power Africa.
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (African Development Bank, World Bank)

The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the African Development Bank and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.