EAC states urged to fast-track DR Congo's admission

The East African Business Council, the regional apex body of private sector associations and corporates in East Africa, has urged East African Community member states to fast-track the admission of the Democratic Republic of Congo to the regional bloc.

DR Congo applied to join in June 2019 to increase knowledge on trade opportunities in the country for small and medium enterprises, or SMEs, in the region.

Upon admission to the bloc, the natural resource-rich Central African country will join six member states including Kenya, Burundi, Rwanda, South Sudan, Tanzania and Uganda.

According to a recent study by the East African Business Council in collaboration with Gesellschaft für Internationale Zusammenarbeit, a German development agency, with a potential market of approximately 81 million consumers, the DR Congo offers great market opportunities for SMEs in the region to export plastics and rubber, processed foodstuffs, textiles and leather.

The study, titled "Opportunities for Trade in the DR Congo," stated almost half of the trade between the country and the regional bloc is informal, implying the potential for trade hasn't been optimized.

"The combined exports of all the regional bloc member states into the DR Congo does not match that of South-Africa. Over the last seven years, the proportion of the East African Community exports to the country has averaged 13.5 percent," the report read.

Currently, among the East African Community member states, Kenya is the only major supplying country for the DR Congo's imports, coming in ninth. China is the major supplier, followed by South Africa, Zambia, Belgium, India, the Netherlands, Namibia and France.

Kenya's exports to DR Congo in 2019 amounted to $132 million and included cigarettes, flat-rolled products of iron or non-alloy steel, food preparations, medium oils and preparations of petroleum, and sugar confectionery.

In the report foreword, Peter Mathuki, executive director and CEO of the East African Business Council, urged East African Community member states to expedite admission of the DR Congo into the bloc to strengthen and formalize trade ties.

Mathuki said the region's geographic proximity to DR Congo is an avenue to optimize trade.

"SMEs must proactively realign and focus their operations to match market opportunities in the DR Congo as one of post coronavirus recovery strategies," he said.

Mathuki urged the regional bloc partner states to facilitate a conducive business environment for SMEs to tap into the country's market.

According to the study, 47 percent of the DR Congo's imports are dominated by China and South Africa, and the country is sourcing from them most of what regional bloc member states can ably supply.

"Given its geographic and even psychic proximity, the region is better placed to supply most of the DR Congo imports," the study said.

DR Congo also offers potential trade for Kenyan SMEs dealing in food preparation, sugar and sugar confectionery as well as preserved tomatoes. Tanzanian SMEs, on the other hand, can supply preserved tomatoes and non-alcoholic beverages.

Garments from Kenya and Tanzania also present good potential for growth.

Ugandan SMEs can supply the market with sweet biscuits, food preparation for infant use and sausages, as well as textiles from cotton.

Rwanda and Burundi can export sugar, sweet biscuits and food preparation for infant use. On textiles, Rwanda can supply plain woven fabrics of cotton, while Burundi can export sacks and bags for packing of goods, worn clothing and clothing accessories.

For businesses in the region to strategically and operationally prepare to tap into the lucrative DR Congo market, they should first establish opportunities for trade in the country that are aligned to the strengths of businesses in the region, the report said.