Africa

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Recommended: Costs and benefits of foreign direct investments in developing countries

Economy of any country is majorly dependent on the industrial growth of that country. The industrial growth of a country is one of the pivotal parameter to measure the over wellbeing of the country. The growth of the industry in any country depends on the country itself and how attractive it looks for the foreign investors. There are many factors that encompass the industrial growth of any nation; to mention few; the availability of the resources i.e. natural resources, labor forces, infrastructure; market potential to buy the produced commodities, tax structure, political stability, ability to gain better profit margins with the given cost, inflation rate of that country, the currency value of that country, protection of any industry in that country, if the laws are conducive for the industrial growth, etc. There are many more factors which may be analyzed by any company before considering setting up a business in the country, but the ones specified above are the major ones. When we talk about industrialization, it’s not only the industrial growth because of the domestic companies but also because of the foreign companies. To be a part of the globalization any country should have the ability to attract foreign investors and these foreign investors are attracted for setting up their business in some other country only if they feel that the venture is indeed propitious.
The Democratic Republic of Congo (DRC) is one such country. Located in the central Africa and having the riches of natural resources like copper, diamonds, cobalt, gold, wood, petroleum and good; and with an agro based resources like rubber, cotton, sugar, tea, coffee and palm oil makes DRC one of the best location for mining and agro based industries and also one...

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...s, March 2011). As far as foreign investments in DRC agricultural business is concerned, the foreigners are granted concessions for 5 to 25 years with renewal of contract option. Even such kind of concession is not enticing to the foreign investors who are looking for investing in foreign countries. The primary reason given by investors is that due to the political instability they feel insecure to invest in specialized sectors like tree cultivation. (Agricultural Development in the Democratic Republic of the Congo, Tanguy Smoes, pg: 66-85). As far as technology is concerned, DRC is behind the rest

of the countries in the continent, the primary reason attributed to is the impact of decade long civil conflicts and mismanagement. The following table shows the Millennium challenge corporation (MCC) indicators and their ranking for DRC in the fiscal year 2013:

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