IDC and the DRC’s Fonds De Promotion De L’Industrie (FIP) sign MOU to explore investment opportunities
Cape Town – The Industrial Development Corporation (IDC) and Fonds De Promotion De L’Industrie (FIP) have signed a Memorandum of Understanding (MOU) whose main objective is to establish a broad framework within which these institutions can collaborate, co-develop and co-invest in projects and exchange investment including other information on their respective countries.
The FPI is primarily funded through the Taxe de Promotion de l’Industrie (a levy collected on imports and industrial goods in the DRC), with a balance sheet that supports financing allocations ranging from USD50 000 to USD1 million (± R850 000 to R17 Million @R17.08:USD1) per project. It has funded over 600 projects nationwide, primarily in agro-industrial sectors and infrastructure rehabilitation.
The MOU is the first of its kind and is aimed at fostering collaboration in areas of mutual economic interest between South Africa and the DRC for the benefit of the region. The IDC’s Continental Strategy has identified the DRC as a key priority country for proactive engagement – the objective is to strengthen and develop regional value chains characterised by value addition, regional cooperation, local development and intraregional trade, in alignment with the Africa free continental Trade Area (AfCFTA).
“The DRC is the biggest copper producing country in the continent. It’s also rich in rare earths other critical minerals including, tin; cobalt which is key to developing regional value chains in the automotive space among others,” said IDC CEO Ms Mmakgoshi Lekhethe.
The Continental Investment Guidelines, developed for cross-border investments and lending activity in target markets on the African continent, prioritise building strategic partnerships with other Development Financial Institutions (DFIs).
FPI Director General Herve Claude Ntumba Batukonke outlined the significance of DFIs stating that DFIs possess a deep knowledge of the local operating (or country) environment and market dynamics.
“Fostering strategic partnerships among national DFIs will help us to structure some risk-sharing agreements critical for co-financing opportunities, thereby mitigating risk,” said Batukonke.
Lekhethe added: “We believe that this partnership is of mutual benefit to both the IDC and the FPI. Through this partnership, we hope to enhance our efforts to co-invest in key projects so together we can industrialise our respective economies and catalyse new and emerging industries such as green hydrogen; critical minerals; electric vehicles value chain and infrastructure; advanced manufacturing; e-commerce; and high-value agriculture and agro-processing.”
Ends.
For enquiries, contact:
Chimwemwe Mwanza
Media Relations
Industrial Development Corporation
Chimwemwem@idc.co.za
Kuba Bekanga Gaby
FPI Communications Manager
www.fpi.cd
Contact Us
VUKA is the trusted media partner to key professionals, policy makers, suppliers and
manufacturers. We provide unparalleled opportunities for industry-wide connection.