Investors bag deals worth over Ksh.17B from Equity's DRC roadshow

The Investor Roadshow in the Democratic Republic of Congo (DRC) organized by Equity Bank and other partners concluded on Friday with deals worth 120 million dollars (approx. Ksh.17 billion) being signed.

The deals, which included Memoranda of Understanding (MoUs) with the government, will see the investors expanding their tentacles into a region that remains highly untapped.

This even as more deals are expected to be signed in the coming days with the investors now embarking on capital-raising measures to meet their CapEx needs.

“We have signed an MoU with the Ministry of Industry for 20 million dollars (Ksh.2.8 billion) which will bring the capital in a phased manner. We’re looking into the industries...we’re looking to concession, warehousing, energy, solar and other light activities...so very soon we will start our operation,” said Mohan Mutha Exports MD Ramesh Kumar.

The investors who say they were on a fact-finding mission have sought to reassure others looking at the DRC market that although there are a few bottlenecks to be addressed, the environment is ripe for business.

“What we knew and the perception we have been given versus what we found on the ground...the information has been more important than even signing any deals yet the lay of the ground now is very clear for us to move to the next level,” United Petroleum CEO Collins Kiprono Chemngorem said.

“In my industry, for instance, we have 120 industries...in the city here there are only two...if you come here two of you, you have business and this is a growing country...it's growing faster than Nairobi,” Susan Wanjiru of Water Engineering also noted.

Real Estate Investor Peterson Mwangi added: “There is a huge opportunity in agriculture for me that would be a low-hanging fruit, real estate is quite expensive and development costs are quite high so the capital required is but the returns are slow quite high.”

However, the investors have raised concerns over the lack of road networks and other business enablers in the country noting that it may cause logistical challenges which may turn out to be costly for their businesses while others took a wait-and-see approach before investing.

“Apart from opportunities, there are challenges, especially in particular locations mainly on logistics...getting the goods...the road and rail network does not exist,” Parapet CEO Alex Nyaga stated.

“The fact that you cannot come from Kinshasa to here just presents a challenge yet still an opportunity for others,” Wanjiru added.

As they depart from the DRC, the investors now say they will be embarking on a capital-raising mission to ensure they capitalise on the opportunity that the country presents.