How can investors tap into Congo's industrialisation potential?

The Democratic Republic of the Congo, known for its vast mineral resources, is poised for industrialization and economic growth. In a recent interview with CNBC Africa, Patrick Krasa, the Senior Advisor at STOA Infrastructure and Energy, shed light on the immense potential of Congo's mining sector and the opportunities for industrial development. Krasa emphasized the critical role of infrastructure and energy in unlocking the country's full potential. He highlighted the importance of rehabilitating existing sub-optimal hydropower plants to attract investors and bridge the energy gap. With a focus on sectors like agriculture and energy, Congo is on a development trajectory similar to its neighboring regions, leveraging its abundant resources and potential. However, the challenge lies in realizing this potential, as many countries face constraints in fully tapping into their resources. STOA, an investor in energy and infrastructure, sees significant opportunities in Congo's development. The company aims to support the mining sector, particularly the important cobalt metal production, and address the energy needs of the country. One key aspect is moving projects from the idea stage to implementation and making them bankable for successful partnerships between the private sector and the government. Krasa emphasized the need for a strategic approach that aligns infrastructure and energy development with the strength of the mining sector, ensuring sustainable growth and investment prospects. While discussions are ongoing with the government, there is potential for collaboration in key areas like hydropower projects and railway infrastructure. The focus is on efficient project delivery and creating a conducive environment for private sector participation through public-private partnerships. Krasa highlighted the importance of advising the government on prioritizing development projects, structuring financing plans, and fostering a favorable investment climate. He stressed the interdependence of sectors like mining, energy, and transportation, emphasizing the need for coordinated efforts to kickstart economic activities. In terms of incentives, Krasa suggested that the government play a facilitating role in mitigating project risks and providing a conducive environment for investors. By offering a seamless process and clear guidelines, Congo can attract more investments and accelerate the pace of industrialization. When assessing competitiveness as an investment destination, Krasa acknowledged the need to factor in risk and return considerations. While capital seeks optimal returns, the focus should also be on sustainable industrial output and human resource development. The key lies in evaluating the long-term viability of industrialization in Congo and leveraging its resources and workforce efficiently. The government's role in implementing a comprehensive and sustainable development plan will be crucial in realizing Congo's industrialization potential and positioning the country as a competitive player in the global market.