Congo investment climate 'improving'

President Joseph Kabila is seeking foreign investment

The investment climate for foreign firms in the Democratic Republic of Congo is improving, according to a mining firm which has agreed to put $300m into the country.

London-based America Mineral Fields is investing in a copper and cobalt project in the south of the country.

DR Congo's President Joseph Kabila has been urging foreign investors to look again at the country, which was ripped apart by a vicious war.

So far the international community has pledged $2.5bn in financial assistance to the DR Congo.

Over the past few days, President Kabila has been on a European tour, visiting Britain, France, Germany and Belgium in an attempt to drum up further investment.

President Kabila took power in 2001, following the assassination of his father Laurent.

Legal protection

America Mineral Fields' chief executive Tim Read told the BBC's World Business Report he was confident that President Kabila would succeed in putting the country back together again.

The company already has a presence in the country, but Mr Read said several things had improved since Joseph Kabila came to power which has encouraged increased investment.

Tim Read: Political and financial stability has improved

"First of all the war has finished, secondly the new transitional government has been put in place, and they have brought in a new mining code which provides a new fiscal and legal structure," he said.

Mr Read explained that when President Kabila came to power in 2001, inflation was running at about 300%, whereas last year it had fallen to 12%.

"They have also changed the exchange control regime which gives a much greater facility for investors to get a return," he said.

There is still fighting in the east of the country and there are reports of active armed groups, but Mr Read said that had to be put in perspective.

"The interior region where all these horrific abuses of human rights are taking place is about the same distance from our operations as Moscow is from London," he said.

"Physical security in the country is not an issue - of greater importance is political and financial stability, and that has improved," he added.