Summary
MADEL FOOD, a frozen foods importer in the Democratic Republic of the Congo, faces significant barriers to growth including a lack of credit for large investments, high and multiple taxes, and currency volatility. The company highlights systemic corruption and inefficient customs procedures as major constraints, noting that bribes are often a condition for public services. Infrastructure deficits, specifically poor road quality, lead to delivery delays and stock ruptures. While the government has promised to ease licensing and customs procedures through the Congolese Federation of Private Enterprises, the company reports that these improvements have not yet materialized.
Key insights
- Access to credit for large investments in the DRC is scarce, forcing MADEL FOOD to occasionally seek credit from the Congolese Federation of Private Enterprises because banks primarily finance small businesses.
- The company identifies customs clearance as its most significant business constraint due to high costs, long durations, and widespread corruption, where bribes are often required to obtain public services.
- Poor road infrastructure within the DRC and at the regional level causes delivery delays and stock ruptures, resulting in a loss of customers.
- Financial instability is marked by a 40% income tax rate and high volatility of the Congolese Franc against the USD, leading the company to require customers to pay in USD.
- Administrative inefficiencies include long wait times for business licenses (four to six months) and duplicated inspections by the Health Service and the Import Control Agency (OCC).
Cite the original document
- APA
- South African Institute of International Affairs (2012). MADEL FOOD. https://saiia.org.za/saiia-toolkit/madel-food/
- Chicago
- South African Institute of International Affairs. MADEL FOOD. 2012. https://saiia.org.za/saiia-toolkit/madel-food/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=MADEL FOOD |date=24 July 2012 |url=https://saiia.org.za/saiia-toolkit/madel-food/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2012madel, author = {{South African Institute of International Affairs}}, title = {{MADEL FOOD}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/saiia-toolkit/madel-food/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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