Business Environment Will Deter Investment

BMI View: Claims that Anglo-Swiss commodities giant Glencore bribed a politically well-connected Israeli businessman highlight the personal nature of business and politics in the DRC. We doubt that the country's business environment, one of the world's murkiest, will improve over the coming years.

In what is the latest of a series of allegations surrounding Dan Gertler, a controversial Israeli billionaire and friend of Congolese President Joseph Kabila, a non-governmental organisation (NGO) report has claimed that Gertler is profiting from corrupt deals in the Democratic Republic of the Congo (DRC). The latest allegations surround almost USD70mn in payments made to Gertler by Glencore (now Glencore Xstrata) between 2007 and 2010.

Global Witness, a London-based anti-corruption NGO, alleges that the Anglo-Swiss commodities giant knowingly made loss-making deals with Gertler in order to gain influence with Congolese politicians. Both Glencore and Gertler deny these accusations.

Among The Worst
Selected States - BMI Business Environment Rating, 0-100

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This article is tagged to:
Sector: Country Risk, Mining
Geography: Congo

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