In April of 2017, IOS Partners, Inc. was contracted by the Implementation Unit of the Support to Fragile States (Cellule d’exécution des financements en faveur des Etats fragiles or CFEF) to provide Transaction Advisory Services for the development and operation of the Special Economic Zone (SEZ) in Maluku, Democratic Republic of Congo (DRC). The aim of this agro-industrial focused SEZ, located approximately 50 km away from the capital Kinshasa, is to increase productivity and generate employment in DRC by offering a transparent and coherent business-friendly environment to attract new local and international investors to the region.
From 2017 until early 2020, IOS Partners played an integral role in assisting the DRC Government with the recruitment of a private operator most suited for the development of infrastructure within the Maluku SEZ and the management of the zone’s operations. For this, the IOS Partners team of experts has carried out the following activities:
- Update of the SEZ demand study (phase 1)
- Identification of the most pertinent PPP models and establishment of measures and bid documentation for the selection of the operator and implementation of PPP (phase 2)
- Assistance to the DRC Government in the selection of the SEZ private operator and establishment of the Maluku SEZ PPP (phase 3)
Following the successful bidding out and selection of the private operator during negotiations led by IOS Partners in July 2019 in Washington DC, this project concluded in January 2020 with the successful signing of a Public-Private Partnership (PPP) contract, the details of which were drafted by IOS Partners and its partners, in coordination with AZES, the Government and the private operator.
Maluku SEZ’s future development and operation are expected to lead to a long-term increase in business activity and productivity as well as the generation of new employment. If successful, the Maluku SEZ has the potential to become a model for existing and future SEZs as a measure to achieve more sustainable economic development in the DRC and the Sub-Saharan African region as a whole.
The IOS Partners team is proud to have provided the needed assistance and support to ensure the country achieves its long-term economic growth and development goals. We now look forward to continuing the strong and collaborative relationship with our colleagues in DRC to further assist in ensuring the steady and sustainable management and operation of the Maluku SEZ in the months and years to come.
