Hassan Yahfoufi

TBY talks to Hassan Yahfoufi, CEO of HY Group, about the company’s international presence, new services and products, and the health sector in the DRC.

HY Group has been present in Lebanon, DRC, and other countries for over half a century. How would you characterize the current Congolese market compared to 50 years ago?

If we were to compare the DRC 50 years ago to the present day, the differences are striking. The population has grown from 30 million to 120 million today. The DRC has some of the most natural resources in the world, with vast mineral reserves; however, despite the remarkable changes in the last 50 years, it still requires a great deal of development. Notably, 80% of Congo’s population is made up of young people, which means it is an economy of the future. In contrast, Europe is facing an aging demographic. While the Congolese economy will only continue to grow in line with the population, the country requires a high level of investment to ensure sustainable development.

HY Group works on both large-scale projects as well as services and products for companies. Can you elaborate on your offerings?

With companies such as AMT Pharma, for example, we not only import and sell products but also produce our own labels. In addition to producing our own medication, we also provide medical equipment. We can equip an entire hospital from A to Z, even in the most remote areas. HY Group represents major international companies for lab equipment and hospitals, which is vital for the medical sector in the DRC. Many laboratories in the country are equipped by AMT Pharma. Another of our companies is USCT, an IT trading company.

How easy is it to grow in the medical equipment and health sector in the DRC?

There is significant demand here, though with heavy demand, there is always a shortage of equipment. It is not that difficult to grow, with the exception of the financing aspect. There have been instances where international institutions like the World Bank finance local operations such as hospitals or schools. It would be challenging to grow without such financial investment.

Which other sectors is HY Group looking at expanding into?

We are also focused on the telecommunications sector given that 80% of the population is young and eager to stay connected. This represents a major opportunity for us. In addition, we are also present in the construction sector, which is expected to grow rapidly in line with the population growth. People will need more homes, offices, and infrastructure. This sector is growing steadily in the DRC currently; however, one key challenge is the high cost of importing raw materials given that the country does not have the facilities to produce construction materials. We would like to work more on social projects such as hospitals or schools and have projects in the pipeline looking into this. As well, HY Group is developing fiber for large corporations all the way to individuals. We have a data center here from which we distribute fiber to individuals, corporations, and ministries.

One of your companies, AMT Motors, is the Congolese distributor of Jetour, one of the largest Chinese brands. Can you provide an overview of the car business in the DRC?

The market in the DRC is not that well organized. Any company can enter the market and import cars, which has resulted in a high number of such companies. Still, the main issue is providing the appropriate service. Not many companies offer after-sales services, for example. What differentiates us from typical importers of cars is the after-sales, maintenance, and feedback that we offer. Customers receive the true experience of the brand when buying a car.

HY Group is into commercial and domestic real estate. Does the Congolese real estate sector have potential?

This is also related to the growth of the population. The sector is still in the early stage because there is a great deal of demand, and the population is growing. This sector only recently started to develop. For example, when we opened Le Premier Mall seven or eight years ago, it was the first mall to be built here. Since then, many more malls have been built, though we see steady demand.

What is the best way to attract more investors to the DRC?

We have encountered several such cases. Many have asked us about the opportunities here. When they hear about our history and realize that we have been here for 50 years and are still investing, they become more confident. Investors should contact companies on the ground who can offer advice or even form joint ventures. When investors are more familiar with the system, they can easily enter the country. They should have a local contact to facilitate their investments. Some foreign investors face difficulties because the system is slightly different. Small issues that are minor for companies like us might be a major challenge for others. Finding a local partner to operate with makes it significantly easier for foreign investors.