Kalej Nkand encourages SMEs to seize the opportunities offered by the law on subcontracting 1Mining in DRC Governance 

Kalej Nkand encourages SMEs to seize the opportunities offered by the law on subcontracting

Present at the business meeting organized on Thursday, November 4, 2021 by the Fédération des Entreprises du Congo, the Director General of the Private Sector Subcontracting Regulatory Authority (ARSP), Kalej Nkand, encouraged SMEs present at these meetings to seize the opportunities offered by the law on subcontracting.

According to him, this law is put in place by the legislator to create the middle class, and allow nationals to win markets formerly reserved only for expatriates.

Among the opportunities offered by the law on subcontracting, the DG of the ARSP mentioned, among other things, the ease of access to subcontracting markets in the private sector.

It alludes to the easing of the obligation to fully pre-finance the market. Also, the collection of a deposit of 30% of the market value at the signing of the contract. Finally, the benefit of the FOGEC guarantee (Entrepreneurship Guarantee Fund in Congo).

As a reminder, the ARSP was, from its creation, in charge of the application of the law n ° 17/001 of February 8, 2017 which grants the exclusivity of the subcontracting activities to the Congolese, natural or legal persons, including at least 51% of the capital is held by Congolese.

As a public administrative establishment, it has legal personality whose purpose is to regulate subcontracting activities commissioned by private companies operating in all sectors of the national economy in the Democratic Republic of the Congo.

According to the Director General of the ARSP, Kalej Nkand, several challenges have to be taken up since the implementation of the law on subcontracting in the DRC.

In particular, he mentions the weakness or absence of local experience and / or expertise which can only be resolved through training and the limited recourse to foreign expertise.

There is also the lack of access to information relating to calls for tenders from main companies (the ARSP has set up the website www.arsp.cd allowing access to information for subcontractors. ).

Finally, the difficulties of access for subcontractors to traditional bank financing mechanisms (A quota of 0.2% deducted from the rights of the ARSP is intended to supply the FOGEC in order to facilitate access to financing to sub -treaters).

This business meeting of the FEC allowed the Director General of the ARSP, Kalej Nkand, to explain the legal and regulatory framework of the law on subcontracting, the activities already carried out for its effective application (the popularization and sensitization, the establishment of the website www.arsp.cd for the registration of subcontracting companies), as well as the control of subcontracting activities in the private sector.

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