Nicolas Kazadi: DRC’s Artisanal Gold Export Tax Cut to 0.5% “Necessary”

Since the close of 2022, the Democratic Republic of Congo (DRC) has witnessed a decrease in the tax rate for the export of artisanal gold, dropping from 1.5% to 0.5%.

According to the arguments put forward by the Congolese Minister of Finance, Nicolas Kazadi, during the press briefing on Monday August 28, 2023, this measure was necessary in the context of non-competitive or even confiscatory taxation.

“At the end of 2021, during the preparation of the 2022 budget, the Government of the Republic had taken the initiative to request that the export tax rate for artisanal gold be lowered by 1.5%, which was not competitive and reduce it to 0.5%. However, the legislator will maintain the status quo. said Minister Nicolas Kazadi.

In his opinion, it would be a mafia, at that time, to prevent Congolese artisanal gold from being made competitive since that would suit Rwanda’s business.

It was therefore necessary to wait until the end of 2022 to obtain the reduction in the export rate from 1.5% to 0.5%.

“During the discussions, Primera gave us a certain number of elements which showed that even at 0.5% which is the rate valid for the whole country, it was not enough incentive for this part which is a party in conflict and which is at war; it was necessary to attract good investors, anxious to comply with the law and pay the taxes. “, Mentioned the Congolese Argentier.

Consequently, the Minister Nicolas Kazadi considered that it was necessary to foresee additional incentives.

“Although the rate is reduced to 0.5%, there are additional financial costs to bear. The whole thing meant that the advantage was always on the Rwandan side for which they put all the facilities for the opening of accounts in foreign currencies and manipulation of currencies while our image was totally destroyed internationally. underlined Nicolas Kazadi.

For this first year (2023), Primera Gold plans to inject 950 million US dollars. Objective: collect up to 8 tons of artisanal gold.

Between January and August 2023, the company produced 3,000 tonnes of artisanal gold with an estimated value of around US$180 million.

Thanks to its activity, Primera Gold will have already distributed, in eight months, an envelope of 190 million US dollars to craftsmen whose number is estimated at around 25,000 members.

Primera RDC is a joint venture between the United Arab Emirates and the Democratic Republic of Congo.

Based in the city of Bukavu, the company has been operational since the beginning of January 2023.