DRC President Félix Tshisekedi notes real difficulties in the application of the law on subcontracting
In his communication during the 38th meeting of the Council of Ministers held on Friday January 28, 2022, the President of the Republic Félix Tshisekedi noted real difficulties in the application of the law governing the field of subcontracting, particularly in the mining sector. specifically concerning its business tax regime.
Added to this list is the development of illegal mechanisms for circumventing the law to the detriment of the local workforce.
“Drawing the consequences of the low impact of the effects of the law on subcontracting in the private sector within the enterprising population, he (Félix Tshisekedi) asked the Minister of State, Minister of Entrepreneurship and Small and Medium-Sized Enterprises to present an implementation report to the next meeting of the Council of Ministers This report should take into account the progress of the file for the acquisition of a building on the one hand the management in accordance with the Minister in charge of Justice, Mines and Finance urgently on the issue of auditing the effectiveness of law no. 17/001 of 08 February 2017 setting the rules applicable to subcontracting in the private sector and its implementing measures, particularly in the mining sector”,said Félix Tshisekedi in the report of the meeting made by the government spokesperson.
And to continue:
“The President of the Republic wishes to allow countries to benefit from the potential benefits of the implementation of this law, particularly in the promotion of Congolese SMEs, the protection of local labor and the development of competitive value chains capable of diversify the Congolese economy, which will reduce its dependence on the outside”.
Long before Félix Tshisekedi’s observation, at the level of the National Assembly, it was noted that the application of this law posed a serious problem. Following the examination of an oral question with debate from National Deputy Ilunga Nkulu addressed to the Minister of State, Minister of Entrepreneurship Eustache Muhanzi, the Bureau of the National Assembly decided on Wednesday October 27, 2021 to institute a parliamentary commission of inquiry which will go down from November 1, 2021 in the provinces of Haut-Katanga, Lualaba and Kinshasa in order to find out how the law on subcontracting in the private sector is applied.
The law laying down the rules applicable to subcontracting in the private sector aims to make the subcontracting of activities ancillary to the main activity compulsory and to reserve it, whatever its nature, for Congolese companies with Congolese capital with a view to to promote it and thus encourage the emergence of a Congolese middle class. Since its entry into force in 2017, this law is still not properly applied on the ground.
The same law provides for the protection of the workforce working in subcontracting companies, the creation of employment for nationals and the broadening of the tax base for the benefit of the Public Treasury.
