DRC Targets Local Ownership in Subcontracting
In the Democratic Republic of Congo (DRC), the Regulatory Authority for the Control of Subcontracting in the Private Sector (ARSP) currently registers 15,000 subcontracting companies.
Director General Miguel Kashal Katemb announced plans to increase this number to 50,000 to 60,000 by the end of 2024 during a briefing with Minister of Communication and Media, Patrick Muyaya.
Efforts are underway to ensure that Congolese businesses secure significant contracts, particularly in the mining sector, according to Kashal. Since 2017, the ARSP has enforced laws requiring subcontracting to be predominantly owned by Congolese companies, aiming to curb fraud and nominee schemes.
Recent controls led by the ARSP have already yielded results. Nine companies affiliated with Eurasian Resources Group were suspended for violating subcontracting laws.
Kashal emphasized the importance of Congolese entrepreneurs accessing markets, stating that it is a priority for the ARSP Steering Committee. He stressed that the majority of the value chain in natural resources should involve Congolese participation.
Regarding ownership, Kashal noted that while the law allows for 49% ownership by expatriates and 51% by nationals, abusive exploitation of Congolese resources by certain companies will no longer be tolerated. The ARSP is committed to restoring order in the sector and ensuring equitable participation for Congolese businesses.
