DRC’s Subcontracting Set to Capture $8.29 Billion in the Mining Sector in 2022
Subcontracting in the Democratic Republic of Congo (DRC) is emerging as a substantial economic driver, poised to significantly contribute to the country’s economic development. In 2022, this sector is anticipated to yield over $8.29 billion, particularly from the mining industry’s production.
During a briefing held on Monday, October 13, 2023, by the Minister of Communication and Media, Patrick Muyaya, Miguel Kashal, the Director General of ARSP, highlighted that the cost of production in the mining sector is 35%.
This 35% represents the share allocated to subcontracting companies, linking the success of subcontracting to the cost of production.
Miguel Kashal explained, “In the mining sector, the production cost is 35%, compared to 60% in the brewing sector. For instance, the DRC produced 2.3 million tonnes of copper in 2022, generating revenues of $19.55 billion. With a production cost of 35%, subcontracting is expected to cost $6.85 billion.”
He further illustrated the impact on cobalt and gold production, emphasizing that these three components alone (copper, cobalt, and gold) should contribute a total of $8.29 billion to the DRC’s extractive industry.
Miguel Kashal emphasized that this substantial sum must be retained within the country, benefiting the population. The goal of the Regulatory Authority for Subcontracting in the Private Sector (ARSP) is to enable the Congolese state to capture and distribute this value chain to the population.
Acknowledging the historical challenges faced by the subcontracting sector, Kashal noted that recent controls initiated by the ARSP have led to increased compliance with subcontracting laws in the DRC. This signifies positive strides in ensuring that the subcontracting sector genuinely benefits the Congolese people.
