Sandvik DRC Secures Subcontracting Rights through Local Partnership
Kinshasa – Sandvik DRC has secured the right to engage in subcontracting activities in the Democratic Republic of Congo (DRC) following a strategic move to open its share capital to a Congolese partner holding a majority stake of 51%.
The announcement, made on Monday, July 1, 2024, by the Regulatory Authority for Subcontracting in the Private Sector (ARSP), marks a significant milestone for the mining equipment company.
The memorandum of understanding signed between Sandvik DRC and ARSP, in the presence of senior executives including Managing Director Miguel Katemb Kashal and company representative Georges Wilson, formalizes Sandvik DRC’s compliance with DRC’s subcontracting regulations.
“Sandvik International has committed to comply with local laws by associating with a Congolese entrepreneur, in accordance with its corporate code of conduct,” stated Guillaume Feruzi, ARSP controller, during the ceremony.
Having previously operated without proper authorization, Sandvik DRC’s new status underscores its commitment to legal compliance and aligns with the DRC government’s agenda to foster local economic participation and create a burgeoning middle class.
“The Congolese state welcomes foreign investments but emphasizes the importance of these investments benefiting local communities to enhance the value chain and promote socio-economic development,” emphasized Miguel Katemb Kashal.
He continued, urging other international companies operating in the DRC to follow Sandvik DRC’s lead in regularizing their operations and contributing to the country’s economic growth.
Georges Wilson, General Manager of Sandvik DRC, expressed satisfaction with the partnership, highlighting its alignment with the company’s international standards in mining equipment services.
“We have worked diligently to establish this partnership and are grateful to ARSP for accrediting our eligibility. This milestone allows us to better serve our clients and supports the vision of creating an emerging class of Congolese entrepreneurs,” Wilson affirmed.
The agreement signed between Sandvik DRC and ARSP reflects concerted efforts by all stakeholders, guided by the vision of President Félix Tshisekedi to enhance economic inclusivity and regulatory compliance in the DRC.
This partnership sets a precedent for international firms looking to operate in the DRC’s mining sector, emphasizing the benefits of local partnership and compliance with national regulatory frameworks.
