Subcontractors Urged to Enhance Value Proposition during DRC Mining Week 2024
How do investment opportunities impact subcontractors in the mining sector? What investment model benefits Congolese businesses? How can a solid business foundation be built?
These questions were central to a session on bank support and investment during a networking breakfast organized on the sidelines of DRC Mining Week on Thursday, June 13, 2023.
During the session, panelists encouraged participants to leverage ecosystem partners to enhance the value proposition in the mining industry.
Serge Bilambo, Director of the Large Enterprises Department at Ecobank, discussed the syndication solutions essential for banks to raise adequate funds to support mining operators and subcontractors.
He highlighted a $400 million syndication created between Ecobank and other African banks to provide financing to mining companies, urging beneficiaries to take advantage of it.
However, the process must be adhered to, emphasized Maître Thibault Hollanders, a lawyer from Liederke in Belgium. “It is important for subcontracting companies to follow the legal framework processes to avoid administrative difficulties that could harm their financing requests from banks. Banks prefer to grant loans to reliable, bankable, and tax-compliant projects,” he stated.
Despite the available investments, some beneficiaries criticized the banks’ support. Gabriel Tshitende, President of the Subcontractors’ Club, expressed concern about the lack of confidence in new subcontracting companies, which hinders their growth.
He commended the efforts of the ARSP in providing Congolese entrepreneurs access to markets previously reserved for expatriates.
Ecobank offers specialized services to help new subcontractors acquire financing. This panel also facilitated discussions on key strategies and solutions to ensure sustainable growth and reliable operations in the sector.
