Master plan for industrialization in the DRC: ARSP supports the protection of local industries
The implementation of the Industrialization Master Plan of the Democratic Republic of Congo (DRC) will now benefit from the support of the Regulatory Authority for Subcontracting in the Private Sector (ARSP). This was announced by Miguel Kashal Katemb, Director General of this public establishment, during a recent meeting with the Minister of Industry, Julien Paluku.
As part of this collaboration, the ARSP has formulated two main concerns aimed at strengthening the competitiveness of local Congolese industries. First of all, the ARSP offers the possibility of lifting VAT for local businesses. Indeed, according to Miguel Kashal, some Congolese companies add VAT to their quotations, thus making them more expensive than foreign companies which do not have such a tax burden to bear. This measure aims to protect local industry by making its products more competitive on the market.
Next, the ARSP highlighted the difficulties faced by entrepreneurs in Mbuyi-Mayi, who carry out construction works financed by the Industry Promotion Fund (FPI). These contractors pre-finance the works and often take out bank loans, but are regularly faced with late payments by the FPI. This situation jeopardizes their activities, because late payments absorb the profits they could have made. The ARSP is calling for emergency solutions to avoid the disappearance of these local entrepreneurs.
Faced with these concerns, the Minister of Industry responded favorably and stressed the importance of implementing strategies aimed at making local industries more competitive. To this end, a technical commission bringing together experts from the Ministry of Industry, Small and Medium Enterprises and Entrepreneurship, as well as the ARSP will be created to develop concrete measures.
It is essential to emphasize that the industrial sector plays a key role in the economic and social development of a country. By supporting and protecting local industries, the DRC can stimulate economic growth, create jobs and foster the emergence of a thriving middle class. This collaboration between the ARSP and the Ministry of Industry is therefore an important step in the implementation of the Industrialization Master Plan and in the promotion of economic development in the DRC.
In conclusion, the DRC is committed to supporting its local industries through the action of the ARSP. Lifting VAT for local businesses and solving payment problems for entrepreneurs in Mbuyi-Mayi are concrete measures that will help strengthen the competitiveness of Congolese industry and promote the country’s economic development.