Title: Strengthening local industry in the DRC: ARSP’s support for the protection of Congolese companies
Introduction :
The Democratic Republic of Congo (DRC) is resolutely committed to the development of its local industry with the implementation of the Industrialization Master Plan. In this dynamic, the Regulatory Authority for Subcontracting in the Private Sector (ARSP) now plays a key role in supporting and protecting Congolese industries. During a recent meeting between the Director General of ARSP, Miguel Kashal Katemb, and the Minister of Industry, Julien Paluku, measures were discussed to strengthen the competitiveness of local businesses and support entrepreneurs in Mbuyi-Mayi . This article highlights these important advances for the Congolese industry.
VAT waiver for local businesses:
One of the major concerns raised during the meeting between the ARSP and the Minister of Industry concerns the competitiveness of local businesses. Indeed, some Congolese companies find it difficult to compete with foreign companies because of the VAT added to their production costs. This additional cost has a direct impact on their selling prices, making local products more expensive than imported products. To remedy this situation, the ARSP proposes the lifting of VAT for local businesses, in order to make their products more competitive on the market. This measure would thus promote the development of national industry by encouraging the consumption of local products.
Protection of Mbuyi-Mayi entrepreneurs:
The second issue addressed during the meeting concerns the entrepreneurs of Mbuyi-Mayi, who face late payments from the Industry Promotion Fund (FPI). These contractors, who finance the construction work themselves, often find themselves trapped due to these late payments. The profits they should be making are being swallowed up by these delays, threatening their financial stability and their ability to continue their activities. The ARSP therefore called for emergency measures to guarantee rapid payment to Mbuyi-Mayi entrepreneurs, in order to prevent their disappearance and preserve the local industry.
Establishment of a technical commission:
To realize this progress and develop effective strategies to strengthen local industry, a technical commission will be set up bringing together experts from the Ministry of Industry, Small and Medium Enterprises and Entrepreneurship, as well as the ARSP. This commission will have the mission of studying concrete proposals aimed at promoting the competitiveness of local businesses and resolving the problems encountered by entrepreneurs in Mbuyi-Mayi.. This collaboration between the various stakeholders will make it possible to find appropriate solutions and put in place concrete measures to support Congolese industry.
Conclusion :
ARSP’s support in protecting and strengthening local industry in the DRC marks an important step in the country’s economic development. The lifting of VAT for local businesses and taking into account the difficulties encountered by entrepreneurs in Mbuyi-Mayi are concrete measures in favor of Congolese industry. With the establishment of a technical commission, concrete actions and proposals to improve the competitiveness of local businesses can be studied and implemented. The ultimate objective is to promote the emergence of a genuine middle class in the DRC and to develop national expertise. The industry plays a key role in job creation and the country’s economic growth, and its protection and support are essential for the sustainable development of the DRC.