Title: The protection of local industry in the Democratic Republic of Congo reinforced by the ARSP
Introduction :
The Democratic Republic of Congo (DRC) is implementing its Industrialization Master Plan, an ambitious project aimed at developing national industry. To consolidate this strategy and protect local industries, the Regulatory Authority for Subcontracting in the Private Sector (ARSP) is now providing support. As part of an interview with the Minister of Industry, the Director General of ARSP, Miguel Kashal Katemb, announced two measures aimed at promoting the competitiveness of local businesses: the lifting of VAT for local companies and measures to support entrepreneurs in Mbuyi-Mayi.
Lift VAT to promote the competitiveness of local businesses:
The Director General of ARSP underlines that certain products manufactured in the DRC are less competitive due to the VAT added to their selling price. This makes them more expensive than imported products, which are not subject to this tax. In order to protect local industry, ARSP is proposing the lifting of VAT for Congolese companies. This measure would reduce production costs and make local products more competitive on the market.
Creation of a technical commission to promote industrial competitiveness:
To strengthen the competitiveness of local industries, the Ministry of Industry and Small and Medium Enterprises and Entrepreneurship, in collaboration with the ARSP, will set up a technical commission. This commission will bring together experts who will work on strategies to make local businesses more competitive. The objective is to develop national industry and stimulate the country’s economy.
Support for Mbuyi-Mayi entrepreneurs:
Another concern raised by the ARSP concerns entrepreneurs in Mbuyi-Mayi, who are encountering difficulties linked to late payments by the FPI (Industry Promotion Fund). These contractors finance their construction work, often through bank loans, but late payments jeopardize their profits. To avoid serious consequences, ARSP calls for rapid solutions to ensure that these entrepreneurs do not fall victim to insolvency.
Conclusion :
ARSP’s support for the implementation of the DRC’s Industrialization Master Plan strengthens the protection of local industry. By lifting VAT for local businesses and putting in place support measures for Mbuyi-Mayi entrepreneurs, ARSP aims to make Congolese industry more competitive and promote the country’s economic development. This collaboration between the Ministry of Industry and the ARSP shows the Congolese government’s commitment to promoting national industry and creating a real middle class.