DRC urges fair tax enforcement to protect mining sector growth

DRC urges fair tax enforcement to protect mining sector growth

The Congolese head of state has instructed tax authorities to curb aggressive revenue collection tactics against mining firms, warning that such measures undermine investor confidence in the sector. This directive follows a recent council of ministers meeting in Kinshasa, where President Félix Tshisekedi emphasized the need for moderate enforcement practices.

As the world’s top cobalt producer and Africa’s second-largest copper supplier, the Democratic Republic of the Congo relies heavily on mineral exports for foreign exchange earnings. The president criticized repeated bank account seizures, asset freezes, and unpredictable tax policies, arguing these measures inflate operational costs, weaken sector competitiveness, and discourage foreign investment.

Preventing disputes through structured dialogue

To address these challenges, Félix Tshisekedi has mandated that all tax recovery actions must adhere to strict legal frameworks and remain exceptional measures. He advocates prioritizing dialogue mechanisms, advance notifications, and mediation channels as outlined in national legislation before resorting to coercive tactics.

The president outlined his vision for a competitive and transparent mining industry, built on stable legal frameworks, predictable administrative decisions, and continuous engagement between government authorities and business operators.

These instructions come amid ongoing disputes between Kinshasa and major mining multinationals. Last year, the Inspectorate General of Finance accused several companies—including China’s CMOC and Switzerland’s Glencore—of underreporting billions in revenue, thereby reducing contributions to state development funds. The accused firms have denied any wrongdoing.

Days before the president’s announcement, Congolese tax officials temporarily shuttered Glencore’s local offices over a fiscal dispute. While the company maintains its commitment to resolving the issue and denies any irregularities, it remains unclear whether the presidential directive directly responds to this specific case, as no immediate comment was received from the presidency.

In a separate move, the president ordered the immediate withdrawal of unauthorized military and police personnel from mining sites, citing their presence as a driver of fraud, smuggling, and insecurity, which tarnishes the DRC’s investment appeal.

sahelvision