DRC: mining companies must sell 10% of their capital to nationals by 2026.
In the Democratic Republic of Congo, mining companies are now required to reserve 10% of their share capital for Congolese nationals, in accordance with the revisions to the Mining Code adopted in 2018. The moratorium granted by the Ministry of Mines expired on July 31, paving the way for the implementation of this measure starting August 1, 2026.
SUMMARY
This reform concerns a strategic sector for the Congolese state, as it contributes nearly half of its revenue. It stipulates that 5% of the capital must be held by individual Congolese citizens and 5% by the employees of mining companies.
However, the application of this provision raises many questions on the ground. Researcher Léonide Mupepe, who specializes in the mining sector, believes that the main difficulty lies in the implementation of the reform, in a context he describes as marked by widespread corruption.
Trade unions are particularly concerned about the lack of specific mechanisms regarding the shares allocated to employees. Kapenga Kandolo, the deputy secretary general of the Congolese workers and peasant consciousness union, asks what will happen to these shares in the event of a termination of employment or departure of an employee.
Concerns About Transparency
The cost of shares reserved for Congolese is another source of concern. Jean-Pierre Okenda, a civil society member in Kinshasa, reminds us that the minimum capital of a mining company represents about 40% of the total cost of a project, making the 10% intended for nationals particularly difficult to finance.
According to this civil society actor, this requirement may favor politically influential individuals or those close to power. He fears that the shares intended for Congolese may be concentrated in the hands of an elite with the necessary resources to acquire them.
Civil society organizations are therefore calling for the creation of a register of beneficial owners of mining companies. Such a tool would allow for the identification of the true beneficiaries of the shares, prevent the use of proxies, and limit the use of shell companies.
Murielle Mwambay, a member of the NGO La Sentinelle des ressources naturelles, believes that this register would be essential to verify the identity of the holders of the 10% reserved for Congolese. At the Ministry of Mines, a draft decree concerning the modalities of applying Congolese shareholding is currently in preparation.
Comments