Intervention by Hervé Ngoy Kalumba at the Sultani Makutano Forum5, 2019.

Round table: Subcontracting, a law, and after?
06/09/2019. Kempinski Hotel Fleuve Congo Kinshasa.

Hervé Ngoy answers the question: Is the law on Subcontracting an opportunity or a threat?

  • He returned to the issues raised in February 2017 when the law setting the rules for Subcontracting in the private sector was promulgated.
    One article in particular was misunderstood by entrepreneurs, article 6 defining criteria for contractors. “The Subcontracting activity is reserved for companies with Congolese capital promoted by Congolese, whatever their legal form, whose head office is located on the national territory.” It could be interpreted as a form of protectionism. From this vagueness, various questions were asked. Does a company governed by Congolese law but owned by foreign investors fulfill the conditions? Will foreign investors find locally the expertise and quality of service they require to produce?”
  • In May 2018 issued the decree implementing measures of the law of 8 February 2017 setting the rules applicable to Subcontracting in the private sector. This dispels any ambiguity on the question of capital. In the definition “Congolese-owned company promoted by the Congolese” are added several criteria including this one: “the majority of the registered capital is held by natural or legal persons of Congolese nationality”.
  • Here is another problem in the Control Act. Article 21 stipulates that “The competent national, provincial or local authority, each in its own right, is responsible for the control of subcontracting in subcontracting companies.” Another blur that worried the entrepreneurs. How would these competent authorities intervene in society? Would they select companies eligible for subcontracting?
    In December 2018, the veil was lifted on this issue with Ordinance “n°18/153 portant nomination des membres du Conseil d’administration et de la Direction générale de l’Autorité de Régulation de la Sous-traitance dans le Secteur privé (ARSP).
  • Hervé Ngoy Kalumba then returns to the question of the desirability of the law. He says it meets a need of entrepreneurs. Some contracts are awarded to companies that claim to meet the “Compliance” criteria (compliant with the rules). These markets are discussed in opaque and hermetic private circles that few have access to.
    The law is welcome as it will allow more transparency in the award of contracts. With the ARSP Regulatory Authority, entrepreneurs will finally have free information on the calls for tenders and the supplier profiles required for these markets.
  • Hervé Ngoy Kalumba also cited the example of Congolese companies that are perfectly credible from the point of view of expertise and technology, but they are stucked to the problem of access to finance. This type of business should be supported to meet the financial requirements of certain markets.
  • Finally, he recalled that the law on Subcontracting did not apply only to the mining sector but to all sectors of the national economy. Thus, Subcontracting also applies to service companies that need less capital than the suppliers of goods.

Summary of issues raised during the roundtable and responses from various stakeholders.

Does the Law on Subcontracting respond to a need of the national economy or was it created “just to do well”?

  • Ahmed Kalej, CEO of ARSP: “The law responds to a natural need of the Congolese economy because almost all sectors are currently driven by foreign-owned companies.The legislator found a fracture between infrastructure, private companies majority of foreign-owned and Congolese households.This law was promulgated with the aim of creating a Congolese middle class by capturing a flow of capital generated by subcontracting companies and by domiciling them in the DRC so that they produce goods. effects in the national economy, such as creating jobs, stimulating the economy of production and increasing deposits in banks.”

Is the law on Subcontracting an opportunity or a threat?

  • Yves Kabongo, CEO The Icon Group: “We can not talk about legislation without taking into account the different players in the economy, we must identify them according to their activity and coverage area. positive in favor of Subcontracting companies in order to capture the economic flows issued by multinationals.In fact, the law must be used as a prosthesis to restore balance.”

Was the law created to bring out Congolese entrepreneurs?

  • Simon Tuma Waku, President of the DRC Chamber of Mines and Vice-President of the FRC: “The law gives an opportunity for foreign investors to seize it to create wealth where they invest. communities secure their investments.”

What do Eastern Congolese entrepreneurs think of this law?

  • Ben Mwangachuchu, CEO Mining Company of Bisunzu. “I regret that the law does not take into account aspects such as calls of tenders open to all, support in training and financing Congolese businessmen should be allowed to meet the requirements of international standards. ”
    Is it easy to have funding to carry out projects.”

Is it easy to have funding to carry out projects??

  • Eric Monga, DG Trade Service: “Yes and no, Congolese have been disadvantaged for a long time in getting markets because they did not have the financial capacity to meet the requirements of the market givers.”

Why can not Congolese get fundings to start their activities?

  • Jean-Claude Thetika of the “Fonds pour L’Inclusion Financière en RDC”, says “we must think of the seed fund to support Congolese companies.To return to the law it does not affect only the mining sector but concerns many others types of SMEs.) And expresses a reservation: if today the central bank is struggling to properly supervise microfinance institutions, we ask the question how the ARSP will take to manage the sub contracting companies.”

Can small entrepreneurs in Rutshuru be concerned by the law?

  • Carlos Kalambay, DG FPM SA: “We need to think about the mechanisms of collaboration. Given the current financial situation, the Congolese entrepreneur is stereotyped by financial institutions, banks and microfinance institutions. There will be a need to put in place corrective measures to restore confidence with Congolese investors and better regulate them so that they respect their commitments.”
  • Cyrille Mutombo, Country Director of Barrick and Kibali Goldmines. “Kibali has created a process for transferring skills, for example, today there are Congolese who can build dams and hydro-electric power stations.”

What are the next concrete actions of the ARSP?

  • Ahmed Kalej Nkand: Multinationals must get rid of their habits and learn to work with nationals. The idea of ​​the law is not to snatch what they see as theirs. The aim is to encourage them to collaborate more with the local population. By making a transfer of knowledge, training them, updating them so that the nationals do a good service to these companies. Ahmed Kalej Nkand announces the preparation of the general states of subcontracting to identify subcontracting companies. An online form will be operational soon.
  • Eric Monga, DG Trade Service: Banks must get rid of stereotypes around the Congolese businessman. They must think differently to better support Congolese investors.
  • Yves Kabongo. We must train the Congolese businessman, give him information and guide him in business.
  • Jean Claude Thetika: We need to create public investment funds to support Congolese investors.

Video


The SULTANI MAKUTANO 5 Forum had the honor of counting among its participants:

  • Félix Tshisekedi, Président de la République Démocratique du Congo,
  • Mahamadou Issoufou, Président de la République du Niger,
  • John Dramani Mahama, ex-Président du Ghana,
  • Ellen-Johnson Sirleaf, ex-Présidente du Liberia,
  • Samuel Eto’o, footballeur et Président de la fondation Eto’o,
  • Madame Denise Nyakeru Tshisekedi, Première Dame de la République Démocratique du Congo,
  • Jeanine Mabunda Lioko Mudiayi, Présidente de l’Assemblée Nationale de la République Démocratique du Congo.

Et par ordre alphabétique: Abary Souaibou DG Afriland First Bank RDC, Agnès Mwad Nawej, DG de CNSS, Ahmed Kalej Nkand, DG ARSP, Al Kitenge, AL & LEGACY, Alain Foka, RFI, Alain Kaninda, DG de l’ARCA, Alain-Thierry Mbongue, chef de mission Afrique de l’Ouest francophone et centrale, AfreximBank, Albert Yuma, Président de la FEC et PCA de la Gécamines, Alix Panizzoli, co-fondatrice de Art Time, André Yoka Lye Mudaba, DG de l’INA, Anne Mbunguje, Directrice de Cabinet Minitre du Budget, Anthony Nkinzo, DG ANAPI, Anwar Soussa, CEO de Vodacom, Armand Arton, Président et CEO de Arton Capital et Directeur associé de Arton Investments, Aude Benzu, fondatrice de ITSINA, Audrey Maignan, Proparco, directrice régionale Afrique Centrale en poste à Douala , Auguet Kabwit, Family Business Conference, Awa Seck, Représentante résidente d’ONU FEMMES en RDC, Balufu Bapuka Kanynda, scénariste, producteur et Directeur de films, enseignant de cinéma, écrivain et poète, Baraka Kabemba, Ernst & Young RDC, Ben Mwangachuchu, PDG Société Minière de Bisunzu, Benjamin Tatete, DG de TVC, Blaise Mbatshi, BMGG Management Consultant, Carlos Kalambay, DG FPM SA, Carly Nzangu Kasivita, Gouverneur de la province du Nord-Kivu, Christelle Dibata, HORECA, Christian Kamanzi Muhindo, DGA Rawbank, Christine Decelle, Espace Texaf Bilembo, Constant Omari, Président de la Fecofa, Cyrille Mutombo, Directeur pays de Barrick et Kibali Goldmines, Dario Merlo, fondateur et PCA de Kivu International School, Didier M’Pambia, DG Agence Optimum, Djo Moupond, Sodeico Holding, Docteur Ana Bila, Cabinet BILAM, Docteur Cheik Kante, Ministre en charge du plan Sénégal émergent, Docteur Serge Hollen, Directeur et administrateur de Médecins de Nuit, Docteur Sulu, PCA centre hospitalier Nganda, Dominique Migisha, Conseiller spécial du Président de la République en charge du numérique, Ebambi-Isabelle Katayalu, administrateur technique de l’Office National de l’Emploi, Eric Monga, DG Trade Service & Kipay Investments, François Pujolas, Ambassadeur de France en RDC, Freddy Tsimba, sculpteur, Gety Mpanu Mpanu, directrice de cabinet adjoint du Chef de l’Etat de la RDC, Gisèla Mudumbi Van Houcke, Zuri Hair Luxury Ltd, Gisèle Mudiay, Avocate et consultante, Gisèle Mudiay, UBA, Gracia Kabanga, Responsable du pôle agribusiness du Groupe SOMIKA, Guillaume Studer, co-fondateur de Art Time, Guy-Robert Lukama, DG de Fimosa Capital, Henri Kalama, Académie des Beaux-Arts de Kinshasa, Henri N’Zouzi, Président de Ochola Network (Net’Info.tv), Henri Plessers, Directeur exécutif du cabinet Financialis ACM Kinshasa, Henry Bundjoko Banyata, Historien de l’art et muséologue, Hervé Kyungu Diakese, Avocat, Hervé Ngoy Kalumba Banza, TIAfrica & HNK & Associates, Innocent Nkongo Budina Nzau, Avocat consultant en climat des affaires, Jean Bamanisa, Gouverneur de la province de l’Ituri, Jean-Claude Mabenze, Gouverneur de la province du Sud-Ubangi, Jean-Claude Thetika, Fonds pour L’Inclusion Financière en RDC, Jean-Michel Champault, collectionneur d’art, Jean-Pierre Kasay, Directeur de l’éducation civique, Ministère de la Jeunesse, Point focal YouthConnect RDC, John Sana Kanyoni, DG Metachem, Joss Ilunga, CEO de Dijimba sarl, Justin Chinyanta, banquier d’affaires, DG de Loita Ltd, Kalaa Mpinga, Administrateur de Feronia-PHC, Laetitia Kandolo, Créatrice mode congolaise et styliste, Laurent Rudasingwa, Représentant résident adjoint du PNUD, Louis Watum, DG Ivanhoe Mines RDC, Lydie Omanga, Directrice de la Communication Présidence de la RDC, Mabolia Yenga, Conseiller principal au ministère des Mines, Marceline Kaozi, DG de MKF-Consulting, Marlène Ngoyi Mvidia, ADG de BGFI Bank RDC, Martin Kabuya, Gouverneur de la province du Kasaï-Central, Maurice Tshikuya, DG de l’INPP, Mireille Kabamba, Managing Director CANAL+ RDC, Moustapha Sow, CEO de SF Capital, Moustapha Sow, CEO de SF Capital (sénégal), Nelly Kwende, Experte en économie numérique, Nicolas Kazadi, Amabssadeur itinérant du Chef de l’Etat, Nicole Sulu, Fondatrice du Sultani Makutano et CEO du Groupe Sulu, Noella Coursaris, Modèle international et Fondatrice de Malaika, Noura Hamladji, directrice adjointe du Bureau Régionale pour l’Afrique, Olivier Ndombasi, Groupe Pelou, Pascal Kanik, fondateur de School APP, Patrick Muyaya Katembwe, Député National et Président du Réseau des jeunes parlementaires, Pierre Atepa Goudiaby, Atepa Technologies, Raissa Malu, Ambassadrice du Next Einstein Forum pour la RDC, Richard Muyej, Gouverneur de la province du Lualaba, Roger Masamba, Président de la commission nationale OHADA, Sam Yongo, DG de MC TELECOM et inventeur de la Power Junction Box, Sandrine Mubenga, Directrice de SMIN Power Group (USA, energie renouvelable), Seynabou Dia, CEO de GLOBAL MIND CONSULTING, Simon Tiemtore, CEO de Vista Bank Group et de Lilium Capital (Burkina), Simon Tuma Waku, Président de la Chambre des mines de la RDC et vice-Président de la FRC, Stéphanie Taky Funga, PDG et fondatrice de Waz Burger, Stéphanie Taky, Waz Burger, Steve Munga, PDG de Cinékin, Sylvain Mudikongo, Directeur exécutif de Gold & General, Sylvia Serbin, Journaliste et historienne franco-afro-antillaise, Tony Elumelu, Chairman du groupe Elumelu, Tosi Mpanu Mpanu, Négociateur en chef de la RDC pour le processus de négociations sous la Convention Climat de l’ONU, Valérie Neim, DG du Crédit Coopératif Participatif du Cameroun CCPC, Vincent Tshiongo, DG de Africa Rail Opportunities, Vitshois Mwilambe Bondo, Peintre, plasticien, vidéaste et performer, Wale Adeosun, PDG de Kuramo Capital Management (USA), Willy Mulamba, DG de CITI RDC, Willy Yav, Pygma Group, Youssef Travaly, Vice-Président du Next Einstein Forum & Président de AIMS, Yves Cuypers, DG de BCDC, Yves Kabongo, CEO The Icon Group, Yves Mayilamene, Directeur exécutif Ressources humaines Ecobank, Yvonne Kusuamina, PDG Pay Network, Yvonne Mbala, directrice générale de PERENCO RDC, Yvoire De Rosen, Journaliste, présentatrice TV, Michel Gohou, Comédien humoriste, Digbeu Cravate, Comédien humoriste, Etienne Proesmans, Président du Spa Waux All Club