The Democratic Republic of Congo's Autoridade de Regulação da Subcontratação (ARSP) has marked 100 days under the leadership of Ted Beleshayi Kasanda, with several economic operators expressing optimism about the regulation of the private sector. Stakeholders, including representatives from the Club Nacional dos Subcontratantes, have welcomed the increased willingness to clean up the market, combat proxy companies, and allow Congolese enterprises to access opportunities generated by private investments more equitably.

According to Gabriel Tshitende, director-general of Elephant Trade, the challenge goes beyond mere administrative oversight of companies. He emphasized that it is crucial to create conditions that enable Congolese entrepreneurship to develop in an environment free from practices that distort competition. Tshitende stressed that regulation is essential to sanitize the sector and create a level playing field for Congolese businesses. This is a prerequisite for establishing a genuine network of Congolese companies that can benefit from markets linked to significant investments in the mining, industrial, and infrastructure sectors.

One of the concerns expressed by operators is the phenomenon of proxy companies, which continues to draw criticism. This practice involves structures appearing to be Congolese companies on paper but with real interests or economic control linked to other actors. Patrick Kasenda, director-general of Purcee Industrial Africa, noted that the situation has improved since the new leadership took over at ARSP. Kasenda stated that previously, there were many complaints about proxy companies, but now the new director-general is opening up space for Congolese entrepreneurs.

The issue of control remains crucial for stakeholders, who believe that effective regulation cannot be limited to the establishment of rules. It also requires mechanisms to identify irregularities, document them, and apply sanctions when facts are established. Landry Meya, CEO of Akata RDC, emphasized that the fight against proxy companies must remain at the heart of ARSP's action. Meya described proxy companies as a scourge that hinders the country's progress and advocated for a sufficiently operational structure to sanction proven cases.

Beyond the 100-day milestone, stakeholders are urging ARSP to tackle a longer-term challenge. The goal is to create an environment in which Congolese companies have real access to markets, respecting competition rules and legislation in force. This involves sanitizing the sector, reducing circumvention practices, and strengthening controls while providing greater visibility to national companies. Stakeholders believe this approach could enable subcontracting to become a genuine instrument for creating local value rather than a simple administrative mechanism for distributing markets.

Representatives of the Club Nacional dos Subcontratantes believe that this orientation could allow subcontracting to go beyond its status as a simple component of private demand and become one of the drivers of the emergence of a more robust Congolese entrepreneurship. After his first 100 days, Ted Beleshayi Kasanda is expected to demonstrate ARSP's ability to sustain this dynamic over time. The regulation of a sector also raises the broader question of the place that Congolese entrepreneurs can genuinely occupy in their country's economy.

As the sector continues to evolve, stakeholders are hopeful that the new regulatory dynamic will translate into tangible benefits for Congolese businesses. With the ARSP's efforts to sanitize the market and combat proxy companies, entrepreneurs are optimistic about their prospects for growth and development. The coming months will be crucial in determining whether this new dynamic will lead to a more equitable and sustainable economic environment for Congolese companies.

Key points

  • ARSP's new leadership has brought a fresh dynamic to the regulation of Congo's private sector, with stakeholders welcoming efforts to combat proxy companies and promote Congolese entrepreneurship.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.