The Democratic Republic of Congo's Autoridade de Regulação da Subcontratação no Sector Privado (ARSP) has ordered Société sino-congolaise des mines (SICOMINES SA) to end contracts with non-eligible subcontractors. The order was made in Kinshasa, the capital city of the Democratic Republic of Congo. According to a communiqué, SICOMINES was instructed to stop working with subcontractors that do not meet the required conditions. This decision was made in accordance with the law of June 30, 2026, relating to the execution of contracts.
The ARSP regulator found that SICOMINES had awarded contracts to companies that did not fulfill the conditions of eligibility as stated in Article 6 of the law. These companies were found to be executing contracts worth 80% of the total turnover of all subcontractors. The regulator has given SICOMINES 30 days to present a corrective plan, which includes measures to end the execution of these contracts and withdraw the non-eligible companies from their subcontractor files.
The law of June 30, 2026, reserves subcontracting activities for Congolese companies with their headquarters located in the national territory. The law also provides for derogations under certain conditions. The ARSP regulator emphasized the need to apply the subcontracting legislation in all its rigor to open up the value chain of main companies to eligible subcontractors.
The decision aims to balance the need to open up subcontracting opportunities to Congolese companies and allow them to compete equally for tenders launched transparently by main companies. The regulator seeks to ensure that subcontracting activities are carried out in a transparent and fair manner.
SICOMINES SA is a Chinese-Congolese mining company operating in the province of Lualaba, Democratic Republic of Congo. The company has been instructed to attribute, renew or extend no subcontracting contracts to companies that do not meet the required conditions. The ARSP regulator will monitor SICOMINES' compliance with the new regulations.
The ARSP regulator's decision is part of its efforts to regulate subcontracting activities in the private sector. The regulator aims to promote fair competition and ensure that subcontracting activities benefit Congolese companies and the national economy.
The Congolese government has been working to improve the business environment and promote economic growth. The regulation of subcontracting activities is part of these efforts, which aim to increase transparency and fairness in business operations.
Key points
- The ARSP regulator has ordered SICOMINES to end contracts with non-eligible subcontractors.
- The decision aims to promote fair competition and open up subcontracting opportunities to Congolese companies.
- SICOMINES has been given 30 days to present a corrective plan to the ARSP regulator.
