The Democratic Republic of the Congo is set to strengthen its legal framework governing subcontracting in the private sector. A bill amending Law No. 17/001 of Feb. 8, 2017, introduced by Minister of Entrepreneurship and SME Development Justin Kalumba Mwana-Ngongo, has been approved by both chambers of Parliament. It will now be sent to the President for promulgation.

According to the minister who introduced the bill, the new legislation aims to address shortcomings identified in the implementation of the original law. It reaffirms the principle that subcontracting activities are reserved exclusively for companies with majority Congolese ownership, while expanding the powers of the Regulatory Authority for Subcontracting in the Private Sector (ARSP).

Among the proposed measures are the introduction of a preliminary registration certificate for subcontractors, the establishment of a dispute resolution mechanism for subcontracting contracts, and stricter oversight of contractual relationships between lead companies and subcontractors.

Stronger sanctions

The most sensitive aspect of the reform concerns penalties. Lead companies that enter into subcontracting agreements in violation of legal provisions would face fines ranging from 200 million to 300 million Congolese francs. This represents a significant increase from the 2017 law, which provided for fines of between 50 million and 150 million Congolese francs.

In cases of repeat violations, a temporary closure could be imposed until compliance is achieved.

The bill also introduces sanctions against subcontractors themselves, particularly when they fail to meet their obligations after receiving advance payments. In the event of a repeat offense, a company found in violation could be barred from carrying out any subcontracting activity for up to three years.

Another major innovation is the introduction of Article 13 bis, which grants the ARSP the authority to develop a mandatory standard contract for subcontracting operations. The regulator would also be empowered to identify clauses deemed abusive, one-sided or unfair, and require their amendment in order to better protect Congolese subcontractors in their dealings with major contractors.

Legal debate

The reform comes as the ARSP has stepped up compliance and enforcement actions in recent months. Between February and April 2026, more than 450 subcontracting contracts signed by various companies, including Kibali Gold Mine, Matadi Gateway Terminal, CILU, CICO, PPC Barnet and CIMKO, were the subject of enforcement decisions issued by the authority.

The ARSP ordered those companies to cancel or bring contracts into compliance where they were deemed non-compliant, particularly when the subcontractors involved did not meet the eligibility requirements established under Congolese law.

However, the regulator’s growing role has also fueled a legal debate. Some legal practitioners argue that the ARSP cannot replace the courts in annulling contracts. Under this interpretation, its role should be limited to oversight, identifying irregularities and ordering compliance measures, while the final cancellation of a contract should fall under the authority of the judiciary or dispute resolution mechanisms provided for by law.

Economic stakes

The strengthening of the legal framework could therefore help clarify some of these tensions by giving the ARSP more precise tools to oversee contracts, prevent abuses and resolve certain disputes. But it could also increase the constraints facing large companies, which are already under growing pressure to open more of their value chains to Congolese firms.

For the government, the issue is both economic and political. Subcontracting is presented as a tool for economic sovereignty, job creation and the emergence of a Congolese middle class. However, its effectiveness will also depend on the ability of local SMEs to meet the technical, financial and operational standards required by major contractors.

The reform therefore marks a new stage in the Congolese state’s effort to strengthen the integration of domestic companies into private-sector markets. It remains to be seen whether the tougher framework will effectively strengthen the local entrepreneurial ecosystem or lead to a new wave of disputes involving the ARSP, large companies and the affected subcontractors.

Ronsard Luabeya