The Central Bank of Congo (BCC) tightened its regulations against mining and oil operators. According to a memo from AKILI Consulting, whose client portfolio includes major mining companies such as Kamoa Copper and Kibali Gold, fines for failure to declare bank details for foreign accounts have surged by over 1,000%, rising from 5,000,000 Congolese francs (CDF) to CDF58,680,000, equivalent to approximately $1,786 to $20,957.

AKILI Consulting, which manages operational risks linked to non-compliance with foreign exchange regulations, also reports that the BCC has introduced new sanctions. False declaration of accounts is now punishable by a fine of CDF234,720,000, while transfers via shell companies incur a penalty equivalent to 35% of the amount transferred.

While AKILI did not specify the reasons behind these central bank decisions, the measures seem focused on improving transaction traceability and ensuring the repatriation of export revenues to the country. This strategy aligns with broader efforts to stabilize the Congolese foreign exchange market, which has been affected by the depreciation of the Congolese franc.

Similar measures were implemented in 2017 to compel mining operators to repatriate their export earnings as mandated by law, to supply the financial system with foreign currency.

Article 269 of the Mining Code of the Democratic Republic of Congo (DRC) imposes strict rules on mining title holders regarding export revenue repatriation. During the amortization phase of their investment, operators may retain 40% of their export revenues in foreign accounts. However, they must repatriate the remaining 60% to an account opened in the DRC within 15 days of receipt. Once the investment is amortized, all revenues must be repatriated to the DRC. Mining companies continue to face challenges in complying with this law.

AKILI Consulting is headed by Arlette Mboyo, a member of the Board of Directors of Bank of Africa’s subsidiary in the DRC (BOA RDC).

This article was initially published in French by Timothée Manoke (intern)

Edited in English by Ola Schad Akinocho