• Mining companies in the Democratic Republic of Congo (DRC) claim more than $2 billion in unpaid VAT credits despite a government repayment strategy.
• Firms report additional challenges, including insecurity, illegal miners, energy shortages, and over 52 audits since January 2025.
• The Mines Ministry set up a follow-up committee to address industry concerns and monitor implementation of solutions.
Mining companies operating in the DRC demanded repayment of more than $2 billion in value-added tax (VAT) credits during a meeting with Mines Minister Louis Watum Kabamba on Sept. 18. They described the arrears as a “major structural barrier” to their operations.
The government adopted a three-year strategy with the International Monetary Fund (IMF) to settle VAT credits. Finance Minister Doudou Fwamba said on March 21 that repayment requires debt certification, payment of excess profit tax (ISPE), compliance with tax obligations, reimbursement of undue fuel subsidies, and acceptance of a haircut of up to 20%.
The strategy aims to stabilize the macroeconomic framework by improving foreign currency supply, fixing repayment system flaws, and allowing the state to recover a portion of fiscal revenues. However, operators say the measures have yet to result in actual repayments.
Mining Firms Report Additional Challenges
Beyond tax arrears, mining firms criticized ongoing insecurity at concessions and incursions by illegal artisanal miners. Companies reported losses of up to $3 billion for a single operator. They also cited energy shortages as obstacles to expansion and instability caused by frequent changes in annual finance laws.
Administrative pressure remains a concern, with firms facing more than 52 regulatory inspections since January.
“You can have all the minerals in the world, but if the entry ticket is too complicated, the rules too complex, and then you face a plethora of audits — sometimes illegal, sometimes legal but overly repetitive — you end up tiring those already there and discouraging those who might want to come,” said Romain Battajon, a business lawyer.
Industry Calls for Simplified Tax Collection
In an interview, Landry Djimpe, partner at Innogence Consulting and head of its DRC office, also president of the legal commission of the Mining Chamber at the Congolese Business Federation (FEC), called for a single revenue collection entity to replace the current fragmented system. He said this would avoid a “layer cake” of bureaucracy that hampers efficiency.
Mines Minister Kabamba pledged to escalate industry concerns to the presidency. The ministry set up a follow-up committee to oversee implementation of recommendations, draft an operational roadmap, and establish regular evaluations to track progress.
This article was initially published in French by Ronsard Luabeya
Adapted in English by Ange Jason Quenum
