Democratic Republic of Congo curbs aggressive tax collection in mining sector

Democratic Republic of Congo curbs aggressive tax collection in mining sector

President Tshisekedi orders restraint in fiscal enforcement against mining firms

The Democratic Republic of Congo’s President Félix Tshisekedi has directed tax authorities to scale back aggressive recovery measures targeting mining companies, warning that such tactics undermine investor confidence in the sector. The directive follows a cabinet meeting in Kinshasa, where the Head of State highlighted concerns over repeated account seizures, asset freezes, and inconsistent tax policies that escalate operational costs for miners.

As the world’s top cobalt producer and Africa’s second-largest copper exporter, the DRC relies heavily on mining revenues. Officials argue that abrupt fiscal actions not only burden operators but also erode the country’s competitive edge in attracting foreign investment.

Shifting from confrontation to cooperation

In response, the President has instructed the Ministries of Economy, Finance, and Mines, along with tax agencies, to ensure any recovery actions are legally justified and applied only in exceptional cases. He emphasized prioritizing dialogue, advance notifications, and mediation as outlined in national legislation to resolve disputes before resorting to coercive measures.

Addressing government officials, Tshisekedi outlined his vision for a more competitive and transparent mining industry, built on stable regulations, predictable administrative decisions, and continuous engagement between public authorities and private operators.

The move comes amid strained relations between Kinshasa and several multinational mining corporations. Last year, the Inspectorate General of Finance accused firms including China’s CMOC and Switzerland’s Glencore of underreporting billions in revenue, thereby reducing their contributions to state development funds. Both companies denied the allegations.

Shortly before the presidential directive, Congolese tax authorities shut down Glencore’s local offices over a fiscal dispute. The company reiterated its commitment to ongoing discussions with authorities while denying any wrongdoing. It remains unclear whether the President’s instructions were directly linked to this case, as the presidency has not yet responded to inquiries.

The Head of State also called for an immediate withdrawal of military and police personnel unlawfully stationed at mining sites. He asserted that such unauthorized presence fuels smuggling, fraud, and insecurity, while damaging the DRC’s reputation as a stable investment destination.

theafricantribune