Balancing fiscal recovery with investor confidence in Congo’s mining sector

President Félix Tshisekedi has directed DRC’s tax authorities to adopt a more measured approach to enforcing fiscal recovery against mining companies, warning that aggressive tactics risk undermining the sector’s appeal to foreign investors. This directive follows discussions during a recent cabinet meeting in Kinshasa, where the head of state emphasized the need to preserve the country’s economic competitiveness.

As the world’s leading producer of cobalt and Africa’s second-largest copper supplier, the Democratic Republic of the Congo relies heavily on mineral exports for its revenue. The president has criticized financial regulators for their practice of freezing corporate bank accounts and imposing unpredictable tax measures, which he argues inflate operational costs, weaken sector competitiveness, and deter potential investments.

Prioritizing dialogue over coercion in fiscal enforcement

To address these concerns, Tshisekedi has instructed the Ministries of Economy, Finance, and Mines, along with relevant financial authorities, to ensure that any recovery actions are legally justified and implemented only in exceptional cases. He has advocated for a stronger emphasis on dialogue, advance notifications, and mediation mechanisms as outlined in Congolese law.

In his address to government officials, the president outlined his vision for a mining sector characterized by competitiveness and transparency. This vision hinges on a stable legal framework, predictable administrative decisions, and ongoing collaboration between the state and business operators.

Navigating ongoing disputes with multinational miners

These instructions come amid persistent tensions between Kinshasa and major mining multinationals. Last year, the Inspectorate General of Finance (IGF) accused several companies—including China’s CMOC and Switzerland’s Glencore—of underreporting billions in revenue, thereby reducing their contributions to state development funds. The accused firms have denied these allegations.

Days before the president’s directive, Congolese tax authorities temporarily shuttered Glencore‘s local offices over a tax dispute. The Swiss multinational has since reaffirmed its commitment to constructive engagement with authorities while denying any wrongdoing. It remains unclear whether the president’s instructions were directly tied to this incident, as the presidency has not yet responded to inquiries.

In a separate but related move, Tshisekedi ordered the immediate withdrawal of military and police personnel stationed illegally on mining sites. He argued that such unauthorized presence fuels fraud, smuggling, and insecurity while harming the DRC’s reputation as an investment destination.