• DRC miners demand $2B+ in unpaid VAT credits, cite business strain
• Industry reports losses, energy deficits, and excessive inspections
• Government forms follow-up committee after talks with mining sector

Mining companies operating in the Democratic Republic of Congo (DRC) are still demanding the state repay more than $2 billion in outstanding Value Added Tax (VAT) credits, labeling the debt a "major structural impediment" to their business development.

The claim was raised on Thursday, September 18, during the first consultative meeting between Mines Minister Louis Watum Kabamba and industry operators.

The DRC has implemented a VAT credit clearance strategy as part of its three-year economic program with the International Monetary Fund (IMF). According to Finance Minister Doudou Fwamba’s presentation to the Council of Ministers on March 21, 2025, reimbursement of VAT credits owed to miners is conditional upon several factors. These include debt certification, payment of the Excess Super Profits Tax (ISPE), adherence to fiscal obligations, repayment of subsidies improperly received on petroleum products, and acceptance of a write-down that could reach 20%.

This strategy is intended to "strengthen macroeconomic stability through a better supply of foreign currency" by correcting flaws in the reimbursement mechanism and allowing the state to recover a significant portion of the miners' tax debt. Despite these measures, operators report they are still waiting for their credits to be settled, suggesting difficulties in implementing the strategy.

Security, Energy, and Regulatory Harassment

In addition to the fiscal debt, mining companies denounced persistent security issues on their concessions, including intrusion by illegal artisanal miners, which one company reported led to up to $3 billion in losses. They also cited a chronic energy deficit hindering expansion projects, regulatory instability from annual changes in finance laws, and bureaucratic harassment.

Operators reported over 52 inspection missions by various government agencies since January 2025 alone.

"You can have all the minerals in the world, but if the cost of entry is too complicated, the rules are too complex, and then you have a plethora of inspections, some illegal, some legal but overly repetitive, you end up wearing out those who are here and repelling those who would want to come," warned business lawyer Romain Battajon.

Battajon, who also serves as the head of the legal commission for the Chamber of Mines of the Federation of Enterprises of Congo (FEC), advocated for the creation of a single revenue collection entity to avoid bureaucratic "layering."

Mines Minister Watum Kabamba promised to relay these grievances to the highest level of government. The meeting concluded with the establishment of a follow-up committee tasked with executing the formulated recommendations, developing an operational roadmap, and setting a periodic evaluation schedule to measure progress.

Ronsard Luabeya (Bankable)