An Analysis of the Enforcement of Subcontracting Policy in Private Sectoe in Local Shunting Transport in Katanga

Abstract

The local shunting transport service providing is very strategic in the mining and extractive sector in Katanga where it has been the fastest growing socioeconomic domain in the Democratic Republic of Congo since 2002. The mining and extractive sector in the DR Congo supported its National Gross Domestic Product (GDP) growth of 5.7% in 2025. However, there has been no transparency, no balance, no fairness, no equity, no equilibrium in the distribution of subcontracting works among local nationals SMEs by main and foreign contractors as recommended in the subcontracting policy. Even if the financial and technical capacity among local nationals SMEs were inadequate, in order to enhance the participation of local entrepreneurs and the rise of local expertise through priority access to subcontracting contracts, the Government of the Republic introduced the mandatory subcontracting policy. However, complaints on the operation and implementation of the policy were raised to push the researcher to undertake this study aimed at reviewing and analysing the enforcement of the subcontracting policy in private sector in the local shunting transport service providing in Katanga mining sector. At the end a framework that can help increase local SMEs participation has been suggested. The review of legal existing documentation and literature, the conducted semi-structured interviews administered, lead to finding challenges, deficiencies and constraints in the subcontracting policy implementation. Throughout this study, it was established that without drastic intervention from the government to stop favouritism, tribalism, nepotism, bribery, and big firm from taking decision in isolation, the subcontracting policy, will remain unenforced and unsustainable. Its performance shall be evaluated unsatisfactory in the private sector in local shunting transport service providing in Katanga in particular and in the country in general. In view of the above, to address the challenges faced by local nationals’ contractors and subcontractors in the business sector, it is important for the government to review and evaluate the policy with regard to capacity building of both the regulatory bodies and the local nationals’ entrepreneurs. Based on the findings, a framework putting SMEs at the centre of actions and which would enhance local participation in subcontracting activities in the mining sector was developed. The model is suggested to work under closer assessment of the works to subcontract by the government, the ARSP with the regulatory bodies and expert from the Divisions of transport and the customers.