Is DRC Ditching the Dollar? Mining Corporations Ordered to Pay in Congolese Francs

re posted from                        THE AFRICA REPORT

DRC: Miners to pay taxes in Congolese francs

By Kanika Saigal

Extractives bring in 46% of government revenue, so taxing mining companies in local currency is not such a bad idea.

In an effort to stem the decline of the currency, the Banque Centrale du Congo has ordered mining companies to pay their taxes in Congolese francs (CDF). The announcement followed a meeting on 17 July between President Félix Tshisekedi, central bank officials, the Ministry of Finance and bankers.

Other suggestions to strengthen the CDF were to hike interest rates further, for additional forex auctions to commercial banks, and for government bodies to pay civil servants’ salaries via bank transfer in the local currency.

“These new measures should be enough to temper the stress on the market especially in the short term,” says Willy Mulamba, Citi Country Officer for the DRC, and chairman of the Congolese Banking Association.

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