Representing the Fédération des Entreprises du Congo (FEC), and at the same time a committed player in the Congolese entrepreneurial ecosystem, Lionel Kabeya took part this Thursday, October 20, 2024, in the inauguration of the Pan-African Data Center named Silikin village.

In his address, Lionel Kabeya delivered a poignant speech on the crucial importance of the Startup Act in the Democratic Republic of Congo, recalling the need to take measures to implement Ordinance-Law no. 22/030 of September 08, 2022 on the promotion of entrepreneurship and startups. This ordinance was adopted in the hope of creating an environment conducive to the emergence of national champions. Unfortunately, two years after its signature, this law remains a dead letter.

Retracing his career path, Lionel Kabeya spoke of the many challenges facing Congolese entrepreneurs.

“Among these challenges are limited access to financing, complex administrative procedures and lack of networks. Difficulties that are holding back the development of many promising initiatives”, he enumerated, before
before calling for urgent action.

“I therefore appeal to the public authorities, to players in the ecosystem and to all Congolese to ensure that the Startup Act is finally implemented. Because this law is an essential lever for creating jobs. Startups are engines of growth and employment. It will also foster innovation. New technologies, new products and services to improve everyone’s lives”, he added.

This expert is of the opinion that this creation will also enhance the country’s attractiveness. A dynamic entrepreneurial ecosystem attracts foreign investors and strengthens the DRC’s international reputation.

Untapped potential

Lionel Kaveya also pointed out that the DRC has immense entrepreneurial potential, with almost 600,000 SMEs by 2022. However, this figure is still well below that of Nigeria, which has over 35 million SMEs.

“The benefits of a Startup Act are not limited to startups. It’s a virtuous circle that benefits everyone: job creation, social impact, improving the daily lives of entrepreneurs and citizens alike. The Startup Act represents a unique opportunity for the DRC to strengthen its economic fabric and become a major player in African innovation. It’s time to turn promises into reality and give Congolese entrepreneurs the means to succeed. “To Pesa Startup Act Chance”, he asserted.

Startup Acts are new, comprehensive legal instruments designed to encourage the creation and development of startups by taking into account their specific needs.

AGNES KAYEMBE

Stakeholders across the globe should adopt an investment agenda of US$21 billion to realize the potential of “off-grid” solar energy, contributing to universal access to energy.

This estimate comes from a new report by the Energy Sector Management Assistance Program (ESMAP), in partnership with the World Bank and the Global Off-Grid Lighting Association (GOGLA).

Entitled “Off-Grid Energy Market Trends Report 2024”, the source notes that mini-grids would have the potential to supply electricity to 500 million people by 2030.

In the opinion of the report’s authors, off-grid solar power is the most cost-effective way to provide electricity to 41% of the world’s people who still have no access to electricity by 2030, and the sector has already secured 55% of new connections in sub-Saharan Africa between 2020 and 2022, where more than 80% of the non-electrified population lives.

Without concrete action, the current trajectory is likely to persist, leaving 660 million people without electricity by 2030.

Despite galloping inflation and extreme currency devaluations, among other factors, over 50 million off-grid solar products were sold in 2022 and 2023.

Market sales reached USD 3.9 billion in 2022 and USD 3.8 billion in 2023.

Flory Musiswa

The execution of the Government of the Democratic Republic of Congo’s (DRC) cash flow plan at the end of September 2024 revealed a surplus of 80.8 billion Congolese francs (CDF), or 28.3 million USD, well below the 169.8 billion CDF forecast for this fiscal year.
This counter-performance raises questions about the country’s financial management and budget forecasts.

“At the end of September 2024, the execution of the Government of the Democratic Republic of Congo’s cash flow plan resulted in a surplus of 80.8 billion Congolese francs (CDF), compared with the programmed surplus of 169.8 billion Congolese francs (CDF)”, states the Central Bank of Congo.

The cash-flow plan, designed to rationalize public spending, was put in place following recommendations from the International Monetary Fund (IMF).

Experts believe that this surplus could be attributed to less effective revenue mobilization than expected.

Fluctuations in the prices of raw materials, essential to the Congolese economy, also had an impact on forecasts.

However, the Congolese government has promised to improve transparency and management of public finances. Reforms are underway to strengthen revenue collection and optimize spending.

Critics also point to a lack of anticipation in the face of economic challenges. The need for better budget planning has become apparent to avoid such deviations in the future.

International support, notably from the IMF and the World Bank, remains crucial. These institutions condition their aid on structural reforms and better economic governance.

The DRC must therefore navigate cautiously in this uncertain economic context.

The current surplus could provide an opportunity to strengthen budgetary capacities, but this will depend on the central government’s compliance with its financial commitments.

Although the cash surplus is a positive sign, it must be interpreted with caution. The authorities must ensure that it does not mask structural weaknesses in public finance management.

Mitterrand MASAMUNA