BDD to start operations in DRC

Audit and advisory firm BDO East Africa is due to start operations in the Democratic Republic of Congo DRC in October, joining a growing number of Kenyan firms that are setting up shops in the East Africa Community's newest member state.

More than 20 Kenyan firms have offered to make trade investments in the DRC market, despite the fact that the largely untapped market has recently attracted more than 20 Kenyan firms. Equity Group, which acquired Banque Commerciale du Congo in 2020, has taken over ProCredit in the same market to set up its EquityBCDC subsidiary.

The entry of BDO shows that firms offering professional business support are beginning to follow their trading and manufacturing peers to the DRC, expecting to help them navigate the legal, tax, and regulatory environment in the country.

BDO East Africa chief executive Sandeep Khapre said there was growing demand for such services by companies that are setting up trading operations in the DRC, as well as existing Congolese businesses that have not had access to such services previously.

We have experience setting up operations in new territories that have made it possible for clients to access the latest in financial services solutions that are becoming increasingly necessary to navigate the changing business landscape. Our soon-to- be-open Kinshasa office will offer clients these solutions, said Mr Khapre.

BDO East Africa is part of BDO International, a global network of public accountancy firms in 167 countries. The firm has offices in Kenya, Uganda, Tanzania, Rwanda and Ethiopia in the East Africa region.

The move by firms to set up shop in the DRC was similar to what happened in 2011 when South Sudan gained independence and later joined the EAC, attracting regional capital as businesses tried to take advantage of the nascent market in an oil-backed economy.

Civil strife has hurt the prospects of businesses in South Sudan, including banks that have suffered high rates on non-performing loans.

In 2014, KCB shut three branches in South Sudan after war broke out, while Equity Bank closed seven of its 12 branches in the country in 2017.

The DRC has also experienced strife but enjoys a relative calm in most major cities and a large market of 90 million people.

In April, a trade mission organised by the Kenya and DRC governments in partnership with Equity Group saw 26 Kenyan companies commit to investing up to $1.6 billion, or 189 billion, in the DRC Equity Group, according to Rentco Africa Limited, Optiven Group, Jumbo Foam Limited, BIDCO, Geomaps, and Nyanja Associates.

DRC President Felix Tshisekedi said his government would put in place reforms to protect investment, improve the legal and security environment and improve tax systems to allow the flow of goods in and out of DRC and allow access to loans for economic co-operators.