Audit and advisory firm BDO East Africa is set to start operations in the Democratic Republic of Congo DRC in October, joining a growing number of Kenyan firms that are setting up shop in the East Africa Community's newest member state.
More than 20 Kenyan firms are offered a commitment to make trade investments because of the largely untapped DRC market. Equity Group acquired Banque Commerciale du Congo in 2020, having earlier 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, hoping 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 in 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. The Kinshasa office will offer clients these solutions, according to Mr Khapre.
BDO East Africa is part of BDO International, a 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 mirrors 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.
The prospect of businesses in South Sudan, including banks that have suffered high rates on non-performing loans, has been hurt by civil strife.
In 2014, KCB shut three branches in South Sudan after the war broke out, while Equity Bank closed seven of its 12 branches in the country in 2017.
The DRC has also had some 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 invest up to $1.6 billion Sh 189 billion in the DRC Equity Group, including Rentco Africa Limited, Optiven Group, Greenlight Planet Limited, 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 the tax system to allow the flow of goods into and out of DRC and allow access to loans for economic co-operators.