DRC: FENAPEC encourages Govt involvement in financial sector normalisation
The National Federation of Craftsmen and Small and Medium Enterprises in Congo (FENAPEC) alerted the DRC Government to the difficulties faced by firms when accessing credit during a press conference on August 27th in Lingwala.The National Federation of Craftsmen and Small and Medium Enterprises in Congo (FENAPEC) alerted the DRC Government to the difficulties faced by firms when accessing credit during a press conference on August 27th in Lingwala.
According to the organisation, the new law regulating microfinance is not sufficient. The rule, voted in this year, has been introduced in order to regulate microfinance activity in DRC by easing access to financial services.
One of its objectives is to solve the problems caused by the lack of integration of the informal sector in the real economy.
FENAPEC urged the Government to be more proactive in normalising the financial sector, suggesting the creation of a public bank, Le Potentiel newspaper reports.
It also believes interest rates are too high and questioned why foreigners "are ruling the banking sector in Congo".
The World Bank echoed these criticisms with the launch of a report on the economic situation in DRC, with extracts being published by Radio Okapi.
It defines three challenges for DRC: Lack of efficiency of the government initiatives, lack of infrastructure and a far from brilliant investment and business environment.
Study authors believe only big companies in DRC have seen an improvement in job creation, at the expense of smaller fims, although these are important employers.
Chairman of the Federation of Enterprises of the Congo (FEC) Jean Kalalale thinks it is unacceptable that smaller enterprises are struggling to get finance, although they are dominating the private sector in DRC.
"Enterprises in the formal sector contribute up to 80 percent of national revenue, but they only manipulate 30 percent of the real financial flow in the country", he told Le Potentiel.