In the DRC, women entrepreneurs struggle to enter the formal economy

In the DRC, women entrepreneurs struggle to enter the formal economy

2024-04-09 22:10:04

In the Democratic Republic of Congo, more than 80% of women entrepreneurs operate in the informal sector. This does not allow them to develop their activity or contribute to Congolese tax resources. In Lubumbashi, a civil society structure, Heshima International, which recently organized a forum for women entrepreneurs in the DRC, encourages the formalization of these businesses.

With our correspondent in Lubumbashi,

Marlène is a young breeder of laying hens and broilers. She longs to declare her activity, but she still has fears. “ I want to enter the formal sector. But, my capital is low, and I fear that all my little money will be absorbed by administrative formalities “, she explains.

This other entrepreneur, who works in small businesses, is discouraged by a business climate that is not very favorable to micro-enterprises. “ Documents are expensive. And when the business is legalized, there are too many taxes to pay “, she complains.

The problem ? It’s the lack of information, says Me Diginité Bwiza, national director of Heshima International. This structure recently organized a forum for women entrepreneurs from RDC. « When you don’t know how much it costs to register a business at the one-stop shop, you get scared. And yet, it only costs $110, plus bank fees. Very often, state agents take advantage of women’s ignorance to extort them », explains Me Diginité Bwiza.

Obtain credit, land big contracts

Marioutcha Mwanza runs a luxury clothing boutique. Rewarded with a prize, she is one of 19 women entrepreneurs who accepted the NGO’s support to exit the informal sector. “ When we are in the informal sector, we are limited. There is no security and insurancerecognizes the entrepreneur. In our city, for example, sometimes young people demonstrate in the street and goods are looted. Since the State does not know us, we cannot benefit from a refund. »

Despite tax requirements, the transition from the informal to the formal sector has advantages for the entrepreneur. “ There is the question of credit. No one can trust this type of business when you don’t have an address, you aren’t registered. And then there are opportunities to be seized. When we are formalized, we also have the possibility of winning big contracts from other companies. », argues Séraphin Bukasa, the head of Tyche Financials SARL, an accounting consultancy firm.

The organization is committed to supporting 19 women who worked in the informal sector to help them migrate to the formal sector. They will benefit from free drafting of their statutes, training on maintaining the financial statements of their company, and coverage of costs for registering their company in the commercial register.

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