DRC Mandates 10% Local Equity Transfer by July 31, 2026
The Democratic Republic of Congo (DRC) has issued a final directive to all international mining operators to surrender a combined 10% equity stake to Congolese nationals by July 31, 2026. The mandate, which enforces long-dormant provisions of the 2018 Mining Code, represents a significant escalation in the country’s "mining permits reform 2026" agenda. Companies failing to provide proof of compliance by the end of the month face administrative sanctions, including the potential suspension of operating permits and the denial of license renewals.
Mines Minister Louis Watum Kabamba confirmed the deadline in a circular distributed to major stakeholders, including Glencore, Ivanhoe Mines, and CMOC Group. The order requires companies to restructure their share capital to include a 5% stake for Congolese employees and an additional 5% for other Congolese natural persons. While the 10% local ownership rule has existed on paper for eight years, the 2026 enforcement push marks the first time the Kinshasa government has set a firm "comply or exit" ultimatum.
The 10% local ownership framework
The enforcement centers on Article 71 bis of the DRC Mining Code and Article 144 bis of the Mining Regulations. These statutes dictate that the 10% local equity must be non-dilutable, meaning foreign investors cannot reduce the local stake through future capital increases.
The equity transfer is divided into two distinct tranches:
- 5% Employee Shareholding: This stake is specifically reserved for Congolese workers. Under the 2026 implementing decree, these shares are typically held through a collective structure or cooperative.
- 5% Local National Interest: This stake must be held by Congolese individuals who are not necessarily employees of the firm.
To facilitate the transfer, the DRC government has outlined a financing mechanism where the mining company provides interest-free credit to allow Congolese nationals to acquire the shares. Up to 80% of the annual dividends generated by these shares can be withheld by the company to repay the acquisition debt. This "securitized" approach is designed to ensure local ownership without requiring an immediate cash injection from the Congolese participants, who often lack the capital to buy into multi-billion-dollar projects.
