DRC : Unlawful tax collection practices at the Congo- Rwanda borders are reducing the profits of small business women

These corrupt practices have led seven in every eight women to give up their small businesses.’ More than 50 per cent of family needs in the Democratic Republic of Congo (DRC) are in the charge of women, according to some women’s organisations. The majority of those women are involved in small businesses. Towards the part of the DRC on the border between Rwanda, small women traders face serious and varied threats, especially corruption.

According to some organisations like UNCTAD, Women traders in Central Africa, especially in DRC, face serious and varied threats and corruption, often from officials, including customs officers, security forces and administrators but also from other traders, as well as from criminals and armed groups near the borders. In addition to this violence, they face other barriers to trade, including time constraints, high compliance costs, difficulties in accessing procedural information, legal discrimination and cultural barriers.

They are victims of illegal taxes or obliged to pay money before crossing the border with their goods. According to some women, the amount of corruption is between 15,000 and 60,000 Congolese francs; in USD, it’s from 5 to 20 dollars. They said the situation is worsening, and some are giving up their small businesses. Some of women’s victims facing the tax evasion, the illegal tax, the false taxation and confiscation of goods.

According to the United Nations Office on Drugs and Crime (UNODC), “Corruption is the main obstacle to economic and social development in the world. Every year, $1 trillion is paid in bribes, while an estimated $2.6 trillion, equivalent to more than five per cent of global GDP, is stolen.” Corruption undermines Africa’s prospects for growth and development, costing it around 25% of its GDP annually. Tackling this veritable scourge, which undermines governance, curbs investment, and increases inequality, is now one of the African Development Bank’s top priorities.

According to the report of International ALERT, the value of commercial flows, from Cyangugu ( RWANDA) to Bukavu ( DRC) it’s was of 1 134 837 UDS, per month ( 2012).

By the way, most of them conduct their activities with a loan. That situation affects several families because those women responded to some of their family’s needs: children’s education, health, food,…, say some organisations.

Deo CIKURU