CONGO – The Democratic Republic of Congo (DRC) has announced a 12-month ban on the import of beer and soft drinks, effective immediately.
According to CGTN Africa, the ban aims to protect the local industry from foreign competition.
However, authorities in the DRC’s northeastern district of Ituri have opposed the decision. They have urged the government to reconsider, noting that some provinces lack facilities to produce local drinks.
Serge Muber, a former Member of Parliament from Ituri Province, highlighted the issue of poor road infrastructure, which forces traders to import beverages from neighboring Uganda.
“The roads linking to other provinces are so bad that our traders have no option but to import from neighboring Uganda,” Muber stated.
The Observatory of Economic Complexity reported that the DRC imported beer worth US$11 billion in 2022, with Angola, Burundi, and Rwanda being the top import markets.
In response to the ban, Chipoka Mulenga, Zambia’s Trade and Industry Minister, expressed concern about the impact on local companies and the economy.
He revealed that the Zambian government is facilitating meetings between the trade ministers of both countries to understand the reasons behind the decision and explore ways to collaborate for mutual benefit.
“The Zambian government and the DRC have been doing trade for years, and we wish to continue that. Zambia has a lot of benefits from DRC just like DRC has a lot of benefits from Zambia. I am very optimistic that whatever reasons they bring, if we sit around the table, we will resolve them for Zambia to continue to trade with the DRC,” Mulenga said.
The DRC’s move is expected to trigger retaliation, as the export proceeds from the drinks and beer industry contribute significantly to the expected forex inflows.
Mulenga acknowledged that Zambian industries would lose sales and revenue but emphasized that bilateral talks are ongoing to find a resolution.
“This is something that happened just last week on Friday, 19th of July 2024, and we have engaged in bilateral talks to see how we can resolve that,” he added.
Despite the potential economic repercussions, Mulenga stated that the ban would not have a major impact on Zambia’s dollar inflows, as the country’s major currency earnings are largely driven by the mining sector.
Liked this article? Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World. HERE
