Equity Group opposes DRC’s proposed law mandating 30% local ownership in foreign banks, warning it threatens investor confidence and regional trade.
Equity Group Battles DRC’s 30% Local Ownership Rule
Equity Group Holdings is lobbying the Democratic Republic of Congo (DRC) government to reconsider a contentious bill that would require foreign-owned banks to sell 30% equity to Congolese nationals. The proposed law, aimed at boosting local participation in the financial sector, has triggered alarm among investors and cross-border banking stakeholders.
Equity, which operates in the DRC through its subsidiary EquityBCDC, fears the regulation could erode confidence in the country’s investment climate and damage ongoing efforts to attract foreign capital.
“If passed as it is, the law may destabilize the banking sector and discourage long-term investment,” a source told Business Daily Africa.
🔍 Strategic Investment at Stake
Equity entered the DRC in 2015 and later expanded its footprint by acquiring Banque Commerciale du Congo (BCDC) in 2020. Today, EquityBCDC ranks among the top three banks by assets in the DRC and contributes over 15% to Equity Group’s overall earnings. It has played a vital role in financing SMEs, infrastructure, and agribusiness in a country still underbanked but ripe with potential.
The proposed 30% rule could compel the bank to offload a significant portion of its stake—possibly to non-strategic investors—compromising governance, risk management, and long-term returns.
📉 Investor Confidence and Regional Trade at Risk
The DRC’s Ministry of Finance argues the regulation aims to empower local citizens through broader economic participation. However, foreign businesses and regional stakeholders view the rule as protectionist.
Regional financial bodies such as the Kenya Bankers Association (KBA) and the East African Business Council have flagged the legislation as a potential trade barrier, warning that it undermines regional economic integration under the East African Community (EAC) framework.
“Harmonized regulation is the backbone of regional financial integration,” a policy analyst told Business Daily Africa.
🤝 Equity’s Strategic Response
Equity is reportedly engaging the DRC’s Ministry of Finance, regulators, and lawmakers via both legal and diplomatic channels to secure amendments or possible exemptions. If unsuccessful, the bank may be forced to seek local partners—a move likely to dilute its control and disrupt its expansion plans.
The final verdict from Kinshasa is expected in the coming months and could set a precedent for foreign investment in one of Africa’s largest and most resource-rich countries.
