Jacqueline Lydia Mikolo, minister for SMEs, Handicrafts, and Informal Sector of the Republic of the Congo  

On this occasion, ChinAfrica talked to Jacqueline Lydia Mikolo, minister for SMEs, Handicrafts, and Informal Sector of the Republic of the Congo, on how China-Africa cooperation will benefit the development of SMEs in her country.  

ChinAfrica: What are your comments about the series of measures announced by President Xi Jinping during the opening ceremony of FOCAC, in particular the plan to empower SMEs? 

Jacqueline Lydia Mikolo: As you know, the relationship between China and Africa has evolved a lot, and we can salute President Xi Jinping’s vision which corresponds to the vision of African leaders for a partnership that respects the people and a partnership that responds to the aspirations of the people. We can see that this relationship is evolving by targeting exactly the needs of each population. 

Today, African people have concerns about processing their raw materials directly in Africa, and they want investment in Africa. Young Africans no longer want to take the boat to emigrate, but want to find ways to flourish economically in their own countries. And that's through SMEs. So, the relationship between China and Africa is a relationship between people, a relationship between entrepreneurs and reflects the wisdom and vision of the heads of state. They have understood this, and they have developed the relationship to specifically address the needs and aspirations of the people.  

Could you describe the current development of the SMEs in the Congo? 

Today, small and medium-sized businesses and even very small businesses in the Congo account for almost 98 percent of the national economy, and therefore of national businesses. 

These SMEs account for over 80 percent of the wage bill, and the majority of units are informal. Today, the government has taken strong measures to facilitate the creation of low-cost businesses, and support foreign companies that want to enter into joint ventures and invest in the Congo. The majority of SMEs in the Congo today are in the agri-food, mining and timber sectors.  

There are also a lot of companies in the services sector, providing a wide range of services to individuals and communities. These range from catering to hospitality and electricity, so there are many sectors. And today, we really want to emphasise the development and strengthening of companies involved in the transformation of raw materials and agricultural processing. 

In other words, African countries are making efforts to produce in agriculture. But we still need to process and export them in compliance with the quality standards demanded by our partners. And for this, the partnership and today's announcements by President Xi reassure us enormously, because we see that SMEs are at the heart of the cooperation between China and Africa. 

So, work to develop these SMEs will follow, and above all, we will work to remove one of the major barriers to the development of SMEs, which is access to financing.  

What are the results of cooperation between China and your country in the field of trade? What opportunities has the Chinese market created for accelerating the development of SMEs? 

The Congo is a major producer of both timber and minerals. Trade between the Congo and China has intensified in this area, as well as in services and agricultural exports. We want to continue working with China so that our enormous arable land can be used to produce for the Chinese market as well as for the Congolese market. So today, we announced the NOVA International platform, which brings together several Chinese chambers of commerce and a number of companies, to encourage private-private partnerships so that there is a transfer of expertise and knowledge, but also a facilitation of the flow of trade between the two countries. 

As our leaders pointed out during this FOCAC, it's clear that it's not enough for states to trade with each other, but also for peoples and private sectors to trade with each other.  

Today, over 70 percent of Chinese companies operating in Africa are SMEs. So, what sectors does your country want Chinese SMEs to invest in? What preferential policies are you putting in place for these Chinese SMEs? 

As you know, the partnership agreements between China and the Congo go back many years. We have 60 years of cooperation. So, these agreements have evolved a great deal. Today, Chinese companies wishing to invest in the Congo have access to a series of tax exemptions set out in the agreements that have been signed. But beyond that, we have set up a policy of installation in the special economic zones, so that companies and SMEs can be exempt from all tax charges when they enter our country. 

We have also put in place a policy of young ventures, a win-win partnership between Chinese and Congolese companies. So Chinese companies that choose to partner with Congolese entrepreneurs also have access to these facilities. We ourselves, as the ministry in charge of SMEs and handicrafts, help Chinese companies in setting up businesses, and we also help Congolese companies with non-financial and financial support, so that they can get up to speed for signing a partnership with a Chinese company. 

For example, if a Congolese company in the food industry wants to sign a contract with a Chinese partner who will contribute 50 percent of the investment, we can finance the Congolese side so that it can contribute the 50 percent of the investment. So, we've really put in place some very attractive policies. And as you know, in the Congo, you can find skilled labour. 

We also have Chinese-speaking workers. We have Chinese language schools. So, in the Congo, we've really done everything to ensure that entrepreneurs who decide to invest in the Congo find a favourable financial environment. We have the Banque Sino Congolaise pour l'Afrique (BSCA Bank), which has set up its African headquarters in Brazzaville. 

And financial transactions between China and the Congo are extremely easy through Agricultural Bank of China. We have this favourable fiscal environment for Chinese investors that has been put in place. I can go into more detail, but it's very advantageous, and we have policies in place to facilitate partnerships or installations in special economic zones. 

So, the range is very wide, and sectors such as agri-food and digital technology are completely tax-exempt. Entrepreneurs who choose this sector benefit from even more advantages.