Summary
The document details the obstacles Shenimed encounters in the Democratic Republic of the Congo, including systemic corruption in customs and certification processes, high tax burdens, and poor transport infrastructure. It highlights how a lack of reliable electricity forced the company to cease local production in Bukavu and shift to imports from Tanzania. Financial challenges are noted, specifically currency instability of the Congolese franc and a shortage of loans leading to cash flow difficulties. The company advocates for reduced customs procedures, the removal of non-tariff barriers, and better state-private sector consultation to improve the business environment.
Key insights
- Shenimed faces significant administrative hurdles in the DRC, where customs clearing and certification procedures are described as long, costly, and prone to corruption, often requiring bribes to expedite authorizations from the OCC.
- The company ceased local cigarette production in Bukavu in the late 1990s due to an inconsistent electricity supply and the burden of various formal and informal taxes on local production.
- Financial instability is driven by the rapid depreciation of the Congolese franc against the US dollar, which complicates stock renewal, and a general shortage of loans that creates cash flow difficulties and import delays.
- High taxation and poor internal infrastructure negatively impact competitiveness; income taxes represent 40% of the company's income, and the road between Uvira and Bukavu is described as unsafe and of poor quality.
Cite the original document
- APA
- South African Institute of International Affairs (2012). Shenimed. https://saiia.org.za/saiia-toolkit/shenimed/
- Chicago
- South African Institute of International Affairs. Shenimed. 2012. https://saiia.org.za/saiia-toolkit/shenimed/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=Shenimed |date=24 July 2012 |url=https://saiia.org.za/saiia-toolkit/shenimed/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2012shenimed, author = {{South African Institute of International Affairs}}, title = {{Shenimed}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/saiia-toolkit/shenimed/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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