Introduction

The lack of financial resources is a major difficulty for companies wishing to develop their activities in the DRC. To make up for the lack of funding, they can join forces by sector of activity in the form of an Economic Interest Group (EIG) to move forward together. By pooling their financial and technical resources, they can work together to access larger markets and promote economic development. OHADA legislation provides rules on economic interest groupings to govern this cooperation between companies.

Definition of Economic Interest Groups

An Economic Interest Group (EIG) is a contract concluded between two or more natural or legal persons, the exclusive purpose of which is to implement, for a given period, all means likely to facilitate or develop the economic activity of its members or to improve or increase the results of that economic activity. Its activity must be essentially related to the economic activity of its members and may only be auxiliary in nature.

Constitution of Economic Interest Groups

One of the characteristics of an EIG is its light and flexible structure. Essentially, an EIG is subject to the same rules as a company, except for one detail. In addition to its auxiliary nature for the companies that form it, it is not subject to the capital contribution of its members. An EIG is set up by means of a written contract and is subject to the same conditions as a company, including publication and registration in the Trade and Personal Property Credit Register (RCCM).

Management

An EIG may be administered by a natural person or legal entity freely appointed by the general meeting of EIG members. In their dealings with third parties, a director binds the EIG for all acts falling within the scope of the powers assigned to him.

The EIG’s Objective

To develop members’ activities: through the EIG, members can access markets that were previously inaccessible to them. By coming together, the purpose of an EIG may be to add value to products (for example, farmers who have an EIG to process products), or to transport or market products to various markets. In this way, companies can increase their productivity to meet the demand of new markets.

Lower overheads: by pooling their technical and financial resources, EIG members can make savings. As much as there is a pooling of contributions, the overheads will be borne solely by the EIG. Because the EIG has its own legal personality, it bears all the management, logistical, and even tax costs associated with the activities entrusted to it by its members. In this way, members can develop their activities while reducing the financial costs of their development project. However, EIG members are liable for the group’s debts out of their own assets.

Conclusion

In a developing country like the DRC, where there are more SMEs than large companies, progress will certainly come through these groups of companies willing to work together, pooling their efforts to expand their activities.