SMEs in DR Congo struggle as Middle East conflict disrupts trade

Small and medium-sized enterprises in the Democratic Republic of the Congo are coming under growing pressure as conflict in the Middle East sends shockwaves through global trade routes, aviation networks and fuel markets.

From travel agencies in the capital Kinshasa to second-hand car dealers and import-dependent traders, businesses say rising costs, delayed shipments and falling demand are threatening their survival.

What began as a geopolitical crisis thousands of kilometres away is now being felt on the streets of Kinshasa, highlighting how deeply interconnected the global economy has become.

Travel sector hit by flight disruptions

The travel sector is among the first industries to feel the impact. Flight cancellations and uncertainty linked to tensions involving the United States, Israel, and Iran have disrupted routes that many Congolese traders and travellers depend on.

For businesses that rely on international movement, the consequences have been immediate.

Glody Bafwenibyo, Chief Executive Officer of Heavens Travel Agency in Kinshasa, says Dubai has long been a major destination for travellers from the Congolese capital. But the ongoing crisis has sharply reduced demand and led to a drop in revenues.

He warns that if the conflict persists, the impact could be devastating for smaller businesses in the travel sector.

Industry players say that many customers are postponing trips, while others are grappling with higher fares and fewer available connections.

Car importers face losses

The disruptions are also hitting one of Kinshasa’s busiest trading sectors, imported second-hand vehicles.

On the outskirts of the city, car yards that once filled quickly with vehicles shipped from Dubai and Japan now show visible empty spaces. Importers say logistical bottlenecks and shipping route changes have slowed deliveries dramatically.

Some dealers report that where they previously received two or three shipments a month, they are now struggling to receive even one.

They also say transport costs have surged, with some container fees rising by as much as 4,000 U.S. dollars as vessels are forced to take longer alternative routes.

Many vehicles ordered before the escalation of the conflict remain stuck in the United Arab Emirates, leaving dealers short of stock and unable to meet demand.

Prices rise, sales fall

The shortage of imported cars has pushed prices higher in Kinshasa.

Traders say vehicles that once sold for about $8,000 are now going for nearly $10,000. But the price surge is not boosting profits, as dealers report declining sales with consumers reining in spending amid broader inflationary pressures.

The rising cost of transport, fuel and imported goods is squeezing both businesses and households, reducing purchasing power across the market.

Economists say the crisis has exposed structural weaknesses in the Congolese economy.

According to Congolese authorities, the country spends around 3 billion dollars every year on food imports alone, reflecting a limited domestic industrial base and heavy dependence on foreign supply chains.

That reliance makes the economy particularly vulnerable to external shocks, whether from war, commodity volatility or disruptions in global shipping.

Economic analyst Luc Alouma Mwakobila warns that the country has little leverage in international markets and limited capacity to cushion itself from the fallout of distant conflicts.

For now, thousands of small business owners in Kinshasa are left navigating uncertainty, hoping diplomatic efforts will ease tensions and restore smoother trade flows.

For these traders, peace in the Middle East is no longer just a distant issue, it has become central to their livelihoods.