Informal Revenue Generation and Statebuilding in the DRC

This paper explores the role of informal taxation in the Democratic Republic of Congo, aiming to shed light on informal fiscal realities and the implications of informal tax institutions for governance and state legitimacy. Relying on mixed methods data from household surveys, interviews, and focus group discussions across Kinshasa and North Kivu, it focuses on three areas of inquiry: the nature of informal taxation, capturing informal taxes for community development projects, informal contributions to customary authorities, and informal payments to armed groups and non-state security providers; citizen perceptions of formal and informal taxing authority; and the impacts of informal taxation on perceptions of the state’s legitimacy. Findings suggest that while informal taxes place a significant burden on citizens, they may support local governance by supplementing public services and reinforcing perceptions of state legitimacy, particularly in the case of customary contributions. Overall, these findings highlight the complex interplay between informal and formal institutions, challenging assumptions that informal taxation solely undermines state authority. Its insights hold critical implications for scholars of informal governance and policymakers aiming to navigate hybrid governance structures in fragile states.