FEC Challenges DGDA Crackdown on Artisanal Cobalt Exports in Lualaba
In Lualaba province, the Business Federation of Congo (Fédération des Entreprises du Congo — FEC) is contesting recent enforcement actions by the Directorate General of Customs and Excise (DGDA), calling them “irregular” and potentially harmful to the province’s investment climate.
In a letter dated May 5, 2025, addressed to DGDA Director General Bernard Kabese Musangu, FEC’s provincial president, Germain Pungwe Mabwe, criticized the DGDA’s decision to open proceedings against member companies involved in the processing and export of cobalt sourced from artisanal mining.
These companies have received official statements of offence for allegedly violating sourcing requirements.
According to the DGDA, between 2020 and 2024, the accused firms failed to comply with the November 5, 2019 decree, which mandates that all artisanally-mined cobalt be sourced through the state-owned Entreprise Générale du Cobalt (EGC) or its approved partners.
FEC, however, argues that strict application of this decree is impractical, noting that EGC was not operational during much of the period in question.
“If the Ministry of Mines has not sanctioned this infraction, it is because the conditions necessary for the decree’s effective enforcement were not yet in place,” wrote Pungwe Mabwe.
The FEC further cited the Manual of Procedures for the Traceability of Mining Products, arguing that it does not list sourcing from EGC as a mandatory requirement.
Therefore, DGDA’s enforcement action could be viewed as an overreach or an unauthorized amendment to established procedures.
This case highlights the tension between regulatory ambitions and institutional readiness. While the government aims to formalize the artisanal cobalt sector and ensure traceability, practical challenges—such as the delayed operationalization of EGC—undermine consistent enforcement.
Notably, the FEC letter does not state whether the implicated companies made any effort to comply with the decree before EGC became functional.
EGC officially launched its artisanal cobalt operations in March 2021, accompanied by the publication of responsible mining standards.
In September 2023, it convened stakeholders to validate responsible purchasing protocols. However, the traceability manual referenced by FEC predates the 2019 decree, which supersedes earlier contradictory provisions.
The volume of cobalt flagged as non-compliant has not been disclosed, but Lualaba remains a major hub for artisanal cobalt production.
As regulatory scrutiny intensifies, the outcome of this dispute could set an important precedent for the sector’s future governance.
