DRC’S President Advocates Transparency and fund security through the reactivation of Fomin
Law No. 18/001 of March 9, 2018, amended and supplemented Law No. 007/2002 of July 11, 2002, on the Mining code, which included the creation of the Mining Fund for Future Generations (Fomin) in the Democratic Republic of Congo.
The reform aimed to increase the level of control over the management of the State’s mining domain, redefine elements relating to social responsibility and the environment of mining companies, and balance the tax, customs, and exchange rate regime within the framework of the partnership between the State and the operators of the mining sector.
The Head of State Félix Tshisekedi appointed the first management committee two years after the signing of decree n°10/17 of November 25, 2019, on the creation, organization, and operation of the establishment.
The Fomin’s mission is to prepare and ensure post-mining and guarantee future generations their share of the benefits of the current exploitation of non-renewable minerals.
Under the leadership of Félix Tshisekedi, the government adopted the draft Decree amending and supplementing Decree No. 19/17 of November 25, 2019, on the status, organization, and operation of a Public Establishment called “Mining Fund for future generations” (Fomin).
The reform aims to secure the management of Fomin by refocusing the scope of its missions and increasing transparency around the mechanism for managing its funds.
The Fomin is working to collect funds and has been able to bring in more than $250 million into the fund, figures higher than the assignments.
The money collected is used to finance geological research and invest in public and private companies to transform the mining rent into financial rent, which could be in perpetuity.
The Fomin’s management has projected that the good governance of Fomin can promote the mobilization of revenue to the tune of $100 million per year for future generations.
The government’s aim is to secure the management of Fomin by increasing transparency around the mechanism for managing its funds will ensure that this public institution cannot finance projects that have no real link with the mines and even less with future generations.
