Makuta Ya Maendeleo Consortium calls for redefinition of the objectives, regulatory and institutional framework of FOMIN
The Makuta Ya Maendeleo Consortium calls for the redefinition of the objectives, the regulatory and institutional framework of the FOMIN as well as the management and investment rules of this Fund.
This is what emerges from its recent report analyzing the institutional and regulatory framework of the Mining Fund for Future Generations (FOMIN) established by the revised Mining Code of March 2018.
According to a press release from this non-governmental organization, the conclusions of this analysis show
that due to the absence of a clear vision, numerous and inconsistent objectives and insufficient
investment rules, ” FOMIN appears to be a fund in dispersion which offers few guarantees of transparent, judicious and responsible management of its resources ”.
The analysis also notes that the majority of FOMIN’s objectives defined in Decree No. 19/17 of November 25
, 2019 on the status, organization and functioning of FOMIN do not agree with the idea of a Fund to guarantee the post-mining and the sharing of part of the revenues from the mining sector with future generations.
The report’s analysis also presents several lessons learned from the positive and negative experiences
of managing certain sovereign wealth funds in the extractive sector in Africa, which
stakeholders in the DRC could learn from in the process of improving the
regulatory and institutional framework of FOMIN. .
“The performance of FOMIN, as a sovereign wealth fund, largely depends on the clarity of its objectives and its management rules, the prudence in the choice of investment sectors and the solidity of its transparency and accountability mechanisms. said Mr. Fabien Mayani, member of the Makuta Consortium and Director of the Extractive Industries Governance Program at The Carter Center.
According to Mr. Fabien Mayani, “ the current regulatory and institutional framework of FOMIN as well as its management rules contain structural shortcomings that should be corrected in order to hope for the achievement of the vision of intergenerational sharing of revenues from the mining sector ”.
To improve the management of FOMIN, the Makuta ya Maendeleo Consortium proposes, in particular in this report, the reduction of the number of objectives, the improvement of its management structure, the adoption of investment rules, the
strengthening of transparency rules and control and monitoring mechanisms.
