The DRC mining sector represented 99.3% of the country’s exports and contributed 24.79% to jobs in 2019(report)
The mining sector of the Democratic Republic of Congo (DRC) remains, to this day, the key sector of the Congolese national economy.
In 2019, exports from this sector were estimated at 99.3% of the country’s total exports and contributed 24.79% in jobs in 2019, informs a report by the non-governmental organization ” Makuta ya Maendeleo” on the Mining Fund for Future Generations (FOMIN).
Considered as one of the richest countries in the world in natural resources, in particular mines, the Democratic Republic of Congo (DRC) is the world’s leading producer of cobalt, the leading African producer of copper and has significant diamond deposits. , gold, coltan, zinc, lithium, uranium, and manganese.
Despite the strong growth in mining production recorded over the past fifteen years following the liberalization of the mining sector in the early 2000s, the mining sector has not yet contributed significantly to the social and economic development of the Congolese populations, notes this report.
Deficient governance, in particular, the inequitable distribution and use of revenues from this sector between the central government, local entities and local communities are among the factors underlying this situation.
The country has also not put in place a mechanism that can promote the sharing of mining revenues with future generations.
In March 2018, the revised Mining Code tried to remedy some of these shortcomings by providing for the direct payment of a portion of the mining royalty to the provinces and local entities, and the constitution of a Sovereign Fund dedicated to future generations called Fonds Mining for Future Generations (FOMIN).
The Mining Fund for future generations thus established will have to be fed by the 10% quota of the mining royalty. However, the assigned missions and the organic structure as well as the governance of FOMIN are the subject of controversy within the Congolese Government and other stakeholders including civil society organizations
and the private sector.
This situation reinforces the skepticism of public opinion, which fears that the existing structure and the deficient rules of governance put in place by the Decree establishing FOMIN will hinder the ambition of the DRC to effectively transfer part of the revenues from the mining sector. future generations as is the case with many other similar Funds set up by resource-rich countries struggling to achieve their ambitions.
