Promoting long-term economic development in mining

Democratic Republic of the Congo	Ministry of Planning

Vans travelling through an area in which natural resources are extracted. Copyright: GIZ

Context

The Democratic Republic of the Congo (DRC) has a significant endowment of mineral reserves and natural resources. The country is Africa’s leading producer of copper and the world’s leading producer of cobalt. Additionally, DRC has extensive reserves of fossil fuels (oil and gas) along with precious metals such as gold and lithium.

The extractive industry currently contributes more than 25 per cent to the country’s gross domestic product and makes up over 95 per cent of exports. As such, it provides almost a third of government revenues. In parallel to industrial mining, artisanal and small-scale mining has also become widespread. However, these generally involve arduous conditions, with little heed paid to responsible extraction techniques.

Objective

Mining contributes to the country’s economic and social development. It also reduces poverty among the Congolese population.

Three women work in artisanal mining. Copyright: GIZ

Approach

The project promotes better utilisation of the international demand for responsibly mined natural resources and the large potential of the local economy. Additionally, it works above all with the Congolese administration in the capital Kinshasa as well as with the provinces Haut Katanga and Lualaba in the copper-cobalt region.

The project provides civil-society support in organising the mining industry in an environmentally sound and transparent manner. For example, it contributes to implementing and embedding the international ‘Extractive Industries Transparency Initiative’, which aims to increase the transparency of revenues from raw materials. The project additionally develops skills in the public institutions, enabling tax revenues to be managed in a more transparent manner. Consequently, the population as a whole should be able to benefit from the tax payments coming from the extractive industries.

The project also offers training to create alternative earning opportunities for employees.

The project partner is the DRC Ministry of Planning. The European Union is also providing financial support.