Mining wealth and inequality in the DR Congo
Paper short abstract:
In the light of e-mobility, the DR Congo remains an attractive hotspot in terms of commodities, despite political instability. Nonetheless, it is a fragile state, which is featured by a failure of the welfare state.
Paper long abstract:
The DR Congo remains a major rent-based economy in Africa. On March 9, 2018, President Kabila promulgated the 2018 mining code, after a six-year review of the 2002 mining code. In the meantime, the Multinational Enterprises (MNEs), particularly Chinese mining companies, have massively invested in the copper-cobalt belt of the ex-Katanga province. Hence, the country is at the heart of the green technology development, notably the Electric Vehicles (EVs), given its strategic commodities, mainly cobalt. From 2004 to 2014, the DR Congo recorded a decade of non-inclusive growth. Despite its vast mineral potential, it is listed among the Least Developed Countries (LDCs). Moreover, the country has faced severe social and humanitarian crises resulting from growing poverty and inequality, mainly due to the collapse of the welfare state. Overall, a better governance of the mining sector should contribute to increasing Domestic Revenue Mobilization (DRM) to improve delivery of public services, such as health and education.
Natural resources and global inequalities: the African experience (Paper)