2023-08-25
Title: A sulphurous contract reveals a dubious monopoly in the mining sector in the DRC
Introduction :
The Democratic Republic of Congo (DRC) is once again rocked by a scandal involving members of the government. MP Alfred Maisha recently unveiled a controversial contract awarded to the company Primera, an Emirati company, for the exploitation of gold, cassiterite and cobalt in the provinces of North and South Kivu as well as Maniema. This contract grants Primera exorbitant tax advantages and a 25-year monopoly on these strategic mineral resources. This case highlights the existence of a possible organized mafia in the Congolese mining sector and raises concerns about the financial losses suffered by the country.
A contract to the detriment of the DRC:
According to the revelations of the deputy Maisha, the ministers Adèle Kayinda of the Portfolio, Antoinette N’Samba of the Mines and Nicolas Kazadi of the Finances granted disproportionate advantages to the company Primera. While Congolese companies pay 12% of the value of each shipment of minerals for export, Primera would pay only 3.5%. This would result in an estimated loss of $500 million each month for the three provinces concerned. In addition, Primera benefits from unprecedented tax privileges and exemptions, at the expense of the Congolese State.
An attack on the sovereignty of the DRC:
The contract awarded to Primera also raises questions about the sovereignty of the DRC. Indeed, members of the government have waived the privilege of sovereignty of the country in the event of disputes with Primera, which means that the DRC could lose significant assets in the event of the execution of an arbitration or judicial decision. MP Maisha warns against the possibility of seeing the People’s Palace, the Public Treasury or even the Palace of the Nation seized by Primera. This questioning of national sovereignty is unacceptable and arouses the indignation of the Congolese population.
Economic and social consequences:
The revelations of this sulphurous contract have important economic and social implications for the DRC. In addition to the consequent financial losses, this monopoly granted to Primera deprives Congolese companies of the opportunity to take full advantage of the exploitation of these crucial resources for the country. In addition, the tax injustice created by this contract fuels the discontent of local populations who feel aggrieved and deprived of the economic benefits of their own resources.
Conclusion :
The contract awarded to Primera highlights the dysfunctions of the mining sector in the DRC and the need for increased transparency in trade negotiations and agreements. It is essential that political and economic leaders ensure that they defend the interests of the country and its people instead of favoring private interests