Title: Primera Gold DRC SA: an exceptional performance in the gold sector in the Democratic Republic of Congo
Introduction :
Primera Gold DRC SA, a joint venture between the United Arab Emirates and the Democratic Republic of Congo, is enjoying tremendous success in the gold sector. Since the beginning of this second half of the year, the company has purchased and exported more than 3,000 kilos of gold, with an estimated value of around 190 million USD. This exceptional performance is the result of the measures put in place by Primera Gold to combat smuggling and improve transparency in the artisanal gold trade in the DRC. However, behind this success lie accusations of opacity and monopoly, raising questions within Parliament.
Impressive results thanks to the banking system of buying and selling artisanal gold:
According to Joseph Kazibaziba, Managing Director of Primera Gold DRC SA, the company has seen dramatic progress in its gold buying and exporting business. In January 2023, it had only been able to buy and export 29 kilos of gold. But thanks to the implementation of the banking system, this figure rose to 150 kilos per month in June, and more than 550 kilos per month at the end of the second quarter.
This new approach has improved the traceability of transactions and reduced mining fraud. Indeed, Primera Gold required all traders it worked with to have bank accounts, which enabled 95% of payments to be made through the bank. This increased transparency in the gold sector is a first in the DRC, and helps to strengthen the confidence of trading partners.
Primera Gold aims to increase its ability to buy and export gold:
Despite the impressive results already obtained, Primera Gold does not intend to stop there. The company aims to achieve the purchase and export of 1000 kilos of gold per month. Joseph Kazibaziba says that over the past seven months, Primera Gold has already bought and exported more than 3 tons of gold, transparently and in accordance with international standards. This success promises to have a significant impact on the balance of trade in the DRC, as well as on the economic development of the country.
Accusations of opacity and monopoly:
However, this outstanding performance by Primera Gold drew criticism from within the Congolese Parliament. Some MPs denounce the opacity surrounding this agreement between the Congolese government and the Emirati company. They accuse Primera Gold of obtaining a 25-year monopoly on gold, coltan, cassiterite and cobalt in the Grand Kivu regions. According to them, this situation would favor an organized mafia.
MEPs also highlight the tax advantages and exemptions granted to Primera Gold, which could lead to a considerable loss of tax revenue for the Congolese State. They believe that this situation is unacceptable and are asking the Ministers of Finance, Mines and the Portfolio for an explanation.
Conclusion :
Despite accusations of opacity and monopoly, Primera Gold DRC SA is recording impressive results in the gold sector in the Democratic Republic of Congo. Thanks to the bankarization of the system of purchase and sale of artisanal gold, the company succeeded in improving transparency and fighting against mining fraud. However, it is important to shed light on the accusations against Primera Gold in order to ensure a fair and transparent trading environment for all players in the mining sector in the DRC