Primera Gold DRC SA, a joint venture between the United Arab Emirates and the Democratic Republic of Congo, recently achieved a remarkable feat by purchasing and exporting more than 3,000 kilos of gold during the second half of this year. This quantity represents a value of approximately 190 million US dollars. These figures were announced by the general director of Primera Gold, Joseph Kazibaziba, during a conference in Bukavu, capital of the South Kivu province.
This record is testament to Primera Gold’s efforts to combat smuggling and promote transparency in the artisanal gold trade. Indeed, the company required that all traders working with it have bank accounts, which allowed 95% of payments to be made through a bank, a significant advance in the gold sector.
Despite these impressive results, Primera Gold aims to further increase its capacity to purchase and export gold to reach a monthly target of 1,000 kilos. This expansion could have a significant impact on the balance of the DRC’s trade balance and contribute to reducing unemployment.
However, this success also raises questions and criticisms. Some Congolese MPs decry the opacity surrounding the deal between the government and Primera Gold, saying the company was granted a 25-year monopoly on gold and other minerals such as coltan, cassiterite and cobalt. The elected officials also underline the tax advantages granted to Primera Gold, which pays a reduced rate of only 3.5% on the value of its exported goods, while Congolese companies must pay 12%.
Despite these criticisms, the creation of Primera Gold DRC SA has cleaned up part of the Congolese artisanal mining sector, long tainted by smuggling and the financing of armed groups. Increased transparency in the trade of gold and other minerals could help strengthen the Congolese economy and reduce tax revenue losses.
In conclusion, Primera Gold DRC SA has achieved exceptional performance in the purchase and export of gold in the Democratic Republic of Congo. While welcoming these results, it is important to continue to monitor the Congolese mining sector and ensure transparency and fairness for all actors involved