How to unlock the economic potential of the DRC: challenges and perspectives
The Katanga Business Meeting (KBM) multi-sector conference recently held in Kolwezi, Lualaba province, was an opportunity for Professor Mabi Mulumba, a university lecturer in economics, to share his thoughts on how to unlock the economic potential of the Democratic Republic of Congo (DRC). Among the subjects discussed, that of mining contracts and the need for the Congolese government to be accompanied by specialists during their negotiation.
Professor Mabi Mulumba points out that in other countries, it is common to call on specialized firms to assist in mining contract negotiations. He notes that this practice is not yet widespread in the DRC, mainly due to the supposedly high cost of these services. However, he notes that institutions such as the African Development Bank offer financial support to enable developing countries to be accompanied by specialists during negotiations. He therefore encourages the Congolese government to seize this opportunity during the next revisions of mining contracts in order to avoid repeating the mistakes of the past.
Indeed, Professor Mabi Mulumba highlights the weaknesses and shortfalls in the negotiation of mining contracts in the DRC. He mentions in particular the need to diversify the economy by promoting the local processing of minerals rather than their export in their raw state. This transformation would create added value and stimulate the economic development of the country. In addition, it highlights the problems linked to the energy deficit, which limits the DRC’s ability to fully exploit its mining potential.
The revision of the mining code in 2018 attempted to address some of these issues, by introducing measures aimed at limiting the export of raw ores and promoting their processing on Congolese territory. However, Professor Mabi Mulumba highlights the difficulties encountered in implementing these measures, particularly due to the lack of adequate energy infrastructure.
It is therefore essential, according to Professor Mabi Mulumba, to rethink the negotiation of mining contracts in the DRC. This requires better preparation and support from specialists during negotiations, in order to guarantee balanced agreements that are beneficial for the economic development of the country. In addition, it highlights the importance of diversifying the Congolese economy, by promoting the local processing of natural resources and investing in the necessary energy infrastructure.
The Katanga Business Meeting conference highlighted the issues and perspectives linked to the economic potential of the DRC. It is now essential that these reflections are translated into concrete actions, in order to allow the DRC to take full advantage of its natural resources and its development potential.