What is the scale of the economic consequences of the announced closure of the Anhui Congo company of mining investment in the DRC?

** Société Anhui Congo of mining investment: uncertainty hangs over the future of diamond exploitation in the DRC **

The Société Anhui Congo of mining investment in Kasai Oriental (Sacim) is a critical turning point. With vendor of wages which exceed a year and an imminent risk of closure, the impact on the local economy could be catastrophic. Both for the thousands of employees directly concerned and for the related sectors, a break in Sacim activity would risk aggravating poverty and social tensions in an already fragile region.

Faced with this crisis, the need for adjustment in the regulation of the mining sector appears more pressing than ever. The DRC must be inspired by more participative governance models, like Ghana, which fairly redistributes mining resources to support community development. It is a call to all actors, government, investors and civil society, to change paradigm and to transform this challenge into an opportunity for a sustainable future.
** Société Anhui Congo of mining investment of Kasai Oriental: an uncertain future for the diamond exploitation in the DRC **

The situation of the Anhui Congo company of mining investment in Kasai Oriental (Sacim) deserves special attention beyond the walls of the Salle des Nouvelles Economic. Indeed, this company, specializing in the production and sale of diamonds, faces a risk of final closure which could have dramatic consequences on the local economy and the life of the thousands of people who can depend on its activity.

### Binding measures in times of crisis

The intervention of the Congolese mining ministry vis-à-vis Sacim, although it may seem necessary in the context of regulation of the mining industry, raises the question of the balance to be found between government control and economic viability of companies. In a crisis – both economic and politics – Sacim is found in a debt loop with wage arrears exceeding a year for its workers, a fact that highlights difficult management and a lack of foresight that could be observed in other African companies in the mining sector.

As a comparison, mining companies in West Africa, such as the Morila Mines Society in Mali, have shown resilience in the face of economic crises by adopting a proactive approach with their employees. By diversifying their activities and improving working conditions via local partnerships, these companies have managed to maintain a certain stability. Why could SACIM not follow a similar model?

### The socio-economic impacts of a closure

The closure of Sacim would not be limited to the loss of jobs – a whole local ecosystem could be threatened. According to statistics from the International Labor Organization (ILO), each direct job in the mining sector can support up to two or three indirect jobs in services and agriculture. Therefore, the risk of closing Sacim could cause a loss of thousands of positions directly or indirectly linked.

In addition, the current situation could also exacerbate social problems such as poverty, food insecurity and community tensions. The DRC, already in the grip of many economic and political challenges, cannot afford a failure in its sector of exploitation of natural resources. The revival of activity at Sacim must therefore be a priority not only for the government but also for the international community.

## towards regulation reinvention

It is imperative that the Congolese government, and in particular the Ministry of Mines, re -evaluates its regulatory strategy to no longer only act in reaction, but also anticipate the future. This could be an opportunity to introduce models of participatory governance, which include workers and local communities in decision -making. This could promote better collaboration and a more understanding attitude when applying measures that directly impact the viability of companies.

Moreover, the example of Ghana, with its mining resources management model based on a fair distribution of income derived from mineral resources, could serve as a model. This country has been able to set up mechanisms which make it possible to redistribute some of the mining gains for community development, thus preserving social integrity before similar challenges.

### Conclusion: A call for collective action

Sacim’s situation is a call for action for all the actors concerned, whether it be the government authorities, investors or civil society. In this time of global economic challenges, it became crucial to adopt sustainable and collaborative approaches to ensure that the mining sector of the DRC is not only a symbol of extractive wealth, but a real engine of development for present and future generations. The revival and sustainability of SACIM could well serve as a model for other mining companies that are at a similar crossroads, transforming a crisis into an opportunity for change.

Follow these reflections and much more on Fatshimetrics, your source of information on the economy and socio -political issues in the Democratic Republic of Congo.

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