DRC's Tshisekedi regime to 'start processing minerals locally' if re-elected

The Democratic Republic of Congo (DRC) wants to stop mining companies exporting raw materials. Instead, it wants to put in place measures to ensure products mined are processed in the country and only finished products are exported.

DRC has vast mineral wealth and is one of the biggest exporters of copper, cobalt, zinc, gold, manganese, uranium and platinum. Yet its population remains one of the poorest in the world.

Finance minister Nicolas Kazadi this week said the mining industry has not been able to lift the people of DRC out of poverty, only contributing a few jobs in a country riddled with unemployment.  

Kazadi has given the strongest indication yet that President Felix Tshisekedi's regime will make serious changes to the mining industry if re-elected on December 20.

He complained there was “underemployment” in the mineral-rich country which cannot be allowed to continue.

“The only reason [mining is not creating jobs] is the value added to the minerals produced locally is very little and the value added goes outside [the country], and other countries are taking advantage of that,” he said.

“That’s why it’s important for us to start processing our minerals locally to keep the value added to our product and that will be shared in salaries for people, in profits for local companies and in tax for the government.”

Kazadi was speaking as the country gears for elections next week where more than 20 candidates are expected to contest against Tshisekedi, who is seeking re-election. 

More than 60% of DRC's about 100-million population live below the poverty line — one of the highest poverty rates in the world. 

“The challenge is almost the same as many developing countries. The official unemployment rate is small, it’s about 5% only, but there is underemployment which is huge. People are working, they are able to live, but with work which is not formal, which is not getting them out of poverty. This situation we have to change,” said Kazadi.

Industrialisation, especially in the agricultural sector, had to be ramped up because the expectation was the mining industry would help change and lift people from poverty, but that has not been the case. 

DRC now wants to industrialise and the processing of minerals is one of the targeted projects. 

To successfully do this, the government will have to fix its energy and transportation issues. 

Most of the country still doesn't have access to electricity, while roads are minimal and in bad condition. 

“Many of them [mining sector] are investing and there’s truth that in the near future they will be obliged to start processing locally more and it is also well known that it will be more profitable to process locally because of our comparative advantage,” he said.

“But there are some challenges we have to face. The main one is energy and the other is transportation, local transportation, roads — but we are working on that and there are many partners from all over the world willing to invest.

“This will bring our country to another level — we are talking now about billions, we will talk quickly in trillions.”

Kazadi said the Tshisekedi regime had done a lot to improve the standard of living of citizens in the past five years but alluded that this could not be done overnight.

Government employees’ salaries have increased fourfold in the past four years. This is but one of the areas the government has invested in, he said.

“All these investments are raising the standards and as a result, according to one entity, we have been able to reduce the poverty rate by 10% during the three years,” he said.

“The poverty line was 70%, more than 70% of the people were considered poor. Now we are about 65%. This is a big change, so we cannot say nothing has been done. We agree we still need to make efforts, especially on access to water and access to energy.”

TimesLIVE