Civil society calls on DRC President to renegotiate disadvantageous mining contracts

6 December 2006

World Bank yet to disclose audits of Democratic Republic of Congo's state-owned copper mining company

In a press release in advance of President Joseph Kabila's inauguration, the UK-based NGO Rights and Accountability In Development (RAID) stressed that it is a critical time for the Democratic Republic of Congo (DRC) and Kabila to address outstanding problems in the country's mining sector. Key decisions that Kabila will take early in his term as president will serve as a clear indication of who can expect to benefit under his administration.  Many are watching to see who he will appoint to sensitive cabinet positions and whether he will call for the renegotiation of contentious and non-transparent contracts signed under the transitional government. 

RAID's press release also challenged the World Bank to be open in its involvement in the DRC's lucrative mining sector: "Whether the World Bank makes public its legal, financial and environmental audits of Gecamines will be a litmus test of the Bank's commitment to transparency in the extractive industries."

Meanwhile, the World Bank has announced plans to step up financing to the DRC following the successful conclusion of the country’s elections. Some observers, however, are apprehensive about the World Bank scaling up its assistance in the country. 

Since it began lending to the DRC again in 2001, the World Bank has placed a heavy emphasis on boosting private sector activity in the natural resource sectors such as mining and logging; as recently as September 2006, the World Bank's political risk insurance arm MIGA indicated that it intended to increase its investment portfolio in the mining industry to $500 million. The pace and magnitude of the World Bank’s financing for both public and private sector activities in the DRC has been criticized as premature and risky in a country that is still occupied by the largest ever UN peacekeeping force, and where the root problems of the conflict remain unaddressed.

 

Additional Resources

• Press Release: Inauguration of Congo's new president: Prospects for mining sector reform; Expert available for comment, Rights and Accountability in Development (RAID-UK), December 4, 2006 (US Newswire website)
• World Bank to increase aid to DRC, South African Broadcasting Corporation, December 3, 2006 (SABC website)
• World Bank implicated in controversial DR Congo mining contracts, November 22, 2006 (BIC website)
• MIGA plans major involvement in DRC mining industry, September 7, 2006 (BIC website)