The Democratic Republic of Congo (DRC)

capital: Kinshasa

population: 55.000.000

Ruled by dictator
The DRC became independent from Belgium in 1960 and was ruled for three decades by dictator Mobutu Sese Seko. The country plunged into war in 1996 when rebels led by Laurent Desiré Kabila marched to the capital Kinshasa in order to overthrow the Mobutu regime. The success of Kabila's coup d'état was mainly due to the support of Congo's neighbours Rwanda and Uganda. When Kabila turned his back from these allies in 1998, the country relapsed into a war that involved 9 countries and caused 4 million deaths. Officially the war ended in 2003 but the transition period took until the national elections in 2006. These first democratic elections of the country yielded a new Parliament and government, headed by President Joseph Kabila and Prime Minister Antoine Gizenga.

A "geological scandal"
The DRC is often called a "geological scandal", because of the contrast between the mineral richness of its soil and the poverty of its people. In colonial times and under Mobutu rule, the mining sector was by far the most important contributor to the Treasury. On behalf of the dictator's misrule and the ensuing wars, the extractive industry now only accounts for 13,1% of the GDP (2004), which is less than the GDP share of agriculture.

Diamonds, copper, cobalt, gold and oil
Mother nature gave DRC diamonds, copper (ca. 10 % of global reserves), cobalt (ca. 35 % of global reserves), gold and oil. But also numerous rare minerals such as germanium and coltan. Timber and ivory are important resources of income as well.

Mining important for reconstruction
The mining sector is vitally important for the reconstruction of the DRC. The reason is that consecutive Congo-wars have destroyed most of what was left of the country's poor economy. The needs of the people are enormous, that's why Fatal Transactions is active in the DRC. The Congolese mining sector could/should be the driving force behind the economic recovery but unfortunately this is not the case. On the one hand several important mines are operated by private companies who concluded partnership deals with the DRC government during the war and the transition. These deals however, are very unfavorable for the Congolese State. On the other hand many Congolese mines are exploited in an artisanal fashion. Artisanal miners work for little money and in extremely poor conditions. Local profits of artisanal mines end up with shady businessmen who are linked to the political and military elite. Diamonds, gold, copper and cobalt ore, timber are exported unprocessed to Europe, North America, China and South Africa where value is added and the biggest share of the profit is made.