Economic Boom, At What Cost

Part 1 of 3 in a series of reports on the politics and economy of DR Congo





It is the third largest country in Africa; the second largest copper reserve in the world after Chile (however the best kind in terms of quality with a 3.5 % pure copper content as opposed to just 0.5 % for the Chilean mineral); it holds some of the richest reserves of cobalt, zinc, coltan, diamonds and countless other precious stones and raw materials; and its natural geography is endowed with a comprehensive watercourse network that has the potential to provide enough hydroelectric power for the entire central region of the continent and beyond.

Yes, by now you know exactly which nation I am talking about. Despite these renowned facts and statistics, the Democratic Republic of Congo (DRC) remains among the poorest and most unstable countries in Africa. Just as it has always been since independence (maybe much worse today), corruption is rampant and out-in-the-open at every single level of government while the lack of investments in basic infrastructure further deteriorates the already deplorable conditions of roads, power supplies, schools and hospitals. The plight of the Congolese people is best illustrated by their country’s regular appearances at the lowest rankings of the United Nations Human Development Index (HDI).

Above all, the never-ending armed conflict in the eastern provinces of the country is raging even as we speak and still claiming innocent civilian lives. It all began with Congo War I (1996-1997) during which Laurent Desire Kabila toppled Mobutu’s 32-year dictatorship with the help of mercenaries from Rwanda and Uganda. The ensuing Congo War II (1998-2003) – ignited by Kabila’s desperate attempts to oust the foreign forces who had been instrumental to his rise to power, forces determined to be rewarded with a share of Congo’s wealth – led to the death of more than 4 million people. This “genocide” is not discussed, publicized and marketed nearly as much as the Rwanda genocide of 1994 was and still is.

Without trivializing any catastrophe and getting caught up in legalistic definitions of the term genocide or arguing about numbers of casualties, both countries have experienced large scale human tragedy that cannot go unpunished. Therefore, it is only fair that the international community devotes the same amount of time, energy and financial resources to ensure that justice is served and that the affected communities recover from the atrocities as best as possible. Such efforts by the international community – in large part motivated by guilt for failing to act in 1994 – have yielded fruitful results in Rwanda; the small east African nation has made a remarkable turnaround in just 14 years and is far ahead of many other nations on the continent. Of course, just as the Rwandese have carried out so successfully, it is the full responsibility of the Congolese people alone to raise awareness globally about the sufferings they endured and continue to live through.

In spite of these dire prospects, the mining sector of the mineral rich province of Katanga in the southern territory of the country is witnessing fast growth in its activities due to the global rise in the price of raw materials witnessed in recent years (e.g. the price of copper went from US $500 per ton to US $8,000 per ton in the last ten years alone). The province of Katanga, which forms the Copper Belt together with northern regions of Zambia just across the border, continues to benefit from this favorable change in the global natural resources market by attracting a plethora of foreign mining companies in a fashion quite reminiscent of the Gold Rush. To date, DRC has 61 different mining contracts with a diverse group of foreign companies whose make-up reflects the fierce geopolitical rivalries between China and the West. Obviously, Katanga’s intention is to create a win-win situation for itself by pinning the two global centers of power and influence against one another.

Consequently, Katanga is on a steady path towards prosperity while the rest of the nation has yet to benefit from the so-called peace and democracy brought on by the last presidential elections of 2006 which kept the incumbent, Joseph Kabila (the son of Laurent Kabila), in power for another 5-year term. Lubumbashi, the affluent provincial capital, is a clear illustration of the widening gap that exists between Copper Land and the rest of the country. It is now known as the city that never sleeps; day and night truckloads of copper and cobalt are seen driving towards the Zambian border where the minerals are shipped to Dar es-Salaam, Tanzania before being sent off to their final destination in Asia. It seems that every month new businesses open up shop in town. Lushois (Lubumbashi natives or residents) are flabbergasted to suddenly have access to American fast food chains and Chinese consumer goods.

What's more, the long-awaited Cinq Chantiers (Five Reconstruction Projects) promised by Kabila was officially launched in April of this year with the construction of a 4-lane highway connecting Lubumbashi to the border post of Kasumbalesa, a small town located hundred kilometers from the provincial capital right on the Zambian border. That highway is expected to be extended well into Zambia within the next three years. All constructions are set to be completed by China Railway Engineering Corporation (CREC).

Nevertheless, in the midst of such euphoria one has to wonder if such growth is sustainable. With such economic surge comes a set of political, ecological and social problems that the provincial authorities have yet to address seriously. Among them, the historically contentious relationship between the rich province and the central authorities in Kinshasa is prone to resuscitate demons from the past. As some may recall, the copper province was the first region of the DRC to secede from the newly formed Lumumba government of 1960 mainly for fear that Kinshasa, the nation’s capital located miles away from Lubumbashi on the opposite west coast, would exercise too much control over its natural wealth. Even though Katanga later rejoined the union in January 1963, much of that fragile relationship has been ongoing; the mineral rich province frequently threatens to secede whenever it feels that the central government is slowing down its dynamic socio-economic advancement.

In the latest installment of this drama, Katanga is accusing Kinshasa of dragging its feet in repaying their duly 40% share of provincially generated revenue as stated in the constitution. Thus, the provincial authorities blame the suspension of many of their construction projects on Kinshasa. On the other hand, Kinshasa is treading carefully on both sides of the fence; it is trying to pull in the reins on a vibrant and increasingly influential province likely to challenge its authority all the while giving it enough leeway not to provoke it into secession.

At any rate, Congolese outside of Katanga are fed up with both the internal strife pinning Kinshasa against Lubumbashi and the constant secessionist threats made by the copper province. Out of pride and frustration with Katanga’s overbearing sense of superiority, the Congolese people have at times expressed their desire to see DRC separate permanently with the wealthy southern province saying: “if they want to go, let them go!” Yet, in reality, most understand that it would be mutually beneficial for DRC and Katanga to stay united if only the corrupt, irresponsible authorities of Kinshasa could put its house in order and work tirelessly to get the rest of the country caught up. It is easier said than done, of course.

Even though Katanga’s attitude is condescending in many respects, much of that sentiment is validated by their socioeconomic indicators. They do deserve a pat on the back for sustaining coherent governance and investing in basic infrastructure, things that cannot be said about Kinshasa. Katanga is known to have better schools, better roads and better hospitals. The mentality of its civil society and its living standard are drastically different than that of any other region of the country. As some Kinshasa dwellers unashamedly admitted to me once; “the Kinois (a Kinshasa native or resident) is a loud, obnoxious, vulgar and amoral man who loves women, beer, music and confrontation whereas le Lushois is a calm, civilized, ambitious and hardworking individual who keeps his city clean and seeks to create more growth opportunities in his community.” While this is evidently an exaggerated and offensive claim, it does help paint a broad picture of Katanga’s social and economic status.

On the ecological front, the effects of pollution on communities living in and around mining zones are well known as an increasing number of respiratory diseases are regularly being reported. Water contamination has led to cases of cholera and associated ailments that are currently wreaking havoc in the region. Now that provincial authorities have banned the exportation of minerals to Zambian refineries, many small-scale transformation units are popping up everywhere locally and even makeshift ovens in residents’ backyards are used instead of industrial refineries. Ecologists suspect that the owners of these local processing plants – Chinese, Indians and business entrepreneurs from the Gulf – have had to make “special contributions” to local authorities for them not to be hassled with green regulations when setting up their factories. Al Gore would be outraged.

The situation is not much better regarding the social ramifications of the mining boom. The arrival of multinationals has put an abrupt end to informal exploitation of mines on which thousands of families relied on for subsistence. The mining giants have ousted these low-skilled laborers by offering them a meager “voluntary leave package” (Ruashi Mining, a South African company, offered US $200 per family) and a warning not to return. As a result, numerous school going children have been sent back home indefinitely due to their parents’ inability to pay their fees. The unemployment rate is ceaselessly climbing as many workers of the enormous but now defunct State mining enterprise, Gécamines, are being laid off due to mismanagement and plundering at the top levels of the institution.

In spite of efforts made by multinationals to secure the mines with electrical barriers and patrols of armed guards, desperate men and children still make their way onto forbidden lands and conduct clandestine extractions sometimes with only the most basic of equipment such as shovels, chisels and sturdy plastic sacks (e.g. empty bags of rice or charcoal). Violence is slowly becoming a common occurrence. The local miners are defending themselves, fighting security guards and vandalizing the installations of multinationals. Sadly, many children perish on these dangerous expeditions. Their small body frames allow them to get through the narrow tunnels they dig underground more so then the adults can but some never come out alive as the tunnels cave in and the heavy pile of earth asphyxiates them. Such perilous endeavors are in part encouraged by small foreign enterprises that have yet to gain full access to some of the mines where informal activities are still thriving. Therefore, they exploit the deprived indigenous communities by flooding their markets with various consumer goods and offering up financial rewards in exchange for sacks of “sand.” Hence, open air cinemas featuring kung-fu movies, boutiques assorted with brand name clothing knock-offs and billboards ads written in French, English and Chinese have all become a common sight in Lubumbashi and the surrounding area.

A more in-depth analysis of the implications of the economic boom reveals that the future of Katanga is not as bright as it appears to be on the surface – at least not in the long term. Is there the political will to address these issues with sound policies? Does the province have the capacity to carry it out on its own or will it then collaborate with federal authorities in Kinshasa? Only time will provide answers to these queries. However, one thing is certain; both the provincial and federal authorities will have to play their role in ensuring that their institutions are built on patriotic and democratic foundations and in maintaining its attractiveness in the eyes of foreign investors while holding multinationals accountable for the activities they undertake on Congolese soil.