The complexiTy of resource governance in a conTexT of sTaTe ... - Ipis

The complexity of resource governance in a context of state fragility: An analysis of the mining sector in the Kivu hinterlands
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General Conclusion and Recommendations
Box 8
The recommendations in a nutshell
If the Congolese government – in cooperation with provincial governments and with the support of
international donors – were to secure the relatively calm hinterland and open it up to trade, it would be
good for business, would increase government revenues, would benefit the local population and could
at the same time serve as a pilot project for due diligence efforts.
It is clear from the findings detailed above that the hinterland surrounding North and South Kivu
is by no means inferior in terms of mineral production. The areas are important suppliers of
minerals to trading towns in the two provinces, and each of the three areas studied has its own
“speciality”. Maniema accounts for an important share of the cassiterite arriving in Bukavu and
Goma; North Katanga is the most important supplier of coltan to Bukavu and quite possibly the
most important coltan mining area in eastern DRC as a whole; and Bafwasende and Mambasa
territories produce a large amount of gold. Gold from Orientale province constitutes the majority
of the gold traded in Butembo, North Kivu, although production from Bafwasende and Mambasa
– at least from artisanal mining 234 – is markedly lower than in Djugu territory, for example.
Furthermore, Maniema and Northern Katanga have significant potential for gold production.
As a consequence of the hinterland’s supply role to the Kivus, the main beneficiaries of its
resources are the traders based in the Kivu provinces. This is especially true for Maniema, where
the degraded transport infrastructure requires that most of Maniema’s mineral production is
flown from airstrips directly to Kivu border towns.
The rehabilitation of transport infrastructure should be one of the main priorities for donor and
state investment in all three areas of the Kivu hinterland. It would further the development of
the mining sector by stimulating legal trade and serious investment. However, several challenges
have to be taken into account, including insecurity, logistical problems and maintenance of the
repaired infrastructure. As such, building a road is in fact much more than simply building a road.
The Congolese government should develop a plan for opening up the hinterland. This plan
should be based on three cornerstones: infrastructure, transparent administration and security.
Opening up the hinterland will benefit the local population in several other ways. As the case
of Kongolo illustrated, the hinterland is in general an isolated region that needs business and
business competition to enjoy the supply (import) of affordable foodstuffs and consumables. At a
later stage, the same argument could be made concerning energy supply.
Only a small number of comptoirs have a presence in the province and therefore, a large number
of négociants sell their minerals directly to comptoirs in Goma and Bukavu. This is one of the
biggest obstacles for greater transparency in the minerals trade in the hinterland and for generating
revenues for provincial treasuries.
Additional comptoirs should establish offices in the hinterland areas, ideally installing mineral
crushers to increase the value of their product.
234 Production from semi-industrial gold mining operations on the Ituri River in Mambasa territory may be considerably higher, but is
unknown.