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Democratic Republic of Congo Democratic Republic of Congo

EITI Status

EITI Status: 
Compliant country

Compliant since

Compliant since: 
2 July 2014

Extractive Industries

In the soil of the Democratic Republic of Congo lies extensive mineral wealth. DRC is among the world’s largest producers of cobalt, copper, diamonds, tantalum and tin, as well as several other minerals, according to USGS.

The country holds almost half of the world’s cobalt reserves and in 2012 cobalt produced in the DRC covered 55% of global production according to the same report. In 2012, 20 per cent of the world’s industrial diamonds and 12% of tantalum came from the DRC.

According to the 2012 EITI Report, the extractive sector accounted for 99% of total Congolese exports, 64% of the government budget, 24% of formal employment, and 13% of GDP in 2012.

Artisanal and small-scale mining (ASM) is widespread and estimates of the number of people employed by ASM vary between 500 000 and two million. Chinese trading houses buy and export the majority of the minerals artisanal miners produce, and China is DRC’s number one export partner. The 2012 report showed that mineral smuggling from artisanal mining was still costing the government significant revenue. Lost revenues due to mineral smuggling were estimated at US $8 million per year for gold alone. The export of the “conflict minerals” tantalum, tin and tungsten (the ‘3Ts’) goes largely undetected in the eastern provinces of Maniema, Nord-Kivu, and Sud-Kivu.

At the same time, industrial mining is increasing. The largest state-owned mining company Gécamines is attempting to increase production and has engaged in joint ventures with private companies.

Mining activities are concentrated in the eastern and south-eastern parts of the country. The security situation in these regions is unstable. Insufficient power supplies, weak infrastructure and declining world prices of certain commodities pose a challenge to the growth of the sector. However, new mines are coming into production and existing ones are increasing capacity, which will ensure rise in exports.

The government is planning to revise the mining code to gain larger revenues from the expanding mining industry.

EITI Reporting

The country produces EITI Reports that disclose revenues from the extraction of its natural resources. Companies disclose what they have paid in taxes and other payments and the government discloses what it has received. These two sets of figures are compared and reconciled.

EITI Implementation

EITI DRC made significant progress in the last quarter of 2014. The Executive Committee published the 2012 EITI Report in accordance with the EITI Standard in December 2014. The report provides a more comprehensive picture of the extractive industries’ contribution to the economy and flagged key issues that could help orient the MSG’s priorities, such as artisanal mining. The DRC published the contracts between the government and oil, gas and mining companies operating in the country as well as the names of thebeneficial owners.

In July 2014, the EITI Board declared the DRC Compliant with the EITI requirements, based on a review conducted by the EITI Internatinal Secretariat, assessing the implementation of corrective actions requested by the Board.

The DRC's Candidate status had been temporarily suspended in April 2013 following the country’s second validation. The EITI Board had concluded that the DRC did not meet all requirements to achieve EITI Compliant status.

EITI implementation during the suspension followed a two-pronged approach:

(i) Addressing the corrective actions, requested by the Board. (ii) Investigation  of discrepancies identified in the 2010 EITI Report and expansion of the Technical Secretariat in to the provinces.

In 2013, The EITI DRC Executive Committee (EC), which is the multi-stakeholder group (MSG) tasked with overseeing EITI implementation in the DRC, published three EITI reports  covering the 2011 fiscal period and subsequently invited the International Secretariat to assess whether the remaining EITI requirements have been met.

The publication of the 2010 Report triggered a debate on the lack of accountability of tax collecting agencies such as DGRAD and led to a long and thorough investigation  by the auditor general’s office (IGF) of a US$ 88 million discrepancy identified in the 2010 Report.  As part of the EITI reporting process, public accounts of government agencies collecting revenues from the oil, gas and mining sector were systematically audited and declared revenues by each government agency were fully accounted for, transaction by transaction. Revenues entering the budget at the central and local levels as well as revenues withheld by collecting agencies were also accounted for. 

 

 

 

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Innovations

  • 2012 Report disaggregated by company and revenue stream
  • Extensive nationwide outreach activities
  • Establishment of 5 regional EITI antennas (currently being opened)
  • Institutional cooperation with the National Assembly (including parliamentary liaison person)
  • Inclusion of social payments by companies in reporting (under discussion)
  • There are plans to integrate the artisanal mining and forestry sectors within the scope of EITI reporting. 
  • Electronic data collection for the 2011 report
  • Companies co-financing EITI process
  • Information in EITI reports on volumes produced and exported (under discussion)
  • Disclosure in EITI reports of names of beneficial ownership (under discussion)
  • Lobbying for general transparency law (under discussion by CSOs and Parliamentarians)
  • The DRC discloses beneficial owners of companies in its 2012 report. Of the 118 companies reporting to the EITI, 66 are publicly listed on stock exchanges in Australia, Canada, Hong Kong and the United States and therefore do not have to separately disclose their ownership. Of the 52 private companies, 40 disclosed and 12 did not.

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National Coordinator

Democratic Republic of Congo
National Coordinator DRC EITI
EITI Democratic Republic of Congo
+243 81 222 14 15

International Secretariat

Democratic Republic of Congo
Regional Director for Central Africa and Madagascar
EITI International Secretariat
+4796043106
Democratic Republic of Congo
Country Manager
International EITI Secretariat
+47 21685383

Facts & Figures

Latest Eiti Report: 2014 Report
Deadline for next Eiti report: Thursday, 31 December 2015
Number of fiscal years published: 8

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