Facebook Bankable LinkedIn Bankable
Twitter Bankable WhatsApp Bankable
Bankable
Bankable

Since returning to power last January, President Donald Trump has prioritized boosting domestic supplies of critical minerals, such as copper, essential for energy transition technologies. In this context, the US support for developing a battery production value chain in the Democratic Republic of Congo (DRC), as outlined in a Memorandum of Understanding (MoU) signed in December 2022, seems uncertain.

This strategic shift involves leveraging executive powers to accelerate domestic extraction and processing of raw materials, potentially at the expense of supporting downstream segments like battery manufacturing abroad. 

The Trump administration has suspended funding from the Inflation Reduction Act (IRA) intended to support global battery value chains, opting to reassess their allocation in line with new policy priorities.

The December 2022 MoU had envisioned U.S. support for promoting the DRC's electric vehicle battery development initiative to American investors. This included potential business development and technical assistance to facilitate U.S. private sector participation in such projects. However, with the current emphasis on domestic resource development, the realization of these intentions seems increasingly uncertain.

Meanwhile, last week, the DRC has launched the Musompo Special Economic Zone (SEZ) in cobalt-rich Lualaba province. The SEZ will produce battery precursors, batteries, and potentially assemble electric vehicles from local raw materials. The project seeks to mobilize nearly $2 billion in private investment.

In 2023, former Minister of Industry Julien Paluku estimated that $30 billion would be required to establish the first integrated manufacturing plant for battery precursors, batteries, and electric vehicles. He projected that this initiative could enable the DRC to capture nearly $7 trillion from the global value chain by 2035-2040.

This article was initially published in French by Emiliano Tossou (Ecofin Agency)

Edited in English by Ola Schad Akinocho

Posted On mercredi, 02 avril 2025 17:58 Written by

Between 2023 and 2024, power output in the Democratic Republic of Congo (DRC) rose by 303.1 gigawatt-hours (GWh) or 3.04%. According to the country’s power utility, the ARE, hydropower plants, such as the Inga I and II plants, mostly drove the increase. The source, the ARE’s annual report, the DRC’s power output rose by 9.8% from 2020 to 2024.

Despite this progress, the DRC’s total electricity output remains remarkably low, reaching just 13.6 terawatt-hours (TWh) in 2024. For perspective, this is equivalent to only about 11 days of electricity consumption in France, a country that has undergone significant deindustrialization. In contrast, South Africa, the regional leader in sub-Saharan Africa, distributed 178.68 TWh in the first 10 months of 2024 alone. That is 13.7 times the DRC’s annual production.

The ARE notes that its data still requires refinement to “accurately reflect the sector's reality relative to power production.” However, these figures highlight efforts to achieve Sustainable Development Goals (SDGs) and industrialize its economy, particularly by transforming its abundant mining resources into higher-value products locally.

Based on estimations integrating transmission losses, estimated at 46%, Bankable found that the available electricity barely covers the basic needs of urban and rural households, which require around 8 TWh annually. 

Undertapped Potential

To overcome this, the Congolese government allowed the private sector to step into the country’s supply chain. Since 2020, 37 new projects led by private investors have been authorized, representing a potential installed capacity of 4,125.1 megawatts (MW). According to the ARE, these projects could boost the DRC’s total installed capacity to 6,988 MW by 2030. They include thermal(using generators), hydropower, and import projects. 

Solar energy is a standout area, with 67% of authorizations focused on photovoltaic projects, offering a projected capacity of 2,721 MW. The DRC also boasts immense hydroelectric potential, estimated at 100,000 MW, capable of producing between 438 and 525 TWh annually under optimal conditions. Solar energy, with its promising prospects, could reach up to 746 TWh per year if fully exploited. Biomass and natural gas also represent high-potential sectors, although their development is still limited.

However, the DRC still faces significant challenges: reducing network losses, modernizing aging infrastructure, and attracting more investment. Millions of Congolese lack reliable access to electricity, a reality that also presents an investment opportunity. The market for cooking energy alone absorbs nearly $4 billion annually, primarily for charcoal purchases.

This article was initially published in French by Georges Auréole Bamba

Edited in English by Ola Schad Akinocho

Posted On mercredi, 02 avril 2025 17:23 Written by

On March 24, 2025, Republican Congressman Christopher Henry Smith introduced a bill in the U.S. House of Representatives to block cobalt refined in China from entering the U.S. market. Smith claims that cobalt processed in China is tied to child and forced labor in the Democratic Republic of Congo (DRC).  As of March 30, 2025, the H.R.2310 bill was not online.

In December 2023, Smith proposed a similar measure that failed to advance before the November 2024 elections. That earlier bill, which the Ecofin Agency consulted, aimed to sever U.S. ties with supply chains linked to cobalt mined under exploitative conditions in the DRC and refined in China.

Known as the H.R. 6909 bill or the "Cobalt Restriction Act," the draft law targets reports of poor working conditions and human rights abuses in DRC mines. It seeks to ban products containing cobalt refined in China unless proven not to originate from the DRC.

The U.S. has previously flagged Congolese cobalt for its labor issues. In September 2024, the Department of Labor added it to its list of products made with child labor. However, this latest bill comes amid worsening U.S.-China relations, with China controlling over 80% of global refined cobalt supplies.

This proposal sparks a crucial question: does it truly aim to combat child labor, or does it mainly seek to limit China's dominance over Congolese cobalt? Besides refining, China also controls several cobalt mines in the DRC. Since 2023,  the Chinese group CMOC has become the world’s top cobalt producer thanks to its Tenke Fungurume and Kisanfu mines in the DRC. 

While independent reports confirm child labor in artisanal mining, accounting for 15-30% of DRC’s cobalt production, most production is managed by industrial operators.


This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho

Posted On mardi, 01 avril 2025 17:54 Written by

At the United Nations Security Council meeting on March 27, 2025, the United States called for the immediate reopening of Goma International Airport in eastern Democratic Republic of Congo (DRC), a critical lifeline for humanitarian and economic operations in North Kivu province. Acting U.S. Ambassador to the UN, Dorothy Shea, emphasized the urgency of the situation, stating, “We demand that the M23 (...) take the necessary steps to reopen the airport without delay.”

Goma airport has been under M23 rebel control since January, following their seizure of Goma amid intensified fighting between the group—backed by Rwanda—and Congolese government forces. The airport’s closure has paralyzed relief efforts for millions of displaced civilians and disrupted vital supply chains for medical aid, food, and other necessities. Humanitarian organizations, including the UN and European Union, have repeatedly urged its reopening to establish a humanitarian corridor.

According to reports from Radio France Internationale (RFI), M23 has initiated demining operations at the airport, a crucial step toward resuming operations. However, significant obstacles remain: explosives must be fully neutralized to ensure air safety, the control tower must be restored, and baggage handling systems reactivated. Additionally, questions persist about who will oversee airport management. Collaboration between Kinshasa and M23 appears unlikely given ongoing hostilities, leaving the United Nations Mission in the DRC (MONUSCO) as a potential mediator or operator.

Dorothy Shea further demanded that M23 cease obstructing MONUSCO’s activities: “We demand that the M23 immediately cease obstructing Monusco operations.” Her statement underscores growing international frustration with the group’s actions amid a worsening humanitarian crisis.

The diplomatic context surrounding Goma’s airport is complicated by broader tensions in the region. Earlier in March, Ronny Jackson—a U.S. Congressman reportedly acting as an emissary for former President Donald Trump—visited several Great Lakes nations. While Jackson reaffirmed U.S. support for the DRC’s territorial integrity and advocated for a regional security framework, his comments sparked mixed reactions among regional leaders.

Speaking before a committee in the United States, Jackson reaffirmed the inviolability of the DRC's borders. However, he felt that a military solution would not end the conflict. He and other speakers at the session called for the establishment of a regional framework guaranteeing the security and economic interests of all players in the zone, while calling on Kinshasa to strengthen its governance.

This article was initially published in French by Georges Auréole Bamba

Edited in English by Ola Schad Akinocho

Posted On lundi, 31 mars 2025 17:05 Written by

United Bank for Africa (UBA) DRC, the Congolese subsidiary of the eponymous Lagos-based bank,  posted a net profit of 21 billion naira ($13.6 million) in 2024, up from 4.3 billion naira ($4.3 million) in 2023. According to our sources, the Congolese branch contributed five times more to the group’s profit between 2023 and 2024.

This remarkable growth was driven by a sharp rise in operating income, which soared to 22.8 billion naira, up from 4.3 billion naira the previous year. UBA RDC expanded its traditional lending activities while aggressively entering the debt securities market, investing approximately $76.7 million in this segment last year.

The subsidiary’s performance also benefited from macroeconomic factors, particularly the depreciation of the naira against the U.S. dollar, as nearly 91% of banking assets in the DRC are dollar-denominated. Adjusted for exchange rate fluctuations, UBA RDC’s profit growth remains impressive at 216%, underscoring its operational efficiency despite currency volatility.

While UBA DRC has emerged as an important growth driver for the Nigerian banking giant, it is not yet among the group’s most strategic subsidiaries. Countries like Cameroon, Côte d’Ivoire, Mozambique, Senegal, and Congo Brazzaville contribute more to UBA’s overall profits. Moreover, UBA RDC remains a relatively small player in the Congolese banking sector, prompting the bank to launch an ambitious five-year strategic plan (2024–2028) to scale its operations.

The plan includes expanding its branch network from three locations in 2024 to 21 by 2028 and increasing ATMs across key regions. It also targets mobilizing $1.8 billion in deposits by the end of the period—up from $269 million in 2023—positioning UBA RDC for long-term growth. As part of this strategy, the bank recently opened a new branch in Matadi, focusing on import-export activities that have proven successful in other markets like Cameroon.

Georges Auréole Bamba

Posted On lundi, 31 mars 2025 16:31 Written by

Rio Tinto, the Australian mining behemoth, is setting its sights on Africa's lithium reserves as it seeks to bolster its position in the global supply chain for this critical battery metal. Citing sources close to the matter, Bloomberg reported on March 28, 2025, that the company is in preliminary talks with the Democratic Republic of Congo (DRC) regarding the potential development of the southern portion of the Manono lithium deposit.

This move comes on the heels of Rio Tinto's recent $6.7 billion acquisition of Arcadium Lithium, which significantly expanded its lithium portfolio across Argentina, the United States, and Asia.

The company is also advancing its lithium projects, including the Rincon development in Argentina and in Jadar, Serbia.

The Manono deposit, considered one of the world's largest untapped lithium resources, boasts estimated mineral resources of at least 400 million tonnes. Rio Tinto's interest in this African asset marks a strategic pivot, following its 2024 partnership with Rwanda to explore strategic mineral deposits, including lithium.

Rio Tinto is not the only giant eyeing Manono's riches. KoBold Metals, a California-based firm backed by tech luminaries Bill Gates and Jeff Bezos, recently proposed a development plan for the southern section of the deposit. 

These overtures come amid ongoing legal disputes involving AVZ Minerals, the current permit holder for the southern portion, and state-owned Cominière over the alleged illegal partitioning of the Manono mining permit.

The northern section of Manono is already under development by Manono Lithium SAS, a joint venture between Cominière and China's Zijin Mining Group. 

Rio Tinto's renewed focus on lithium aligns with long-term market projections. Despite recent price declines due to temporary oversupply, analysts anticipate a market reversal driven by the global energy transition. The International Energy Agency (IEA) predicts a lithium deficit exceeding 150,000 tonnes by 2030, underscoring the strategic importance of securing future supply sources.

This article was initially published in French by Aurel Sèdjro Houenou (Ecofin Agency)

Edited in English by Ola Schad Akinocho

 

Posted On lundi, 31 mars 2025 13:26 Written by

Angola is no longer mediating the talks to resolve the ongoing conflict in eastern Democratic Republic of Congo (DRC). Luanda announced its withdrawal on March 24, 2025, explaining that President João Lourenço, who also chairs the African Union (AU), had to "more comprehensively focus on the general priorities established by the continental organization.

Angola’s mediation efforts, initiated in 2022, had sought to broker peace between the DRC government and M23 rebels, who are widely accused of receiving support from Rwanda. In its recent statement, Luanda noted that its multiple attempts to bring conflicting parties to the table were unfruitful. "Angola has always believed that there should be, in parallel with this process, direct negotiations between the DRC government and the M23. In this regard, it worked towards this and was able to obtain the consent of both parties for the first round of these negotiations to take place in Luanda on March 18 of the current year, an action newly aborted in extremis by a set of factors, some of which were external and extraneous to the African processes already underway," the communiqué reads.

The presidency stated that consultations with the AU Commission would determine a new mediator to replace Angola. Meanwhile, Qatar has stepped up its involvement, hosting a surprise meeting between DRC President Félix Tshisekedi and Rwandan President Paul Kagame last week. The two leaders issued a joint statement reaffirming their commitment to an immediate ceasefire, but this pledge has yet to translate into tangible results as violence continues to escalate.

Commenting on the stalled progress, Téte António, Angola’s foreign minister, told the local media he was disappointed while reiterating that African solutions must remain central to resolving African conflicts. “All actions linked to the efforts of the United Nations or other international organizations are welcome as long as they are duly concerted with African mediators,” the Angolan presidency added in the recent note. 

Online, many people disapproved of Qatar’s involvement in the matter, deeming that a non-African nation should not mediate the peace talks. 

Since January, M23 rebels have launched an aggressive offensive in eastern DRC, capturing strategic towns such as Goma and Bukavu and advancing into mineral-rich areas like Walikale. Their control over these regions has deepened the humanitarian crisis, with millions displaced and international efforts struggling to end the conflict.

On Monday, March 24, Kinshasa began consultations for a potential government of national unity, raising questions about whether M23 representatives will be included. 

This article was initially published in French by Moutiou Adjibi Nourou (Ecofin Agency)

Edited in English by Ola Schad Akinocho

Posted On jeudi, 27 mars 2025 11:23 Written by

DRC Gold Trading SA, the only company allowed to export artisanal gold in the Democratic Republic of Congo (DRC), recently opened a new office in Maniema province. On the opening day, March 21, the company’s head office manager, Amisi Mudjanahery, reassured mining cooperatives, traders, and licensed buyers of the firm’s capacity to purchase all artisanal gold in the region. Mudjanahery emphasized that this capability is backed by a partnership with Rawbank, the DRC’s leading financial institution.

“The company is there to collect all gold from artisanal and small-scale mining. This gold must be traced. Together with Rawbank, DRC Gold Trading SA would like to reassure all its suppliers that it will buy all the gold supplied to it in cash,” he stated.

Mudjanahery did not elaborate on the specifics of the partnership with Rawbank or how the bank intends to help the state-owned company fulfill its mandate.

In 2024, DRC Gold Trading aimed to export 12 tonnes of gold but managed only 1.75 tonnes. The shortfall was attributed to multiple factors, including operational halts during part of the year and uncompetitive prices offered by the company compared to those on the black market. Additionally, banking regulations restricting daily cash transactions have further complicated its operations.

Despite these challenges, optimism remains high among local stakeholders. David Kikuni, provincial president of the Maniema Gold Traders’ Corporation, expressed confidence that the new buying office would curb the exodus of gold production from the region while strengthening traceability and sector governance.

Maniema’s artisanal gold production has historically been hard to track. According to partial data from the Cellule Technique de Coordination et de Planification Minière (CTCPM), artisanal output in the first quarter of 2024 was just 5.77 kilograms. By comparison, the province produced 9.87 kilograms in the first half of 2022, accounting for 10.18% of national production that semester. In its annual report covering 2024, the CTCPM does not mention Maniema.

This article was initially written in French by Ronsard Luabeya (intern)

Edited in English by Ola Schad Akinocho

Posted On jeudi, 27 mars 2025 11:18 Written by

Since January 1, 2025, individuals or entities found guilty of obstructing transparency and traceability in the Democratic Republic of Congo’s (DRC) mining sector now face a staggering $4.3 million fine. Outlined in Decision No. CAMI/DG/003/2024, the penalty was issued by the Directorate General of the Mining Cadastre (CAMI) on December 16, 2024. It is the most severe enforcement measure under the country’s amended Mining Code. Despite its significance, the decision has received little public attention.

The adjustment stems from Article 375 of the 2018 Mining Code. The code mandates annual revisions of fines in foreign currency. “To maintain their value, these adjustments require input from the Central Bank of Congo and approval by CAMI’s leadership”. Since the revised Mining Code came into effect in 2018, fines for violations have been increased at least four times. The latest hike is particularly striking, multiplying the previous threshold of $429,122 by ten. Earlier fines had already reached $1.23 million in 2021 and $1.07 million in 2022.

The new $4.3 million penalty is part of a broader effort to enforce stricter compliance in the mining sector, which accounts for over 95% of the DRC’s export revenues. While this fine targets violations related to transparency and traceability key provisions aimed at curbing smuggling and illicit trade penalties for at least a dozen other mining offenses have also been doubled, quadrupled, or increased tenfold since the start of 2025.

The measures coincide with heightened government efforts to combat resource plundering by M23 rebels, who recently invaded the DRC, with Rwanda’s help. The rebels currently occupy strategic areas, including Rubaya’s mineral-rich mines and cities like Goma and Bukavu.

Despite these challenges, there are signs of determination from the mining administration to strengthen oversight elsewhere in the country. The recent inauguration of a Mining Registry building in Katanga another key mining region signals an effort to bring regulatory authorities closer to industry players and ensure compliance with the law.

Updated list of fines for violations of mining regulations in the DRC

(Decision CAMI/DG/003/2024 - in force since January 1, 2025)

  • Obstruction of transparency and traceability in the mining industry: USD 4,291,222.57 (previously USD 429,122.24)
  • Fraud and looting of natural mineral resources: USD 2,145,611.26 (versus USD 1,072,805.65)
  • Illicit activities:USD 1,072,805.65 (vs. USD 42,912.25)
  • Illicit purchase and sale of mineral substances: USD 128,736.67 (versus USD 42,912.25)
  • Theft and concealment of mineral substances: USD 85,824.43 (versus USD 21,456.11)
  • Embezzlement of mineral substances: 85 824.43 USD (versus 21 456.11 USD)
  • Illicit possession of mineral substances: USD 85,824.43 (compared with USD 8,582.43)
  • Illicit transport of mineral substances: USD 85,824.43 (versus USD 8,582.43)
  • Facilitation of detour of mineral substances: USD 42,912.25 (vs. USD 21,456.11)
  • Violations of human rights: USD 42,912.25 (new offence)
  • Violation of health and safety regulations: USD 42,912.25 (versus USD 21,456.11)
  • Destruction, degradation or fraudulent/malicious damage: USD 42,912.25 (versus USD 21,456.11)
  • Obstructing the activities of the Mining Administration: USD 42,912.25 (versus USD 8,582.43)
  • Infringement of ministerial or provincial governor decrees: USD 42,912.25 (compared with USD 4,291.24)
  • Insults or violence towards Mining Administration officials: 21,456.11 USD (compared with 4,291.24 USD)
  • Refusal to communicate a change of address: 21,456.11 USD (new offence)
  • Corruption of public officials: 4,291.24 USD (new offence)

 

This article was initially published in French by Georges Auréole Bamba

Edited in English by Ola Schad Akinocho

Posted On jeudi, 27 mars 2025 09:28 Written by

On March 24, 2025, leaders of the East African Community (EAC) and the Southern African Development Community (SADC) held their second joint summit addressing the ongoing crisis in eastern Democratic Republic of Congo (DRC). The meeting, which took place online, is a new milestone towards bringing peace to the region. The Kenyan and Zimbabwean Presidents, William Ruto and Emmerson Mnangagwa, co-chaired the roundtable. Ruto and Mnangagwa respectively chair the EAC and SADC.

At the summit's conclusion, five former heads of state were appointed as facilitators for the peace process: Olusegun Obasanjo (Nigeria), Uhuru Kenyatta (Kenya), Kgalema Motlanthe (South Africa), Catherine Samba-Panza (Central African Republic), and Sahle-Work Zewde (Ethiopia). They were picked based on gender, regional, and linguistic representation criteria, according to an official communiqué. This panel will take over dialogue efforts previously led by Angolan President João Lourenço, who stepped down to focus on continental priorities as Angola holds the African Union presidency.

Escalating Conflict

Eastern DRC has been facing a conflict with M3 rebels since January. The invaders, backed by Rwanda, have captured strategic cities like Goma and Bukavu. Despite multiple regional and international initiatives, the conflict continues. 

Last week, Congolese President Félix Tshisekedi and Rwandan President Paul Kagame met in Qatar. According to a joint statement issued after the meeting, the two leaders “reaffirmed commitments to an immediate and unconditional ceasefire,” echoing resolutions from the first joint EAC-SADC summit held in February in Dar es Salaam.

The March 24 summit also adopted a roadmap outlining measures for sustainable peace and security in eastern DRC. While details remain undisclosed, participants urged swift implementation of these actions and directed the co-chairs to organize a briefing with the facilitators within a week, in collaboration with the African Union.

This article was initially published in French by Charlène N’dimon(Ecofin Agency)

Edited in English by Ola Schad Akinocho

Posted On jeudi, 27 mars 2025 08:12 Written by
Page 1 sur 15

 
 

Please publish modules in offcanvas position.