The DRC has extensive deposits of copper, cobalt, and coltan, as well as diamonds, gold, tin, iron ore, and oil. It produced 300,000 tons of copper and 3,600 carats of diamonds in 2009, making it the fourth-largest diamond producer in the world. In 2010, the DRC accounted for 51 percent of global cobalt production, and the extractive sector as a whole made up 20 percent of gross domestic product.
The DRC's Performance on the Resource Governance Index
The DRC received a "failing" score of 39, ranking 44th out of 58 countries, partly due to an extremely low Enabling Environment score and weak Safeguards & Quality Controls.
(out of 58)
(out of 100)
|40||Institutional & Legal Setting||56|
|42||Safeguards & Quality Controls||42|
Institutional & Legal Setting (Rank: 40th/58, Score: 56/100) learn more
The DRC earned a "partial" score of 56, its highest on any component, reflecting a substantial legal framework but insufficient public disclosure policies.
The 2002 Mining Code clearly establishes procedures to obtain licenses. However, state-owned companies (SOCs) still hold many of the most lucrative titles and have signed numerous joint-venture contracts under opaque circumstances, undermining the competitive provisions of the Mining Code. There is no equivalent of a Freedom of Information Act.
The Finance Ministry collects all taxes from resource companies. However, in joint ventures involving SOCs, revenues such as signing bonuses, royalties, and proceeds from asset sales go directly to the SOCs. It is unclear whether these revenues ultimately flow into the national treasury.
The DRC was accepted as an Extractive Industries Transparency Initiative candidate country in 2007 but has failed to complete the requirements for validation. It is in the process of completing a new validation report.
Reporting Practices (Rank: 34th/58, Score: 45/100) learn more
The DRC received a "weak" score of 45, the product of incomplete government reporting on most aspects of the extractive industries.
A decree signed in May 2011 requires the government to publish all mining, oil and forestry contracts. However, the government did not begin systematically disclosing agreements until June 2012, and a few controversial contracts remain secret. Environmental impact assessments are required, but the government does not publish them.
The Finance Ministry has published quarterly reports since early 2011 with information on royalties, aggregated bonuses, and license fees. The Mines Ministry publishes little information on revenues, but does release figures for royalties based on production volumes and data by company and block. The Central Bank publishes aggregated information on production volumes and prices in weekly statistical reports.
Safeguards & Quality Controls (Rank: 42nd/58, Score: 42/100) learn more
The DRC's "weak" score of 42 reflects a lack of effective oversight, particularly of state-owned companies.
While licensing procedures leave little room for discretion and include appeal provisions, parliament has no role in overseeing the process or in approving contracts, and legislators do not regularly scrutinize extractive revenues.
National law requires that the president and ministers disclose their financial interests, but in practice this information is not made public. A national audit office reviews state accounts, but its reports are not widely accessible.
Enabling Environment (Rank: 54th/58, Score: 6/100) learn more
The DRC received a "failing" score of 6, performing extremely poorly on measurements of government effectiveness and the rule of law.
State-Owned Companies (Rank: 35th/45, Score: 29/100) learn more
There are several state-owned companies, each with its own geographical focus. The largest is the Générale des Carrières et des Mines (Gécamines), which produces copper and cobalt in Katanga province. Gécamines publishes very little information on its operations, subsidiaries, or revenues. Its financial statements are audited but difficult to find and are not regularly reviewed by parliament. In general, the only source of publicly available information on SOC revenues is the state budget.
Subnational Transfers (Rank: 22nd/30, Score: 44/100) learn more
Neither the central government nor provincial authorities publish data on subnational revenue transfers. According to the Constitution, 40 percent of all taxes from the mining sector are to be collected directly by the provinces where extraction takes place. However, this contradicts the Mining Code, which states that the central government is to collect all taxes and then transfer a percentage to provinces. In practice, revenues are centralized before shared and, according to provincial tax agencies, only 10 percent of the funds are effectively transferred.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||5.5||8.1||15.7|
|GDP per capita, PPP (constant 2005 international $)||260||277||329|
|Oil and gas revenues (% total government revenue)||17||10|
|Extractive exports (% total exports)||..||..||..|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank.|