Democratic Republic of the Congo


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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.

Rank
(out of 58)
Score
(out of 100)
44 Composite Score 39
40 Institutional & Legal Setting 56
Freedom of information law 33
Comprehensive sector legislation 100
EITI participation 67
Independent licensing process 100
Environmental and social impact assessments required 50
Clarity in revenue collection 50
Comprehensive public sector balance 0
SOC financial reports required 0
Fund rules defined in law N/A
Subnational transfer rules defined in law 100
34 Reporting Practices 45
Licensing process 83
Contracts 67
Environmental and social impact assessments 0
Exploration data 0
Production volumes 100
Production value 33
Primary sources of revenue 67
Secondary sources of revenue 67
Subsidies 0
Operating company names 67
Comprehensive SOC reports 17
SOC production data 24
SOC revenue data 0
SOC quasi fiscal activities 17
SOC board of directors 100
Fund rules N/A
Comprehensive fund reports N/A
Subnational transfer rules 100
Comprehensive subnational transfer reports 67
Subnational reporting of transfers 0
42 Safeguards & Quality Controls 42
Checks on licensing process 67
Checks on budgetary process 56
Quality of government reports 62
Government disclosure of conflicts of interest 100
Quality of SOC reports 0
SOC reports audited 33
SOC use of international accounting standards 100
SOC disclosure of conflicts of interest 0
Quality of fund reports N/A
Fund reports audited N/A
Government follows fund rules N/A
Checks on fund spending N/A
Fund disclosure of conflicts of interest N/A
Quality of subnational transfer reports 0
Government follows subnational transfer rules 0
54 Enabling Environment 6
Corruption (TI Corruption Perceptions Index & WGI control of corruption) 6
Open Budget (IBP Index) 13
Accountability & democracy (EIU Democracy Index & WGI voice and accountability) 8
Government effectiveness (WGI) 1
Rule of law (WGI) 2
Satisfactory Weak
Partial Failing
To explore all data and compare
scores, use the RGI Data Tool.

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.

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