The Reform of the Mining Sector in the Democratic Republic of Congo in the Context of Management Problems and Prospects of Economic Development

Abstract

The Democratic Republic of Congo (DRC) is extremely rich in natural resources. Therefore, due to its geostrategic importance, it is a country that decides whether it affects the stability and development of Central Africa and the Great Lakes region. Katanga is one of the richest provinces of the DRC, where the economy is based primarily on the mining industry, it is a place (seated) for many companies in the mining of metals in mines and quarries. The vision of development of the economy of the country depends on the Congolese mining sector and applied development policy, which is focused on macroeconomic stimulus, such as foreign investment, which in effect allow the fight against poverty. Initiated by several international financial institutions reform mining remains in the integration of the development programs carried out in the Democratic Republic of Congo and is reflected in the liberalization of the mining sector. Therefore, this article is important from the point of view of the development process of the reform of mining and finance its implementation from the point of view of global prospects for reconstruction. Extraction of minerals in the Democratic Republic of Congo, especially in the Katanga province is recognized by the local community as a functioning market in an anarchic because of informal restrictions as a result of which the country draws a small profit. The mining sector in the country, and especially in the province of Katanga has traditionally been occupied by the state company “Gecamines” which has a monopoly in the mining industry. Known as having an amazing variety of minerals in large quantities, “the country had in 2007, about 70% of world reserves of cobalt and 20% copper, 45% of the diamond, as well as significant potential for gold, uranium and manganese.” Democratic Republic of Congo is the world's largest producer of cobalt in addition to Australia.