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Mining attractiveness: the DRC ranked 82 out of 83 countries in the Fraser Institute report
The latest Fraser Institute annual report ranks the DRC at the bottom of the world ranking of the least attractive states for investment in the mining sector. Out of a total of 83 countries studied, the DRC ranks 82nd in the mining policy index.
It is Venezuela that closes the world ranking, thus being the only country listed behind the DRC.
On the list of the worst ranked African nations, there are mainly Zambia, Zimbabwe and Papua New Guinea.
According to the Fraser Institute 2022 Report, the investment climate in the mining sector in the DRC is simply unattractive.
With more than 20 mining companies producing copper, the main mineral exported by the DRC, we expected a better score. Indeed, the country is now seen as one of the key players in the global energy transition, due to its impressive reserves of cobalt, copper, lithium and bauxite.
Based on the two main indicators of the Report, namely the investment attractiveness index and the public policy perception index, the entire African region is in a disadvantageous position.
Despite proven potential natural wealth, several African countries such as Zambia, Zimbabwe and Papua New Guinea are lagging behind.
The lack of competitiveness of the African continent could have serious repercussions on the expected heavy foreign investments.
The West would then be forced to review its strategy to counter the ubiquitous China in the region.
Fraser Institute is a Canadian think tank that has earned its stripes in the annual production of studies on social themes.
In addition, it is at the service of decision-makers.
Every year, structure experts publish a report on the attractiveness of mining investments in the world.
After this long-awaited publication, the time is now for a frank and taboo-free debate at the national level.
A certain opinion recalls, for example, the strategic place of the DRC in the global energy transition. In addition, mining represents the growth sector of the Congolese economy.
The latter is driven more than 30% by mining activity. The Ministry of Mines indicates a continuous increase in mining revenues for more than a decade.
In terms of sanitation, the big step was taken with the implementation of the revised Mining Code in 2018, a very controversial piece of legislation that promotes a win-win partnership.
Adherence to several international traceability and certification mechanisms would have made it possible, according to the Ministry of Mines, to tackle head-on the problems of corruption, fraud and illegal exploitation of mineral resources.
To this must be added the creation and functioning of the national commission for the fight against mining fraud.
Obviously, this new ecosystem, theoretically more competitive, did not improve the index of perception of mining policies, according to Fraser Institute.
Following a field visit between August 23 and December 30, 2022, their experts interviewed 1,966 exploration, development and other mining-related companies.
They ended up with this very negative rating due to several destabilizing factors, mainly the unilateral increase in the royalty rate.
The other pinpointed factor is the lack of clarity on the limits of mining exploration concessions and cases of corruption.
However, the report insists on a rather positive fact for the country, namely the attractiveness for investment in exploration.
On this point, the DRC is in 24th place.
This is small consolation.
.mediacongo
