Economic and Social Benefits of the Mining Sector:
“The Role of Local Content”.
The Democratic Republic of Congo (DRC) is among the five poorest countries in the world. 
In 2022, nearly 62% of its inhabitants, or around 60 million people, were surviving on less than $2.15 per day.
According to the World Bank, nearly one in six individuals in extreme poverty in sub-Saharan Africa resides in the DRC.
At the same time, the mining sector is a pillar of the DRC economy, contributing approximately 27.8% of GDP and more than 70% of export earnings.
The DRC should take greater advantage of its mineral wealth to reduce poverty which persists due to the fact that a large part of the population does not benefit from the economic benefits of this sector.
Local content, defined as the priority use of local resources, national skills and local services in the mining industry, is an essential tool for maximizing the economic and social benefits of the sector in the DRC.
Indeed, prioritizing local content may consist of promoting local subcontracting and procurement from local suppliers with a view to strengthening the participation of the local workforce in the mining sector value chain.
Thus, the mining sector can stimulate job creation in local communities.
The 2020-2021 EITI Report indicates that the extractive sector (Mining and oil) of the DRC comprises respectively 24.71% and 24.83% of the workforce employed in the DRC in 2020 and 2021.
Increasing the local participation of Congolese in the mining sector value chain requires strengthening the skills and know-how of local companies.
This can be done through training, technology transfer and mentoring programs.
Local content can encourage the creation of new local businesses in the mining sector and its ancillary industries and contribute to the diversification of the Congolese economy by reducing dependence on raw material exports.
To do this, the DRC has put in place several measures aimed at encouraging local content in the mining sector, in particular: Increased State Participation through the provisions of the Law relating to the Mining Code 2002 as revised which establishes the increase in State participation in mining companies from 5 to 10% when an Exploitation License (EP) is granted.
The mining law in the DRC also establishes the participation of individuals of Congolese nationality in the constitution of the share capital of mining companies up to a minimum of 10% of the share capital.
To promote local content in the mining value chain, Law No. 17/001 of February 8, 2017 on subcontracting in the private sector and the Mining Code Law of 2002 as revised in 2018 require that only companies with Congolese capital can bid in calls for tenders from mining companies.
These legal instruments aimed at promoting the development of local SMEs and the creation of jobs throughout the mining value chain gave rise to the creation of the Regulatory Authority for Subcontracting in the Private Sector (ARSP) .
This public establishment created by Decree No. 18/019 as amended and supplemented by Decree No. 20/025 of October 12, 2020, aims to regulate subcontracting activities ordered by private ordering companies. operating in all sectors of the national economy.
The mining regulations require the holder of mining rights to implement a training program for Congolese personnel identified for their needs.
This program must cover all the qualifications in order to enable it to acquire the skills required by the management of the company with a view to occupying management and supervisory positions within ten years following the date of the start of production. commercial without prejudice to the quota set out in Article 405 of the same text.
Despite the progress made, the implementation of local content in the DRC faces several challenges, including: lack of adequate infrastructure, such as roads and electricity.
This insufficiency hampers the development of local content.
There is also a need to monitor the execution of the legal provisions on the training and capacity building of Congolese executives provided for by the Mining Regulations.
Finally, the energy deficit in the DRC remains a major challenge for local content in the DRC.
By meeting these challenges, the DRC can transform its mining industry into a real engine of inclusive economic and social development.
*Caleb Bonyi MUKADI MUKANDILA is an economist (Université Grenoble Alpes and Toulouse School of Economics).
