The DRC - Who benefits from the chaos

The Democratic Republic of the Congo is one of the least developed countries in the world. Yet it is also home to $24 trillion worth of untapped mineral reserves. In the eastern hills of the country, the "three Ts" - tantalum, tungsten and tin - are mined by hand, eventually making their way into electronic devices across the world.

In the Democratic Republic of Congo (DRC) more than 5.4 million have killed since 1998, so coffins, are the one thing which people will spend their limited money. For the funeral undertakers, business is good. Prostitution is also a prosperous industry thanks to the war. With more than 30 armed groups in the region, there is a growing market of men seeking sex. But with little money, plenty of weapons and ample alcohol, the soldiers often rape and threaten the women.

War is another profitable activity, with many investors - both internally and externally. The United Nations, for example, sent 19,815 blue helmets to the country through its United Nations Organization Stabilization Mission in the DR Congo (MONUSCO), the second-largest mission in the world. For the home countries of those troops - Pakistan, India, Uruguay, Tanzania, South Africa and Malawi - the mission can be extremely profitable: the UN pays them four times the cost of the deployment.

Then there are the NGOs. More than 80 humanitarian organisations ply their trade in the DRC, as part of an arguably self-sustaining business. One NGO mission chief confessed: "I don't know what we're doing here. Our presence raises the price of food and rent, we stop people from moving on, from taking their own decisions and demanding their government take responsibility. We should have left Congo years ago."

Another booming the trafficking in blood minerals, for nothing serves this illicit trade better than a failed and unstable state that is incapable of collecting taxes and stopping neighbouring countries from looting its riches through strongman proxies.

 Rubaya in the province of Masisi is three hours' drive from Goma and the epicentre of the blood minerals war. Some tech lobbies, perhaps wishing to wash their hands of any responsibility for the exploitation of blood minerals, recently insisted that coltan is no longer used in the making of mobile phones, tablets, consoles or cameras, and that the mines were closing. But in truth, demand for the mineral is still much greater than its supply. Around 80 percent of the world's supply resides under Congolese soil. 5,000 miners, many of them children and teenagers, continue to toil in a state of quasi slavery in DRC, at first under the open sky and then, when there is no more of the mineral left on the surface, in deep tunnels where they eat, sleep and work from dawn until dusk, seven days a week, 365 days a year. Many work nearly nude, without helmets or protective gear, and some are even barefoot. Others wear fake Real Madrid or Barcelona shirts. The luckiest have wellington boots. The mines are particularly dangerous during the rainy season, when the damp earth can crumble, leaving miners at the mercy of carbonic gas or crushed inside underground caverns.

In North Kivu there are between 5,000 and 6,000 Congolese rebels spread among 30 armed groups. In addition to racial hatred, they are motivated by a desire to control the mineral resources - and will massacre entire villages in an effort to do so.

A dark web of large multinational companies, corrupt officials and unscrupulous states concealed by anonymous tax haven bank accounts participate in the ancient game of looting the DRC. The UN has denounced neighbouring countries such as Rwanda and Uganda for selling  minerals that are not theirs and for feeding armed groups in order to keep the trade alive. Meanwhile, the developed world receives its sacks of cassiterite, coltan, gold, diamonds, uranium, tungsten and manganese cheaply and promptly.

 Who then, other than the Congolese themselves, could want a conflict that sustains such a business to end?

From here

The Rich Get Richer But Few Signs Of Trickle-Down

With its two-trillion-dollar economy, recent discoveries of billions of dollars worth of minerals and oil, and the number of investment opportunities it has to offer global players, Africa is slowly shedding its image as a development burden. "While global direct investment has shown some decline, dropping by 18 percent in 2012, in Africa foreign direct investment rose by five percent," Ken Ogwang, an economic expert affiliated with the Kenya Private Sector Alliance (KEPSA), which has a membership of over 60 businesses, told IPS.

"Underhand dealings in the mining of diamonds and other rich minerals here have fuelled poverty." -- economic analyst, Jameson Gatawa

Since 2012, Kenya has made a series of mineral discoveries, including unearthing 62.4 billion dollars worth of Niobium - a rare earth deposit. The discovery in Kenya's Kwale County has made the area among the world's top five rare earth deposits sites, and allows Kenya to enter a market that has long been dominated by China.
In 2012, Kenya discovered 600 million barrels of oil reserves in Turkana county, one of the country's poorest regions. It was announced on Jan. 15 that two more wells struck oil, increasing estimate reserves to one billion barrels of oil.
But Kenya, East Africa's economic powerhouse, is not the only African nation that has made fresh mineral discoveries.
"The recent boom in new mining discoveries in countries such as Niger, Sierra Leone and Zambia will attract billions in foreign direct investments. Other countries like Mozambique, Tanzania and Uganda will similarly attract billions due to petroleum discoveries there," Antony Mokaya of the Kenya Land Alliance, a local umbrella network of NGOs and individuals working on land reforms, told IPS.

Last year, both Uganda and Mozambique discovered oil. In 2006, an estimated two billion barrels of oil reserves were discovered in western Uganda, but last year's discovery brings Uganda's total oil deposits to 3.5 billion barrels. Mozambique's first oil discovery last year is estimated to be 200 million barrels.
Ogwang predicts that these discoveries will soon see African countries dominating the list of the 15 fastest-growing economies in the world.
"More African countries, Kenya being a model example in East Africa, now favour a market-based economy, which is highly competitive and the most liberal economic system.
"In this system, market trends are driven by supply and demand with very few restrictions on who the actors are. [It is] a favourable environment for foreign investors," he said, referring to the local mobile phone industry, which has been dominated by foreign investors because of its favourable regulatory policies.
"As a result, growth in this sector is phenomenal. In the first 11 months of 2013, Kenya's mobile phone money transactions were 19.5 billion dollars, which is more than the country's current 18.4-billion-dollar national budget."

Ogwang says that even more importantly, African countries are increasingly strengthening their partnerships with the East.
Statistics by the Africa Economic Outlook, which provides comprehensive data on Africa economies, show that China is the largest destination for African exports, accounting for a quarter of all exports.
Trade with Brazil, Russia, India and China - the economic bloc referred to as BRICs - now accounts for 36 percent or 144 billion dollars of Africa's exports, up from only nine percent in 2002.
In comparison, Africa's trade with the European Union and the United States combined totals 148 billion dollars.

But Terry Mutsvanga, director of the Coalition Against Corruption, an anti-corruption lobby group in Zimbabwe, cautioned that Africa will first have to rein in its corrupt politicians before its resources can enrich its own people.
According to the World Bank, some of the world's poorest people live in Africa, with one out of two Africans living in extreme poverty.
"Without Africa dealing with the cancer of political corruption blighting the continent and robbing it of revenue from mineral resources through corrupt politicians receiving bribes from investors ... the continent shall [continue to have] the worst poverty levels globally," Mutsvanga told IPS.
Independent economic analyst Jameson Gatawa from Zimbabwe agreed.
"Underhanded dealings in the mining of diamonds and other rich minerals here have fuelled poverty. The rich are getting richer with the poor becoming poorer," Gatawa told IPS.

For 54-year-old Sarudzai Mutavara, a widow who lives in the midst of Zimbabwe's Marange diamond fields, poverty remains a daily reality.
Zimbabwe is one of the world's top 10 diamond producers. But six out of every 10 households in Zimbabwe, a country of about 13 million people, are living in dire poverty. This is according to a 2013 poverty assessment report by the Zimbabwe National Statistics Agency.
"Here in Marange, the diamond wealth has not [helped] in any way to change our lives for the better, but rather for the worse as we have strayed further into poverty," Mutavara told IPS.
The Democratic Republic of Congo (DRC) is another African country rich in diamonds, with its mineral wealth estimated in the trillions of dollars. But according to the United Nations, about 75 percent of its people live below the poverty line.
More than half of these have no access to drinking water or to basic healthcare. Three out of every 10 children are poorly nourished, with up to 20 percent of them predicted to die by the age of five.

While Ogwang says Africa's best economic years are yet to come, it remains to be seen if the billions of dollars Africa has in natural resources will trickle down to people like Mutavara.

From Here