The government of the Democratic Republic of the Congo is composed of 54 members. This restructuring aims to rationalize and optimize administrative efficiency in response to national challenges. The selection of members reflects a commitment to good governance and transparency, with a focus on expertise and synergy between ministries. The Président Félix Tshisekedi hopes to stimulate economic growth, strengthen the rule of law, and improve the management of natural resources in the process of collaboration with other major partner nations, including the United Arab Emirates. [1]

The relations between the DRC and the United Arab Emirates began several decades ago, with increasing cooperation in the economic and military sectors. This strategic partnership has evolved to include mining investments and development projects in the East of the DRC.

The Congolese Government and Primera Group on the path to a historic partnership for the export of gold

The government of the Democratic Republic of Congo (DRC) is on the verge of finalizing an agreement to acquire all the shares of Primera Gold DRC SA, a joint venture established with Primera Group Ltd. based in Abu Dhabi and specialized in gold export. This initiative aims to strengthen national control over mineral resources and combat gold smuggling, marking a new era in the management and valorization of the country's natural wealth.

This acquisition also represents a decisive turning point in the economic and strategic relations between the DRC and the United Arab Emirates, highlighting increased cooperation and significant investments in the mining sector. In addition to strengthening economic ties, this agreement could also have positive implications for political stability and regional security, with the United Arab Emirates already having contributed to Congolese military support. [2]

An initiative to combat gold smuggling: A bold response to smuggling and armed conflicts

Launched in January 2023, the joint venture Primera Gold aimed to counter the smuggling of gold, a scourge that fuels armed conflicts in the eastern provinces of the Democratic Republic of Congo (DRC). In its first year, Primera Gold managed to sell 5 tons of artisanal gold, generating approximately 300 million dollars. This initial success demonstrates the economic potential of legal gold mining and the joint venture's ability to channel mineral resources into formal channels.

However, despite these advantages and more ambitious goals set for 2024, sales have experienced a significant decrease. This decrease in sales highlights the persistent challenges that Primera Gold must face, including competition from the black market, restrictive banking regulations, and logistical complexities. The situation illustrates the difficulty of maintaining stable growth in an environment marked by deeply rooted illegal practices and limited infrastructure. [3]

Contractual conditions and challenges of the black market: Tax benefits and realities of the black market

United Nations experts have highlighted the preferential conditions enjoyed by Primera Gold under its contract, notably an extremely low tax rate of 0.25%. This tax is significantly lower than the 6% imposed on its competitors, giving Primera Gold a significant advantage in the legal artisanal gold export market. Thanks to this tax disparity, the company has been able to establish a "quasi-monopoly" in this segment, consolidating its dominant position in the sector.

However, despite this undeniable advantage, Primera Gold has encountered difficulties in competing with the attractive prices offered by the black market. Buyers in the black market often offer more competitive rates, making it difficult for Primera Gold to convince artisanal gold producers to go through legal channels. Additionally, strict banking restrictions on cash transactions have posed an additional obstacle, limiting the company's ability to make cash payments and adapt to common practices in this sector.[4]

Total acquisition by the Congolese government: Towards total national control and a new era of cooperation

The acquisition of shares in Primera Group by the Congolese government marks the end of a controversial period in the relations between the DRC and the United Arab Emirates, which seek to expand their influence in Africa. This decision illustrates Congo's efforts to take full control of its resources and strengthen its economic sovereignty. Furthermore, this development highlights the role of the UAE in supporting mining investments through Primera Group.

In addition to their economic support, the United Arab Emirates have provided equipment and training to the Congolese army, actively engaged in fighting against the M23 rebels and other militias in the eastern part of the country, a region rich in minerals. This military support has been essential in enhancing the capabilities of the Congolese army in a conflict zone, thereby contributing to national stability and security.

Primera Gold announced that the DRC will buy all shares of Primera Group at a price yet to be determined. Meanwhile, the Congolese government will continue to manage the Primera Group company. [5]

The controversial role of Primera

For nearly thirty years, smuggling from eastern DRC has fueled local and regional conflicts. The Congolese government maintains that the majority of this traffic passes through Rwanda, Uganda, and Burundi, which have exported billions of dollars worth of gold despite having few domestic mines.

However, these countries deny any involvement in the export of stolen gold. A United Nations report published in January revealed that Primera Gold's operations have not succeeded in significantly reducing gold smuggling and highlighted a lack of transparency regarding the origin of certain metals, accusations that Primera Gold rejects. Despite tax benefits, the company's monthly shipments to a refinery in Abu Dhabi have decreased by over 50% since November.

Faced with this situation, Primera Group is now turning to the exploitation of tungsten, tin, and tantalum in the east of the DRC, essential for the electronics industry.