April 18, 2025
Conflict Minerals and the End of the USAID: What the Future Holds
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Conflict Minerals and the End of the USAID: What the Future Holds

by Scott Morgan

On March 25th a hearing was held in the US House of Representatives Foreign Relations committee regarding conflict minerals, mining and the influence of the Chinese Communist Party (CCP). The timing of the hearing was both crucial and impeccable.

One of the drivers of the current newscycle happens to be the successful offensive in the Eastern Democractic Republic of the Congo by the Militant Group M23. The group has been able to capture both Goma and Bukavu which are the capitals of the provinces of Nord Kivu and Sud Kivu. These actions are in the heart of where the extractive industry is operating in the Congo.

What has been the reaction of the current Congolese leadership? They are currently following two tracks. First they are accusing its neighbor Rwanda of actively supporting the insurgency and secondly they are currently shopping for new security partners. Currently they employ militias that are loyal to the government which frankly has yielded mixed results to regional partners. Both the East African Community and the Southern Africa Development Council have sent troops to assist with Security in the East and both missions have been withdrawn with the SADC mission leaving this year.

Now who will be the entity that will guarantee security in the Eastern DRC? It appears that Kinshasa will be reaching out to the United States. In a deal which sounds as if it was influenced by the rumored deal that is in the works regarding Ukraine, The Congolese Government will grant access to the US to mine these minerals in exchange for Security Guarantees. It is hoped by the Congolese Government that those promises include the deployment of American Troops.

There are a couple of issues to unpack here. First is the presence of Chinese Actors in the region. It was just a year ago when an amendment was made to the mining deal that was originally signed in 2019. This amendment would give China access to mines in lieu of infrastructure projects for the DRC. Earlier this month advocacy groups warned that transparency over the deal was a concern and well as the potential of incurring financial losses. Having concerns raised like that during a major crisis where both leadership and sources of revenue are sorely needed.

To deal with the presence of China and some of their activities in the region, Congressman Chris Smith the chairman of the Africa subcommittee announced that he has reintroduced the Cobalt Supply Chain Act to ensure that products that have Coltan that was made or refined in China do not enter the United States.

What is the way forward now? How can the current leadership in Kinshasa extricate themselves from the position that they find themselves in? Under the leadership of President Felix Tshisekedi the efforts to address corruption have yielded some improvement however transparency still remains an issue within the country. Obert Bore,  a Zimbabwean Barrister in Environmental Law, said that the regulatory framework does not reflect changing global contexts demanding high standards for transparency and accountability including environmental, social and government requirements. The issue of transparency could hinder any efforts to assist the country. This was a point raised by ranking member Congresswoman Sara Jacobs who wondered if the suspension of a USAID program that assisted with transparency would hinder this process of monitoring transparency.

However the Trump Administration has actually signaled that it has some interest in the proposal. A known acolyte of the President, Congressman Ronny Jackson recently visited the region. While in Kinshasa he held talks with the Congolese President. The Congressman spoke of both his optimism and concerns regarding governance issues after meeting with regional leaders during his visit. There have been rumors that President Trump will appoint a Special Envoy to the DRC to facilitate negotiations over the proposal.

If the Trump Administration decides to accept the deal there is a foundation already in place to allow the US to move ahead. The Lobitio pact that was negotiated by the Biden Administration in 2023 which would allow for minerals to make it to market by rail through both Zambia and Angola by rail could easily be expanded and brought online faster to mitigate any future concern. In his opening remarks, Congressman Chris Smith the chairman of the Africa subcommittee announced that he has reintroduced the Cobalt Supply Chain Act

As with any deal timing is a major concern and factor. If this deal is to happen the sooner the better.

 

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