DRC TO SET UP “FINANCIAL VEHICLES”, A NEW TOOL FOR INVESTMENT IN ELECTRIC VEHICLE BATTERIES

The Government of the Democratic Republic of Congo (DRC) will now establish a new tool called “financial vehicles” to allow small Congolese savers, meaning anyone who wants to invest in the electric battery value chain, to benefit from the effects of this value chain. This was revealed by the Deputy General Director of the Congolese Battery Council (CCB) of the Democratic Republic of Congo, Vuko Kakule, on Thursday, September 21, 2023, in Kinshasa, during the second day of the DRC-Africa Forum dedicated to battery metals.

Speaking on a panel dedicated to establishing a reliable financial system to enhance the value chain of battery metals: how do other countries proceed? The Deputy General Director of CCB indicated that the previous economic model put in place by the Congolese government did not allow Congolese citizens to have a stake in the mining industry.

According to him, this economic model favored foreign investors who brought capital into this sector. Thus, the Congolese government has devised a new economic model to allow Congolese people to enter this market.

“The economic model that exists in the mining sector has not allowed the Congolese government to capture sufficient resources. This model has benefited investors more. This model has only allowed the Congolese government to capture meager revenues. To address this, the government has proposed a new model of financial vehicles to mobilize public savings that will be directed towards the private sector so that private individuals can develop industrial activities,” said Vuko Kakule.

The Deputy General Director of CCB also mentioned that financial vehicles are a response to the current model, which is expected to disappear.

“The government has thought of a tool called a financial vehicle in which public and private savings should be directed to allow small savers, i.e., those who want to invest in a value chain, to benefit from the effects of this value chain. There is a ‘renaissance’ model that will be used to develop not only the overall economy of the DRC but also to enable small savers to have a share,” he noted.

The explanations by the Deputy General Director of CCB are a response to the question of how to attract local investors who will add value to local transformation in the Democratic Republic of Congo.

According to the revelations of Professor Jean-Baptiste Kushinganine from the Catholic University of Bukavu, the Democratic Republic of Congo only benefits from 3% of the global cobalt value chain.

These 3% mainly go to mining companies, while the government allegedly captures only crumbs.