Efficiently managing local tax revenues from the extractive sector in the Democratic Republic of the Congo

Context

The Democratic Republic of the Congo is one of the resource-richest countries in the world. However, the population has derived little benefit from this wealth. The growth and revenues generated from mining have not yet brought any tangible improvement to the extreme poverty in the country.

A reform of mining legislation aims to change this. Since 2019, the local administrations that are directly affected by mining receive a significant share of revenues from the extractive sector. This substantial increase in income presents administrations with the challenge of managing the funds efficiently and using them for sustainable development in which the local population can participate.

Nevertheless, the decentralisation of revenues has considerable potential – it can provide an incentive for sustainable and inclusive socio-economic development in communities and create a framework for growth and poverty reduction.

Objective

Local administrations in the provinces of Lualaba and Haut-Katanga invest their revenues from the extractive sector in inclusive socio-economic development.

Approach

The project is advising local administrations on improving the efficiency and transparency of working procedures and administrative processes. This allows the communities to manage and use their own revenues more effectively.

In addition to this, the project is making local administrations and their development committees more aware of inclusive, participative and gender-sensitive planning processes and ways of investing public funds in basic services and measures that will promote the economy.

In order to improve transparency and accountability in public finances the project is also supporting civil society organisations in developing their skills and process knowledge. This allows civil society to exercise its supervisory and control functions more effectively.

Last update: March 2023