2023.2031.5

Management local revenue from the commodities sector

Client
Bundesministerium für wirtschaftliche Zusammenarbeit u. Entwicklung
Runtime
Partner
Ministère du Plan
Contact

Magnus Schmid

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Context

The DR Congo has considerable natural and mineral resources, however the state is unable to utilize them for development and poverty reduction. Revenues from the extractive sector are crucial for the local development of the local authorities in the mining provinces of Haut-Katanga and Lualaba.

The reform of mining legislation in the DRC in 2018 has already led to a significant increase in extractive revenues for local administrations. Although not all parts of the law have yet been fully implemented, a further increase in revenue at subnational level is expected. These funds offer potential for financing public services and sustainable and inclusive socio-economic development and poverty reduction. Political guidelines for improved economic development and the development-effective use of subnational public finances are largely already in place, but the challenge lies in their implementation.

Objective

The project is increasingly strengthening cooperation between actors from the public and private sectors to promote local development, economic diversification, social participation and environmental sustainability in the target provinces of Haut-Katanga and Lualaba.

Approach

The project organises training courses, provides IT equipment and strengthens governance at provincial level to improve the framework conditions for good management of mining revenues at local level and the implementation of local development plans. In cooperation with the provincial planning and budget departments, a guideline for budget planning and management has been drawn up and is being continuously developed. As part of the cooperation with Kinshasa Digital/Vodacom Congo, the programme has established a digital platform for exchange and learning within the partner structure.

 
Further Project Information

CRS code
15111

Cofinancing
  • Europäische Union (EU) (25 k €)
Policy markers

Principal (primary) policy objective:

  • Democratic and inclusive governance

Significant (secondary) policy objective:

  • Gender Equality

Responsible organisational unit
1100 Westafrika 1 und Zentralafrika

Previous project
2020.2070.9

Financial commitment for the actual implementation phase
8,000,000 €

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