Kongo has adopted lately a significant change in its mining policies that constitutes a major paradigm shift in the balance of power between the Northern and Southern hemispheres of the planet.
The most crucial aspect of the new DRC mining code as presented at the Indaba Mining Conference lies in the just and fair valuation of raw materials as contribution in kind in the distribution of shares upon the incorporation of the joint venture with the miners.
So far these Western miners have denied African counterparts any significant share ownership by ignoring the intrinsic value of such raw materials while availing themselves of cash and equipment they actually did not have.
They rather resorted to banks which provided loans that they overcharged the joint venture as they concurrently reported losses. So much so that the state shareholding company in the JV would not receive dividends and the government would not collect taxes.
Meanwhile, enormous amounts of precious raw materials were brought out of the continent where equally enormous amounts of money were made out of them.
To add insult to the injury, the Western miners would organize charitable collections for the impoverished people of the DRC.
We may argue that Kabila and his cronies are motivated by the need to directly access the wealth of the country instead of relying on tips as they did so far. Especially when Kabila's henchman, Dan Getler, saw his funds and transactions in US dollars stalled under a US ban.
However, when properly implemented, this new policy will have a huge impact on not only the life of the people of Kongo, but the African people in general.
Forcibly impoverished Africans will now be able to enjoy true wealth that Westerners - who used to conjure money out of thin air - do not have.
This opportunity truly augurs an era of prosperity for Africans as fiat currency or paper money won't be enough to get real things that only real things will provide.
By a proper valuation of raw materials, African countries will unquestionably be entitled to a better fair share - up to 70 % - while they will most likely drop any taxation policy.
African countries will enter a new economical realm with a win-win philosophy that will surely end the zero-sum game that cynical Westerners enjoyably imposed on victimized African economies.
Interestingly, with this paradigm shift, another venue is explorable. An immensely rich country like Kongo will be in a position to guarantee loans for other African countries for their infrastructure needs for instance.
Then Kongo will most opportunely receive a percentage of the revenues obtained from the backed productive business, equipment or infrastructure. Without actually committing its precious assets in the most general cases.
In the event of a default by a soliciting third country, Kongo will have to take control of the initially properly assessed investment and take full advantage of it by a more appropriate management.
As the end of the conjuring economies is cast in concrete, the coming years hold great promise for countries with real wealth.
Bukoko Ikoki,
Citoyen ordinaire
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As of Christ, we do not accuse. Neither do we judge, nor condemn. We do not stone. We do not curse. We bless our enemies and persecutors. While we let the dead bury their own dead, as we pick up our Cross, we revive our loved ones from lethal errors.