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Pact & USAID in the DRC Minerals for Development Simon Richards Senior Advisor, Asia-Eurasia, Corporate Community Engagement, Pact Inc. March 25, 2009.

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Presentation on theme: "Pact & USAID in the DRC Minerals for Development Simon Richards Senior Advisor, Asia-Eurasia, Corporate Community Engagement, Pact Inc. March 25, 2009."— Presentation transcript:

1 Pact & USAID in the DRC Minerals for Development Simon Richards Senior Advisor, Asia-Eurasia, Corporate Community Engagement, Pact Inc. March 25, 2009

2 DRC – Geography 2,345,410 sq km ¼ the size of the US vast central basin is a low-lying plateau; mountains in east agriculture: 3% forest: 60% other: 37% 2,800km paved road

3 DRC - Natural Resources Cobalt (30% of world), copper (12% of world), niobium, tantalum, zinc, manganese, tin, uranium, rare minerals Gold, silver, diamonds & other gems Water (50% of Africa), hydropower (2x Three Gorges Dam) Forests (6% of world) Oil

4 DRC - Demographics Population 66.5m Life expectancy 52 for men, 56 for women Infant mortality under age 5 is 20% Since 1998, over 4m excess deaths (equal to tsunami every 6 months) 1.7m IDPs Over 200 ethnic groups 70% Christian 600,000 indigenes

5 DRC – Politics & Governance Deadliest conflict since WWII UN Peacekeeping force MONUC Situation in east highly unstable Democratic elections 2006 Constitution adopted 2007 should lead to decentralisation Mining & Forestry Codes 2002

6 DRC – Governance challenges Lack of government capacity & resources Entrenched corruption Extensive mafia & illegal trade Repression of political opponents and outspoken civil society Human rights violations by public security Culture of impunity & legal failure

7 Pact Congo Started in 2003 with 2 USAID funded projects – MALI: agriculture & livelihoods – AMKENI: prevention of abandonment of children Increasingly asked to work in the mining sector, funding from CMM to explore the potential and develop concept Developed a Global Development Alliance (GDA) with USAID in 2006

8 Global Development Alliance USAID & Pact in partnership with 4 mining companies: – Anvil Mining – Tenke Fungurume Mining (Freeport McMoRan) – First Quantum Minerals – AngloGold Ashanti 3 year alliance with objectives for development & governance $1.3m USAID & $8m from mining companies pa

9 GDA: Extractive Industries Network Goal of the EIN: to promote sustainable and equitable social and economic recovery in the Democratic Republic of Congo Result 1: Promote efficient, effective and self- sustaining channels for regional social development funding; Result 2: Improved socio-economic conditions (livelihoods, health and education) in target communities; Result 3: Improved governance of the mining sector in the DRC

10 The GDA is implemented in 114 villages/towns on four mining concessions in the Provinces of Katanga and Orientale (Ituri District)

11 GDA Social Development

12 49 community infrastructure projects completed (schools, health centres, markets) Support almost 2,600 farmers, 57 agricultural associations, 17 seed-multiplication businesses, 2 community grain silos Agriculture includes maize, vegetables, cash crops, poultry, fish, fruit and goats 65 small and micro business plus two large businesses (gravel cooperative sewing factory) Over 2,000 women involved in literacy, savings and small business development

13 All villages have democratically elected Community Development Committees All projects have minimum 15% community contribution and reimbursement of loans & inputs Technical training for teachers, government, community leaders, peer-educators Integration of projects into government structures for health, education, water, etc, to ensure sustainability GDA Social Development

14 GDA – Human Rights & Security

15 Implementation of the Voluntary Principles on Security & Human Rights Three key issues: – Risk – Relations with public security – Relations with private secuirty Monthly meeting with companies, police, army, UN Engagement with provincial & local government

16 GDA – Human Rights & Security VPSHR workshops, trainings, scenarios Human rights materials & induction for security providers Community security forums being created 1,000 people trained in conflict resolution Partnership with University of Lubumbashi, local NGOs

17 GDA – Artisanal Mining

18 GDA - Artisanal Mining 90% of minerals of DRC are produced by artisanal miners Employs 2,000,000 people With their dependents, account for livelihood of 18% of population Largely illegal, poor health & safety practices, socially disruptive, environmentally damaging, uses child labour, exploitative, causes and fuels conflicts

19 GDA Artisanal Mining Prevention/resolution of ASM-LSM conflicts Peaceful closure of dangerous mine sites Creation of jobs & alternatives for artisanal miners WORTH for women miners Research into child mining & campaign for its eradication

20 GDA Artisanal Mining Support to government service for ASM Analysis of legal Artisanal Mining Zones, involvement of the UN agencies Engaging other ASM stakeholders Development of a national framework for ASM regulation, strengthening and transition

21 Key lessons – the NGO perspective Maintain a balanced portfolio – dont become dependent on one sector or vulnerable to economic change Pick sectors that match the NGOs competencies, seek partners to complement (spread the risk, lighten the load) Dont be afraid to say no. Stick to your principles Avoid dependence on individual relationships – corporate staff can open doors but the relationship must be institutionally embedded Have a pragmatic understanding of the role of CSR within corporate culture Differentiate between social investment and business needs – e.g. Local suppliers should not be subsidised if they are to be genuinely sustainable

22 Key lessons – the NGO perspective There is a strategic difference between advisory services v implementation services – both are needed, but not always by the same NGO Most NGOs are in the advocacy space – but companies dont know how to implement what the advocates say Capacity building is essential – for the company, local actors, government. Have a broad partnership Be aware of the risk of private sector replacing the host Government – they are a key partner and with them lies sustainability

23 Thank you!

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