From Political Sovereignty To Economic Sovereignty: Democratic Republic Of Congo in The Age Of Critical Minerals

Policy Update
Madhesh Raj P R

Background

King Leopold II controlled the territory of the Congo until the Belgian crown colonised the territory in 1908. However, colonisation brought terror and gross human rights violations in the form of forced labour and racial discrimination. After much strife, Congo became a sovereign republic on 30 June 1960, following democratic elections that saw Joseph Kasavumbu elected President and Patrice Lumumba as Prime Minister on 24 June, 1960.

At the Economic Round Table Conference in 1960, the Congolese delegation demanded that the Belgian government require Belgian companies and top officials to adopt Congolese nationality and serve as technicians and advisors to the newly formed state.

The Belgian parliament, however, passed a law on 17 June 1960 granting companies in Congo the option to adopt either Belgian or Congolese nationality, and most of them opted for Belgian nationality. This had a severe effect on Congo’s control over its resources. While the Congolese held political sovereignty over their territory and governance, Belgium maintained control over Congo’s economic capital. This has been a persistent issue even today, as the Congolese government struggles to assert authority and control against the rebel groups and foreign actors in the mining provinces.

Functioning As a Resource Economy

Underneath the Democratic Republic of the Congo lie vast mineral resources. This makes the mining sector the backbone of its economy, with minerals such as cobalt, coltan, copper, gold, and other rare-earth minerals mined and exported by local and foreign actors every year. Based on the World Bank’s Report for 2025, its Gross Domestic Product (GDP) comprises nearly 28% from mineral rents, and 80% of its export revenue comes from copper and cobalt alone. Congo is the world’s largest cobalt producer, and Africa’s largest copper producer. The economy depends on extractive industries for growth, and in recent years, these industries have seen rising production rates.

The report further suggests that mining is the most prominent source of government revenue, accounting for approximately 41% of government revenue from direct mining, taxes, royalties, and state enterprises. While the sector is projected to contribute billions of dollars annually, it is highly vulnerable to global commodity price fluctuations and discrepancies in mineral valuations. The sector is a source of tens of thousands of jobs for the Congolese and has the largest employment in the country. The current laws also mandate that a certain percentage of the sector’s annual turnover be allocated to local development projects and infrastructure. 

Performance 

The World Bank’s 2025 report suggests that DRC’s economy is experiencing rising real GDP growth, decelerating inflation, and strong growth in the mining sector. These are the result of tight monetary policy, stable exchange rates, and low global food and fuel prices. This illustrates that the economy is showing resilient growth.

Meanwhile, in the United Nations Development Program (UNDP) Human Development Index (HDI), the country ranks 171st out of 193 countries. This places it in the “Low Human Development” category, reflecting challenges in life expectancy, education, per capita income (PCI), and Purchasing Power Parity (PPP), all of which significantly affect living standards. The report further suggests that 64.5% of the population is affected by multidimensional poverty, with another 17.4% on the verge of poverty. 

Source: World Bank Report 2024 and 2025

Source: UNDP Human Development Index Report 2024 and 2025

Thus, on one hand, macroeconomic indicators suggest that the DRC is a well-performing economy. Meanwhile, its benefits have not improved the living standards of its population, leaving it among the poorest countries in the world. This reflects the country’s continued dependence on extractive industries and the perpetuation of structural inequalities. 

Impact of Mineral Wealth, Independence and Policies

The DRC’s vast gold, diamond, and lithium reserves are crucial for producing modern technologies, from smartphones to electric-vehicle batteries. This has strengthened DRC’s international economic position and subsequently attracted significant foreign investment to its mining sector. The mining sector has been acknowledged as a major contributor to the country’s export earnings and contributes significantly to government revenues.

Eventually, the government undertook crucial policy reforms to boost its revenue, including the 2018 Mining Code. This act focused on increasing royalties on strategic minerals, securing a larger share of mining profits for the state, and imposing environmental and social obligations on mining companies. The DRC also pursued regional initiatives with Zambia to develop battery value chains. Evidently, these measures reflect the state’s shift from exporting raw materials to pursuing long-term economic transformation through domestic processing and industrialisation.

However, the benefits of such measures are unevenly distributed. There are very few opportunities for local manufacturing, technology transfer, and employment generation in the country, since the minerals are mostly exported as raw materials. The DRC still strives to convert its massive mineral wealth into prosperity for its citizens, indicating that economic sovereignty requires the capacity to create value from resources, not just their ownership.

Emerging Issues

The DRC continues to experience several structural challenges in managing its resources. The biggest of them is the “resource curse,” where the abundance of natural resources becomes a source of instability and conflict rather than prosperity. Its weak institutions, governance deficits and overdependence on mineral exports have limited the country’s ability to actualise sustained and inclusive development. The concentration of these minerals in the eastern provinces has furthered internal conflict. Armed groups such as the M23 rebel movement have been competing with one another to gain control of the mining areas. These groups have also engaged in illegal mineral extraction and trade to fund their activities. This regional instability has displaced millions of people and disrupted numerous mining projects. 

In addition, the growing demand for critical minerals in this era of technology has prompted major powers such as China, the United States, and the European Union (EU) to increase their involvement in the region, competing to control its mineral wealth. Although their foreign investment has expanded production and infrastructure in the country, it has also reinforced the DRC’s role as a supplier of raw materials within global value chains.

This has stunted the growth of local processing, meaning much of the economic value is realised outside the country. Opaque contracts, mineral smuggling, and unequal bargaining power are taunting the DRC. The DRC’s greatest challenge lies in its ability to exercise effective control over its natural wealth to pursue its economic sovereignty. 

Way Forward

Congo has been taking several measures to improve its economy and promote sustained and inclusive growth. However, the International Monetary Fund (IMF) suggests that Congo still faces long-standing structural corruption and governance challenges. The government must address the lack of transparency in governance to increase public accountability and enhance administrative effectiveness. Additionally, there are allegations of corruption regarding state-owned resource enterprises. So, the government must disclose oil company agreements and the financial accounts of state-owned oil enterprises, and ensure transparency in oil revenue transactions to enhance the effectiveness of resource administration.

To further reduce corruption, the government must implement anti-corruption laws that align with international standards and provide the necessary resources to anti-corruption authorities. It is necessary to enhance oversight of state-owned enterprises through audits, a comprehensive database, and an assessment of financial risks to ensure proper management of state revenue. Diversifying and encouraging non-mining sectors could reduce the country’s overdependence on the mining sector. These are some changes that can help Congo move towards sustainable and inclusive economic growth, thereby achieving economic sovereignty.

Conclusion

The path towards achieving sovereign control over the territory is not merely political, but also social and economic. Given its resource-rich territory, conflict and internal turmoil are bound to affect a country like Congo. Nevertheless, it is essential for its government to take active measures to address the existing socio-political and economic challenges in order to move forward. Promoting domestic industrialisation and promoting transparency and accountability in governance are some of the primary steps towards securing and furthering its national interests. Sustained determination and effective policy reforms and implementation will channelise Congo towards achieving economic sovereignty. 

References

• “Independence of Congo”, African Museum, 2020: https://independance.africamuseum.be/en/exhibition/independance 
• “Democratic Republic of Congo”, World Bank, 2025: https://www.worldbank.org/ext/en/country/drc 
• “Democratic Republic of Congo”, UNDP Data Futures Exchange, 2025: https://data.undp.org/countries-and-territories/COD 
• “Improving Governance and Combating Corruption in Congo”, IMF eLibrary, 2026: https://share.google/8zp8mTR8Tu8qalbTP 

About the Contributor

Madhesh Raj P R is currently pursuing his Master’s in Political Science at Madras Christian College, Chennai. He is a Research and Editorial Intern at IMPRI, with a keen interest in governance and educational policies and aims to contribute meaningfully while expanding his research knowledge and skills.

Acknowledgement

The author extends his sincere gratitude to Shruti Sethi, Tanvi Swapnil Nerurkar, and the IMPRI team for their invaluable guidance throughout the process.

Disclaimer: All views expressed in this article belong solely to the author and not necessarily to the organisation.

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