The reality check: Minerals and Conflict in Central African Republic

Diamonds and other minerals fuel conflicts

Central African Republic is rich in minerals. In 2011, it was ranked 11th among the world’s leading producers of rough diamond by volume and 12th by value. Mining accounted for about 2.8% of the country’s gross domestic product. There are also the production of clay, gold, and sand and gravel. Mineral resources including copper, graphite, ilmenite, iron ore, kyanite, lignite, manganese, monazite, quartz, rutile, salt, tin, and uranium however remain largely underdeveloped. Despite these potential natural resources, the country is one of the poorest in the world. In the 2013 Human Development Index (HDI), Central African Republic ranks among the bottom six in 180th position and a low value of 0.352. 

Aside from its poor development performance, Central African Republic has been trapped in long-standing and deep-seated political and military crises. The country today faces severe humanitarian crisis. The United Nations High Commissioner for Refugees (UNHCR) estimates that as of mid-2012, approximately 65,500 people were internally displaced and more than 150,000 Central Africans had found refuge in neighbouring Chad and Cameroon.

Few weeks ago, the Seleka rebel alliance ousted the sitting the president Francois Bozize citing failure of the power-sharing deal signed in the Gabonese capital Libreville in January. The announcement by the rebel leader Michel Djotodia on Friday, March 30 that he will review resource deals raises critical issues. The reason for toppling Bozize government goes beyond the failure on his [Bozize] part to fulfill the deal. The crave to control mineral resources is the factor. It is obvious that natural resources have fueled the general insecurity and militancy in poor Central African Republic and Democratic Republic of Congo. This is however not new.

Conflict minerals have funded the rebels and it is no surprise that they have succeeded in toppling the Bozize government. The Kimberley Process, the international certification scheme established to stop the trade in blood diamonds, has done little. Trade in conflict diamonds is still commonplace and increasing. Global Witness, a vibrant non-governmental organization that investigates and campaigns to prevent natural resource related conflict and corruption, and associated environmental and human rights abuses, withdrew from the Kimberly Process on December 5, 2011. It indicated in a press release that “The Kimberley Process’s refusal to evolve and address the clear links between diamonds, violence and tyranny has rendered it increasingly outdated.” The Kimberly Process has not done enough.

Little has been done to combat trade in conflict diamonds. Trade in “blood diamonds” is still pervasive. It incentivizes activities of rebels in most of mineral-rich countries in Africa. The recent insurrection of rebel group M23 in Democratic Republic of Congo indicates that a global action against conflict minerals is needed to clamp down on trade in conflict minerals. The M23 as well survives on conflict minerals. The Kimberly Process has to do more to bolster improved governance and transparency in trade of these minerals. Trade in conflict minerals is putting the lives of the poor and the state of economies at great risk. Global discourse on the "resource curse" has for sometime now concentrated on the economics of natural resources leaving security perspective. It is about time adequate consideration was given to the apparent increase in trade of conflict minerals and the proportionate rise in rebel activities in mineral-rich countries in the African region.

Despite the increasing humanitarian and governance crises, self-imposed president Djotodia could only call for review of resource deals. This reveals one obvious factor. Minerals have been an important incentive to his capturing of power. According to the UNICEF, at least 4.1 million people, almost half of whom are children, are now directly affected by the crisis, which includes not being able to attend schools or getting enough to eat. This however means little. The focus is rather on getting mineral deals reviewed. There should be clear governance structure and accountability mechanisms in diamond trade. This is to clamp down on the rise of trading conflict minerals.

International non-governmental organizations, bilateral and multilateral donors need to increase their voice and support to stop the recent spur in trade of conflict minerals. The Dodd-Frank Wall Street Reform and Consumer Protection Act passed in July 2010 makes an important attempt at addressing issues of conflict minerals. Section 1502 of the Act requires the  American Securities and Exchange Commission (SEC) to make the sector more transparent by formulating rules that require companies to disclose the origin of their minerals through due diligence over the supply chain. However, the Dodd-Frank Act disclosure also does not ban or penalise the use of conflict minerals. According to the section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, “the exploitation and trade of conflict minerals originating in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual- and gender-based violence, and contributing to an emergency humanitarian situation therein […]” pp. 838. If companies discover they have been sourcing conflict minerals from DRC or adjoining countries, they can continue to do so; however, they must submit a “conflict minerals report” to the SEC and thus make public their imports (Source: International Crisis Group: “Conflict Minerals in DRC” accessed: April 1, 2013).

This is a useful step but it is not enough. The Dodd-Frank must make a provision to penalise the use of conflict minerals. Such a punitive measure will have real impact. The European Union must also pass a similar regulation since European market is one of the largest consumers of these minerals. José Manuel Barroso, President of the European Commission, in pursuance of transparency has committed to advancing similar legislation in Europe. The EU must consider and address conflict minerals. Trade in conflict minerals must end! We cannot promote riches and enslave the lives of the majority poor. At the end, it is the poor people in these mineral-rich countries who suffer from brutal militancy fueled by the desire to control and trade diamond and other minerals.

Read more articles written by the author on transparency in mining and oil and gas sectors in Ghana here

By: Stephen Yeboah, Researcher and Journalist based in Geneva, Switzerland. [profstephenyeboah@gmail.com]