Kabila wants miners with heart — Mining companies offered joint-Venture opportunities

This once-beautiful city in the heart of the Central African copper belt provided an appropriate setting for rebel leader Laurent Kabila to invite foreign mining companies to help rebuild the economy of his newly liberated nation.

“We need businessmen in all areas,” Kabila told a delegation of investors during a press conference just days before his troops entered Kinshasa and ousted long-Time dictator Mobutu Sese Seko. “In order to finance our own development, we have to start with our resources. This is the key sector that will allow us to finance our development in partnership with investors.” Kabila, now president of the renamed country, says much work needs to be done to revive the ailing economy and build infrastructure and communication systems. But, at the same time, he makes it clear that investors interested in the country’s mineral wealth should understand his newly formed policy on foreign investment.

“We want investment, but no one should take anything without leaving anything,” Kabila explained. “In the past, developers have taken but never left anything. Everything went to Kinshasa and a few people’s pockets. This country has been raped.”

Kabila said government policy will promote the idea that companies should invest and, at the same time, develop. His American-educated finance minister, Mwana Nanga Mawampanga, delivered a similar message to investors a day earlier. “We have the people, we have the resources, but we need investment. But, first, you have to understand the rules. The work has to be done on a joint-Venture basis. There will be no monopolies. And you have to be aware of the need for social involvement. The cake has to be shared by everyone.”

The finance minister stressed, however, that while the government will encourage “social involvement,” it does not intend to ask foreign companies to build roads, schools and hospitals for free. “We will provide tax breaks.

We can design a contract so that an investor gets a good return, we get a road or a school, and we all get economic growth.”

Mines Minister Kambale Kabila Mututulo says the government formed by Kabila’s Alliance of Democratic Forces for the Liberation of Congo-Zaire will review all the existing mining contracts signed by the previous government or by state-owned Gecamines. The intent, he said, is to integrate tax incentives for companies that re-invest in the country. “We want to create a business-friendly environment and we will make sure no one is worse off [than under the previous agreement].”

The mines minister added that Gecamines will be the main vehicle through which foreign mining companies will enter into joint-Venture agreements.

“They [Gecamines] will have the autonomy to enter into those agreements, though we will set the overall policy.”

The finance minister assured investors that he will make the fight against corruption “a main objective.” He also said the government will implement a tight monetary policy and stop the printing presses that have led to rampant inflation under the old regime. “We want to restore faith in the monetary institutions. We believe in this country and we want to make it grow. We have the will to be a respectable government.”

Companies already active in Zaire welcomed the change in government and its commitment to economic growth, though most recognize that Kabila must still broaden his support and develop a political framework to hold the country together. As well, he will be expected to deliver on his promises to clamp down on pervasive corruption and allow elections in the country following a stabilizing period of provisional government.