Fears That DR Congo’s Cobalt Quotas Could Deepen Corruption
New cobalt export quotas in the Democratic Republic of Congo (DRC), introduced to strengthen national control and increase local benefits, may instead amplify corruption and rent-seeking.
Along the cracked highway from the Copperbelt mines to the DRC’s border with Zambia, trucks heavily loaded with cobalt hydroxide — vital for lithium-ion batteries used in smartphones and electric vehicles — crawl past police posts and weighbridges. Both official and opportunistic checkpoints slow their passage, turning the route into a test of endurance and negotiation.
After an eight-month export ban, the government in Kinshasa shifted course in October, introducing new export quotas. The policy intends to tighten supply, raise global cobalt prices, and encourage companies to invest in processing facilities within the country.
Analysts and industry insiders told African Business that these quotas, imposed on top of a fragmented enforcement system, could exacerbate the very leakages and informal practices the government hopes to eliminate.
The earlier blanket export ban was launched when cobalt prices plunged to around $10 per pound amid a market oversupply. Though prices have rebounded modestly to $15, observers see the ban and subsequent quotas as temporary measures that risk feeding a growing shadow economy.
Author’s Summary
Congo’s new cobalt quotas aim to assert control and raise value but may instead fuel deeper corruption and black-market trade within the mining sector.