DRC: Suspension of cobalt exports, an opportunity to reconfigure the supply chain (An economist)

Kinshasa, June 24^th; 2025 (CPA) – The extension of the temporary suspension of cobalt exports from the Democratic Republic of Congo (DRC) is an opportunity to reconfigure the balance of power in the value chain, promote the traceability of strategic minerals and encourage local processing, an economist told CPA on Tuesday. ‘The government’s decision to extend the temporary suspension of exports of raw cobalt is an opportunity to reconfigure the balance of power in the value chain, promote the traceability of strategic minerals and encourage local processing in order to create added value for the Congolese people. The world does not need a simple producer and exporter of cobalt, but rather a reliable, resilient and traceable supply chain’, says Jonathan Muya, a doctoral student in economics at the University of Kinshasa (Unikin). In his view, cobalt, a highly strategic raw material for the manufacture of lithium-ion batteries and electric vehicles, makes the Democratic Republic of Congo a key producer, accounting for more than 70% of global production. Yet this mineral supremacy has not translated into equivalent economic clout on the world stage, he said. ‘This apparent contradiction can be explained by the fragmented and asymmetric nature of the cobalt value chains. While the DRC supplies the raw material, the processing and certification of derivatives (hydroxide, sulphate, cathodes) takes place mainly outside its borders, notably in China’, he pointed out. Jonathan Muya pointed out that by dominating the intermediate stages of processing; China not only manages to capture most of the value-added margins, but also to regulate global supply through its strategic absorption and storage capacity. In this context, any unilateral suspension of Congolese exports may be offset in the short term by Chinese stocks, thereby weakening the expected leverage effect. ‘On the domestic front, Congolese public finances have so far been relatively stable. Recent data indicates a slight fall in DGRAD revenues, but the overall impact remains contained. However, it remains to be seen whether this trend can be maintained in the months to come, particularly if the prolonged suspension were to affect tax flows linked to mining activity’, he added, before emphasizing that to consolidate this strategic weight, the DRC must invest in establishing genuine value and supply chains within its territory. This means strengthening national logistics through structural projects such as the Banana deep-water port, which would provide a direct maritime outlet, and the establishment of a secure national corridor for the transport of strategic raw materials. In his view, this corridor would complement regional initiatives already under way, such as the Lobito corridor, the modernization of the Kinshasa-Brazzaville rail route, and integration into international projects such as the ‘Digital Silk Road’ via the Tanzania-Zambia-Katanga corridor. ‘The strengthening of logistics infrastructures, coupled with an offensive diplomatic strategy, will enable the DRC to reposition itself not simply as a supplier, but as a structuring player in a global market undergoing an energy transition’, he said. In short, if the DRC wants to transform its geological wealth into a sustainable economic power, it will have to go beyond one-off measures to suspend exports. It will have to put in place an integrated industrial policy capable of developing resources locally, securing flows and strengthening its voice in international consultations on strategic chains. ACP/