Black Gold in the Congo: Threat to Stability or Development Opportunity?
Black Gold in the Congo: Threat to Stability or Development Opportunity?
Table of Contents
  1. Executive Summary
End of Season Special: Ethiopia, Kenya-DRC and the Drought
End of Season Special: Ethiopia, Kenya-DRC and the Drought
Report 188 / Africa

Black Gold in the Congo: Threat to Stability or Development Opportunity?

Renewed oil interest in the Democratic Republic of the Congo (DRC) could nurture communal resentments, exacerbate deep-rooted conflict dynamics and weaken national cohesion.

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Executive Summary

Although it should provide development opportunities, renewed oil interest in the Democratic Republic of the Congo (DRC) represents a real threat to stability in a still vulnerable post-conflict country. Exploration has begun, but oil prospecting is nurturing old resentments among local communities and contributing to border tensions with neighbouring countries. If oil reserves are confirmed in the east, this would exacerbate deep-rooted conflict dynamics in the Kivus. An upsurge in fighting since the start of 2012, including the emergence of a new rebellion in North Kivu and the resumption of armed groups’ territorial expansion, has further complicated stability in the east, which is the new focus for oil exploration. New oil reserves could also create new centres of power and question Katanga’s (DRC’s traditional economic hub) political influence. Preventive action is needed to turn a real threat to stability into a genuine development opportunity.

Potential oil reserves straddle the country’s borders with Uganda, Angola and possibly other countries and could rekindle old sensitivities once exploration commences. In the context of a general oil rush in Central and East Africa, the lack of clearly defined borders, especially in the Great Lakes region, poses significant risk for maintaining regional stability.

Clashes between the Congolese and Ugandan armies in 2007 led to the Ngurdoto Accords establishing a system for regulating border oil problems, but Kinshasa’s reluctance to implement this agreement and the collapse of the Ugandan-Congolese dialogue threaten future relations between the two countries. In the west, failure to find an amicable solution to an Angolan-Congolese dispute about offshore concessions has worsened relations between the two countries and led to the violent expulsion from Angola of Congolese nationals. Instead of investing in the resolution of border conflicts with its neighbours before beginning oil exploration, the Congolese government is ignoring the problem, failing to dialogue with Uganda and officially claiming an extension of its maritime borders with Angola.

The abduction in 2011 of an oil employee in the Virunga Park, in the Kivus, is a reminder that exploration is taking place in disputed areas where ethnic groups are competing for territorial control and the army and militias are engaged in years of illegally exploiting natural resources. Given that the Kivus are high-risk areas, oil discovery could aggravate the conflict. Moreover, confirmation of oil reserves in the Central Basin and the east could feed secessionist tendencies in a context of failed decentralisation and financial discontent between the central government and the provinces.

Poor governance has been the hallmark of the oil sector since exploration resumed in the east and west of the country. Even with only one producing oil company, the black gold is the main source of government revenue and yet, with exploration in full swing, oil sector reform is very slow. Instead of creating clear procedures, a transparent legal framework and robust institutions, previous governments have behaved like speculators, in a way that is reminiscent of practices in the mining sector. Reflecting the very degraded business climate, they have allocated and reallocated concessions and often acted without considering the needs of the local people and international commitments, especially regarding environmental protection.

The official division of exploration blocks includes natural parks, some of which are World Heritage Sites. It also directly threatens the resources of local populations in some areas. Initiatives to promote financial and contractual transparency are contradicted by the lack of transparency in allocating concessions. The state’s failure to adequately regulate the diverging and potentially conflicting interests of companies and poor communities is clearly causing local resentment, which could easily flare up into local violence that could be manipulated.

In a context of massive poverty, weak state, poor governance and regional insecurity, an oil rush will have a strong destabilising effect unless the government adopts several significant steps regionally and nationally to avert such a devastating scenario. Regionally, it should draw on the close support of the African Union (AU) and the World Bank Group to design a management model for cross-border reserves and help facilitate a border demarcation program. Nationally, the government should implement oil sector reform, declare a moratorium on the exploration of insecure areas, especially in the east where the situation is again deteriorating, until these territories are made secure, and involve the provinces in the main management decisions concerning this resource.

Kinshasa/Nairobi/Brussels, 11 July 2012

Podcast / Africa

End of Season Special: Ethiopia, Kenya-DRC and the Drought

In a three-part special episode of The Horn, Alan speaks to three Crisis Group experts across the Horn of Africa and Great Lakes regions. He talks with William Davison about the prospects for peace talks in Ethiopia, to Nelleke van de Walle about Kenya’s new diplomatic efforts in the eastern DR Congo, and to Nazanine Moshiri about the drought devastating the Horn region.

To mark the end of Season Three of The Horn, Alan discusses a few major developments in the region with Crisis Group experts. First up, he speaks to William Davison, Senior Analyst for Ethiopia, to discuss the prospect for possible peace talks in Ethiopia after the humanitarian ceasefire declared in March between federal and Tigrayan forces. They discuss the recent welcome steps towards peace talks, the remaining hurdles towards holding such negotiations and the major obstacles that any peace talks will need to overcome. They also discuss Ethiopia’s deteriorating economic situation and the ongoing insurgency in the Oromia region.

Next, Alan speaks with Nelleke van de Walle, Project Director for the Great Lakes region, to discuss Kenya’s recent diplomatic foray in the eastern DR Congo and how it is reshaping regional politics. Alan and Nelleke discuss the factors behind the warming ties between Kinshasa and Nairobi and the reasons for Kenya’s recent initiatives towards the DR Congo. They discuss the proposal for the East African Community to deploy a joint force under Kenyan command to fight armed groups in the eastern DR Congo, and they unpack the recent peace talks Nairobi hosted between Congolese authorities and armed groups. They also chat about how the looming presidential election in Kenya could impact Nairobi’s future diplomatic role. 

Finally, Alan talks to Nazanine Moshiri, Senior Analyst for Climate & Security in Africa. They break down the impact of the devastating historic drought hitting much of the Horn region. Nazanine explains which parts of the region are worst hit and outlines how this crisis is exacerbated by the global commodity shocks, which are driving up food prices as well. They also highlight the worrying repercussions, from major displacement to land disputes and intercommunal conflict. Back from recent visits to the northern Great Rift Valley and Laikipia county in Kenya, Nazanine talks about how the drought is upending life there and how the climate shocks are intermixing with rising political tensions and violence ahead of Kenya’s elections.

Click here to listen on Apple Podcasts or Spotify

For more analysis, check out Crisis Group’s Horn of Africa and Great Lakes regional pages.

We want to hear from you! As Season Three of The Horn draws to a close, if you have any feedback or suggestions for topics you’d like us to cover next season, you can write to podcasts@crisisgroup.org or get in touch with Alan directly on Twitter, @AlanBoswell.