Federal Character
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
Federal Character
No Result
View All Result
Home News

Congo Search for New Gold Buyers in Eastern Congo

Benita OrumabyBenita Oruma
August 30, 2024
in News
0
Congo Search for New Gold Buyers in Eastern Congo
Share on FacebookShare on TwitterShare on Whatsapp

The Democratic Republic of Congo (DRC) is actively seeking new buyers for gold produced in its eastern territories. This move comes after UAE-based Primera Group withdrew from a contract that had granted the company exclusive rights to purchase and sell gold mined in this region.

Table of Contents

Toggle
  • The Exclusive Contract with Primera Group
  • Challenges and Withdrawal
  • Government’s Response and Future Prospects
  • Decline in Gold Exports

The Exclusive Contract with Primera Group

In a joint venture established with the Congolese government, Primera Group was given the sole authority to trade gold sourced from small-scale, or artisanal, miners in eastern Congo. The arrangement, signed in 2022, was intended to regulate the artisanal mining sector, which had been plagued by smuggling activities that deprived the government of substantial tax revenue and fueled conflict in the region.

Challenges and Withdrawal

Primera Gold, now wholly government-owned, recently faced significant challenges in its operations. According to a UN Security Council Report released in June, the company struggled to compete with illicit traders who smuggle gold to neighboring countries like Burundi, Uganda, and Rwanda, where they offer higher prices. This competition has hampered Primera’s ability to maintain its gold purchasing activities in eastern Congo.

Additionally, Primera Group’s corporate license in the UAE expired in March 2024, further complicating its business operations. As a result, the company’s gold exports dropped dramatically, from an average of 500 kilograms per month between May and October 2023 to just 164 kilograms per month by March 2024.

Government’s Response and Future Prospects

In response to Primera’s withdrawal, Joseph Kazibaziba, the director-general of Primera Gold, stated that the company is now open to new investors and buyers, including those from Europe. He acknowledged previous criticisms of the exclusive nature of their partnership and expressed a willingness to diversify their buyer base.

The situation has prompted calls for greater transparency. The watchdog group ‘Le Congo n’est pas à vendre’ (Congo is not for sale), which consists of 14 Congolese and international organizations, has urged the government to clarify the reasons behind Primera’s exit from the contract. They have also called for an investigation into the matter to ensure transparency and accountability in the country’s mining sector.

Decline in Gold Exports

Primera Gold’s difficulties are reflected in the sharp decline in its gold exports, which fell to 164 kilograms per month by March 2024, a significant decrease from the 500 kilograms per month recorded between May and October 2023. This decline underscores the challenges faced by the company in maintaining its operations in the face of illicit competition and regulatory issues.

The loss of a formal and regulated buyer like Primera Group could lead to a resurgence in smuggling, resulting in substantial losses in tax revenue for the government and potentially increased funding for armed groups in the region.

The government will need to address these issues to attract responsible buyers and ensure that the country’s mineral wealth benefits its people rather than contributing to ongoing instability.

Tags: BuyersCongoCongo Search for New Gold Buyers in Eastern CongoEastern Congofederal charactergoldNews
Benita Oruma

Benita Oruma

Benita Oruma is a lawyer in training, a 400 level student in the university of Ibadan. She is a content writer with interest in corporate affairs and the marketplace.

Related Posts

Is Italy's Government "Nervous" as Gaza Protests Put Pressure on Meloni
News

Is Italy’s Government “Nervous” as Gaza Protests Put Pressure on Meloni

October 4, 2025
Why Were Dozens of Flights Canceled at Amsterdam's Schiphol Airport
News

Why Were Dozens of Flights Canceled at Amsterdam’s Schiphol Airport

October 4, 2025
Who Are Morocco's 'GenZ 212' Protesters and What Do They Want?
News

Who Are Morocco’s ‘GenZ 212’ Protesters and What Do They Want?

October 4, 2025
Next Post
FRC Expands Accountability Effort to Geopolitical Zones

FRC Expands Accountability Effort to Geopolitical Zones

Nigerian Man Detained for Transporting Cocaine in Pakistan

Nigerian Man Detained for Transporting Cocaine in Pakistan

Māori King Tuheitia Passes Away at 69

Māori King Tuheitia Passes Away at 69

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Asian Stocks Decline Amid Political Uncertainty and Central Bank Anticipation

Asian Stocks Decline Amid Political Uncertainty and Central Bank Anticipation

1 year ago
Eguavoen releases provisional list for World cup playoff

Eguavoen releases provisional list for World cup playoff

4 years ago
Supreme Court to Hear Suit Challenging Constitutionality of EFCC Establishment on October 22

Supreme Court to Hear Suit Challenging Constitutionality of EFCC Establishment on October 22

12 months ago
Ex-Pakistan PM Imran Khan Faces New Arrest Warrant

Ex-Pakistan PM Imran Khan Faces New Arrest Warrant

2 years ago

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

Topics

2023 Aboki/Bureau De Change (BDC) apc Arsenal buhari Business cbn chelsea china court Davido Dollar Efcc Election Entertainment Euro and Pounds To Naira Exchange Rate For Today exchange rates for the Nigerian Naira (NGN) Fashion federal character federal government Finance food Football Foreign News government health inec Israel lagos Manchester United Naira Naira Black Market exchange rates News Nigeria pdp police Politics president protest Russia Sports tinubu trump ukraine US
No Result
View All Result

Highlights

Is Mr Eazi Fit to Lead an African Nation? Details…

Why I’m Tired of Clubbing – TolaniBaj

Untold Story Behind Toluwani Odukoya’s Separation

Trumps Tariffs Wipes U.S Soybeans Exports as Aid Aids Argentina

Baltimore City Offering Grants to Redevelop Vacant Homes

Is Italy’s Government “Nervous” as Gaza Protests Put Pressure on Meloni

Trending

Minimum Wage, Maximum Debate: Florida Pushes Toward $15
Government

Minimum Wage, Maximum Debate: Florida Pushes Toward $15

byEriki Joan Ugunushe
October 5, 2025
0

Florida is again in the news for its slow but sure climb toward a $15 minimum wage....

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 5, 2025
BBNaija Season 10 Grand Finale: Who Will Take Home N150m?

BBNaija Season 10 Grand Finale: Who Will Take Home N150m?

October 5, 2025
Is Mr Eazi Fit to Lead an African Nation? Details…

Is Mr Eazi Fit to Lead an African Nation? Details…

October 5, 2025
Why I’m Tired of Clubbing - TolaniBaj

Why I’m Tired of Clubbing – TolaniBaj

October 5, 2025

We launched Federal Character in February 2021 based on the belief that the world is in need of smarter and more efficient reporting of events shaping our rapidly changing world. We pledged to put our audience first, always.

Recent News

  • Minimum Wage, Maximum Debate: Florida Pushes Toward $15
  • October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
  • BBNaija Season 10 Grand Finale: Who Will Take Home N150m?

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

© 2024 FederalCharacter.com

No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion

© 2024 Federalcharacter.com