Pact

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Pact USAID in the DRCMinerals for Development

• Simon Richards
• Senior Advisor, Asia-Eurasia,
• Corporate Community Engagement, Pact Inc.
• March 25, 2009

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DRC Geography

• 2,345,410 sq km
• ¼ the size of the US
• vast central basin is a low-lying plateau
  mountains in east
• agriculture 3 forest 60 other
  37
• 2,800km paved road

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DRC - Natural Resources

• Cobalt (30 of world), copper (12 of world),
  niobium, tantalum, zinc, manganese, tin, uranium,
  rare minerals
• Gold, silver, diamonds other gems
• Water (50 of Africa), hydropower (2x Three
  Gorges Dam)
• Forests (6 of world)
• Oil

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DRC - Demographics

• Population 66.5m
• Life expectancy 52 for men, 56 for women
• Infant mortality under age 5 is 20
• Since 1998, over 4m excess deaths (equal to
  tsunami every 6 months)
• 1.7m IDPs
• Over 200 ethnic groups
• 70 Christian
• 600,000 indigenes

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DRC Politics Governance

• Deadliest conflict since WWII
• UN Peacekeeping force MONUC
• Situation in east highly unstable
• Democratic elections 2006
• Constitution adopted 2007 should lead to
  decentralisation
• Mining Forestry Codes 2002

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DRC Governance challenges

• Lack of government capacity resources
• Entrenched corruption
• Extensive mafia illegal trade
• Repression of political opponents and outspoken
  civil society

• Human rights violations by public security
• Culture of impunity legal failure

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Pact Congo

• Started in 2003 with 2 USAID funded projects
• MALI agriculture livelihoods
• AMKENI prevention of abandonment of children
• Increasingly asked to work in the mining sector,
  funding from CMM to explore the potential and
  develop concept
• Developed a Global Development Alliance (GDA)
  with USAID in 2006

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Global Development Alliance

• USAID Pact in partnership with 4 mining
  companies
• Anvil Mining
• Tenke Fungurume Mining (Freeport McMoRan)
• First Quantum Minerals
• AngloGold Ashanti
• 3 year alliance with objectives for development
  governance
• 1.3m USAID 8m from mining companies pa

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GDA Extractive Industries Network

• Goal of the EIN to promote sustainable and
  equitable social and economic recovery in the
  Democratic Republic of Congo
• Result 1 Promote efficient, effective and
  self-sustaining channels for regional social
  development funding
• Result 2 Improved socio-economic conditions
  (livelihoods, health and education) in target
  communities
• Result 3 Improved governance of the mining
  sector in the DRC

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The GDA is implemented in 114 villages/towns on
four mining concessions in the Provinces
of Katanga and Orientale (Ituri District)
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GDA Social Development
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GDA Social Development

• 49 community infrastructure projects completed
  (schools, health centres, markets)
• Support almost 2,600 farmers, 57 agricultural
  associations, 17 seed-multiplication businesses,
  2 community grain silos
• Agriculture includes maize, vegetables, cash
  crops, poultry, fish, fruit and goats
• 65 small and micro business plus two large
  businesses (gravel cooperative sewing factory)
• Over 2,000 women involved in literacy, savings
  and small business development

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GDA Social Development

• All villages have democratically elected
  Community Development Committees
• All projects have minimum 15 community
  contribution and reimbursement of loans inputs
• Technical training for teachers, government,
  community leaders, peer-educators
• Integration of projects into government
  structures for health, education, water, etc, to
  ensure sustainability

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GDA Human Rights Security
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GDA Human Rights Security

• Implementation of the Voluntary Principles on
  Security Human Rights
• Three key issues
• Risk
• Relations with public security
• Relations with private secuirty
• Monthly meeting with companies, police, army, UN
• Engagement with provincial local government

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GDA Human Rights Security

• VPSHR workshops, trainings, scenarios
• Human rights materials induction for security
  providers
• Community security forums being created
• 1,000 people trained in conflict resolution
• Partnership with University of Lubumbashi, local
  NGOs

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GDA Artisanal Mining
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GDA - Artisanal Mining

• 90 of minerals of DRC are produced by artisanal
  miners
• Employs 2,000,000 people
• With their dependents, account for livelihood of
  18 of population
• Largely illegal, poor health safety practices,
  socially disruptive, environmentally damaging,
  uses child labour, exploitative, causes and fuels
  conflicts

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GDA Artisanal Mining

• Prevention/resolution of ASM-LSM conflicts
• Peaceful closure of dangerous mine sites
• Creation of jobs alternatives for artisanal
  miners
• WORTH for women miners
• Research into child mining campaign for its
  eradication

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GDA Artisanal Mining

• Support to government service for ASM
• Analysis of legal Artisanal Mining Zones,
  involvement of the UN agencies
• Engaging other ASM stakeholders
• Development of a national framework for ASM
  regulation, strengthening and transition

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Key lessons the NGO perspective

• Maintain a balanced portfolio dont become
  dependent on one sector or vulnerable to economic
  change
• Pick sectors that match the NGOs competencies,
  seek partners to complement (spread the risk,
  lighten the load)
• Dont be afraid to say no. Stick to your
  principles
• Avoid dependence on individual relationships
  corporate staff can open doors but the
  relationship must be institutionally embedded
• Have a pragmatic understanding of the role of CSR
  within corporate culture
• Differentiate between social investment and
  business needs e.g. Local suppliers should not
  be subsidised if they are to be genuinely
  sustainable

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Key lessons the NGO perspective

• There is a strategic difference between advisory
  services v implementation services both are
  needed, but not always by the same NGO
• Most NGOs are in the advocacy space but
  companies dont know how to implement what the
  advocates say
• Capacity building is essential for the company,
  local actors, government. Have a broad
  partnership
• Be aware of the risk of private sector replacing
  the host Government they are a key partner and
  with them lies sustainability

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Thank you!