ALL THAT GLITTERS IS NOT GOLD: Dubai, Congo and the Illicit Trade of Conflict Minerals PARTNERSHIP AFRICA CANADA UNITED ARAB EMIRATES (UAE) SOUTH SUDAN UGANDA KENYA DEM. REP. OF THE CONGO BURUNDI DEDE DE TANZANIA All that Glitters is Not Gold: Dubai, Congo and the Illicit Trade of Conflict Minerals Series Editors: Alan Martin and Bernard Taylor Design: Marie-Joanne Brissette ISBN: 978-1-897320-29-7 © Partnership Africa Canada PARTNERSHIP May 2014 AFRICA CANADA For permission to reproduce or translate all or parts of this publication, please contact Partnership Africa Canada 331 Cooper Street, Suite 600 Ottawa, Ontario, K2P 0G5 Partnership Africa Canada is very grateful for the support for its research Canada programme provided by Irish Aid. However, the ideas, opinions and comments within this publication are entirely the responsibility of its authors and do not Tel: +1-613-237-6768 necessarily represent or reflect Irish Aid policy. Fax: +1-613-237-6530
[email protected] www.pacweb.org All that Glitters is Not Gold: Dubai, Congo and the Illicit Trade of Conflict Minerals ALL THAT GLITTERS IS NOT GOLD: Dubai, Congo and the Illicit Trade of Conflict Minerals Introduction Problems of conflict financing, tax evasion and corruption have tainted the gold and diamonds trade from the Democratic Republic of Congo (DRC) for more than a decade, scaring off investors and depressing trade throughout the region. Gold is considered the most persistent ‘conflict mineral’ today, with more than half of the estimated 800 artisanal gold mines in eastern DRC under illegal rebel or army control.1 Almost the entire production of these mines—98% according to the United Nations—is smuggled out of the country, implying enormous tax losses to the Congolese fiscus.2 While the majority of DRC’s diamonds are produced outside the notorious conflict zones in the east, and certified as conflict-free though the Kimberley Process (KP), the sector’s contribution to state revenues is hampered due to rampant smuggling and undervaluation.