Public Private Cooperation Fragile States Field study report DR Congo As part of the Country Study DR Congo Working group: Public Private Cooperation in Fragile States July 2009 Public Private Cooperation in eastern DRC Report of field research mission to North Kivu and Ituri April 2009 Researchers: Pyt Douma Eppo Bolhuis Dieuwke Klaver Yves Zawadi Coordination/editor Bert Bosch (TFM Consult) 2 Public Private Cooperation in eastern DRC Report of field research mission to North Kivu and Ituri as part of the Country PPC Study DR Congo April 2009 Disclaimer The views expressed and analysis put forward in this report are entirely those of the authors in their professional capacity and cannot be attributed to ICCO and/ or the Peace, Security and Development Network or its working groups and/ or the Dutch Ministry of Foreign Affairs. 3 Contents Executive summary ..................................................................................................................7 1. Introduction to the fieldwork research.........................................................................11 1.1 Methodology and team composition..............................................................................11 1.2 Research area ..................................................................................................................12 2. Economic sectors: the present situation.......................................................................15 2.1 Mining.............................................................................................................................15 2.2 Industry and services ......................................................................................................16 2.3 Energy sector ..................................................................................................................17 2.4 Water sector ....................................................................................................................18 2.5 Infrastructure; transportation by road and water ............................................................19 2.6 Banking sector ................................................................................................................22 2.7 Tourism...........................................................................................................................24 2.8 Telecommunications .......................................................................................................24 2.9 Trade ...............................................................................................................................24 2.10 Agriculture and animal husbandry................................................................................25 2.11 Forestry.........................................................................................................................28 2.12 Fisheries........................................................................................................................30 3. A power analysis of political actors in North Kivu province and Ituri district ........31 3.1 North Kivu; formal democracy and underlying power relations ....................................31 3.2 Ituri district; formal democracy and underlying power relations ...................................33 3.3 Conclusions political context..........................................................................................33 4. Role of the state, private sector and civil society in the economy...............................35 4.1 The role of the state ........................................................................................................35 4.2 The role of the private sector ..........................................................................................36 4.3 The role of Civil Society.................................................................................................36 5. Assessment of the potential for fair and sustainable development in sectors ...........38 5.1 Conditions for fair production in the agricultural sector................................................38 5.2 Assessment of other sectors............................................................................................40 5.3 Conclusion......................................................................................................................42 6. Opportunities for Public Private Cooperation in selected economic sectors ............43 6.1 Opportunities for PPC in energy.....................................................................................43 6.2 Opportunities for PPC in drinking water ........................................................................44 6.3 Opportunities for PPC in road maintenance ...................................................................45 6.4 Opportunities for PPC in Lake Transportation...............................................................46 6.5 Opportunities for PPC in cash crops...............................................................................47 6.6 Opportunities for PPC in the manufacturing Industry....................................................48 6.7 Opportunities for PPC in Food crops..............................................................................49 6.8 Opportunities for PPC in Cattle breeding.......................................................................51 6.9 Opportunities for PPC reducing charcoal production and consumption........................52 7. Conflict transformation perspective .............................................................................54 7.1 Sectors with perspective in conflict transformation.......................................................54 7.2 Problematic sectors.........................................................................................................55 8. Main obstacles and Constraints ....................................................................................56 8.1 Fragile State institutions .................................................................................................56 8.2 Insecurity........................................................................................................................57 8.3 Land use, tenure and natural resource depletion............................................................58 9. Conclusions Public-Private Cooperation possibilities.....................................................61 4 Annex 1: Exports / Imports of DRC .....................................................................................65 Annex 2: Principal mineral production sites in Kivu’s.......................................................66 Annex 3: Exports from North Kivu......................................................................................67 Annex 4: Map of North Kivu.................................................................................................68 Annex 5: Map of DR Congo……………………..………………………………………….69 Annex 6: Bibliography ...........................................................................................................70 5 Abbreviations AAA Agro Action Allemand ACIAR Appui a la Communication Interculturelle et a l’Autopromotion Rurale ACOOPELI Association des Coopératives des Eleveurs en Ituri APAV Association des Producteurs Agricoles de Vuhimba (Butembo area) ASEKAFU Association des consommateurs d’eau de Katwa Futetwe (Butembo suburbs) ATLA Association des Transporteurs au Lac Albert BIAC Banque Internationale d’Afrique Centrale CAPEC Caisse d’Appui à l’Entreprenariat Communautaire CBCA Communauté Baptiste au Centre de l’Afrique CBFP Congo Basin Forest Partnership CBO Community Based Organisation CETRACA Trade, Elevage, Transport et Café CGRDAI Commission de Gestion Routière de Desserte Agricole en Ituri COOCENKI Coopérative Centrale du Nord Kivu CNDP Congres National pour la Défense du Peuple CREF Conservation et la Réhabilitation des Ecosystèmes Forestiers. CSO Civil Society Organisations DGM Direction Générale de Migration DGOS Directoraat Generaal Ontwikkelings Samenwerking (België) FARDC Forces Armées de la République Démocratique du Congo FAT Forum des Amis de la Terre FEC Fédération des Entreprises au Congo. FDLR Forces Démocratiques pour la Libération du Rwanda FOPAC Fédération des Producteurs Agricoles du Congo FPJC Front Populaire pour la Justice au Congo HIMO Haut Intensité de Main d’Oeuvre ICCN Institut Congolais pour la Conservation de la Nature IDP Internally Displaced Persons IFDC International Center for Soil Fertility & Agricultural Development INGO International Non Governmental Organisation LOFEPACO Ligue des Organisations des Femmes Paysannes du Congo MONUC Mission de l’Organisation des Nations Unies au Congo MSR Mouvement Social pour le Renouveau- former civil society movement OFIDA Office des Douanes et Accises PPRD Parti du People pour la Reconstruction et la Démocratie RCD-Goma Rassemblement pour la Démocratie –Goma branche RCD-KML Rassemblement pour la Démocratie- Kisangani Mouvement pour la Libération Regideso Régie des Eaux- DRC (state water company) REHA Réseau de l’Eau, Hygiène et Assainissement SAIBU Savonnerie Industrielle de Butembo SENOKI Société d’Electrification du Nord Kivu SOCOTRANS Société Congolaise de Transformation SOFICOM Société Financière de Trade SNEL Société Nationale d’Electricité- DRC (state electricity company) SYDIP Syndicat pour la Défense des Intérêts Paysans UCG Université Catholique du Graben VECO