Again, the investor and mineral licensing powerhouse in the Democratic Republic Congo, Dan Gertler is even more under fire after the revelations of his illicit trade during the recent years. Now, the formula and the amount of cash he gets from the foreign mineral extraction companies are paying for their passage to him. This as the deals between Getler and Kinshasa authorities are left in the dark. Whatever deal they have, certainly Getler is earning fortunes without doing more, than being connected to the Joseph Kabila government.
This report shows important facts and also bring certainties of the assumed fortunes made by Gertler, even as he is sanctioned and his corporations. Clearly, the mineral extraction is profitable in the midst of insecurity and civilian despair in the republic. While the businesses and the affiliates are eating, the public are fleeing militias and the army itself. The state is not serving the public, but the companies and the persons who has secret deals with the government. It is vicious and the international community let them, even as it is sanctioned, the acts are still appearing and has the ability to earn on it.
“Based on a number of assumptions, Resource Matters estimates the royalties to the Gertler-affiliated companies can be expected to amount to about $110 million for 2018 and nearly $100 million for 2019. This means that Gertler risks losing about $270,000 in revenue from Glencore’s operations per day. That is nearly twice as much as the world’s best paid soccer player, Lionel Messi, makes at Barcelona” (Resource Matters, P: 6, 2018).
“Glencore therefore has to balance the risk of increased pressure in Congo versus the risk of ending up on the U.S. sanctions list. This means that the royalty payments constitute a significant risk, whether they stop or continue. Investors should be able to know how Glencore will deal with this going forward. U.K anti-corruption organization Global Witness has repeatedly lamented the opacity of Glencore’s royalty payments to Gertler’s companies and called for better disclosure” (Resource Matters, P: 8, 2018).
“This conclusion was somewhat hasty. Gertler’s gold companies do not explicitly feature on the sanctions list, but that in itself does not matter. Under the U.S. Treasury’s so-called 50%-rule, any company owned at least 50% by a sanctioned entity is considered, per se, sanctioned because it is deemed to be “blocked property” of the sanctioned person. Both Moku Goldmines and Société Minière de Moku-Beverendi are at least 50% owned by Fleurette, a sanctioned entity, and should be considered sanctioned, too. In addition, the fact that no payments are made to Gertler does not shield Randgold from the risk of being sanctioned. The U.S. Treasury could qualify Randgold’s exploration activities at Moku-Beverendi as ‘material support’ to a sanctioned entity and impose sanctions on Randgold” (Resource Matters, P: 9, 2018).
Gertler might be in hot-water and the Kabila government might have decisions to make concerning their alliance. Still, the trades and contracts has been made, if the Kabila government suspend and revoke it, they might have to pay a settlement. While wait for a new company or middle-man to secure a grand deal for the licensing. We can question if the loyalty will be there, as long as the sanctions might hit the companies who works with Gertler. Because, they do not want to lose the profitable and secure delivery of the cobalt and other minerals in the Republic.
Surely, Getler don’t want to miss his winning ways and his double earnings of Messi. He want it and doesn’t care about how. Getler just continue to score and get contracts, which makes his giant fortune. It is by the blessing of his connections in Kinshasa. Peace.
Resource Matters – ‘The Global Magnitsky – Effect How will U.S. sanctions against Israeli billionaire Dan Gertler affect the DR Congo’s extractive sector?” (February 2018).
“In this regard, we need to learn and apply lessons from emerging economies such as India, whose total healthcare industry revenue is expected to increase from US$ 110 billion in 2016 to US$ 372 billion in 2022 in response to deliberate investments in telemedicine, manufacturing of medicines and health technologies, medical tourism, health workforce training and risk pooling/health insurance, among others. In order to achieve this, we need to plan in a harmonized way. In Uganda, for instance, we, indeed, have a nascent pharmaceutical industry producing Aids/HIV, Malaria, Hepatitis-B, pharmaceuticals, etc. drugs. These are, however, still using imported pharmaceutical grade starch and imported pharmaceutical grade sugar. The pharmaceutical grade starch and sugar are crucial for making tablets and syrups for children’s medicines. Yet, the starch is from maize and cassava and the pharmaceutical grade sugar is from sugar. I am told the drugs would be 20% cheaper. Moreover, apart from helping in the pharmaceutical industry, more refined sugar is also needed in the soft drinks industry. Uganda is squandering US$34 million per year importing refined sugar for the soft drinks, about US$ 20 million for importing the pharmaceutical grade starches not including the other raw materials, US$ 77million for taking patients to India etc. Africa is incredibly rich but wasteful” (Yoweri Kaguta Museveni at THE OFFICIAL OPENING OF THE JOINT EAC HEADS OF STATE RETREAT ON INFRASTRUCTURE AND HEALTH FINANCING AND DEVELOPMENT, 22.02.2018).
Seems like the 1980s World Bank loans to restart Kakira Sugar Works hasn’t done enough, since the Ugandan state did right after the National Resistance Army takeover of the state. They went into an arrangement with the World Bank getting loans for the company, to restart. That deal was done 8th March 1988. As the documents said back in 198:
“Uganda currently imports US$15-20 million worth of sugar annually, which ranks second only to petroleum imports. Import substitution through restoration of domestic production capacity is therefore a high priority and eminently justified given the considerable comparative advantage Uganda enjoys as a result of its landlocked situation. Conditions for sugar production at Kakira are highly favorable. Cane growing benefits from excellent soils, good rainfall distribution (requiring only limited sunplementary irrigation) and relatively low levels of inputs of fertilizers and pesticides. The project brings back to the Kakira complex the original owners who have a demonstrated ability to manage sugar operations at Kakira and elsewhere” (SUGAR REHABILITATION PROJECT, 08.03.1988).
Therefore, what the President said today, the Sugar Rehabilitation Project, which was done to stop the heavy imports of sugar and for consumption, has clearly not worked as projected. Since his own state is squandering their resources and not even following the loans to make the project work. That is my take on it. The president of 32 years has clearly mismanaged this and not finished his job. Since he hasn’t been able to rehabilitate the industry.
When it comes to pharmaceutical industry there massive challenges, not just the sugar starch for medicine coverage of the pills. Nevertheless, the whole arrangement, since the technology to operate these machines are imported, as well is the parts. Not only the sugar starch, but also the ingredients are imported too, than you have few companies who has automated manufactures, which makes hard to make medicine on a larger scale. It is also high operation cost, because of use of back-up generators because of blackouts and shortfall of electricity. Because of this, it is expensive to have cold storage of the medicine and have a storage for the final products.
So the Idea from Museveni that it is simple, it is the whole system around it, that makes it more profitable to import ready made medicine, than actually produce it. Even if the added value of production would be there, but with the circumstances put by United Nations Industrial Development Organization, seemingly it is from 2009. However, the state of affairs hasn’t changed that much.
We can really estimate, that the adjustment and the needed organization to pull forward both industries during the years of NRM hasn’t been totally fruitful. If so, why would he complain about the imports of sugar and medicine, when he hasn’t been able to make it function with his 32 years of reign? Someone who has 3 decades, should have the ability and time to find the information, finalize plans and execute as seen fit. That is if he cared about the industries in question and their possible engines for growth and riches of Africa. Nevertheless, he hasn’t cared and haven’t used the time wisely. He has used the time bitching and not acting. That is just the way things is and it isn’t becoming better either.
He could have made sure that the pharmaceutical industry had energy, had the sufficient organization behind it to make the medicine, not only import and assemble certain medicine, he could have made sure the sugar industry was profitable and had the equipment to make the refined sugar used in the pharmaceutical industry. However, both is a lost cause, because it takes money and time. Both, is something he doesn’t have, since the narrative isn’t making him wealthy.
Alas, he we are at the status quo, with a President running for life and complaining about waste. When he has wasted 32 years and not made effort to change it. It is all talk and no fire. Peace.
Assessments showed that 3.2 million people, a quarter of the region’s population of mostly subsistence farmers, were desperately short of Food.
KINSHASA, Democratic Republic of Congo, February 16, 2018 -In the face of escalating violence, daunting logistical challenges and insufficient funding, the United Nations World Food Programme is energizing two key elements of its emergency operation to prevent famine in war-ravaged Kasai: cash distributions to the most vulnerable and specialist support to check acute malnutrition in women and young children.
Since the launch last week of the cash initiative – a cost-efficient alternative to in-kind support that allows beneficiaries to buy what they want in recovering local markets – 38,000 people have received the equivalent of US$15 each for a month, enough to meet their basic food needs. The intention is to more than double that reach in the coming weeks.
Recent airlifts from France of Plumpy’Sup, a micronutrient-rich ready-to-use supplementary food, have enabled a significant scale-up of WFP’s nutrition interventions in Kasai: 56,000 malnourished children treated in January, up from 21,000 in the final quarter of last year. The number is to grow by 20,000 a month, to 140,000 in June.
“The nutrition and cash programmes are life-saving, and must quickly expand”, said Claude Jibidar, WFP’s Representative in DRC. “We’re not doing nearly as much as we could in Kasai because the obstacles are huge. But unless we collectively rise to the challenges, many more people, including the weakest women and children, will die”.
WFP launched its assistance programme following the eruption of brutal political and ethnic violence in mid-2016 that claimed countless lives, razed entire villages and forced hundreds of thousands of families from their homes. Assessments showed that 3.2 million people, a quarter of the region’s population of mostly subsistence farmers, were desperately short of food.
Without a prior presence in Kasai, between September and December last year WFP achieved a tenfold increase in the number of people receiving food rations, to 400,000. But lagging donations forced a heavy reliance on scarce internal funds, and a halving of those rations – of cereal, beans, vegetable oil and salt – in November.
Continued funding constraints, an upsurge in fighting between pro- and anti-government forces and a rapid, rainy season deterioration of the already poor road network saw the number receiving half-rations drop to 130,000 in January.
“That reversal has to be corrected, and quickly”, said Jibidar. “We’ve shown we have capacity to deliver, but to reach sufficient scale we need the fighting to stop and donors to step up”.
Limited funding is also a major challenge in the eastern DRC provinces of Tanganyika and South Kivu, where WFP is scaling up to meet the needs of growing conflict-displaced populations as part of a broad push by UN agencies and NGOs.