Paradox of Plenty: The Democratic Republic of Congo’s Resource Curse

Introduction

The Democratic Republic of Congo (DRC) has been mired in conflict, poverty, and deprivation since the 19th century. From Belgian colonization to the current hostilities with Rwanda, conflict in the DRC has revolved around resource extraction, particularly in its eastern region. The country is one of the world’s most resource-rich nations, with vast deposits of coltan, cobalt, copper, gold, zinc, manganese, tin, and uranium. Yet, it remains one of the poorest, with the United Nations classifying it as a least developed country and ranking it 180th out of 193 in the Human Development Index. The resource curse hypothesis is at the heart of the DRC’s paradox, positing that instead of benefiting from their natural wealth, resource-rich countries often suffer from poor development, weak governance, and slow long-term growth.

The DRC is particularly vulnerable to exploitative resource extraction by foreign state and non-state actors, resulting in widespread corruption, poverty, and conflict. While Belgian colonizers primarily profited from rubber extraction, the DRC’s primary exports today include copper and cobalt, with China as its largest trade partner. These minerals are predominantly concentrated in the eastern region, which has emerged as a conflict hotspot due to the ongoing clashes between Rwanda-backed M23 rebels and Congolese forces. The skyrocketing global demand for these resources—driven by Western nations’ need for clean energy materials—has also exacerbated instability, turning the DRC into a battleground for economic and geopolitical interests.

The following article analyzes the rising tensions between the DRC and Rwanda through the resource curse hypothesis while exploring the systemic risks induced by excessive reliance on raw material exports. It also examines the geopolitical rivalry between the United States and China over Congolese minerals and argues that foreign interference underscores the political and economic vulnerabilities of the DRC’s resource-dependent economy, highlighting the urgent need for restructuring, diversification, and good governance.

The Politico-Economic Dimensions of the DRC-Rwanda Conflict

The conflict between the DRC and Rwanda is deeply intertwined with the country’s mineral wealth. Eastern Congo, where much of the fighting occurs, is rich in high-value minerals, making it a target for rebel groups, foreign-backed militias, and corrupt political actors. Rwanda has long been accused of exploiting this instability to gain access to Congolese resources, particularly coltan and gold, which are smuggled across the border.

​•​The M23 Insurgency and Foreign Involvement: The March 23 Movement (M23), an armed group with ties to Rwanda, has been a central player in destabilizing the DRC. Reports indicate that Rwandan authorities back the M23 rebels to secure access to Congolese minerals. This dynamic mirrors the broader pattern of external actors fueling instability to benefit from illicit resource trade. Moreover, rebel groups within the DRC itself have been benefiting from the chaos induced by Rwandan militant activity. For instance, DRC rebels illicitly exported approximately 150 tons of coltan to Rwanda in 2024 after M23 rebels captured Rubaya (Reuters, 2025). The DRC is one of the largest producers of coltan, a key mineral used in electronic products including smartphones, with nearly 60% of global reserves found in the country (Ojewale, 2021). This produces several negative externalities in the Congolese economy, such as corruption and money laundering,  as rebel warlords use middlemen to sell illegally obtained coltan in legitimate commodity markets or directly to foreign corporations. Hence, there is an urgent need for foreign corporations, especially big tech firms, to take greater accountability in their raw material sourcing to limit illegal trade. 

​•​Western and Chinese Demand for Congolese Minerals: The role of Western and Chinese corporations in fueling instability cannot be ignored. The global demand for cobalt, essential for electric vehicle batteries, has made Congolese mines a critical part of the global supply chain. The DRC is home to the world’s largest cobalt deposits, making up for 70% of global reserves (Smith, 2023). However, instead of investing in Congo’s industrial development, foreign companies extract raw materials and refine them abroad, depriving the country of economic growth. This reinforces the core-periphery structure of the global political economy, where the advanced economies, representing the global economy’s core, benefit from the resources extracted from underdeveloped countries, relegating them to peripheral economic positions. This cycle can be broken to some extent if raw materials are processed within the country they are extracted from. Indonesia serves as an example of converting raw material deposits to industrial activity, banning the export of nickel extracted from the country to attract foreign investment to set up refining plants at home. However, it will be essential to curb the emerging conflict in the region to establish such large-scale manufacturing as the current volatility acts as a significant deterrent for investment and industrialization. 

Structural Weaknesses and Foreign Involvement in the DRC’s Mining Industry

Western Selfishness and the Geopolitics of Resource Extraction

The DRC’s resource curse is not only a product of internal governance failures but also a result of Western nations prioritizing resource extraction over sustainable development.

​1.​Exploitation of Resources Without Industrialization

​•​The world depends on Congolese cobalt, coltan, and copper for modern technologies, yet Western corporations have done little to ensure that Congolese communities benefit. The DRC continues to export raw materials rather than refined products, reinforcing economic dependency.

​•​Western nations impose ethical sourcing regulations yet fail to enforce them, allowing illicit mineral trade to persist. Siddharth Kara (2022) describes the inhumane nature of cobalt extraction in the DRC in  his book titled Cobalt Red – How the Blood of the Congo Powers Our Lives. He asserts that Congo’s cobalt mines are notorious for their employment of child labor. Further, they feature rudimentary design, making them prone to collapsing, crushing miners and laborers.  

​2.​Geopolitical Competition Between the U.S. and China

​•​China’s Strategy: China has established near-total control over Congo’s cobalt sector through long-term contracts and infrastructure investments, often structured to favor Chinese firms. For instance, China signed a landmark deal worth $8.5 billion with the DRC in 2008, to exchange 10.6 million tons of copper and 600,000 tons of cobalt against 3215 km of railroads and around 7000 km of roads (Otchia, 2015). While these deals bring roads and power plants, they also lock the DRC into agreements that yield little financial benefit to its people. Moreover, it exposes the country to 

​•​The U.S. Response: The United States, recognizing China’s dominance, has recently increased its involvement in Congo’s mining sector. Washington has pushed for alternative supply chains, but its efforts remain reactive rather than transformative. Initiatives like the U.S.-DRC-Zambia battery supply chain deal offer hope but lack the scale and commitment needed to challenge Chinese influence.

The U.S.-China rivalry in the DRC has further destabilized the country. Neither power has invested in developing Congo’s industrial base; instead, they seek to secure access to raw materials while leaving the country’s economy vulnerable. This geopolitical struggle has significant consequences:

● Increased Instability: As both China and the U.S. compete for influence, Congolese leaders face pressure to align with one side or the other, further weakening their bargaining power.

● Continued Corruption: Western and Chinese corporations alike exploit weak governance structures to sign extractive contracts with little accountability.

● Failure to Invest in Local Processing: The refusal of both powers to support local refining industries keeps the DRC dependent on foreign buyers, limiting economic diversification.

● Dutch disease: the DRC is exposed to a process whereby skyrocketing growth in one sector, especially raw materials, has counterproductive effects on other sectors of an economy. This is precipitated by a rise in the raw material-driven demand for the country’s currency, rendering exports from other sectors, including manufacturing and agriculture, uncompetitive in foreign markets. Furthermore, the increasing dominance of the raw materials sector leads to an imbalance in foreign investment with most of it being earmarked to the mining sector, leaving little for manufacturing or agriculture. The labor market is also destabilized as workers from other sectors of the economy are attracted to mining activities for quick money, creating labor shortages for other industries. 

● Amplified volatility: as raw material exports are Kinshasa’s primary source of income, the country is significantly vulnerable to risks in the commodity markets. Price swings induce instability in the economy and lead to uncertainty in long-term growth trends. 

Looking for a Way Forward

To break free from the resource curse and the geopolitical struggle over its minerals, the DRC must take decisive steps to reclaim control over its resources and build a more resilient economy.

​1.​Nationalizing Key Resource Sectors

​•​While outright nationalization may not be feasible, renegotiating contracts to increase state equity in mining operations would allow the government to retain more revenue. 

​•​The DRC must also improve regulatory oversight to curb illicit mineral smuggling, particularly to neighboring Rwanda.

​2.​Strengthening Regional Cooperation

​•​Rather than allowing foreign powers to dictate terms, the DRC should deepen trade and industrial partnerships with African nations, particularly Zambia and South Africa, to develop a regional supply chain for refined minerals.

​3.​Leveraging Global Demand for Better Terms

​•​Given the world’s reliance on Congolese minerals, Kinshasa, following Jakarta’s footsteps, could impose stricter export policies, requiring foreign firms to invest in local processing facilities rather than extracting raw materials.

​4.​Diversifying the Economy

​•​Beyond mining, the government must invest in agriculture, infrastructure, and manufacturing to reduce dependency on volatile commodity markets.

Conclusion: A Battle for Resources, Not People

The selfishness of Western nations, particularly their obsession with securing Congolese raw materials without meaningful investment in the country’s future, has deepened the DRC’s instability. The U.S.-China rivalry further complicates matters, as both superpowers prioritize access to cobalt and copper over genuine economic reform. Unless the DRC takes bold steps to regain control over its resources and build a self-sustaining economy, it will remain a pawn in the great power competition—rich in minerals, but poor in development.

By implementing strategic reforms and asserting greater control over its economic destiny, the DRC can break free from its cycle of exploitation and emerge as a more stable and prosperous nation.

This article is co-authored by Dr Brian O. Reuben, the Executive Chairman of the Sixteenth Council, and Ishan Jasuja, a Felllow at the Sixteenth Council.