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Coltan: Rwanda ranks top global exporter for the fifth time in 10 years

Monday, 08 April 2024 17:58
Coltan: Rwanda ranks top global exporter for the fifth time in 10 years

(Ecofin Agency) - The Democratic Republic of Congo (DRC) and Rwanda are the world's top exporters of coltan, a mineral used to make key components of electronic devices like computers and smartphones. Together the two countries exported 32,702 tons of coltan between 2014 and 2023. 

The Democratic Republic of Congo (DRC) exported 1,918 tons of coltan in 2023, while Rwanda exported 2,070 tons. According to official data compiled by the Ecofin Agency, this is the fifth time since 2014 that Rwanda has exported more coltan than its neighbor. 

In addition to last year, Rwanda exported more coltan than the DRC in 2014, 2015, 2017, and 2019. After peaking at 2,302 tons in 2014, Rwandan coltan exports have fluctuated, remaining below 2,000 tons until last year. 

Meanwhile, the DRC exports peaked in 2020, at 2,466 tons. Over the past decade, both countries swapped seats as the world’s top coltan exporter, but the DRC exported the most coltan overall–17,330 tons against 15,374 tons for Rwanda.

1 tonnesColtan: DRC's Export vs. Rwanda's Export

The previous figures do not account for smuggled coltan. A key mineral for making electronics, coltan is largely mined artisanally, particularly in the North and South Kivu regions (DRC). Corruption and armed groups make controlling the activity in these areas difficult. Also, some multinational corporations fuel the smuggling by turning a blind eye to the origin of the coltan they purchase.

"A United Nations investigation revealed that many trading posts knowingly purchase coltan from areas controlled by armed groups and exploit the distinction between them and traders to claim ignorance of the ore's origin […] International companies then transport the ore directly to the destination country or re-export it through Uganda and Rwanda to processing facilities abroad," a report published in March 2022 by ENACT, a transnational organized crime-fighting initiative, states.

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Titled "Mining and Illicit Trading of Coltan in the Democratic Republic of Congo," the document highlights Rwanda as the preferred route for illicit coltan trade. Kigali does not levy taxes on mineral exports and allows imported goods to be rebranded as "Made in Rwanda" provided they are transformed within the country with a minimum 30% value addition. "It is thus likely that the majority of coltan exported from Rwanda originates from the DRC," ENACT concludes.

Among recommendations to halt this illegal trade, ENACT suggests that the Congolese government develop a national due diligence method to trace coltan shipments to their source, with support from global coalitions of nonprofit organizations.

On a sub-regional level, the International Conference on the Great Lakes Region should review its commitment in the DRC, Burundi, Rwanda, and Uganda to encourage partnerships with civil society for coltan tracing and certification. Multinationals are urged to implement traceability programs by verifying their coltan supply chains.

Emiliano Tossou





 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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