【Central Afri】Cautious Optimism in the Mining Sector of the Central African Republic

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Editor’s Note

The lifting of the diamond export embargo in the Central African Republic marks a significant step, yet the industry anticipates a slow recovery. This article examines the lingering effects of sanctions and the challenges ahead.

A Gradual Return to Normality

With the lifting of the embargo on diamond exports from the Central African Republic, the mining industry foresees only a gradual return to normalcy.

The Impact of Sanctions

The civil war in the Central African Republic forced the Kimberley Process to sanction diamond exports from the country since 2013. However, this sanction was completely lifted on November 15th, following the plenary session of the Kimberley Process held in Dubai.
In Bria, a mining locality that primarily relies on diamond and gold extraction, activity had been severely affected by these sanctions. Diamond and gold mining activity had slowed down since the embargo imposed by the Kimberley Process.
During all these years, Hassan and his team continued to work nonetheless, selling a small amount of diamonds on the black market.

“I am the site manager. Before the embargo, we lived well. We sold our precious stones, paid our taxes, and our children lived well,” recounts Hassan.
A Return to Normal Life

With the lifting of the blockade, the locality can now export its diamonds again. A return to normal life for the operators and miners.
Alain Kongbo, an artisanal operator, explains:

“The lifting of the embargo on diamonds from Haute-Kotto makes us happy. Because it’s the only activity that we, the youth, the population of Bria, practice here. We thank the government which pleaded a lot for the lifting of the embargo. This will allow us to reconnect with mining because it’s thanks to this activity that the population helps its children go to school.”

The export ban, imposed in 2013 after the overthrow of President François Bozizé, was partially lifted in 2015 and 2018. But the sanctions still affected two-thirds of the country’s diamondiferous mining zones.
The embargo caused the diamond industry in the Central African Republic to plummet. In 2011, the country exported a little over 300,000 carats of diamonds, representing a value of 29.7 billion CFA francs, or about 45 million euros. In 2023, revenues had fallen by almost 90%.

Diamond Prices at Their Lowest

While the government sees this lifting of the embargo as a diplomatic victory, the lifting of sanctions nevertheless occurs in a gloomy context for diamonds.
Rufin Benam Beltoungou, Minister of Mines, assures that:

“Unfortunately, this decision came at a time when diamond prices are at their lowest, but we will get back to work to allow artisanal miners to resume the path of production.”

The contribution of the mining sector for diamonds and gold represented 11% of the GDP of the Central African Republic in 2011. Today, it is only about 6%.
After the complete lifting of the Kimberley Process sanctions, the Central African authorities will nevertheless have to manage to convince buying offices to return to revive an industry that has collapsed.

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⏰ Published on: November 27, 2024