Perspectives on the newly drafted Mining Code for the Central African Economic and Monetary Community

In 2016, the Commission of the Central African Economic and Monetary Community (CEMAC) and the German Development Cooperation (GIZ) through its reinforcement project for the governance of raw materials (REMAP), embarked on a process to draft a common mining code for CEMAC member states. The REMAP project supports CEMAC member states (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea and Chad) with the development and harmonisation of the sub-region’s policies and legislation relating to the extractive industries. The goal of the drafting process was to develop and propose to CEMAC countries a community mining code that is aligned with the principles of the African Mining Vision (AMV), and that harmonises the different mineral legal frameworks already in force in the CEMAC countries. Aligning the common code with the principles of the AMV is very important as the AMV aims for

“transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development in Africa”

The draft CEMAC Mining Code was revealed for the first time in Douala, Cameroon by the CEMAC Commission and REMAP on 28 July 2017 and it was officially handed over to the CEMAC headquarters in Yaoundé (capital of Cameroon) on 29 September 2017. The Code is not yet accessible to the public, but those who have been privy to the new Code, view it as a major breakthrough in terms of integration of the needs of the relevant stakeholders, including local communities.

The drafters of the Code argue that the Code will increase CEMAC member states’ revenues from mining. It is believed that the common mining Code makes it easier to adopt common sub-regional mining policies as the six CEMAC member States presently use six separate mining codes. It is equally anticipated that the harmonised mining code will improve transparency in the management of mining revenues. Increased transparency will ensure that mining revenues are channelled to the inhabitants of the region.

The harmonised mining code is expected to reduce discontentment as a result of mining activities. Local communities in the Central African sub-region, often argue that they are not receiving any benefits from the extraction of minerals taking place in their areas. It is alleged that even before the current armed conflict (due to lack of rule of law and power struggle) in the Central Africa Republic (CAR), corruption and the misappropriation of funds in the mining sector were rife. As a result, the region has been characterised by a lack of schools, road and health infrastructure, negatively affecting the well-being of people living in these areas. In this regard, the harmonised code seeks to limit tensions between communities, the government and mining companies by providing for the involvement of communities in mining authorisation processes. The promoters (REMAP and CEMAC) of the harmonised mining code believe that the Code will ensure that local communities inhabiting mining areas also benefit from the mining revenues as a result of transparent management of mining revenues.

The code also seeks to avoid armed conflicts over mineral resources, as is presently the case in the Democratic Republic of Congo (DRC). In the eastern part of DRC, armed conflicts have been ongoing since the 1990s and it is believed that such conflicts are fuelled by the struggle to control the vast mineral resources in the region. Revenue generated from the sales of such minerals is equally used to finance current day armed conflicts in the same region. Such a scenario is already being witnessed in the CAR where militias are trafficking diamonds to fund their activities. 

The harmonisation of mining taxation and environmental protection legislation in the sub-region is also included in the objectives of the harmonised mining code. The goal is to ensure that the member states enforce a uniform taxation regime to ensure that companies operating across borders pay the same amount in taxes in each country in which they operate. In that way, exploitative industrial practices could be avoided or at least limited, enabling countries to develop at the same pace. The harmonised mining code also reflects the wish of CEMAC member countries to make environmental protection in the sub-region, a priority. By requiring all member states to follow similar guidelines for environmental protection in the extractive sector, the Code ensures that environmental sustainability is a norm in each State member. In so doing, the Code is aligned with the environmental provisions in the AMV, and the UN Sustainability Goals.

The common mining code is currently being considered by the parliaments of member states. Should the code be adopted as binding law and properly implemented by the member states, the entire sub-region will be fast-tracked to develop, as a unit. The benefit of such development is that it facilitates business transactions and movement of people between countries, as well as uplifting communities across the sub-region out of poverty. As it aims to promote transparency and to improve mining revenues and environmental protection, the harmonised code is very likely to make huge contributions towards the economic development of member states and the wellbeing of its people. One can rightly concur that the common mining code for the six-member states of CEMAC, supported by REMAP is indeed a breakthrough.

Written by Bernard Kengni.