its strategic location in the Arctic; its valuable rare earth minerals trapped under the ice needed for telecommunications; its billions of barrels of untapped oil. There’s also potential for shipping and trade routes as the ice that covers most of Greenland keeps retreating because of climate change. If that ice melts, it would reshape coastlines across the globe and potentially shift weather patterns.
Analysts warn that the implementation of a minerals deal in eastern Congo, if one was to materialize, will face many hurdles — especially with U.S. investors largely abandoning Congo in the last two decades.“Turning a headline announcement into sustainable progress will require resolving deep suspicions between Rwanda and the DRC,” Chatham House, a research institute, said in a recent report. “A deal will also need to account for complex local political problems of land access and identity, wider security challenges in a region that hosts myriad non-state armed groups, and issues of asset scarcity.”
If the deal were to include Rubaya, where all mining is currently done manually, U.S. companies would have to contend with both security concerns and a severe lack of infrastructure.“With coltan, you’re dealing with hundreds of thousands of miners, and not just M23, but other so-called auto-defense armed groups and individuals who rely on mining for survival,” said de Brier from the International Peace Information Service. “You have to build all the infrastructure, you have to start from scratch. You will even have to build the roads.”Bahati Moïse, a trader who resells coltan from Rubaya’s mines, hopes that, regardless who controls the mines, the workers who labor to extract the minerals will finally be valued as much as the resources themselves.
“The whole country, the whole world knows that phones are made from the coltan mined here, but look at the life we live,” he said. “We can’t continue like this.”Pronczuk reported from Dakar, Senegal.
The Associated Press receives financial support for global health and development coverage in Africa from the Gates Foundation. The AP is solely responsible for all content. Find AP’s
for working with philanthropies, a list of supporters and funded coverage areas atIt’s a high-risk mission, as scrapping the “cepo” could unleash years of pent-up demand for U.S. dollars and spark a currency run as companies try to send their long-trapped profits home.
“It could be a tsunami of money out,” said Christopher Ecclestone, a strategist with investment bank Hallgarten & Company. “It’s a total guessing game as to what people will do.”The central bank said that while it was lifting restrictions for the public, it would retain taxes on card purchases abroad and some regulations on companies. For instance, from 2025 on, multinational firms will be able to repatriate their earnings. But to get their already trapped holdings out of the country, they’ll need to exchange the debt for dollar-denominated security bonds.
It’s an effort to insure against capital flight, which would imperil Milei’s primary accomplishment of lowering inflation ahead of midterm elections in October that are crucial for his libertarian party to expand its“The announcement is more audacious than expected. The government is making a bit of a leap of faith by lifting the cepo,” said García.