Global Connections (OCR GCSE Geography)

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International Trade and the DRC

  • The DRC has trade agreements with over 50 countries
  • The main trading partners of the DRC are:
    • China - almost 60% of exports from the DRC are to China
    • India
    • Belgium 
    • Italy
    • France
    • Australia
  • The DRC belongs to a number of trade organisations including the World Trade Organisation (WTO)
  • Mining exports are crucial for DRC's exports making up 30% of the GDP
  • The dependence on mineral exports means the DRC is vulnerable to rapid changes in price
  • Many years of corruption, war, and political instability have had a negative impact on development
    • The DRC has one of the lowest HDI ratings in the world

Transnational Corporations and the DRC

  • There are a number of transnational corporations (TNCs) operating in the DRC
  • These include:
    • Mining companies such as Banro (Canada), Glencore (Swiss company) and Eurasian Natural Resources Corporation (UK)
    • Telecommunications companies such as Vodacom, Orange DRC and Africell 

Banro

  • A gold mining company
  • Owns over 7500km2 mining prospects in the DRC
  • Operates two gold mines in South Kivu and Maniema provinces

Advantages and Disadvantages of Banro Mining Company in DRC

Advantages Disadvantages

Provides 4,000 direct and 20,000 indirect jobs

Economic benefits for over 240,000 Congolese people

Investment in development projects

Over US$31 million in infrastructure, education, housing, and public facilities in the two areas - South Kivu and Maniema

Creation of the Banro Foundation which has built ten new schools and refurbished two others

Indirect displacement of people due to the redirection of water sources

Direct displacement of people - a community in Katombwe was forced to move to make way for mining activities

Much of the profit leaves the DRC and goes to Canada

The large mines have caused smaller independent mines to close

Deforestation

The country becomes dependent on the TNC

The use of mercury in the process can be harmful to workers and water supply

Orange RDC

  • A French telecommunication's company 
  • It is the largest telecommunications operator in the DRC

Advantages and Disadvantages of Orange DRC 

Advantages Disadvantages

Provides homes, businesses, and governments with telecommunications

Investment of US$95 million in the communication network

Orange shops employ over 600 people, Headquarters in Kinshasa

Introduction of modern technology - 5G

Better communications attract other businesses - the positive multiplier effect

Investment of US$500,000 in social projects

Phone networks are now accessed by 30% of the urban population

Most of the profits go to France

Orange pays little tax to the government

The headquarters only employs 100 people

Rural areas have limited access

The government controls the internet speeds

Between 2015 - 2017 the government ordered internet speeds to be slowed down or reduced to limit people's access to social media

International Aid and the DRC

  • The DRC receives aid from a variety of sources
    • The aid is usually given from ACs to LIDCs 
    • The EU allocated €80 million in funding to the DRC in 2023
    • Aid may include:
      • Food assistance
      • Shelter
      • Healthcare
      • Water 
      • Sanitation

Types of aid

types-of-international-aid

Types of aid received by the DRC

  • From 2003 to 2010 the DRC was part of the Heavily Indebted Poor Countries (HIPC) - during this time the country paid 20% of its revenue in debt repayments
  • Through the HIPC initiative, the DRC received debt relief which enabled them to spend money on education and healthcare
  • Debt repayments are currently 5% of the country's revenue

Advantages and Disadvantages of Aid in DRC

Advantages Disadvantages

Aid helps to reduce inequality

Helps to meet the UN's Sustainable Development Goals

Supports countries with increasing independence

Helps to reduce disease

Aid leads to dependence

Corruption may mean that the aid does not reach the people it is intended for

The aid may not be appropriate for the situation

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Bridgette

Author: Bridgette

After graduating with a degree in Geography, Bridgette completed a PGCE over 25 years ago. She later gained an MA Learning, Technology and Education from the University of Nottingham focussing on online learning. At a time when the study of geography has never been more important, Bridgette is passionate about creating content which supports students in achieving their potential in geography and builds their confidence.