In the Democratic Republic of Congo (DRC), the shadow economy surrounding cobalt and copper extraction is becoming a major political and economic flashpoint. In the ex-Katanga region long a hub for mining activity illegal operations have evolved into near-industrial enterprises, generating an estimated $2 billion annually. Growing evidence now suggests that powerful networks with ties to President Félix Tshisekedi’s inner circle are deeply entangled in this illicit trade.
At the center of the controversy is the Eurasian Resources Group (ERG), a major player in Congo’s legal mining sector. ERG has seen its operations disrupted and profits drained as a result of a surge in illegal mining on its concessions, allegedly with the tacit approval or protection of well-connected figures.
According to multiple sources, networks of informal miners often described as “creuseurs” are being supported by local political and military actors who facilitate their access to restricted mining zones. These groups extract cobalt and copper under dangerous conditions, often selling the raw materials through opaque supply chains that eventually feed into the global tech and EV (electric vehicle) industries.
Political Protection and Presidential Proximity What is alarming observers and watchdog groups alike is the apparent proximity of these cartels to individuals in President Tshisekedi’s entourage. Investigations by regional media and international NGOs suggest that some family members and close associates of the president have profited from or at the very least turned a blind eye to the looting of high-value mineral sites.
“The scale and coordination of these illegal operations are not possible without high-level political protection,” said a source close to the mining ministry, speaking on condition of anonymity. “And the names we keep hearing are increasingly close to the presidency.”
One recurring figure in these reports is a prominent business intermediary with familial ties to the Tshisekedi clan, allegedly acting as a broker between illicit buyers and smuggling networks operating through Zambia and Tanzania.
ERG’s Growing Frustration ERG, which controls several major concessions in the Lualaba and Haut-Katanga provinces, has privately expressed frustration at the lack of enforcement against illegal mining. Company representatives have raised the issue in recent meetings with Congolese officials, but little has changed on the ground.
In a confidential memo obtained by Africa Watch, ERG executives warn that continued looting threatens not only their financial interests but the broader stability of the Congolese mining sector. “The impunity enjoyed by illegal operators and their protectors is reaching a critical point,” the memo reads. “If this is not addressed at the highest levels, formal investment in the region will collapse.”
Strategic Resource, Strategic Crisis Cobalt is a strategic mineral, critical for the batteries that power electric vehicles, smartphones, and renewable energy storage systems. The DRC is by far the world’s largest source, supplying over 70% of global demand.
Yet despite this natural wealth, the country remains plagued by poverty and instability. The growing capture of cobalt wealth by informal cartels — and their alleged links to those in power threatens to undermine both governance and development.
International partners are taking notice. The U.S. and EU, both reliant on cobalt for green technology, have signaled increasing concern over the origin of the DRC’s minerals and the reputational risk for companies sourcing materials from the country.
A Test for Tshisekedi As President Tshisekedi prepares for the next phase of his administration, his government faces mounting pressure to address the corruption and criminality bleeding the mining sector. His silence or inaction could be seen as complicity.
The question now is whether Tshisekedi is willing or able to confront the networks exploiting one of Africa’s most valuable resources from within his own circle.
If he fails to act, the promise of cobalt as a driver of Congolese prosperity could turn into yet another chapter of squandered potential, elite enrichment, and international scandal.
