Technology-based start-ups in the Democratic Republic of Congo

Can impact investing and social entrepreneurship turn natural resource "curses" into blessings?

The central African nation of the Democratic Republic of Congo, a nation about 2.34 million sq km in area, is arguably one of the most resource abundant in natural resources. From minerals, to potential hydro-power and even uranium Congo is a geographical hotbed of natural resource extraction. Cobalt, diamonds, gold and copper ores can all be in various regions within the DRC (the eastern border and southeastern-and western provinces). Yet, this country with a population of about 67 million, has been deemed one of the "world's worst" in just about every human development category. A decade-long civil war centered in the Eastern Congo has left more than  6 million civilians dead, mostly due to regional militias who profit from the looting of the aforementioned minerals. Despite the many complex, historical internal and external factors at the root of this dismal situation, the fact remains that the institutions in place are continued enablers to a rampant addiction of corruption and inefficiency that has effectively taken a toll on the economic state of this vast nation .

Small business appears to be the only viable current solution to this issue: building self-sufficiency from the ground up. Simply boycotting raw materials takes away from whatever small day-to-day revenue that local artisanal mining operations provides for livelihoods.  How can Congolese citizens possibly utilize the abundant resources of their environment to create communities of sustainable business and growth? Most “green” technologies (technologies used in alternative energy uses, for example) utilize some of the same minerals found in the DRC. The DRC supplies about two-thirds of the world’s cobalt. Cobalt has been outlined by the US Department of Energy as a critical metal in clean energy production. Cobalt also sustains uses in the production of glass and porcelain. Copper is also a growing essential element in HVAC systems. The mineral can be found in Congo’s Copper Belt (Between the cities of Lumbumbashi and Kolwezi in the southeast) as well as various other regions. However, considering the volatile nature of commodities pricing many investors have a habit of starting up and then fleeing projects, which creates an unsustainable business environment for both larger and smaller mining operations. Is it possible then, that local miners with access to minerals/scrap minerals that are the basic building blocks to modern technology could also actually produce products essential to it’s own countries growth? Could invested-in technology expedite the growth of regional agricultural sectors? The fact, that this is some sort of novel idea is a testament to the perceived logistical supply chain challenges of producing goods and exporting goods within the African continent.

Research and development is the fundamental basis for innovation. However, research and development cannot be sustained without investment. Particularly in the Democratic Republic of Congo, where for example, the abundance of copper can serve as a base for copper wiring distribution. The opportunity for research is there. Just as a food for thought example, impact invested research on the sustainable uses of such materials as copper for the purpose of agriculture--vertical farms/greenhouses---can

Copper-based rainwater capture system in South Africa
(source: David Bello)

eventually stimulate local economies in the DRC to actually manufacture viable local products from raw materials. While general infrastructure poses a challenge to engaging technological research on the continent, it is not far-fetched. Many Africans, despite any hindrance in living conditions have been exposed to widespread telecommunications outlets. A total of about sixty-five percent of people in Sub-Saharan Africa have access to mobile phones, most with Internet access. This solid telecommunications base can lead to even more technology-based business start-ups and research projects. Moreover, “modern” forms of currencies such as Bit.coin and the “M-Banking” financial organizations have penetrated African markets since the early 2000s. M-PESA based in Kenya, a service originally set-up for microfinance borrowers, has gathered a total of 14 million subscribers engaged in daily monetary transactions from mobile to person. This too, has the ability to hone socially impactful investments in the direction of innovative research organizations and entrepreneurs based in the continent. Local/regional community organizing can strengthen entrepreneurial efforts by involving the surrounding community in fundraising efforts.

This 2011 Google ad---in all of its' marketing glory---shown above is a shining example of what happens when mobile knowledge stimulates budding entrepreneurs, regardless of circumstance.


Did I mention that copper is very recyclable? Sounds like donating pennies could be a great start for a bunch of entrepreneurship projects in Africa! Too much? Well, anyway!