Gold Trade in Congo

Butembo, along with Beni and Bunia, is currently infamous for it’s gold trade. Much of Congo’s gold trade flows through here, on to Uganda and then on to the Dubai gold market. We saw dozens of gold exchange shops so there must be many times more that we didn’t see.

16% of Uganda’s foreign exchange earnings are from the sale of gold. However, Uganda doesn’t have any gold mines.

Most gold is sold in these exchange shops as gold dust direct from local mines or small scale streams. The gold will be transferred through various intermediaries so there becomes no trail to determine where your gold came from. A key characteristic explaining why gold is money is that it is fungible, meaning completely exchangeable.

Children panning for gold south of Bunia, Orientale province, DRC

We first took this photo, then noticed the children panning for gold. They clearly did not want their photo taken.

Butembo gold exchange

Dr Wood has mentioned that CME Nyankunde frequently sees patients from mining accidents for things like fractured backs due to mine collapses.

Brenda is reading a book called Consuming the Congo: War and Conflict Minerals in the World’s Deadliest Place by Peter Eichstaedt. It discusses how the Congo army controls certain large mines and ensures that a sizable percentage of revenue is skimmed off. It is believed that this is how President Kabila has become so wealthy so quickly (in addition to controlling extensive business interests in several sectors).

While we can hardly say that the region has become wealthy from its gold, there are many large houses and buildings being constructed that are believed to be from gold money. It is clear that the money is not making its way into the general population, which explains much of the quiet discontent against Kabila as well as the unquiet discontent against him in Kinshassa.