This action, which similarly affected Francis Kamanzi, the CEO of the Rwanda Mines, Petroleum, and Gas Board, indicates a more stringent approach from the EU regarding Rwanda’s purported involvement in illegal mineral trafficking.
Since opening in June 2022, the Gasabo refinery has been refining gold sourced from throughout the area, enabling dealers to obtain better prices for their processed goods instead of selling unrefined gold at reduced rates.
However, these new sanctions might subject Rwanda’s complete mineral sector to closer examination. Its gold exports could be particularly scrutinized and possibly labeled as conflict resources, which may render them unsuitable for the international marketplace.
The EU’s statement was explicit in its accusations. It described Gasabo as a transit point for gold mined illegally in the Democratic Republic of Congo (DRC) and accused Rwanda of facilitating illegal exports.“Gasabo Gold Refinery based in Kigali...is where the gold illegally extracted in Congo is transited through, hence contributing to the illicit export via Rwanda,” the EU said.
It was evident that Rwanda was not just processing gold; it was also contributing to the escalation of conflicts in the Democratic Republic of Congo.
Read: Congo rebels complicate the minerals market through illicit exports to Rwanda, according to a UN report. Rwanda has grand ambitions. The stakes are significant. In 2023, Rwanda generated $885 million from gold exports, positioning this as its leading exported item and ranking the nation at number 64 globally among biggest gold exporting countries. The United Arab Emirates (UAE) served as a key recipient of Rwandan gold.
Boasting lofty goals of increasing mining revenue to $2.2 billion by 2029, these sanctions have the potential to disrupt Rwanda’s economic path and compel both governmental bodies and industry stakeholders to reconsider their approach.
Apart from their direct effect on the economy, the sanctions have left Rwanda’s mineral trade pact with the EU uncertain. The arrangement intended for Rwanda to supply valuable minerals to Europe as a key player. Yet, due to mounting pressure from the European Parliament advocating for termination of this agreement, it might not come into fruition at all.
The EU faces criticism for its approach, as some specialists view these measures as hypocritical. They contend that the EU was part of the activities they now criticize through their involvement in related trades. "The recent EU sanctions carry significant hypocrisy since just a year prior, the EU entered into an MOU with Rwanda's administration aimed at ensuring responsible sourcing of natural resources from eastern Congo," explained Phil Clark, who teaches international politics at SOAS University of London.
Professor Clark highlighted that a significant portion of the unlawful mineral trafficking is facilitated through the European Union’s procedures, as smuggled resources get combined with those from legitimate transactions. "As a result, the EU inadvertently supports this illegal mineral commerce and contributes to the ongoing strife in eastern DRC," Professor Clark stated. He further noted, "By imposing sanctions on M23 and Rwanda, the EU is essentially penalizing parties involved because of circumstances they themselves have played a role in fostering."
Read: DR Congo files lawsuit against Apple in Europe over conflict minerals In response to this situation, President Paul Kagame has urged Rwandans to " tighten their belts" and prepare for the effects of the sanctions, cautioning that difficult times might be imminent.
Speaking at a citizen outreach event in Kigali, Mr Kagame described the situation as yet another challenge that Rwanda must face with unity and resilience.“Rwandans have to remain united and build their country, then confront those who want to destroy us. Everyone should know that this will not be easy,” he said.“It will be burdensome and tasking, just like how costly liberating this country was, some people lost their lives so Rwanda can stand,” he added.
Countries like Belgium, Canada, the United Kingdom, the United States had earlier imposed sanctions on Rwanda for its alleged role in backing the M23 rebels, who have captured two major cities in South and North Kivu provinces of DRC.
He dismissed fears that the restrictions would cripple the country, stating, “You think we shall drop dead the following day because of sanctions?”The President also took a direct swipe at Belgium, Rwanda’s former colonial ruler, arguing that Western powers continue to undermine the country’s sovereignty.“One of our biggest misfortunes is that we were colonised by a small country like Belgium, which cut our country up so it can be small like it (Belgium). Belgium has killed our country throughout history, killing our people. And keeps coming back to kill even those that didn’t die.”As tensions rise between Rwanda and its Western partners, the country now faces a difficult road ahead. Provided by SyndiGate Media Inc. ( Syndigate.info ).
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