The DRC's rich resources provide easy ways to finance the conflict and the rebels had long been successful in setting up financial administrative bodies in their controlled areas, especially with regards to trading with Rwanda and Uganda, while Kabila had also been able to finance his side of the conflict.
There are many resources and minerals etc being exploited, including (but not limited to):
Water
Diamonds
Coltan
Cassiterite
Tin
Copper
Timber
A number of major human rights groups have charged that
http://us.oneworld.net/article/view/71424/1/ some multinational corporations from rich nations have been profiting from the war and have developed "elite networks" of key political, military, and business elites to plunder the Congo's natural resources.
Yet, a number of companies and western governments pressured a United Nations panel to omit details of shady business dealings in a report out in October 2003. As reported by the British newspaper, The Independent:
Last October <2002>, the panel accused 85 companies of breaching OECD standards through their business activities. Rape, murder, torture and other human rights abuses followed the scramble to exploit Congo's wealth after war exploded in 1998.
For example the trade in coltan, a rare mineral used in computers and mobile phones, had social effects "akin to slavery", the panel said. But no Western government had investigated the companies alleged to have links with such abuses. Some, including ones from the UK, US, Belgium and Germany, had lobbied to have their companies' names cleared from the "list of shame".
"Many governments overtly or covertly exerted pressure on the panel and the Security Council to exonerate their companies," Ms Feeney said. Some companies gave legitimate explanations for their business in Congo, or pulled out. But lawyers for others challenge the panel's findings, often capitalising on errors in earlier reports as proof of unreliability.
In the report this week, the cases against 48 companies are "resolved" and requiring "no further action".
-- Declan Walsh, UN cuts details of Western profiteers from Congo report, The Independent, October 27, 2003
http://news.independent.co.uk/world/politics/story.jsp?story=457619When the UN finally released the report
http://www.un.org/Docs/journal/asp/ws.asp?m=S/2003/1027 at the end of October 2003, they listed approximately 125 companies and individuals listed that had been named in a previous report by the panel for having contributed directly or indirectly to the conflict in the DRC.
Other companies, the report noted, may not have been directly linked to conflict, but had more indirect ties to the main protagonists. Such companies benefitted from the chaotic environment in the DRC. For example, they would obtain concessions or contracts from the DRC on terms that were more favorable than they might receive in countries where there was peace and stability. (See for example, page 6, par 12 of the report.)
The above-mentioned coltan has been the source of much controversy lately:
Hidden cost of mobile phones, computers, stereos and VCRs?
The ore, Columbite-tantalite, or coltan for short, isn't perhaps as well known as some of the other resources and minerals. However, the demand for the highly prized tantalum that comes from the refined coltan has enormous impacts, as highlighted by a recent U.N. Security Council report where an expert panel was established on the illegal exploitation of natural resources and other forms of wealth of the Democratic Republic of the Congo:
Given the substantial increase in the price of coltan between late 1999 and late 2000, a period during which the world supply was decreasing while the demand was increasing, a kilo of coltan of average grade was estimated at $200. According to the estimates of professionals, the Rwandan army through Rwanda Metals was exporting at least 100 tons per month. The Panel estimates that the Rwandan army could have made $20 million per month, simply by selling the coltan that, on average, intermediaries buy from the small dealers at about $10 per kg. According to experts and dealers, at the highest estimates of all related costs (purchase and transport of the minerals), RPA must have made at least $250 million over a period of 18 months. This is substantial enough to finance the war. Here lies the vicious circle of the war. Coltan has permitted the Rwandan army to sustain its presence in the Democratic Republic of the Congo. The army has provided protection and security to the individuals and companies extracting the mineral. These have made money which is shared with the army, which in turn continues to provide the enabling environment to continue the exploitation.
-- Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo, United Nations Security Council, April 12, 2001.
The report also mentions Ugandan and Burundian rebels being involved in looting and smuggling of coltan, using illegal monopolies, forced labor, prisoners and even murder. According to the Industry Standard, "
hese accusations have not been taken lightly; several members of the U.N. panel that prepared the report have since received death threats. Uganda, Rwanda and Burundi have issued protests to the United Nations over the report, claiming it to be inaccurate and unfounded."
A follow up report in October 2003 also noted that:
In 1999 and 2000 a sharp increase in the world prices of tantalum occurred, leading to a large increase in coltan production in eastern Democratic Republic of Congo. Part of that new production involved rebel groups and unscrupulous business people forcing farmers and their families to leave their land, or chasing people off land where coltan was found and forcing them to work in artisanal mines. As a result, the widespread destruction of agriculture and devastating social effects occurred, which in a number of instances where akin to slavery.
-- Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo, United Nations Security Council, S/2003/1027, October 28, 2003
What drives the demand for this mineral? The answer is: most of modern computer-based technology:
more
http://www.globalissues.org/Geopolitics/Africa/DRC.asp#HiddencostofmobilephonescomputersstereosandVCRs