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Democratic Republic of Congo - Support project for alternative welfare of children and young people involved in the cobalt supply chain (PABEA-COBALT) - Appraisal Report

09-Apr-2019

The Support Project for Alternative Welfare of Children and Young People Involved in the Cobalt Supply Chain (PABEA-COBALT) seeks to ensure the social reintegration of about 14,850 children (girls and boys) working in cobalt mines. Given that extreme household poverty is the real cause of this scourge and that improving the living conditions of households is the most effective way of eliminating it, the project will ensure the socio-economic reconversion of the children’s 6,250 parents (all young) to the agricultural sector, which has the greatest potential for economic diversification. The project covers Lualaba and Haut-Katanga Provinces, which hold more than 65% of global cobalt reserves. It supports the implementation of the “National Strategy for the Exit of Children from the Copper and Cobalt Ore Production Chain in Haut-Katanga and Lualaba Provinces", of which Thrust 1 focuses on "reducing the economic vulnerability of households by promoting agricultural cooperatives and entrepreneurship". The project will create 11,250 direct jobs and thousands of indirect job, and will restructure 1,250 youth agricultural cooperatives. With the promotion of the agricultural value chain that includes agricultural processing innovations and technologies as well as NICTs, the project will increase the availability of locally produced staple foods by 10% to 50%. It will also establish 2 vocational training centres mainly in small-scale agricultural and mining trades, as well as support the rehabilitation/construction/equipment and capacity building of 40 social structures (education, health, and water-sanitation). The project will also reinforce the institutional framework to extend the elimination of child labour to all other categories of mines. Ultimately, the project will have a direct impact on improving the quality of life of 25% of the population of the two provinces (or 1,409,588 inhabitants) and an indirect impact on improving the quality of life of the entire population of the two provinces (5,638,233 inhabitants). The total cost of the project stands at UA 82,047,126 for 5 years. The Bank’s contribution stands at UA 60 million (UA 22.86 million TSF Grant, UA 32.14 million TSF Loan, and UA 5 million ADF Grant). The project is co-financed by GIZ for UA 710,000 and “Société Financière de Développement” (SOFIDE) for UA 21,337,126.

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