US gutting of conflict minerals law will destabilise Central Africa

A US soldier surveys a sprawling refugee settlement on the boundary of Bangui International Airport, Central African Republic. Hundreds of thousands of people have been displaced by conflict in the country that the gutting of the US Dodd-Frank Act threatens to exacerbate. Photo courtesy USAFE AFAFRICA/Flickr

A US soldier surveys a sprawling refugee settlement on the boundary of Bangui International Airport, Central African Republic. Hundreds of thousands of people have been displaced by conflict in the country that the gutting of the US Dodd-Frank Act threatens to exacerbate.
Photo courtesy USAFE AFAFRICA/Flickr

IOA Analysis in briefTo spare US companies accounting costs, the new US presidential administration may end due diligence measures that retard the sale of minerals which finance Central African insurgencies and terror groups.

 Key points:

  • The Dodd-Frank Act as amended in 2015 requires US companies to verify the origin of minerals from 10 African states where they may have been smuggled
  • The new US presidential administration is on the verge of scrapping the conflict mineral avoidance measures in an anti-regulation campaign gone awry
  • If Central African governments could tackle corruption and make the mining industry legitimate, the trade in conflict minerals would dry up at its source

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