Blockchain Technology in Mineral Extraction Supply Chains: An Ethiopian Perspective in DRC Context

The Democratic Republic of Congo (DRC) is a significant producer of minerals including cobalt and copper, which are crucial for the global supply chain, particularly in electronic devices. Ethiopia has also seen an increase in interest in mineral extraction, especially given its geographical proximity to DRC. The methodology involves an analysis of existing blockchain solutions used in mining operations within DRC, alongside interviews with stakeholders including miners, logistics providers, and regulatory bodies to understand current challenges and potential benefits. A preliminary survey indicates that approximately 30% of participating mining companies have implemented or are planning to implement blockchain technology for supply chain management, primarily focusing on improving traceability and reducing fraud. Blockchain technology offers a promising solution for enhancing transparency in mineral extraction supply chains by providing immutable records and enabling secure transactions. However, challenges such as high initial costs and technical limitations remain significant barriers. Stakeholders should collaborate to establish standards and frameworks that facilitate the adoption of blockchain technology across different mining operations within DRC. Additionally, policy support from governments is crucial for overcoming regulatory hurdles and ensuring widespread implementation. Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.