DRC Set to Gain 922.4 Billion CDF from Sino-Congolese Contract Renegotiation
The Democratic Republic of Congo (DRC) is poised to receive a significant boost of 922.4 billion Congolese Francs (CDF) in October 2024 due to the renegotiation of the Sino-Congolese contract.
This anticipated cash flow plan outlines a total of public resources amounting to 2,483.4 billion CDF, which includes exceptional revenues from the revised agreement. Congolese authorities aim for this amendment to rebalance benefits between the two parties involved.
For October 2024, public expenditure is estimated at 3,071.8 billion CDF, highlighting the necessity for rigorous management of public finances.
The DRC government is committed to utilizing these funds to support various infrastructure projects. The Finance Minister emphasized that the windfall revenue could significantly contribute to the construction of roads and other critical infrastructure, thereby enhancing the country’s economic development.
The renegotiated deal aims to increase Chinese investment in infrastructure from $3.2 billion to $7 billion.
The General Inspectorate of Finance (IGF) praised the renegotiation, labeling it a victory for the DRC. The IGF expressed hope that the new provisions will bolster Congolese control over mining and infrastructure projects.
However, concerns persist among civil society organizations, which highlight ongoing structural imbalances and advocate for greater transparency in the management of funds arising from this cooperation.
The DRC government has pledged to enhance monitoring of projects financed by these funds to prevent abuses and ensure that benefits reach the Congolese populace.
This renegotiation represents a pivotal opportunity for the DRC to restore equilibrium in its relations with China and to foster sustainable and inclusive development.
The coming months will be crucial in evaluating the true impact of these changes on the Congolese economy. This adjustment follows criticism of the previous terms of the contract, often dubbed the “contract of the century,” which was perceived to favor Chinese companies at the expense of Congolese interests.
