DRC and China Discuss $7 Billion Financing for Mineral-Infrastructure Deal
President Felix Tshisekedi announced during his second inaugural address in Kinshasa that China and the Democratic Republic of Congo are in discussions for $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal.
Tshisekedi has been advocating for the restructuring of a 2008 $6.2 billion contract, arguing that the original deal, centered around the Sicomines copper and cobalt mine, has provided minimal benefit to Congo.
While the mine has been operational for years, Congo’s government reports that less than a third of the promised $3 billion in development funds were ever disbursed.
The proposed new infrastructure initiative aims to open up the vast country, with funding anticipated from the renegotiation of the Sicomines project.
Congo, despite being Africa’s second-largest country, remains deeply impoverished despite its substantial mineral resources, including crucial green-energy metals like copper and cobalt.
China, where most of these minerals are processed, stands as the country’s largest trading partner.
President Tshisekedi did not provide detailed information about the financing arrangement during his address. The China Embassy in Congo has yet to respond to inquiries.
Tshisekedi, who was sworn in for a second five-year term, secured over 70% of the votes in the December 20 election. The election faced delays, and though opposition leaders rejected the results and called for protests, the international community largely accepted the outcome due to Tshisekedi’s significant margin of victory and the generally peaceful nature of the elections.
In his speech, Tshisekedi pledged to address inflation, stabilize the exchange rate, and boost industrial expansion to generate employment.
With over 62% of Congo’s nearly 100 million people living in poverty, according to the World Bank, these initiatives aim to improve the economic landscape of the country.
