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Congo and China Talking $7 Billion in Finance, Tshisekedi Says

January 20, 2024
in Business
Congo and China Talking $7 Billion in Finance, Tshisekedi Says
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China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa.

Author of the article:

Bloomberg News

Bloomberg News

Michael J. Kavanagh

Published Jan 20, 2024  •  2 minute read

Structures used for processing raw cobalt at the Etoile mine, operated by Chemaf Sarl, in Katanga province near Lubumbashi, the Democratic Republic of Congo, on Thursday, Dec. 23, 2021. Along a 250-mile highway which cuts through central Africa, thousands of flatbed trucks haul sheets of copper and sacks of cobalt hydroxide, essential for electric cars and other 21st century technologies for which drivers must pay steep tolls, as much as $900 for a round trip.Structures used for processing raw cobalt at the Etoile mine, operated by Chemaf Sarl, in Katanga province near Lubumbashi, the Democratic Republic of Congo, on Thursday, Dec. 23, 2021. Along a 250-mile highway which cuts through central Africa, thousands of flatbed trucks haul sheets of copper and sacks of cobalt hydroxide, essential for electric cars and other 21st century technologies for which drivers must pay steep tolls, as much as $900 for a round trip. Photo by Lucien Kahozi /Bloomberg

(Bloomberg) — China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa.

Tshisekedi has been pushing for a restructuring of a 2008 $6.2 billion contract between the countries, which he says has provided little benefit to Congo. The original deal promised $3 billion in infrastructure projects paid for by proceeds from a copper and cobalt mine known as Sicomines. 

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While the mine has operated for years, less than a third of the development money was ever disbursed, according to Congo’s government.

Tshisekedi said a new infrastructure initiative to open up the enormous country would be financed “thanks to the upcoming allocation of funds from the envelope obtained as part of the renegotiation of the Sicomines project and which should reach a total amount of $7 billion.” He did not offer further details.

Read: China, Congo Presidents Meet in Beijing Amid Mining Disputes

Read: Congo President Demands More From $6.2 Billion China Deal

Congo is Africa’s second biggest country by landmass, and is deeply poor despite huge mineral riches, including key green-energy metals like copper and cobalt. China, where most of those minerals are processed, is by far the country’s largest trading partner.

China’s embassy in Congo did not immediately respond to two emails requesting comment Saturday outside normal business hours. 

Tshisekedi was sworn in for a second five-year term before tens of thousands of supporters and more than a dozen African heads of state at Congo’s national stadium. 

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The president won more than 70% of ballots in the country’s Dec. 20 election, which was marred by delays that stretched the voting for days. Opposition leaders have rejected the poll and called for protests Saturday. But the international community has in large part accepted the results given Tshisekedi’s margin of victory and the generally peaceful elections.

Read: Congo’s Landside Election Win by Tshisekedi Draws Protests

In his speech, Tshisekedi also vowed to reduce inflation, stabilize the exchange rate and expand industry to create employment in the country. More than 62% of Congo’s nearly 100 million people live in poverty, according to the World Bank.

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