PRESIDENT Felix Tshisekedi announced on Saturday that China and the Democratic Republic of Congo are in discussions regarding a substantial $7bn in financing as part of a renegotiated minerals-for-infrastructure deal. This revelation came during Tshisekedi’s second inaugural address at the national stadium in Kinshasa.
President Tshisekedi has been advocating for the restructuring of a 2008 $6.2bn contract between the two nations, asserting that it has yielded minimal benefits for Congo. The initial agreement pledged $3bn for infrastructure projects funded by the proceeds from the Sicomines copper and cobalt mine. However, despite the mine’s years of operation, less than a third of the allocated development funds were disbursed, according to Congo’s government.
Tshisekedi highlighted a new infrastructure initiative aimed at opening up the vast African nation, funded through the upcoming allocation of funds resulting from the renegotiation of the Sicomines project. The total amount is expected to reach $7bn, though specific details were not provided during the announcement.
Congo, the second-largest country in Africa by landmass, remains impoverished despite its abundant mineral resources, including crucial green-energy metals like copper and cobalt. Notably, China, where most of these minerals are processed, stands as the country’s largest trading partner.
President Tshisekedi, sworn in for a second five-year term, addressed tens of thousands of supporters and over a dozen African heads of state at the national stadium. Despite opposition leaders rejecting the December 20 election results and calling for protests, the international community has largely accepted the outcome due to Tshisekedi’s substantial margin of victory and the overall peaceful conduct of the elections.
During his speech, Tshisekedi also pledged to tackle inflation, stabilise the exchange rate, and expand industry to generate employment in the country. With over 62 percent of Congo’s nearly 100 million people living in poverty, according to the World Bank, these economic initiatives are crucial for addressing the nation’s pressing socio-economic challenges.
(with Bloomberg)