News (82)
Orange DRC will provide telecom services to MMG Limited, a subsidiary of China Minmetals Corporation (CMC), telecom services at the Kinsevere copper mine in Haut-Katanga province. MMG announced the related agreement on November 1, 2024.
According to the deal, the telecom operator will supply MMG mobile phones, data transmission, and high-speed internet services. In partnership with Huawei, they will also provide an advanced eLTE private network solution for high-speed wireless communication.
MMG Limited plans to “use the Kinsevere mine as a platform to combine the technological advantages of Orange and Huawei with CMC's industrial capabilities and local expertise”, to “progressively build a digital, smart, and environmentally friendly project in Africa”.
The high-speed telecom services will enhance mining operations by improving team communication, allowing real-time monitoring of activities, and providing alerts in case of danger. These technologies will help quickly locate workers during emergencies and coordinate rescue efforts, improving safety on site.
Operational efficiency is crucial for intelligent mining. The focus is on optimizing human, material, and energy resources to meet production goals while reducing costs and environmental impacts.
MMG Limited reported that the Kinsevere mine produced 21,278 tonnes of copper cathodes in the first half of 2024. Sales increased by 6% compared to the same period in 2023, reaching $188.3 million, mainly due to higher copper prices. For 2024, MMG Limited aims to extract between 39,000 and 44,000 tonnes of copper cathodes from Kinsevere.
Muriel Edjo
In the Democratic Republic of Congo (DRC), the National Parliament approved the 2025 finance draft bill. Approved on November 1, the draft bill amounts to 49,846.8 billion Congolese francs (about $17.5 billion). This is 21.6% more than the 2024 budget–40,986 billion Congolese francs (approximately $14.3 billion).
The new budget was presented by Prime Minister Judith Suminwa Tuluka on October 31.
In her presentation, the PM highlighted key priorities to bolster the country’s economy and infrastructure.
Under the new budget, investment appropriations should be up 18.2%, raising their share of the overall budget to 48.4% in 2025 from 15.1% in 2024. Security spending has been raised by 25.2%, to tackle the ongoing crisis affecting parts of the population, especially in the eastern region.
The new budget allocated 16.4% more funds to agriculture than last year. Meanwhile, rural development will receive a 13.7% boost to create economic opportunities outside major urban areas and improve local infrastructure.
"This budget is our commitment to a diversified economy and strengthening social and economic infrastructure," said PM Tuluka. She stressed that the budget will support the government's Action Program, which focuses on six strategic pillars tackling structural issues in the DRC.
Last June, the Congolese government unveiled a $93 billion five-year plan for 2024-2028, targeting economic diversification, land protection, territorial planning, and sustainable environmental management key priorities for the DRC amid climate change and development challenges.
To finance these goals, the government plans strict fiscal and administrative reforms, including broadening the tax base and combating fraud and tax evasion to increase internal resources and ensure stable funding for its programs.
It is worth noting the DRC currently faces various economic and security challenges. Despite these issues, growth prospects remain positive. The Congolese government forecasts a growth rate of 5.7% for 2025, slightly down from the estimated 6.4% for 2024. These projections are more optimistic than those from the International Monetary Fund (IMF), which expects growth of 5% in 2025 and 4.7% in 2024.
Charlène N’dimon, Ecofin Agency
Africell Holding Limited, a telco present in various African countries including the Democratic Republic of Congo (DRC), raised $300 million in the international capital market last month. This funding came from a covered bond issue that will mature in 2029. The offering was popular among investors, with bids totaling $550 million.
Africell will use the money to refinance its existing debt and boost its investment capacity, especially in the DRC, where the company has strong growth potential. The financing package also includes a $30 million revolving credit facility yet to be used. This deal improves Africell's financial position by reducing short-term cash needs and supporting sustainable growth. The funds will help lower operating costs and manage currency risks, which are important issues in the DRC, and Angola, another market where Africell operates.
Besides the DRC and Angola, Africell is well-established in markets like Gambia and Sierra Leone. Although the DRC is the telco’s fourth-largest market, the country’s size and increasing demand for mobile and internet services present major opportunities for expansion.
A year ago, Africell announced plans to expand into three new provinces in eastern DRC: North Kivu, South Kivu, and Tanganyika. The company wants about four million new customers in these areas where access to mobile networks is poor.
The recent fundraising was arranged by Citigroup, J.P. Morgan, and Standard Chartered. Part of the proceeds will help enhance Africell's network infrastructure, diversify its financing sources, and increase sales while ensuring financial stability for future investments in the DRC and other African countries.
Georges Auréole Bamba
Several experts from the International Monetary Fund (IMF) are in the Democratic Republic of Congo (DRC). They are there to finalize two new programs valued at $2.5 billion. According to the chief of the IMF mission, Calixte Ahokposi, concerned parties must agree on the specific objectives of the new partnership. This is what will determine the disbursement of related funds.
To achieve these goals, the government must make decisions that will affect the daily lives of millions of Congolese citizens and foreign residents. In their June 2024 letter requesting the two new programs, the government and central bank outlined commitments based on their views of the country's economic trends and their goals for improving living conditions.
Some commitments are technical, such as managing economic data and increasing communication with IMF experts. Others involve reforms that could directly impact people's lives, like controlling inflation, enabling banks to lend more, and securing funds for building roads, schools, and hospitals while creating jobs.
The ongoing talks also focus on securing about $1 billion to finance policies that tackle climate change and related issues, like flooding and lower agricultural production.
Fuel prices
Fuel prices are also on the table. According to IMF and World Bank experts, subsidizing fuel is a poor use of public funds because it mostly benefits the rich. With living costs rising, authorities have chosen not to impose new taxes and have instead reduced fuel prices.
The talks with the IMF will also address managing exceptional expenses related to security issues along the borders with Rwanda and Uganda. Initially projected at 2,247 billion Congolese francs (CF), this security spending is expected to rise to CF4,442 billion (about $1.5 billion) by the end of 2024. This is roughly 50% of the total public sector salary budget ($2.85 billion) and 80% of the amount set for the 2019 master plan to transform Kinshasa. The government is committed to auditing this exceptional spending.
Finally, discussions will include tax exemptions. In 2023, the government acknowledged it had waived around $2 billion in various taxes, with 60% benefiting companies, especially in mining. While these exemptions aim to help companies invest and maintain liquidity, follow-up is needed to see if they help create jobs for the Congolese people.
At the end of their mission, IMF experts will prepare a report on the commitments made and their timelines for implementation. The DRC government hopes to reach an agreement before the end of 2024 so it can start 2025 with clarity on its development strategies. This includes parts of its national development plan for 2025, the second phase of its territorial development plan, its public investment program, various donor-supported programs, and a climate response plan estimated at $58 billion over the next six years.
Georges Auréole Bamba
Goldman Sachs scaled up its 2025 forecast for copper prices, from $10,100 to $10,160 per tonne average. The revision is largely due to recent economic stimulus measures in China that are boosting demand for copper.
A few weeks ago, the analysis firm Fastmarkets estimated that copper prices could average $10,265 per tonne this quarter. This prediction integrates China's 3.95 trillion yuan ($560 billion) stimulus plan announced in September to tackle the slowing economy, paired with the interest rate cuts by the US Federal Reserve.
It’s still unclear how these forecasts will affect mining revenues in the Democratic Republic of Congo (DRC), the world’s second-largest copper producer in 2023. Several factors must be considered, including contracts between the government and mining companies, agreements between those companies and their customers, and the country’s copper production levels.
In its 2025 Finance Bill presented to Parliament, the DRC government predicts a copper price of $7,909.57. The government noted that copper prices rose from $8,726.9 per tonne in the first half of 2023 to $9,215.84 per tonne during the same period in 2024, a 5.6% increase. Goldman Sachs' forecast thus exceeds the government projection by $2,250.43.
It should be recalled, however, that earlier this month, Ivanhoe Mines lowered its production forecast for Kamoa-Kakula, the largest copper mine in the DRC. The company attributed the change to instability in the power grid, among others. Ivanhoe now aims for a maximum production of 450,000 tonnes of copper concentrate in 2024, down from its previous target of 490,000 tonnes.
Kamoa-Kakula is among the mines that helped boost the DRC's copper outputs and mining revenues in recent years. While plans have been announced to address power supply issues by 2025, it remains uncertain how effectively these will be implemented and how they will impact next year’s production.
Louis-Nino Kansoun
The Democratic Republic of Congo (DRC) is managing the ongoing mpox epidemic. According to the Ministry of Health, for the week ending October 19, 2024, only 17 out of 688 suspected cases were confirmed, with one death reported. This results in a case-fatality rate of 0.0014%, down from 1.2% the previous week.
Thanks to support from several donors, the country has obtained vaccines for its first vaccination campaign. However, experts from the World Bank say there are still many needs. "The available vaccines cover no more than 10% of the country's needs. This situation is the same for communication and community-based surveillance," one World Bank expert noted.
To tackle this crisis, the government announced a special intervention of $10 million, but recent data shows that only $2.5 million has been disbursed so far. How well the country can control the disease will impact budget execution not just in late 2024 but also in 2025.
Dealing with diseases like mpox requires significant spending on vaccines and logistics, part in foreign currency. However, international aid is often slow to arrive. During the Covid-19 pandemic, for example, the DRC had to exceed its health fund commitments by 1,348%.
While the country is currently stable, with foreign exchange reserves covering 3.4 months of imports and external public debt at 9.8% of GDP in 2023, rising population needs and security issues in the northeast are putting pressure on the budget. Although donors can provide additional resources, these have often been insufficient.
The recent decline in mpox cases is positive news for budget management since it reduces the risk of funds being redirected from other important areas, like public investment, to fight the disease.
Georges Auréole Bamba
Moody's is optimistic about the Democratic Republic of Congo's (DRC) growth prospects through 2028. "We expect the DRC economy to continue to grow with an average real GDP growth rate of around 6% until 2028," the US rating agency stated in a report obtained by Bankable. According to the agency, the mining sector will mainly drive this growth; especially copper, a mineral crucial for the global energy transition. and for which the DRC is Africa's leading producer.
Inflation is also under control, with Moody's predicting it will drop below 10% by the end of 2025, down from 23.8% at the end of 2023. This decrease would improve purchasing power for Congolese citizens and stabilize the economy, making it more attractive to foreign investors and boosting domestic spending.
The DRC's economic growth is supported by various initiatives. In the mining sector, which drives the economy, transition minerals are in high demand, with prices exceeding initial forecasts. The government strives to keep inflation in check while maintaining growth, aided by a trade surplus that supports the national currency.
Besides the mining sector’s boom, the Congolese government plans to boost growth through public investment. A proposed public spending project of over $3.7 billion from 2025 to 2028 is currently under discussion in parliament and aims to improve infrastructure. If approved, this project could be fully funded by revenues from the extractive sector, which totaled $5.7 billion in 2023. Also, the Development Plan covering the country’s 145 territories aims to stimulate local economies. The second phase of this plan is being discussed at the moment.
While the DRC needs to improve its ability to mobilize internal resources, its low public debt, just 15% of GDP, is a major advantage. The figure is well below the sub-Saharan African average of 58%. This allows it to raise capital internationally on favorable terms, supporting investments in key areas like agriculture, housing, and energy.
The DRC is a nation with great potential and resources. However, it could achieve inclusive and sustainable growth if it overcomes its challenges. Economic diversification and infrastructure improvement are priorities, and with effective policies and a clear vision, these goals are achievable. Moody's optimism reflects the DRC's resilience and potential for growth.
Georges Auréole Bamba
Last week at the China Mining Forum, François Balumuene, the Democratic Republic of Congo's (DRC) ambassador to China, invited investors to contribute to the local production and processing of resources, not just extraction.
"We have highlighted all our country's mining potential to encourage investors to come not just to extract, but above all to produce, transform, and go as far as possible toward the finished product. This message aims to raise awareness because we are no longer a simple mining community," Balumuene said, stressing the need to create more value for the Congolese people.
The diplomat’s words echo Julien Paluku’s, the Congolese Minister of Foreign Trade. On October 17, speaking at the 10th Rebranding Africa Forum in Brussels, Belgium, Paluku referenced a 2021 BloombergNEF report showing that investing in processing minerals like cobalt and copper in the DRC is more cost-effective.
According to the report, "building a 10,000-ton cathode precursor plant in the DRC would require an investment of $39 million. This is three times less than the cost of a similar plant in the USA. The same plant in China and Poland would cost $112 million and $65 million, respectively."
The DRC is also looking to attract investors for lithium battery production. During a recent visit to Hungary, President Félix Tshisekedi was accompanied by the Managing Director of Congo Battery, highlighting the government's interest in this sector. Hungary, one of Europe’s largest battery producers, could help establish this industry in the DRC.
The recent declarations align with the government’s ambition to leverage the DRC’s position as a leading producer of strategic minerals essential for energy transition. Ultimately, the goal is to build a strong local industry that can compete with major processing countries like China.
In his recent speech, Balumuene clearly relayed this ambition of the DRC to process its mineral resources locally, to ensure that the Congolese people benefit directly.
Georges Auréole Bamba
During the Council of Ministers held on October 18, 2024, the Congolese government approved a pilot project to boost DR Congo’s poultry output. "This project will cover eight areas across the country and aims to organize the poultry sector and connect modern and traditional farming to ensure food security and self-sufficiency in poultry products (meat, eggs, and derivatives)," read the Council’s minutes, published by the Communication Ministry.
According to the Minister of Fisheries and Livestock, the project will run for 24 months, starting this year. While specific details were not provided, reports suggest the project will focus on training producers, improving access to quality supplies, and developing poultry farming infrastructure.
According to the Central Bank of Congo (BCC), the DRC's poultry flock was estimated at over 18.9 million birds in 2023. However, since the local production fails to meet demand, the country has been importing more.
Data from the Trade Map platform shows that Congolese poultry meat imports have grown by an average of 3.72% per year over the past five years, rising from 122,964 tonnes in 2019 to over 142,300 tonnes in 2023. Over this period, import costs have also increased by an average of 8.05% per year–from $66.4 million in 2019 to nearly $91 million in 2023.
Stéphanas Assocle, Ecofin Agency
Fabrice Lusinde, Managing Director of the DR Congo’s Electricity company, Société National d’Electricité (SNEL), visited the Funa high-voltage substation on October 20, 2024. During the visit, he said power would gradually be restored in Kinshasa, the capital, after recent power outages.
"Yesterday at 7 am, there was water everywhere. This morning at 6:20, there was still 10 centimeters of water. It's now 5:30 pm, and we're ready to put transformer number 1 back into service. This means that in less than 48 hours, we will be able to resume normal operation of the Funa substation," he said.
The Funa substation was shut down after flooding from heavy rains on October 19 left nearly two million residents without power. The substation has two transformers and supplies several neighborhoods, including parts of Gombe, Lingwala, Barumbu, Kinshasa, Kalamu, Bumbu, Selembao, Makala, Lemba, and Masina, as well as the Limete industrial zone.
Lusinde explained that the flooding was caused by construction works that obstructed the Kalamu River, a tributary of the Congo River. He then added that the Ministry of Hydroelectric Resources and Electricity is working on a project to clear the riverbed.
« Le temps d'indisponibilité ayant été réduit, le transfo numéro 1 devrait déjà être remis en service » pour rétablir l'électricité dans plusieurs quartiers de Kinshasa qui sont encore dans le noir, rassure le DG de la SNEL, à l'issue de la visite du poste de la Funa, inondé… pic.twitter.com/as04ocReFQ
— TOP CONGO FM (@TopCongo) October 20, 2024
Before the recent power cuts, some neighborhoods like Huilerie had already been without electricity for several days. According to SNEL, electricity capacity has not changed much since 2021, and transmission and distribution infrastructure is still in poor condition. As a result, many households and businesses depend on generators for power, which is not an option for everyone.
In addition to distributing electricity, SNEL is a key company in the state’s portfolio. A recent government report and statements from Minister Jacques-Lucien Bussa indicate that all entities need restructuring to improve efficiency.
Georges Auréole Bamba
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Gécamines has offered to buy the assets of Chemaf Resources in the Democratic Republic of Congo (DRC). Chemaf has been running since 208 the Mutoshi project. The latter can produce 16,000 tonnes of cobalt and 50,000 tonnes of copper annually. Due to financial issues, however, Chemaf announced in June 2024 that it planned to sell itself and its subsidiaries, including Mutoshi, to the Chinese company Norin Mining. Gécamines, the State company for Mines, opposed this sale and quickly voiced its objections, which the government supported.
The mining license for Mutoshi belongs to Gécamines. In 2015, Gécamines gave Chemaf a 25-year lease for the project. Gécamines has a "discretionary right of prior approval" for any changes in control, which Chemaf is said to have ignored before trying to finalize the sale. After canceling the deal with Norin Mining, Gécamines is now looking to regain control of Mutoshi and other licenses held by Chemaf.
For now, details of Gécamines’s offer are unknown, and it’s unclear what will happen next. This bid comes as the DRC seeks to diversify its partnerships in strategic minerals, which are mostly controlled by Chinese companies. For example, China's CMOC operates two mines in the DRC and is set to become the world’s leading cobalt producer by 2023. Ivanhoe Mines, which co-owns the largest copper mine in the DRC, is also over 34% controlled by Chinese firms, China CITIC Bank and Zijin Mining Group. The latter, it should be noted, co-owns the Kamoa-Kakula project with Ivanhoe and the Congolese State. The State owns 20% of the project, while the other own 39.6% each.
In an October 2024 interview, Congolese Mining Minister Kizito Pakabomba said the DRC is looking for new investors, including from the United Arab Emirates. He stressed the need to "attract better investors, more investors, and diversified investors," as most of the country’s copper and cobalt mines are currently controlled or linked to Chinese companies.
Becoming a key player in production and distribution
Gécamines has started renegotiating agreements with Chinese companies. After blocking CMOC exports for nearly a year, last year the Congolese company secured the right to acquire a production volume proportional to its 20% stake in the Tenke-Fungurume mine. At the beginning of 2024, Gécamines obtained similar production rights from Sicomines, a joint venture with Chinese companies where it holds a 32% stake. Gécamines is also negotiating similar agreements with other joint ventures it is involved in. Once a major player in copper and cobalt production in the 1980s, Gécamines aims to become a key trader in Congolese copper and cobalt.
Last month, Bloomberg reported that Gécamines made its first copper sales thanks to an agreement with CMOC. The Congolese company sold undisclosed quantities of copper to Glencore, Mercuria Energy Group, and Trafigura Group.
Tenke Fungurume has an annual production capacity of 450,000 tonnes of copper and 37,000 tonnes of cobalt. If the plant operates at full capacity this year, Gécamines could directly market 90,000 tonnes of copper and 7,400 tonnes of cobalt.
Umicore and STL (Societé pour le Traitement du Terril de Lubumbashi) , subsidiary of Gécamines, have signed an exclusive, long-term partnership agreement whereby Umicore will support STL to valorize germanium from the Big Hill tailings site in Lubumbashi: https://t.co/RFWqpPd8NZ pic.twitter.com/avWPJtEtaa
— Umicore (@UmicoreGroup) May 8, 2024
Besides copper and cobalt, Gécamines is working to strengthen its position in other metals, including Germanium. In 2023, Gécamines’ subsidiary STL built and launched a hydrometallurgical plant to process Germanium tailings from the "Big Hill" site in Lubumbashi. This project aims to secure 30% of the world’s germanium supply, currently dominated by China. Germanium is an essential metal used to make semiconductors.
On this project, Gécamines teamed up with Umicore, a Belgian company. Under their partnership agreement announced in May 2024, Umicore will provide technical expertise to refine germanium concentrates locally. In mid-October 2024, Gécamines announced its first shipment of germanium to Umicore.
"This first shipment of germanium confirms our ambition to make Congo a global hub for strategic metals, both for their extraction, which we already are in part, and for their local transformation in the future," said Gécamines President Guy Robert Lukama.
#News - Ivanhoe Mines and Gécamines sign a new joint venture agreement to restart the ultra-high-grade Kipushi Mine, a century since first opening.
— Ivanhoe Mines (@IvanhoeMines_) January 16, 2024
👉https://t.co/H27OQnVlUP pic.twitter.com/AWFzdZ14jN
Gécamines also aims to become a major zinc supplier, at the global level. This year, in partnership with Ivanhoe Mines, it reopened the Kipushi mine, inactive since 1993. Gécamines wants Kipushi one of the world’s 10 largest zinc mines. At full capacity, Kipushi is expected to produce 278,000 tonnes of zinc annually, averaging 240,000 tonnes per year over 14 years.
Under an agreement signed last January, Gécamines' stake in the Kipushi project will increase from 38% to 43% on January 25, 2027. It will rise to 80% once at least 2 million tonnes of ore have been extracted and processed, compared to Ivanhoe's current 20% stake as majority shareholder.
Avoid past mistakes
The measures taken by the Democratic Republic of Congo (DRC) in recent years to control its mineral wealth could boost mining’s economic impacts. In addition to previous successes, Kinshasa has revised the "mines for infrastructure" contract with China (Socomines), securing over $7 billion in infrastructure investments and a 1.2% royalty on Socomines' annual revenue. Under the agreement with CMOC, Gécamines will receive $800 million between 2023 and 2028, plus at least $1.2 billion in dividends over the life of the Tenke Fungurume mine.
The government’s efforts come as the country’s mining industry, especially the copper, cobalt, and lithium sectors, appeal more to investors. These minerals are vital for the energy transition. However, the government and Gécamines must avoid past mistakes, such as poor management, unfavorable agreements, corruption, and legal disputes with foreign investors that have diminished Gécamines' influence over the years.
Emiliano Tossou, Ecofin Agency
In the Democratic Republic of Congo (DRC), Melci Holding, a local firm, and Soleos Energy, from India, are building a 200 MW solar power plant in Fipango, a village in the Kipushi territory of Haut-Katanga province. The project, which was kicked off on October 19, 2024, is expected to be completed by the end of 2025 and will cost $200 million.
This solar plant will greatly help meet the region's increasing energy needs. It will nearly boost Haut-Katanga's installed capacity, from 119.52 MW (in 2023) to 319.52 MW.
The facility is expected to produce almost 350 million kilowatt-hours of electricity annually, benefiting over one million people. Initially, its output will be sold to Société Nationale d'Électricité (SNEL) under a 25-year contract, which will then distribute it to homes and businesses. The project is also expected to create over 2,000 jobs during construction and more than 500 permanent jobs when it is running.
Jason Temasfield, CFO of Soleos Energy, said that partnering with Melci Holdings strengthens their ability to deliver large solar projects. He added that the company aims to implement up to 1,000 MW of solar projects in the DRC. After meeting with project leaders, Julien Paluku, Minister of Foreign Trade, said this project is the first step in a larger plan to install solar parks with a total capacity of 500 MW.
The DRC is one of Africa’s most promising markets for energy development. The country wants to diversify its economy by developing agro-industry and processing its mineral resources locally. However, it has a critical need for electricity as its current capacity does not meet demand. According to "The Energy Progress Report 2023" from the World Bank and the International Energy Agency, the DRC has an electrification rate of 21%, one of the lowest rates in Africa.
Pierre Mukoko
Rebranding Africa Forum: Congolese Minister, Julien Paluku, Advocates Reforming Financing Mechanisms
For the African Continental Free Trade Area (AfCFTA) to be successfully implemented, existing financing methods must be reformed across the continent. This is the opinion of Julien Paluku, the Minister of Foreign Trade for the Democratic Republic of Congo (DRC). The official commented on the matter at the 10th Rebranding Africa Forum, held last week, on October 17, 18, and 19.
Paluku then urged regional development banks to change their financial tools to better meet Africans’ needs, stressing the importance of "tropicalizing" procedures. He believes these adjustments are crucial for addressing local economic challenges and supporting the AfCFTA more efficiently.
The Congolese minister also mentioned that establishing rules of origin important for determining which goods qualify for trade agreements is a concern for many countries. "These rules must be harmonized to facilitate trade between African nations without creating market distortions," he said. He noted that the DRC has already started aligning its commitments underAfCFTA and is a member of several regional economic communities, including ECCAS and SADC.
According to other speakers present at the forum, besides financing other challenges hampering the AfCFTA include the free movement of goods and people and the lack of coordination between private banks and governments, which limits banks' ability to finance trade within Africa.
While acknowledging these challenges, Julien Paluku insisted that the AfCFTA's success relies on effective industrialization and financing methods that take into account local contexts. He asked African development banks and governments to commit more resources to overcome current obstacles and leverage the AfCFTA as a true driver for Africa’s development.
GAB in Brussels
The task force set up to boost cooperation between China and the Democratic Republic of Congo (DRC) met last week, on October 16, in Kinshasa, DRC. This is the group’s second meeting since its creation. The meeting was attended by the Congolese minister of foreign trade, Julien Paluku, and China’s ambassador in the DRC, Zhao Bin.
Besides boosting cooperation between the two countries, the Sino-Congolese task force aims to help the DRC secure a significant share of the $50.7 billion in funding announced by Chinese President Xi Jinping at the ninth Forum on China-Africa Cooperation (FOCAC) in Beijing on September 5. According to Julien Paluku, Zhao Bin was invited to “expand on the 10 actions announced by President Xi during the FOCAC and outline the four priority sectors for the projects we must develop”.
After last week’s meeting, Paluku revealed that the top four sectors include agriculture, mining transformation, and digital technology. The Congolese official said Ambassador Bin stressed that “the projects (ed.note: submitted) must come with feasibility studies, which can also be done by Chinese companies”. Paluku noted that each ministry must prepare projects that will be submitted to the Chinese side for financing. However, before the projects are submitted they must be validated by the Sino-Congolese task force.
The task force is coordinated by Jean-Pierre Bemba, the Minister of Transport, Communication Routes, and Opening-up, the task force ensures that projects submitted for Chinese funding are well-prepared and meet priority sectors.
A stronger cooperation
Last September, at the FOCAC, the DRC and China signed an economic partnership agreement in Beijing to enhance their collaboration. This agreement aims to promote inclusive and sustainable growth by supporting the DRC's industrialization and improving its agricultural competitiveness in global markets. The two countries plan to ease trade through the liberalization of goods and services while boosting cooperation in ecological development.
The agreement focuses on four main areas: simplifying trade between the countries; improving economic inclusiveness and sustainable development; strengthening supply chains by attracting investment for Congolese industries; and advancing the DRC's digital transformation with initiatives in e-commerce and logistics.
If successful, this cooperation could increase China's influence in the DRC. The American think tank China Economic & Strategy Initiative (CESI) has identified the DRC as a key center for Chinese economic influence in Africa. CESI also notes that the DRC has one of the largest gaps in economic influence between China and the United States, with an 11-point lead for China.
Emmanuel Tumanjong