The Democratic Republic of Congo (DRC) plans to build a freeway linking Banana, which should have a deepwater port next year, to Kinshasa, the political capital. On May 20, the Minister of Infrastructure and Public Works, Alexis Gisaro, and the Chinese company Zhongshi Wosen Technology Co. Ltd. signed a memorandum of understanding (MoU) to advance the project. 

According to the Ministry, the MoU entrusts the Chinese company, about which little information is available, with conducting feasibility studies. After this phase, the freeway will be finalized. 

However, the Ministry has already confirmed that the infrastructure will span 450 kilometers and pass through Matadi. The port of Matadi, situated on the Congo River, currently serves as the main gateway for goods destined for Kinshasa. It also provides indirect access to the Atlantic Ocean via a river canal, although this limits the size of vessels able to dock there.

The road project is strategic for enhancing the competitiveness of both Matadi’s and Banana’s ports, with the latter scheduled for completion in 2026. The freeway will facilitate the transport of goods between the coast and the country’s interior. Ultimately, it could be integrated into regional networks linking the DRC with other countries in Central and Southern Africa.

The Banana-Matadi-Kinshasa axis is part of the Banana-Kolwezi corridor, which stretches approximately 2,670 kilometers. This corridor was showcased at the 9th edition of Expobéton—a trade show focused on the development of cities, corridors, and special economic zones—as a fully Congolese route that could serve as an alternative to the Lobito corridor, which leads to the Angolan coast.

No precise timetable or budget details have yet been disclosed for the freeway’s construction. Nonetheless, potential challenges are anticipated, including financing mobilization, execution conditions, and investment security, especially since the route crosses areas facing security constraints. These uncertainties previously stalled a railroad project planned to serve the port, which has yet to materialize.

Furthermore, the success of the freeway project may depend on its complementarity with other key investments, particularly in the port, customs, and energy sectors, to ensure a smooth and competitive logistics chain.

This article was initially published in French by Henoc Dossa and Ronsard Luabeya (intern)

Edited in English by Ola Schad Akinocho

Guilgal SA microfinance experienced a sharp increase in assets in 2024. According to its recently published Pillar III regulatory report, its assets reached 120.9 billion Congolese francs (approximately $48.36 million), compared with 71 billion CDF (around $28.4 million) in 2023, representing annual growth of 70%. This performance was mainly driven by the expansion of the loan portfolio, the institution's primary source of income.

Net loans outstanding rose from 56.3 billion CDF ($22.52 million) in 2023 to 103.6 billion CDF ($41.44 million) in 2024, an increase of 84%. Medium-term credit was the main driver of this growth, increasing by 132% over the period.

Customer deposits grew by 59%, reaching 46.5 billion CDF (approximately $18.6 million), reflecting a strengthened capacity to mobilize savings nationally. Shareholders' equity rose by 61% to 21.8 billion CDF (around $8.72 million), supported by fresh capital contributions and the incorporation of unappropriated earnings.

This dynamic growth was accompanied by significant pressure on asset quality. The report highlights a portfolio at risk of 20.5%, well above the industry standard of 5%, indicating a high proportion of loans not repaid on time and exposing the institution to increased credit loss risk.

Gross disputed receivables reached 21.5 billion CDF (approximately $8.6 million), with a provisioning rate of 24%. The report notes that this level of bad debts required a provision equivalent to 3% of assets.

Despite these challenges, performance indicators remained solid overall. Return on assets stood at 3.2%, in line with industry standards, while return on equity reached 17%, exceeding the internal target of 15%. In terms of liquidity, Guilgal SA achieved an immediate liquidity ratio of 24%, meeting regulatory requirements.

For 2025, Guilgal SA plans to continue digitizing its services, develop new financial products tailored to market needs, expand its network with new branch openings, and strengthen its commitment to social and environmental performance.

Founded on September 4, 2012, on the initiative of Professor Frédéric Kalala, COOPEC Guilgal initially operated as a savings and credit cooperative. Thanks to sustained performance, by 2019 it had become the largest cooperative in the western zone of the DRC and subsequently evolved into a microfinance company to overcome the limitations imposed by cooperative status.

Boaz Kabeya (intern)

China’s CMOC and Switzerland’s Glencore hold divergent views on the next steps following the suspension of cobalt exports from the Democratic Republic of Congo (DRC), which accounted for 76% of the world’s primary supply in 2024. According to Reuters, CMOC is pushing for a swift lifting of the embargo, while traders affiliated with Glencore argue that the market must regain stability before Congolese volumes return.

The matter was discussed last week during the Cobalt Congress in Singapore, in a meeting attended by the Congolese Minister of Mines, Kizito Pakabomba. At the meeting, Kenny Ives, vice-president of CMOC, advocated lifting the ban to replenish dwindling cobalt stocks for Chinese customers. He warned that prolonged shortages could prompt some carmakers to switch to cobalt-free lithium-ion batteries.

Conversely, Glencore traders contend that producers like the DRC must exercise better supply control, as oversupply was the primary reason behind Kinshasa’s decision to impose the embargo.

The contrasting positions underscore the strategic tensions between the world’s two largest cobalt producers, CMOC and Glencore. However, they both kept producing despite the DRC ban. Regarding the latter, it should expire on June 22, 2025, but Congolese authorities have not decided if it will be extended. 

President Félix Tshisekedi has suggested this possibility, and his government is also considering introducing export quotas—an option Glencore traders say they are prepared to accept.

Meanwhile, the market has responded favorably to the embargo, with cobalt prices rising over 50% since February. On the London Metal Exchange (LME), cobalt currently trades above $33,000 per tonne, up from $21,000 at the end of February.

This article was initially published in French by Aurel Sèdjro Houenou (Ecofin Agency)

Edited in English by Ola Schad Akinocho

Construction work on the Banana deepwater port has resumed. Nico Nzau Nzau, General Manager of the Congolese Agency for Major Works (ACGT), broke the news. On May 16, he visited the site while on a working mission in Kongo-Central.

Nzau Nzau revealed that seabed dredging operations have been launched around the site that will house the future port. The first dredging vessel, from France, is already at work. It will enable a depth of 12 meters to be reached. A second vessel should come in a few days, expanding this depth to 18 meters, the level required to accommodate large tonnage vessels.

Launched in 2022, the Banana deepwater port project was paused repeatedly, notably in 2024, due to technical and financial disputes. Last April, executives from DP World, the port operator, assured Prime Minister Judith Suminwa Tuluka that the first phase of work could be completed by 2026.

In March, DP World awarded this first phase to the Portuguese company Mota-Engil, under a contract valued at $250 million. The contract includes building a 600-meter quay, developing a 30-hectare storage area, and installing state-of-the-art equipment capable of handling up to 450,000 containers per year.

Located in the province of Kongo-Central, Banana deewater port is of strategic importance to the Democratic Republic of Congo. It will provide the country with direct access to the Atlantic Ocean and a modern marine terminal capable of handling large vessels without relying on the port infrastructures of neighboring countries.

This article was initially published in French by Ronsard Luabeya (intern)

Edited in English by Ola Schad Akinocho