News (383)
An economic park is being built in Beni, in the Northern Kivu region of DR Congo. The project was kicked off earlier this week. Backed by the European Union, the park is the fruit of a collaboration between Virunga National Park, the Congolese Institute for Nature Conservation (ICCN), and the local administration. It aims to revitalize the local economy and improve the security of local populations facing threats from armed groups.
The construction project should be completed within three months, according to Emmanuel Démerode, Director of Virunga National Park. The project will house a modern oil press to enhance local palm oil production, and a fortified security post to protect local communities. The post will be set up with the Armed Forces’ support.
The European Union hopes the project will impact thousands of people, similar to a successful project previously implemented in Mutwanga, which has shown positive results in security and local development. The cost of the new project is yet to be known.
OS
Glencore, Mercuria Energy Group, and Trafigura Group will be the first to purchase copper from the GECAMINES, the DR Congo’s State-owned mining company. Bloomberg announced this on September 10, 2024. Details about the volume or delivery schedule of the copper purchased by the three companies are not yet available.
The GECAMINES gets copper from the Tenke Fungurume mine, where it holds a 20% stake. Under an agreement signed in July 2023 with the Chinese group CMOC, the State company has the right to acquire copper and cobalt production proportional to its stake in the mine.
Tenke Fungurume has an annual production capacity of 450,000 tonnes of copper and 37,000 tonnes of cobalt. If the mine operates at full capacity this year, Gécamines could sell about 90,000 tonnes of copper and 7,400 tonnes of cobalt.
The DRC is the world's leading producer of cobalt, and the second-largest producer of copper. However, most mines are controlled by foreign companies, and the government seeks to maximize mining's contribution to the economy.
The GECAMINES strives to change this dynamic and become a key player in the global copper and cobalt market. One of its strategies of to do so consists in directly negotiating a portion of the production from certain Congolese mines.
ET
Shanghai Electric, a Chinese group active in the power sector, has teamed up with the Congolese Ministry of Electricity, on two key projects. Local media in the DR Congo confirmed the news, citing a press release.
According to the two sources, Shanghai Electric and the ministry inked two memoranda of understanding related to the projects. Under the first agreement, Shanghai will conduct a feasibility study for a projected power plant in the Tshopo province. Under the second agreement, the Chinese group will build transmission lines between Kinshasa, the capital, and Kwilu and Kwango provinces.
Regarding the project in Tshopo, a 2023 report issued by the DRC’s Regulatory Agency for Electricity indicates that the province’s single dam provides only 6.8 MW while having an installed capacity of 21.3 MW. The dam also needed regular maintenance.
Regarding the second project, it is not yet known if the transmission lines will move power from Kinshasa to Kwilu and Kwango or vice-versa. Kinshasa, the country’s most populous city and province, is a major economic hub, but it has an electricity access rate of around 44%, according to official data.
The DRC is one of the most promising markets for electricity. The country, which is seeking to diversify its economy by developing the agro-industry and primary processing of its mineral resources, has a significant need for electricity, yet its available capacity falls short of potential demand.
Last year, in October, Congolese President, Felix Tshisekedi inaugurated a power substation in Kinsuka, in the western part of Kinshasa. The facility was built by Shangai Electric.
Georges Auréole Bamba
The Democratic Republic of Congo will export over a million tons of agricultural products to China under a new deal. Congolese Minister of Foreign Trade, Julien Paluku Kahongia, facilitated the agreement. On this occasion, Kahongia emphasized that the State acts as a regulator, not a direct trader. “It creates opportunities and fosters a conducive business environment,” the official noted.
Under the new deal, the DRC will export one million tons of soybeans, 20,000 tons of sesame, 10,000 tons of chili peppers, 5,000 tons of coffee, and 3,000 tons of cocoa. The move follows China's decision to eliminate tariffs on products from low-income countries, which includes 33 African nations.
Le Président Félix-Antoine TSHISEKEDI a décrété à KINSHASA" la revanche du sol sur le sous-sol", le Président XI JINPING a dit le 5 sept lors du #FOCAC2024 à PEKIN(#BEIJING) " j'ouvre mes frontières sans paiement des frais de douane pour l'importation des produits venant des 33… pic.twitter.com/X4xqxVgMoT
— JULIEN PALUKU (@julienpalukucom) September 8, 2024
Minister Kahongia claimed the deal will significantly contribute to President Tshisekedi's ambition to diversify the DRC's economy, which heavily relies on mining.
China is the world’s top soybean importer. Between January and July 2024, it bought for $29 billion of soybean, according to Statista. In 2023, 60% of global soybean imports were captured by China. This appetite for the crop explains the deal and is good news for the DRC.
Other sectors like coffee and chili pepper should also get more exposure due to the agreement. Indeed, chili peppers are highly sought after by the growing Chinese middle class. As for coffee, the DRC produces around 73,000 tons per year, most of which are exported.
While the new deal with China could help bolster the DRC's agricultural value chains, challenges remain. One such challenge is financing. Since the sector is relatively risky, it needs suitable funding models. Also, to take full advantage of the agreement and the opportunities it offers, Congolese farmers must understand the preferences of Chinese consumers and be ready to adapt to the Chinese market, as it can be volatile.
Georges auréole Bamba
Chine Nouvelle, a Chinese news agency, wants to contribute to the digital transformation of the Agence Congolaise de Presse (ACP). Last week, during the Forum on China-Africa Cooperation, Fu Hua, President of Chine Nouvelle, renewed this commitment to ACP Director General Bienvenu-Marie Bakumanya, stressing the importance of strengthening media ties between China and the Democratic Republic of Congo (DRC).
The partnership announcement comes amidst major challenges facing Congolese media outlets, especially the ACP. Such challenges include upgrading infrastructures and integrating new technologies.
According to the ACP chief, Bienvenu-Marie Bakumanya, the ACP must shift to digital if it wants to "stay relevant in a global landscape where information is disseminated at great speed, notably via digital platforms".
Chine Nouvelle’s support will help the ACP produce and distribute news in a more modern way. This collaboration could also stimulate cultural and media exchanges between China and the DRC. "Our two people don't know each other well enough. Our media must collaborate to enable better mutual understanding between the Congolese and the Chinese,” Bakumanya, ACP’s boss said.
OS
Teddy Lwamba, the DRC’s Minister of Hydraulic Resources, announced last week the imminent construction of a water treatment plant in the Lukunga district of Kinshasa. The official announced the project in Beijing, on the sidelines of the 9th Forum on China-Africa Cooperation. China First Highway Engineering will build the plant.
The project should improve access to drinking water for Kinshasa residents. According to recent figures from the Ministry of Hydraulics, water coverage in the country is only 34%, and water availability is equally complex in big cities and rural areas.
It's worth noting that the DRC allocates just 0.3% of its annual budget to the water sector, according to the World Bank. This low investment explains the limited development of water distribution networks. This is also why populations rely on unsafe water sources, leading to the prevalence of waterborne diseases in the country.
Besides boosting water supply, the project will integrate more sustainable solutions into distribution processes. For example, the energy source used by the Congolese water utility, REGIDESO, will be switched–from thermal energy to photovoltaic systems.
Once operational, the plant will play a key role in implementing reforms aimed at transforming access to public services in the DRC, particularly in the Kinshasa region.
OS
The Democratic Republic of Congo is in talks with a Chinese company about a social network monitoring system. On September 4, 2024, Augustin Kibassa Maliba, Minister of Posts, Telecommunications, and Digital, signed a memorandum of understanding to this effect in Beijing, at the DRC embassy in China, on the sidelines of the China-Africa Cooperation Forum.
Although the Congolese government did not provide further details about this non-legally binding agreement, the system may help authorities manage and regulate online content in the DRC. Faced with the resurgence of disinformation, hate speech, and other illicit content on social media, the government could leverage the system to stop activities likely to undermine national security and social cohesion.
The DRC’s socio-political context is currently marked by armed tensions with the M23 rebels in the east, friction with Rwanda, and a monkeypox epidemic. These create fertile ground for fake news and propaganda. Claims that a digital army is working to destabilize the country are multiplying on social networks. An analysis note from CIPESA deplores this information war, which it deems "characterized by a spiral of incitement, disinformation, misinformation, and hate speech" that "undermines cohesion between communities".
According to DataReportal, the DRC registered 6.45 million active user identities on social networks in January 2024, representing growth of 37.2% or 1.8 million new users between January 2023 and January 2024. 37.2% of social media users in the DRC were women, while 62.8% were men. All these users subscribed to Facebook; 4.44 million to TikTok; 1.15 million to Messenger; almost 670,000 to Instagram; 620,000 to LinkedIn and 253,000 to X.
In many African countries, including the DRC, social media play an important role in everyday life. But they also raise increasingly complex ethical challenges, requiring urgent attention. Striking the right balance between defending freedom of speech and tackling online abuses is the puzzle most countries on the continent seek to solve.
Muriel Edjo
Eurasian Resources Group (ERG), a Luxembourg-based mining company, has secured a $150 million pre-export financing agreement with the Bank of China London Branch and Glencore International. The funds will finance ERG's operations in the Democratic Republic of Congo (DRC), including Metalkol’s which focus on reprocessing copper and cobalt tailings.
A pre-export financing agreement allows a company to borrow money using its future export revenues as collateral, providing liquidity before product sales. The $150 million financing is backed by a contract to supply copper cathodes from ERG's Metalkol operation in the DRC. According to the company, the funds will help sustain the Group's ongoing investments at Metalkol and in the wider Kolwezi region.
"We are delighted that Glencore and the Bank of China have collaborated with us to set up this pre-export financing facility for Metalkol, which will enable us to prioritize the company's investment program," said Nicolas Treand, CEO of ERG Africa.
The DRC’s mineral reserves, especially cobalt and copper, make the country strategic for ERG. The firm, 40% owned by the Kazakh state, has four mines in the DRC: Frontier, Comide, Metalkol, and Boss Mining, as well as other projects at various stages of development.
Earlier this year, the Congolese government suspended nine of ERG's subcontractors working in its copper and cobalt mines. According to Bloomberg, they were suspended for "non-compliance with local content rules." Before that, the Ministry of Mines had suspended operations at Boss Mining, an ERG-owned copper and cobalt operation, citing environmental pollution. In February 2024, Congolese company Gécamines expressed interest in buying back these assets to strengthen its role in the global metals market, but no developments have been announced since.
Louis-Nino Kansoun
Rawbank was one of the Congolese actors that participated in the recent China-Africa Forum. There, the bank showcased its ability to support climate finance projects to international investors in China.
"In 2023, Rawbank launched an investment platform for climate-related projects to address climate challenges while facilitating economic development," the bank stated in the International Business Daily China.
The bank highlighted its commitment to providing sustainable solutions that meet customer needs and reduce its carbon footprint. For example, Rawbank's partner fintech, Illicocash, has enabled over 420,000 users to conduct paperless financial transactions, helping to lower the bank's environmental impact.
"We consider financing climate-friendly projects a major responsibility for future generations. That's why the projects we invest in must protect the environment and stimulate economic growth in our country," said Rawbank CEO Mustafa Rawji. He mentioned a $200 million project with the Swiss group Vitol to reduce carbon emissions and provide clean, affordable energy to the Congolese population.
Rawbank's efforts align with international commitments and the growing interest from African Chinese partners. In his address to African leaders, President Xi Jinping emphasized the importance of sustainable development in his new strategy.
"China is ready to launch 30 clean energy projects in Africa, set up weather early warning systems, and carry out cooperation in disaster prevention, mitigation, and relief, as well as biodiversity conservation," the Chinese president announced, outlining priorities for China-Africa relations over the next three years.
Georges Auréole Bamba
Eurasian Resources Group (ERG), a mining company based in Luxembourg, has signed a pre-export financing agreement with the Bank of China London Branch and Glencore International. ERG secured a $150 million loan to support its operations in the DRC, including the Metalkol unit, which focuses on reprocessing copper and cobalt tailings.
A pre-export financing agreement allows a company to borrow money using its future export revenues as collateral, providing liquidity before product sales. The $150 million loan is backed by a contract to supply copper cathodes from the Metalkol operation. The funds will help "maintain the Group's ongoing investments at Metalkol and in the wider Kolwezi region," according to the company.
"We are delighted that Glencore and the Bank of China have collaborated with us to set up this pre-export financing facility for Metalkol, which will enable us to prioritize the company's investment program," said Nicolas Treand, CEO of ERG Africa.
The DRC is strategically important for ERG due to its mineral resources, especially cobalt and copper, which have seen rising prices recently. The company, which is 40% owned by the Kazakh state, operates four mines in the DRC: Frontier, Comide, Metalkol, and Boss Mining, along with other projects at various stages of development.
Earlier this year, the Congolese government suspended nine subcontractors working in ERG's copper and cobalt mines for "non-compliance with local content rules." Additionally, the Ministry of Mines previously suspended operations at Boss Mining due to environmental pollution accusations. In February 2024, the Congolese company Gécamines expressed interest in buying back these assets to strengthen its role in the global metals market, but no updates have been announced since.
Louis-Nino Kansoun
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Rawbank, a leading bank in the Democratic Republic of Congo (DRC), showcased its capabilities and readiness to support climate finance-related projects at the China-Africa Forum. "In 2023, Rawbank launched an investment platform for climate-related projects to address climate challenges while facilitating economic development," the bank announced in the International Business Daily China newspaper.
Rawbank emphasizes its commitment to providing sustainable solutions tailored to customer needs while reducing carbon footprint. As an example, the bank's partner fintech Illicocash has enabled over 420,000 users to conduct paperless financial transactions, contributing to the reduction of Rawbank's environmental impact.
"We consider financing climate-friendly projects a major responsibility for future generations. That's why the projects we invest in must protect the environment and stimulate economic growth in our country," said Rawbank CEO Mustafa Rawji. He mentioned a $200 million project implemented with Swiss group Vitol, aimed at reducing carbon emissions and providing clean, affordable energy to the Congolese population.
Rawbank's positioning aligns with the commitments of the international community and the growing need in Africa, which is attracting increasing attention from Chinese partners. In his address to African guests, President Xi Jinping emphasized the importance of sustainable development in China's new strategy.
"China is ready to launch 30 clean energy projects in Africa, set up weather early warning systems, and carry out cooperation in disaster prevention, mitigation, and relief, as well as biodiversity conservation," the Chinese president announced as he outlined the priorities for China-Africa relations over the next three years.
Georges Auréole Bamba
The Kamoa-Kakula copper complex in the DRC produced 40,347 tonnes of concentrate in August 2024, a record. Kamoa-Kakula is operated by Ivanhoe Mines, a Canadian company.
The record performance is partly due to the commissioning of a third concentrator. However, the previously running plants also recorded strong results. “On August 31, the combined output from the Phase 1, 2, and 3 concentrators reached a daily record of 2,096 tonnes of copper. This included 1,760 tonnes from the Phase 1 and 2 concentrators, which also set a record for the company,” Ivanhoe Mines wrote in a statement dated September 4.
Ivanhoe added that Kamoa-Kakula produced around 263,000 tonnes of copper, including 14,000 tonnes from the new third plant, since the beginning of 2024. This is against 393,551 tonnes of copper concentrate throughout the past year, thus 18% up.
The Canadian firm expects Kamoa-Kakula to produce between 440,000 and 490,000 tonnes of copper concentrate this year.
Once the project’s third plant is fully operational, Ivanhoe and its partners expect this output to reach 600,000 tonnes per year, making Kamoa-Kakula the third-largest copper mine in the world.
LNK
The Development Bank of Southern Africa (DBSA) has approved a $200 million loan for the Lobito corridor modernization project. In a statement dated September 3, the lender said “The funding will support the construction and upgrading of the railway infrastructure, including the procurement of 50% of the required wagons from a South African local manufacturing company.” The financing is alongside a $553 million commitment from the US International Development Finance Corporation.
This project, backed by the United States and the European Union, aims to upgrade the 1,289 km main railway line connecting Lobito, Negrao, and the Luau border, along with a 28 km branch line to Bimbas. It will also develop port facilities to transport copper and cobalt ores from the landlocked Democratic Republic of Congo and Zambia through Angola.
Various observers claim that the US and EU are interested in securing supplies of critical minerals amid the current energy transition, as these resources are seen as essential. "The Lobito Corridor is set to become the most competitive route for exporting these minerals, saving exporters significant time and money. It will not only improve the economic prospects of Angola and the DRC but also promote greater connectivity and trade within the Southern African Development Community (SADC)," the DBSA stated.
On August 22, 2024, trading company Trafigura announced the first shipment of Congolese copper to the US port of Baltimore via the Lobito Corridor. The train carrying this shipment took six days to travel from Kolwezi to Lobito, demonstrating the efficiency of this new route for minerals from the Congolese Copperbelt.
China, which operates mines in the DRC and Zambia, is also interested in establishing logistical support infrastructure for Tanzanian ports. The country is the main backer of the Tazara railway modernization project, which is proposed as an alternative to the Lobito Corridor.
Henoc Dossa, Ecofin Agency
In the Democratic Republic of Congo, increasing access to clean energy could threaten the coal industry, which is significant in the country. Economist Al Kitenge made this point at a recent national energy forum organized by civil society.
Kitenge noted that the coal sector in the capital, alone, generates about $300 million a year, or $25 million a month. With over 20 million residents, many in Kinshasa rely on coal for cooking.
The demand for coal is high not just in Kinshasa but also in other provinces, particularly in the Eastern and Central Kongo regions. The DRC holds around 60% of the equatorial forest, which effectively captures greenhouse gases, making it an attractive option for green financing. The Congolese government estimates that $21.6 billion is needed to finance projects aimed at reducing climate risks.
Current projects include the Lake Kivu methane-to-electricity initiative and various off-grid mini-plants. However, Kitenge argues these projects are not enough to meet the growing energy demand in urban and semi-urban areas, forcing many to continue using charcoal.
Georges Auréole Bamba