News (77)
American investors are "strongly interested" in a project to set up a cobalt refinery in Lualaba province, southeastern Democratic Republic of Congo (DRC). The Mines Minister Kizito Pakabomba made the statement after a roundtable held on September 23, 2024, in New York. The meeting was organized by the Foreign Policy organization and Buenassa, the government's partner in the Lualaba refinery project.
During the roundtable, participants talked about the sustainability and resilience of supply chains for minerals essential to the global energy transition. The president of the US Export-Import Bank was present.
"It is in the interest of this country (the United States) to secure its supply of critical minerals," said Congolese Minister of Mines, Kizito Pakabomba.
The meetings in New York followed the recent Battery Forum held on September 17-18, 2024. During that event, Minister Kizito announced that the DRC was close to producing its first battery from local mining resources. However, he acknowledged that significant investments are still needed in infrastructure such as roads and energy to attract more investors.
Commenting on the project in February, Eddy Kioni, Managing Director of Buenassa, said it “will play a crucial role in developing an integrated value chain around battery and electric vehicle manufacturing, in line with the government's commitment to responsible industrialization and green economic development.”
The cobalt refinery project has received a $3.5 million grant from the DRC government through the Fonds de promotion de l'industrie (FPI). This grant is the first installment to prepare for the project's completion. Buenassa, the government’s partner in the project, has engaged with development finance institutions like the African Development Bank and Afreximbank through support from the United Nations Economic Commission for Africa.
Buenassa expects the refinery to come online by the end of 2027, with an initial production target of 30,000 tonnes of copper cathodes and 5,000 tonnes of cobalt sulfate per year.
Georges Auréole Bamba
The Presidents of Poland and the Democratic Republic of Congo met on September 19, 2024, in New York, on the sidelines of the UN General Assembly. After the meeting, the Congolese presidency reported that several Polish and Congolese experts had been working for weeks on draft cooperation agreements related to digitalization, digital transformation, and border surveillance.
Over the past 20 years, Poland, a member of the European Union since 2004, has made massive investments in telecommunications infrastructure, including fiber optics, high-speed Internet, and modernizing mobile networks. Consequently, Poland became one of Europe's leaders in digital transformation.
A partnership with Poland would allow the DRC to benefit from its technical expertise in key projects, such as deploying submarine cables and improving mobile infrastructures in rural areas. This would be crucial in boosting connectivity in underserved regions while modernizing the national network.
Relative to digitizing public services, Poland's experience could be vital for the DRC. According to the European Commission's E-government Benchmark report, Poland is one of the European countries that has made the most progress in digitizing public services since 2020. By following Poland’s example, the DRC could accelerate the development of government platforms accessible via mobile, thus promoting transparency and combating corruption, particularly in the delivery of official documents.
Recently, the DRC has made considerable efforts to combat corruption in this sector by launching the banking of legal fees. A report by the Cour des Comptes revealed that magistrates, clerks, police officers, and others involved in judicial administration were directly charging fees to the detriment of the public treasury.
Thanks to its advances in cybersecurity, Poland could provide strategic support to the DRC in securing its borders and strengthening its digital defense capabilities.
OS
Guylain Nymbo and Doudou Fwamba, respectively Deputy Prime Minister for Planning and Minister of Finance of the Democratic Republic of Congo (DRC) recently met with a UNDP team in New York, during the UN General Assembly. The UNDP team was led by its Regional Director for Africa, Ahunna Eziakonwa.
Participants mostly focused on the Local Development Plan for 145 territories (PDL 145T). "The Congolese government expressed its wish to accelerate the remaining work before the end of the year and launch the second phase, focusing on agricultural feeder roads. The UNDP has reaffirmed its commitment to supporting the DRC in this ambitious project aimed at improving the living conditions of local populations," reported the Ministry of Planning. The second phase of the project is scheduled to begin in early 2025.
Initiated by President Félix Tshisekedi, the PDL 145T aims to develop the DRC’s 145 closed localities that lack basic infrastructure. The UNDP oversees the project’s implementation in 54 territories. Implementation in the remaining territories is steered by the Cellule d'exécution des financements en faveur des États fragiles (CFEF) and the Bureau central de coordination (BCeCO)(43 and 48 territories respectively).
As of June 2024, 631 infrastructure projects were either under construction or nearing completion. These include schools—some equipped with solar kits—and health centers in remote locations. The UNDP has also helped contract 20 organizations (18 companies and 2 NGOs) for nearly $168.2 million worth of work, creating 35,000 jobs across nine provinces, including over 10,000 for women.
An important contribution from the UNDP is a baseline study that outlines the development situation in nine provinces, highlighting areas with significant agricultural and mining potential. This study was conducted by a team led by Samba Daniel Mukoko, now Minister of the Economy.
GAB
During his speech at the United Nations General Assembly on September 25, 2024, President Félix Tshisekedi stated that the Democratic Republic of Congo (DRC) needs $32 billion in annual investment to meet the Sustainable Development Goals (SDGs) by 2030. "The Democratic Republic of Congo, which has already affirmed its commitment to ambitious climate action, stresses the crucial importance of increased financial and technical support to strengthen its efforts to achieve the goals of the Paris Agreement," he said.
Tshisekedi outlined the DRC's economic vision, highlighting its role in combating climate change. "The Democratic Republic of Congo has abundant resources, including essential minerals such as cobalt, lithium, nickel, and graphite, which can facilitate a sustainable energy transition," he noted. This declaration emphasizes the DRC's goal to turn its natural resource exploitation into a means for sustainable and inclusive development.
The fight against climate change is central to Tshisekedi's vision for the DRC. As part of the Congo Basin forest, the country aims to be a key player in biodiversity preservation and promoting a green economy. He mentioned national initiatives to cut greenhouse gas emissions in agriculture and energy and emphasized the importance of the Trilateral Alliance for Cooperation on Tropical Forests.
However, Tshisekedi acknowledged that instability in eastern DRC hinders these ambitions. He pointed to the "aggression of the M23 group," which has led to significant population displacement. "The resurgence of the M23 terrorist group, supported by Rwanda, has caused an unprecedented humanitarian crisis, with nearly 7 million internally displaced people. This aggression constitutes a major violation of our national sovereignty."
Tshiseked asked the international community to condemn these actions and impose sanctions against Rwanda for its alleged involvement in the conflict. He also addressed the long-term effects of "genocide for economic gain" (Genocost) in the DRC and stressed the need for recognition and justice for victims. He affirmed that security is essential for sustainable economic development and reiterated the DRC's commitment to implementing the Disarmament, Demobilization, Community Rehabilitation and Stabilization Program (P-DDRCS).
Through this speech, Tshisekedi expressed the DRC's aspirations to play a significant role internationally, especially in energy transition and climate change efforts. Internally, this is reflected in government policies aligned with these objectives. In addition to participating in annual meetings, he and his teams continue to engage with various stakeholders.
Georges Auréole Bamba
Augustin Kibassa Maliba, Minister of Telecommunications and Digital Technologies of the Democratic Republic of Congo (DRC), is also in New York, US, for the ongoing 79th UN General Assembly. On the sidelines of the event, Maliba said he will explore innovative solutions for digital cooperation with various government partners and international organizations at Google's office in Manhattan.
The Congolese official also said he will promote investment opportunities in the DRC's digital sector. Minister Maliba will participate in a bilateral meeting between Congolese President Félix Tshisekedi and Polish President Andrzej Duda at the Polish consulate in New York.
Digital technology is a key part of the DRC’s economic diversification strategy. Under this strategy, the Congolese government plans to improve broadband connectivity, enhance digital inclusion, transform public services, and attract international investors in high-value digital products and services.
Minister Maliba's trip to the U.S. follows his recent visit to China, where he presented business opportunities in the Congolese digital sector to potential investors. The national digital plan aims to "use the digital sector as a lever for integration, good governance, economic growth, and social progress." The DRC needs expertise and funding to achieve this. The talks in New York could help the country in this regard.
Muriel Edjo
Cobalt prices hit their lowest level since January 2016 last week, according to Fastmarkets. On September 19, 2024, cobalt was trading between $22,046.2 and $26,014.5 per tonne, continuing a downward trend started over two years. This decline is primarily due to an oversupply from the Democratic Republic of Congo (DRC), the world's leading cobalt producer.
The Cobalt Institute reported that global cobalt supply reached 210,000 tonnes in 2023 and is expected to rise to 245,000 tonnes this year. Congolese production is projected at around 140,000 tonnes in 2023, a 21% increase from the previous year, largely driven by the Chinese company CMOC, which operates the Kisanfu and Tenke Fungurume mines and reported a 178% increase in cobalt production in the first half of 2024.
Global demand for cobalt was 197,000 tonnes last year and is expected to grow to 237,000 tonnes in 2024. No price increases are anticipated in the short term due to demand not exceeding supply. Earlier this year, the DRC considered implementing export quotas to help stabilize prices, as falling cobalt prices directly impact its economy.
In a July 2024 report, the IMF warned that declining cobalt prices "are likely to weigh further on the country's external position" in 2024. This could lower the DRC’s export revenues, reduce foreign currency reserves, and complicate import financing. Current prices, however, remain above the IMF's projected $21,305.4 per tonne for 2024.
Despite the price drop, the long-term outlook for cobalt is positive due to the global energy transition and expected growth in electric vehicle production. The International Energy Agency predicts that global demand for cobalt will double by 2030, reaching 410,000 tonnes.
Emiliano Tossou, Ecofin Agency
Last Friday, the Congolese government approved two projects to boost tourism in the Democratic Republic of Congo (DRC). Both projects were drawn by the Ministry of Tourism. One involves a partnership with the Italian soccer club AC Milan. The other involves creating tourist villages.
Tourism Minister Didier M'Pambia Musanga said the project with AC Milan will leverage the club’s global presence to market the DRC as a top tourist destination. Concretely, an international marketing campaign aligning the DRC's image with AC Milan’s will be carried out to attract tourists interested in nature and culture.
Last July, Minister M’Pambia was in Italy. During his stay, a memorandum of understanding with AC Milan’s management. Financial details were not disclosed. AC Milan is a strategic choice given its fame. The club has nearly 500 million fans across Europe, Asia, and America, all key tourism markets.
Besides the partnership with AC Milan, the Congolese government approved plans to create tourist villages. These villages aim to enhance tourism by connecting urban and rural areas while preserving local cultures. Commenting on the project, Minister M'Pambia said it would help maintain traditions and create sustainable jobs in rural communities.
Earlier this month, the DRC approved its national tourism policy, which outlines four main goals to achieve by 2030: developing partnerships, promoting sustainable tourism, diversifying tourism offerings, and strengthening institutional capacities. The plan aims to generate $7 billion in annual foreign exchange earnings and create between 200,000 and 500,000 jobs in the sector by 2030.
This strategy aligns with recommendations from the African Development Bank (AfDB), which highlighted the importance of promoting ecotourism to leverage the DRC's rich natural resources. The AfDB points out that events like the centenary celebrations for Virunga Park in 2025 present excellent opportunities to showcase this natural wealth and strengthen the DRC's position in ecotourism.
Tourism contributes about 5% of the DRC’s GDP, compared to 10% in neighboring Tanzania.
Olivier de Souza
Mole Group, a Swiss firm specializing in trading agricultural commodities, wants to set up an agro-industrial park in the Democratic Republic of Congo (DRC). The firm has dispatched a delegation to the African country to present the project to various senior Congolese officials. Meetings between both sides began on Sept. 23.
According to reliable sources, the park should be established in Mbanga-Ngunzu, close to Lufu, an important supply market for the DRC and Angola. The site is also near National Road No. 1, which connects Matadi, the DRC's main port, to Kinshasa, the capital.
The project integrates production, processing, and conservation activities, and should be set up in partnership with experts in processing, storage, and modern production techniques.
The investment’s amount is not known, presently, but it could be worth hundreds of millions of dollars. The park targets an output of 750,000 tonnes of food annually, primarily cassava, corn, and sugar.
According to Congolese Minister of Economy, Daniel Mukoko Samba, the DRC faces an annual shortfall of 10 million tonnes of corn against a domestic demand of 13 million tonnes. Other products like manioc and sugar are also in short supply. The International Trade Centre reported that the country imported $222 million worth of cereals in 2023.
At the Africa-China summit, the DRC's agricultural strategy was strengthened with export targets that allow the country to sell up to one million tons of agricultural products to China.
Mole Group is already active in the DRC with a fair-trade cocoa project and aims to prioritize the local market. The company plans to improve food supply and living conditions for farmers and local communities while incorporating renewable energy and technology transfer into its project.
Georges Auréole Bamba
On September 16, 2024, the World Bank announced a $200 million funding commitment for climate risk prevention and management in the Democratic Republic of Congo (DRC). This financing was yielded by a 2022 partnership agreement to help the country fight climate better. The deal is valid until 2026.
According to the Congolese Ministry of Interior, the funds will be managed by the World Bank and used to support the country's National Adaptation Plan (PNA). This plan includes installing early warning systems to prevent future disasters and rebuilding damaged infrastructure.
World Bank Country Director Albert Zeufack emphasized the need for preventive investments, noting that the DRC faces increasing risks from climate hazards like flooding, soil erosion, and drought. In late 2023 and early 2024, extreme rainfall affected 18 of the 26 provinces, leading to record levels of the Congo River. UNICEF reported over 300 deaths and two million displaced people due to floods that destroyed nearly 100,000 homes, 1,325 schools, and 267 health centers.
However, the $200 million from the World Bank may not be enough for the DRC to effectively address climate risks. The country ranks fifth globally in exposure to climate change and has very low adaptive capacity. To meet its goal of reducing greenhouse gas emissions by 21% by 2030, the DRC can only fund 2% of what is needed; the rest relies on external support.
Overall, Africa needs $331 billion for adaptation measures by 2030, according to the State and Trends in Adaptation in Africa Report 2021 How Adaptation Can Make Africa Safer, Greener and More Prosperous in a Warming World.
OS
The Global Fund to Fight AIDS, Tuberculosis and Malaria will help the Democratic Republic of Congo (DRC) fight mpox with $9.5 million in funding. The Global Fund announced the support on September 18.
The facility aligns with the Congolese government's National Preparedness and Response Plan and covers nearly 20% of the $49 million needed for the plan. Mostly, the monies will be directed to six provinces heavily impacted by the outbreak and Kinshasa, the capital.
This approach seeks to ensure the optimal use and impact of the funds. In detail, the strategy includes actions like improving disease surveillance systems, enhancing laboratory and diagnostic capabilities, and implementing infection prevention measures, with a strong emphasis on community mobilization.
"Stopping the spread of the disease requires a strong network of trusted community health workers, health educators, and other local stakeholders," said Global Fund Executive Director Peter Sands, highlighting the importance of local health workers in this effort.
For his part, Congolese Health and Social Welfare Minister Roger Kamba said: "Our partnership with the Global Fund and other health partners has demonstrated its ability to contain infectious diseases... We are determined to continue this work and respond strongly to mpox. The fight against the current mpox epidemic is a top priority for our ministry, and we are focusing on strengthening the community response."
The Global Fund and the DRC are long-standing partners. Since 2003, the Fund has invested nearly $3.2 billion in the Central African country, helping it fight various infectious diseases.
The DRC has been fighting mpox for several months. From January to now, around 22,000 people have been infected. More than 716 lost their lives, according to the National Public Health Institute.
Last week, the DRC received 10 tonnes of medical supplies from the World Health Organization (WHO), adding to 265,000 vaccine doses secured prior. After the September 13 Council of Ministers, the government reported: "The process of acquiring 3 million doses of children's vaccines is sufficiently advanced with the Japanese. A further 100,000 doses of vaccine are expected from France".
Since January, nearly 22,000 people have been affected by the mpox epidemic in the DRC, resulting in over 716 deaths, according to data from the National Institute of Public Health. The government announced last week that it would run a vaccination campaign from October 2 to 11, 2024.
Georges Auréole Bamba
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On September 13, the Council of Ministers of the Democratic Republic of Congo (DRC) approved a draft ordinance that allows the ratification of a credit agreement signed between the Democratic Republic of Congo (DRC) and Gemcorp Capital Management. Inked on November 24, 2023, the deal covers a $500 million loan. Specific terms are unknown at the moment.
According to Finance Minister Doudou Fwamba Likunde, the funds will help "provide a lasting solution to the government's needs for the purchase of goods and services, particularly in the fields of security, food, medicine, etc."
This ordinance is based on the government's enabling law adopted on June 15, 2024. This law allows the government to legislate on specific topics, including the loan agreement, during the parliamentary recess from June to September 2024. Another ordinance dated February 26, 2024, also approved the loan agreement.
Gemcorp Capital Management, a British firm, invests primarily in emerging markets. In 2022, it announced plans to invest nearly $10 billion in Africa over the next decade through lending operations in partnership with other institutional investors.
MN
The Democratic Republic of the Congo (DRC) needs to invest $17 billion annually until 2030 to "accelerate its structural transformation process and bring itself up to the same level as high-performing developing countries." The African Development Bank (AfDB) disclosed the estimate in its 2024 country report issued on July 31.
In addition to boosting investment, the report’s authors recommended improving human capital by enhancing education quality and aligning it with labor market needs. The lender also suggested policies to improve the business environment, such as revising the investment code and land law, along with increased infrastructure investment.
The AfDB believes that the DRC's current structural transformation is progressing too slowly to support economic development. Typically, structural change happens when agriculture's share of employment declines, and workers shift to industry and services, leading to efficiency gains through higher productivity.
As a country develops, agriculture's role diminishes while industry and services grow, promoting development through new technologies. This pattern has helped several countries in Europe, America, and East Asia emerge.
From 2005 to 2020, the DRC saw a drop in agricultural jobs from 71.1% to 60% of total employment. However, according to the AfDB, many agricultural workers have moved into trade and manufacturing largely in the informal sector and into mining. While mining is attractive, it is capital-intensive and can only absorb a limited portion of the workforce.
The report indicates that although both the service and industrial sectors saw significant employment growth during this period rising from 22% to 29.3% in services and from 7% to 10.7% in industry productivity remains a challenge. "The results for the manufacturing sector show productivity growth that was negative between 2000 and 2009 and almost zero between 2010 and 2019," states the AfDB.
Espoir Olodo
In the Democratic Republic of Congo (DRC), the parliament is reviewing the draft of the 2025 finance bill. During the bill’s presentation to the deputies, Congolese Prime Minister, Judith Suminwa noted a 13% increase in the budget for agriculture. "There is a 13% increase in resources for agriculture," she said.
For now, it is not known if the increase will apply only to agricultural production or if it will also cover inputs purchase, building storage and processing infrastructure, and transport routes.
In her budget guidance letter to government members, PM Suminwa said the resources allocated to agriculture should help increase the sector’s share to 10% of gross domestic product (GDP), in line with the Maputo Convention. The official stressed the importance of considering the entire value chain and maintaining and constructing 10,000 kilometers of agricultural roads across the country.
The Ministry of Agriculture is one of seven ministries eligible for results-based budget management with program budgets. The Ministry of Rural Development as well.
From 2024 to 2026, these two ministries will receive 7,316 billion Congolese francs (around $2.6 billion). The government's ability to effectively use these funds for agricultural development will be crucial. Although recent reports from the Minister of Finance highlighted some efforts, challenges remain, such as high wage expenditures and the need to improve actual payment processes.
Compared to 24, the draft finance bill for 2025 proposes a 21% budget increase, bringing total resources and expenditures to 49,847 billion Congolese francs (just over $18 billion). To meet these goals, the government plans to enhance tax revenue collection and benefit from higher commodity prices to increase royalties.
Georges Auréole Bamba
Foreign exchange transactions in the Democratic Republic of the Congo (DRC), where Congolese francs are primarily exchanged for US dollars, are on the rise, with commercial banks taking on a larger role.
By the end of August 2024, the DRC’s central bank reported $8.62 billion in transactions, with an impressive 93.9% conducted by banks. In 2023, these institutions managed 92.7% of the $10.3 billion in foreign exchange transactions.
The main source of foreign currency for these banks is the US dollar, enabling them to offer exchange rates that closely align with the international market while maintaining lower margins. Additionally, they have successfully narrowed the gap between buying and selling currency costs. As a result, it has become more advantageous to conduct foreign exchange transactions through banks rather than bureaux de change, which are experiencing a decline. In 2023, exchange bureaux processed $7.7 million in transactions, but this figure plummeted to just $2.28 million in 2024, according to the central bank.
In the DRC, exchange bureaux are categorized into three types: national operators, provincial ones, and individual dealers. The latter group has been particularly hard hit by new regulations requiring Central Bank authorization—something many Congolese lack due to missing documents like national identity cards.
It's important to note that the Central Bank's figures only reflect officially reported data. Given the large informal economy in the DRC, some unregulated currency traders likely continue to operate. However, commercial banks have proven effective in this sector.
This year, Congolese authorities announced measures to reduce dollar usage in the economy, but the current monetary system complicates this transition. As of August 2024, over 49% of Congolese franc bills in circulation were in denominations of 20,000 and 10,000 francs, limiting access for individuals whose goods or services are priced below these amounts.
Consequently, lowering inflation to sustain purchasing power for low-income households remains a challenge, while speculation on the dollar continues to be strong. A decade ago, CDF900 bought $1.
George Auréole Bamba