DRC revisits China mining deal for $7bn infrastructure investment

Ambassador of the People's Republic of China in the DRC, Zhao Bin visited some of the infrastructure projects in December 2023. Source: x.com

President Felix Tshisekedi's government had been revisiting the deal struck by his predecessor Joseph Kabila under which the Chinese partners agreed to build roads and hospitals in exchange for a 68% stake in the joint venture with Congo's state mining company Gecamines.

Under the deal, the Chinese investors committed to spending $3bn on infrastructure projects, but the state auditor - Inspection Generale des Finances (IGF) - last year demanded that commitment be increased to $20bn.

Tshisekedi instructed his government to hold talks with the investors ahead of a visit to China in May 2023. He had aimed to boost Congo's stake in the joint venture to 70% from 32%.

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"It is a win-win deal," IGF head Jules Alingete said in a press conference, adding that negotiations had not been easy.

Ernest Mpararo, head of the Congolese Anti-Corruption League, said the announcement was a step forward but flagged that Sicomines remained exempt from paying taxes.

He also pointed to money owed under the last agreement. A 2023 IGF report found that only $822m of the $3bn promised for infrastructure investments had been spent.

Congo is the world's biggest producer of cobalt, a key component in batteries for electric cars and mobile phones. It is also the world's third-largest copper producer. Its mining sector is largely dominated by Chinese companies.

Tshisekedi, who won a second mandate in December, had signposted the agreement in his recent inauguration speech.