Congo and China in Talks for $7 Billion Financing Deal, President Tshisekedi Announces

President Felix Tshisekedi of the Democratic Republic of Congo announced during his second inaugural address in Kinshasa that negotiations are in progress with China for a substantial $7 billion financing agreement. This agreement is part of the reworking of a minerals-for-infrastructure deal between the two nations, signifying a significant advancement in their economic collaboration.

The reworking of the deal, initially valued at $6.2 billion and established in 2008, has been a primary focus for Tshisekedi. He has expressed discontent with the current terms, asserting that the original contract has resulted in minimal benefits for Congo. The original agreement was intended to fund $3 billion in infrastructure projects using proceeds from the operations of the Sicomines copper and cobalt mine. However, the Congolese government has reported that only a fraction of the designated development funds were ever disbursed, underscoring the need for reassessment and reform.

President Tshisekedi articulated his intentions for the new financing, indicating that it will be allocated to an ambitious infrastructure initiative aimed at improving connectivity and accessibility across the expansive Congolese territory. This funding is made possible through the renegotiation of the Sicomines project and is projected to total $7 billion. Nevertheless, specific details of the proposed financing arrangement were not disclosed during the address.

Despite its wealth in mineral resources, Congo continues to confront widespread poverty. The nation possesses ample reserves of coveted metals such as copper and cobalt, essential in the manufacturing of green-energy technologies. Significantly, China serves as Congo’s principal trading partner, with the majority of these valuable minerals being processed and exported to the Asian nation.

As the negotiations unfold, China’s embassy in Congo has yet to issue a formal response to the proposed financing agreement. This announcement coincides with Tshisekedi’s reelection for a second five-year term, which was marred by controversies and opposition allegations of irregularities during the voting process. Despite these challenges, the international community has largely recognized Tshisekedi’s victory, citing the substantial margin of his win and the relatively peaceful conduct of the elections.

During his address, President Tshisekedi also outlined his dedication to addressing economic challenges within the country, vowing to combat inflation, stabilize the exchange rate, and promote industrial growth to generate employment opportunities. With over 62% of Congo’s nearly 100 million population living in poverty, these economic reforms are positioned as crucial priorities for the administration.

The proposal of the $7 billion financing agreement signifies a significant stride in Congo’s efforts to revive its economy and infrastructure. It denotes a new phase in the enduring partnership between the DRC and China, serving as a beacon of hope for the country’s economic development and prosperity.