KINSHASA: Chinese construction companies will invest up to US$7bil in infrastructure projects as part of an agreement over their Sicomines copper and cobalt joint venture in the Democratic Republic of Congo.
Both parties agreed to maintain the current structure of the shareholding, while the Chinese partners, Sinohydro Corp and China Railway Group Limited, will pay 1.2% of royalties annually to Congo, according to a statement last Saturday.
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 US$3bil on infrastructure projects, but the state auditor – Inspection Generale des Finances (IGF) – last year demanded that commitment be increased to US$20bil.
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%.
“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. — Reuters
