What happened to the money from Chinese contracts in the Democratic Republic of Congo? According to a Congolese NGO, Afrewatch, the state would largely be the loser in what had been described in 2008 as the “contract of the century”. A consortium of Chinese companies would grant $ 6 billion in loans to the country and enjoy privileged access to its mineral resources. Afrewatch investigated this “mine against infrastructure” convention.
as reported from Kinshasa, Sonia Rolley
Afrewatch investigated Sicomines for five months and the Sino-Congolese Convention 2008, which forms the basis for the creation of this joint venture. China would grant more than $ 6 billion in loans to the Democratic Republic of Congo: $ 3.2 billion to create Sicomines and $ 3 billion more to build the necessary infrastructure for the country. In exchange, Beijing would receive full tax exemption and almost 70% of the share in their joint venture. Sicomines would repay these loans with the profit on copper exploitation with reserves estimated at between 7 and 10 million tonnes, depending on the period.
Only half of the loan has been paid off
Thirteen years later, for Afrewatch, China and the Democratic Republic of Congo have achieved less than 50% of their commitments and the Congolese side is largely losing. Not only did less than half of the planned money borrow from China, that is, almost 3 billion. But Sicomines did not even get the full amount. There are $ 800 million whose use remains unjustified.
Nevertheless, according to NGOs, while small infrastructure has been built, copper production has really started since 2015. This is one of the reasons why Afrewatch is asking for a review and revision of the Sino Convention.
Emmanuel Umpula (Afrewatch) describes the various points that are a problem at Sicomines
Faitrare, two Sicomines officials were present at the press conference presenting the Afrewatch report. They promised to address all NGO concerns, but did not have enough time before the report came out. One of the two assured, however, that President Tshisekedi had appreciated the way Sicomines was handled and had already assured that the Chinese contracts would not be renegotiated. This public statement was made temporary by the Presidency.
#RDC #China: read the @afrewatch report on the Sino-Congolese Convention. The NGO’s fear is that DRC 2034 will be in debt, with little infrastructure and of poor quality. @itierdc must also publish his evaluation https://t.co/MpFq1WG1uI
– Sonia Rolley (@soniarolley) June 18, 2021
According to Michel Eboma, senior adviser in charge of mines interviewed by RFI, this company can not speak on behalf of the head of state. A joint meeting between the presidency, the portfolio ministry and the mining ministry should be held, he specifies, to discuss all these issues.
► Read also: Afrewatch report on the Sino-Congolese mining convention
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