Musings From Abroad

Chinese firms to invest $7 billion in Congo mining projects

Published

10 months ago

January 28, 2024

In exchange for an agreement over their Sicomines copper and cobalt joint venture in the Democratic Republic of the Congo, Chinese construction companies have committed to investing up to $7 billion in infrastructure projects.

Both parties decided to keep the current shareholding structure in place, and according to a statement, the Chinese partners Sinohydro Corp (SINOH.UL) and China Railway Group Limited will give Congo 1.2% of their yearly royalties.

The agreement called for the Chinese investors to contribute $3 billion to infrastructure projects; but, the Inspection Generale des Finances (IGF), the state auditor, last year insisted that the investmentbe raised to $20 billion.

The Congolese President Felix Tshisekedi is re-evaluating the agreement made by his predecessor, Joseph Kabila, in which the Chinese partners promised to construct clinics and roads in return for a 68% share in the joint venture with the government-owned mining company Gecamines in the Congo.

Prior to a trip to China in May 2023, Tshisekedi gave his administration instructions to negotiate with the investors. His goal was for Congo’s share of the joint venture to increase from 32% to 70%.

IGF head Jules Alingete stated during a press conference, “It is a win-win deal,” but he acknowledged that the negotiations had not been simple. The leader of the Congolese Anti-Corruption League, Ernest Mpararo, hailed the decision as a positive move but pointed out that Sicomines continued to enjoy tax exemptions.

He also indicated the amount still owed under the previous contract. Out of the $3 billion planned for infrastructure projects, just $822 million had been invested, according to a 2023 IGF report.

IGF head Jules Alingete stated during a press conference, “It is a win-win deal,” but he acknowledged that the negotiations had not been simple.

The leader of the Congolese Anti-Corruption League, Ernest Mpararo, hailed the decision as a positive move but pointed out that Sicomines continued to enjoy tax exemptions.

He also indicated the amount still owed under the previous contract. Out of the $3 billion planned for infrastructure projects, just $822 million had been invested, according to a 2023 IGF report.

Congo is the world’s largest producer of cobalt, which is essential to the batteries used in cell phones and electric vehicles. In addition, it is the third-biggest producer of copper worldwide. Chinese businesses occupy the majority of the mining industry there.

Related Topics:China Congo DR Featured Mining

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Musings From Abroad

Nigeria, India to strengthen counterterrorism, maritime security cooperation

Published

1 day ago

November 18, 2024

Ifeoluwa Dada

During a state visit to Nigeria on Sunday, Indian Prime Minister, Narendra, Modi reached an agreement, on behalf of his country, to strengthen cooperation in counterterrorism, intelligence, and maritime security.

President Bola Tinubu invited Modi to visit Nigeria, the first Indian prime minister to do so in 17 years.

Tinubu is looking for investments from some of the largest economies in the world.

In addition to discussing economic development, defence, healthcare, and food security, Modi and Tinubu met at the presidential mansion on Sunday after arriving in the capital, Abuja, on Saturday night, according to a joint statement.

The two nations decided to work together to protect maritime trade routes and fight piracy in response to the mounting risks in the Indian Ocean and the Gulf of Guinea.

The most populous country in Africa, Nigeria, is looking to attract more Indian investment and lower-cost credit lines in order to strengthen its economy and generate employment.

Nigeria announced last year that it had obtained about $14 billion in pledges from Indian businesses, including Jindal Steel and Power, which promised to spend $3 billion in Nigeria’s steel industry, during the G20 conference.

Over 200 Indian businesses are present in Nigeria.

Modi was scheduled to go to Brazil for this year’s G20 conference after Nigeria.

Nigeria and India have a long-standing and cordial bilateral relationship. Nigeria, home to more than 200 million people, and India, home to 1.3 billion people, are both sizable emerging nations with multilingual, multiethnic, and multireligious communities.

Musings From Abroad

Military advisors from Russia arrive Equatorial Guinea

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Russian military advisors are in Equatorial Guinea training indigenous soldiers.

Anonymous sources cited by Reuters during the week claim that between 100 and 200 Russian instructors are training with elite guards in charge of guarding the President and the first family.

The males had been seen in Malabo, the country’s capital, and Bata, its second city. Reports of Russian forces stationed in the nation initially appeared in August.

Oil-rich Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo has maintained close relations with Moscow.

Nguema travelled to Moscow in September to attend the Russian Energy Week International Forum.

Russia has strengthened military connections with African countries, sending advisors and combat soldiers to the Central African Republic, Mozambique, Mali, Niger, and Burkina Faso.

Faced with an Islamist terrorist insurrection, three Sahel countries have turned to Moscow for support, expelling French and American troops.