KINSHASA, Democratic
Republic of Congo (DRC) President Joseph Kabila travels to China on
September 2nd to attend the commemoration of the 70th anniversary of the
end of World War II and celebrate DRC Veterans who fought alongside
Allied Forces during the war. While in China President Kabila will also
meet various leaders including President Xi Jinping to review the status
of current Sino-Congolese projects and discuss ways to strengthen and
enhance relations between the two countries.
Background on Chinese-Congolese Relations
Over
the last 25 years, Chinese investment in the DRC, as well as Congolese
exports to China, have grown at a rapid pace. This is due to the
interest by both nations to find mutually beneficial opportunities that
strengthen and professionalize a variety of sectors.
A recent RAND Corporation report (www.apo-mail.org/150902.pdf) concluded that bilateral trade between the DRC and China accounts for approximately 2 percent of total Sino-African trade.
In
2008, the Chinese government entered into a contract with the DRC
government for $6 billion USD worth of infrastructure projects—from the
development of roads and railways to the construction of hospitals,
health centers and universities in exchange for China’s participation in
DRC’s mining investments.
In
addition to contributing to the DRC’s infrastructure capabilities,
which in turn provide new opportunities to other foreign partners, th
ese Sino -Congolese ventures have created thousands of jobs for the
Congolese people, generated tax revenues for the DRC and provided a
critical knowledge transfer between the two countries.
“The
work we have done with Chinese investors represents a critical
development and capacity-building endeavor for the DRC, improving the
lives of Congolese across
the
country by boosting employment and the economy,” said Mr. Moïse Ekanga
Lushyma, executive secretary of the Bureau for Coordination and
Monitoring of the Sino-Congolese Program.
“These
innovative projects strengthen key growth sectors and create
opportunities for other foreign investors that are interested in
capitalizing on the incredible potential of the DRC.”
By the Numbers
Infrastructure development
Between
2008 and 2014, China invested in ten infrastructure projects in the
DRC, including the development of roads, lots and a hospital.
• Approximate total spending on these projects currently in execution is USD $459.764 million
In 2015, planned projects include the development of public arenas, roads, solar projects and more.
• Approximate total spending for these projects planned for 2015 is USD $250 million
Export Growth to China
Among
the most illustrative examples of the capacity-building effects of the
DRC’s economic relations with China is the growing volume of exports
from the DRC.
• In 1991, there was a total of USD $68.34 million in trade between China and the DRC:
- USD $63.24 million worth of exports from China to DRC
- USD $5.080 million worth of imports to China from the DRC
•
Beginning in 2003, China began importing more from the DRC than it was
exporting there. Of a total of USD $51.710 million in trade between to
two countries, there were:
- USD $25.420 million in exports from China to the DRC o USD $26.300 million in imports to China from the DRC
•
As of 2014, the DRC now more than doubles the volume of trade of its
Chinese partner. Of a total of USD $4.185 billion in trade between the
two countries, there were:
o USD $1.362 billion in exports from China to the DRC o USD $2.823 billion in imports to China from the DRC
Sino-Congolese Mining Projects
As
of the end of 2014, a total of 14 joint Sino-Congolese mining projects
were underway. These projects employ thousands of Congolese, source
local and regional equipment and develop miles of new roads and promote
further development throughout the country.
• Total initial pledge toward these projects: USD $3.72 billion including $320 million for a hydroelectric power plant
• Total spent in calendar year 2014: USD $1.037 billion
Sicomines Corporation
• Total spent since the partnership’s inception: USD $1.5 billion
• Total Chinese Labor: 1,479 employed (11.79%)
• Total Congolese Labor: 11,057 employed (88.21%)
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