Chinese construction companies are set to invest up to $7 billion in infrastructure projects as part of an agreement over their Sicomines copper and cobalt joint venture in the Democratic Republic of Congo (DRC).
Reuters reports that Sinohydro Corp and China Railway Group would pay DRC 1.2% of royalties annually and retain the shareholding structure.
President Felix Tshisekedi's government was reviewing Joseph Kabila's contract with China to build roads and hospitals in exchange for a 68% interest in the joint venture with Congo's State mining company Gecamines.
Under the deal, Chinese investors pledged $3 billion for infrastructure projects, but the state auditor, Inspection Generale des Finances (IGF), sought $20 billion last year.
Before visiting China in May 2023, Tshisekedi ordered his cabinet to meet with investors.
He sought to increase the DRC's joint venture participation from 32% to 70%.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
