🇨🇩 Congo Watchdogs Challenge China ‘Contract of the Century’

 

Civil society groups in the Democratic Republic of Congo are demanding a fresh review of a landmark “minerals for infrastructure” deal with China, warning that the state continues to lose out despite last year’s renegotiation.

Zig Diaries Economy
Date: Monday, 25 August 2025
Time: 13:00 WAT
Location: 📍 Kinshasa, Democratic Republic of Congo

The $7.5 billion agreement, once hailed as the “contract of the century,” is back in the spotlight as watchdogs accuse the Congolese government of striking a deal still heavily tilted in Beijing’s favour.

The coalition “Congo is Not for Sale” says the deal grants Chinese mining companies disproportionate benefits, including full tax exemptions, while leaving Kinshasa exposed to volatile copper prices.

Originally signed in 2008, the deal gave Chinese firms access to vast copper and cobalt reserves in return for infrastructure projects. It was renegotiated in 2023 to increase investment from $3.5 billion to $7.5 billion, with the government calling it a “win-win” arrangement.

But campaigners argue the changes failed to correct earlier flaws. They estimate the state loses at least $100 million annually in revenue because of tax waivers, while infrastructure financing - set at over $300 million a year - is only guaranteed if copper prices remain at or above $8,000 per tonne.

If prices fall, funding dries up; if prices soar, Congo gains no extra benefit. Critics also warn the fixed-payment structure ignores how much ore is actually extracted, depriving the country of profits from booming demand for cobalt, a vital component in electric car batteries.

Kinshasa insists the partnership will still deliver roads, hospitals, and schools - but watchdogs argue it keeps the Congolese locked in a resource trap.

Fact-Check and Background Context
The original 2008 deal was struck between the Congolese state and two Chinese companies, Sinohydro and China Railway, giving them extensive mining concessions in exchange for infrastructure development. 

A decade later, international financial institutions such as the IMF raised concerns over transparency and sustainability, warning that the state was not getting fair value. 

The 2023 renegotiation was presented by the government as a breakthrough that would deliver nearly $4 billion in extra benefits and double infrastructure commitments to $7.5 billion. 

However, watchdogs argue the fine print still disadvantages Congo by tying financing to copper market fluctuations, fixing annual payments regardless of mineral volumes, and maintaining wide tax exemptions. 

With the DRC producing over 70 percent of the world’s cobalt, the deal has significant implications for global green technology supply chains and for the country’s economic sovereignty.

🏷 Tag: Congo, DRC, China, Mining, Copper, Cobalt, Infrastructure, Economy, Watchdogs
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