France and EU nations pledge €50 million worth of investment in DRC’s mining sector

KINSASHA - French President Emmanuel Macron has pledged to lead other European Union Member states in pumping over €50 million into the mining sector and infrastructural projects in the Democratic Republic of the Congo, DRC.

The investment was revealed at the inaugural Kinshasa Economic Forum, which included representatives from France, the EU, and the DRC.

French President Emmanuel Macron was in attendance together with the European Commissioners for the Internal Market and International Partnerships, Thierry Breton and Jutta Urpilainen, as well as more than 50 CEOs of French companies.

EU’s Global Gateway program seeks to offset China’s Belt and Road Initiative, which is an investment in geological mapping, urban infrastructure, and digital education initiatives in the DRC and other African states.

Currently, the EU’s Global Gateway program has a budget of $300 billion, which is mostly aimed to boost vital infrastructure projects in African nations as well as investments in the energy and manufacturing industries.

Despite having an estimated €23 trillion worth of raw materials reserves, including almost half of the world’s largest cobalt reserves, DRC primarily exports raw minerals losing out on value-added benefits. China has been the largest beneficiary having imported 84% of the DRC’s cobalt exports in 2019.

EU’s Commissioner for International Partnerships-Jutti Urpilainen emphasized that collaborations with the DRC must be about more than just mining and urged for a win-win partnership that expands the full value chain and encourages refining and manufacturing in the DRC.

The EU’s Essential Raw Minerals Act, which aims to secure crucial raw resources like lithium, cobalt, manganese, and rare piles of earth required for electric vehicles and wind turbines, will be published, according to Commissioner Breton, in mid-March.

DRC’s economy is growing, with 6.1% GDP growth expected in 2022 and 6.7% expected in 2023, according to the most recent IMF data.

It is a nation with investment potential due to its strategic minerals, which are crucial for the shift to green energy. Due to institutional advancements, credit rating agency Moody’s raised DRC’s rating in November of last year from Caa1 to B3 with a stable outlook.

“Creditworthiness remains hampered by its very low GDP per capita, low competitiveness, still-weak institutions, and deteriorating political risk environment,” the agency noted.

GAROWE ONLINE