South Africa and DRC ink a new electric batteries deal
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Business Staff Reporter Garowe Online
- Posted On 08-07-2023, 05:46PM
NAIROBI, Kenya - A new deal has been reached between South Africa and the Democratic Republic of Congo on the manufacture of electric batteries will be explored.
Presidents Cyril Ramaphosa and Felix Tshisekedi agree on exploring the electric batteries deal during a bilateral business forum in Kinshasa.
DRC has abundant lithium mineral reserves, and the production of electric batteries is an excellent area of cooperation between South Africa and the DRC.
Lithium helps make lithium-ion batteries, which are key elements of the fast-rising electric vehicles industry.
Experts argue that the electric vehicles market will cross $850 billion in 2027. Lithium is also widely used in powering the roughly $500 billion smartphone industry. Additionally, it makes portable electronics such as laptops, a market which is worth about $160 billion.
The two countries also signed the Inga 3 project that will see DRC export electricity to South Africa.
This is a World Bank-supported project, which is located on the Congo River and aims to generate 11GW of power. The bulk of the electricity from 3 projects will also be used in the mines in the eastern DRC.
Once complete, Inga 3 seeks to reduce the electricity deficit in both DRC and South Africa. “The World Bank is once again keen to get back involved in this project,” said Tshisekedi.
In return, Ramaphosa urged businesses operating in the DRC to expand into South Africa. The DRC, according to the president of South Africa, is the historical center of Africa and the “beating heart” of the continent.
“The DRC has an equally important role to play in the future of our continent, with its minerals propelling the new green industrial revolution.
“It is for this reason that we want to see more South African companies investing in the DRC, and likewise to see more Congolese companies investing in the South African economy,” Ramaphosa said.
Ramaphosa was speaking in Kinshasa during his working visit at the invitation of President Tshisekedi. In the tour, Ramaphosa co-chaired the Heads of State and Government section of the 12th Session of the DRC-South Africa Bi-National Commission (BNC) in Kinshasa.
The South African head of state pointed out that BNC underscores the importance of the relationship between the two economies. Accompanied by over 10 ministers, Ramaphosa told the delegates that the visit was taking place amid challenges.
President Ramaphosa also cited the COVID-19 pandemic’s consequences as well as rising food and fuel costs as a result of the Russia-Ukraine war. He claimed that these issues, along with climate change, have a detrimental effect on businesses and communities.
“And yet even though we face some challenges, we are a continent brimming with potential and opportunity. From North Africa to South Africa, from East to West, and here in Central Africa, we are favored with vast endowments.”
He emphasized to the officials the countries’ rich mineral and fossil fuel reserves. They also have a lot of land that is arable and a lot of water.
“We have a diverse terrain that supports all manner of infrastructure development, including renewable energy. And yet these vast endowments are not producing favorable economic and developmental outcomes evenly across the continent.”
The South African corporation GUMA Africa offered DRC 300 agricultural tractors at the conclusion of the DRC-RSA business meeting. The action will boost the 145 territories’ Local Development Program. The firm will provide additional 5900 construction vehicles for road construction and restoration in the DRC.
GAROWE ONLINE
