Analysis of Chinese convention with DR Congo

DFID, The Democratic Republic of Congo

In 2008 the Democratic Republic of Congo (DRC) began negotiating deals with Chinese consortia consisting of investment banks, and construction and mining companies. Each deal was reputed to be well over $5 billion dollars and consisted of investments mainly in infrastructure, in exchange for minerals. The UK took a public position welcoming Chinese investment in DRC though there were concerns as to the compatibility of such deals with debt relief.

DFID wanted to ensure that the DRC can benefit from Chinese investment and from debt relief without either being delayed. The objective of this analysis was to set out clearly the key facts and issues of the DRC, China Railway Group Ltd. and Sinohydro Corporation deal, covering the possible growth, debt relief, aid flows and poverty reduction implications and how this deal compares to other deals of this scale and nature elsewhere in the world.

Two Mokoro consultants provided an analysis for DFID of a convention relating to mineral rights and the provision of infrastructure.

The people behind the project

Graham Scott, Lynne McKenzie