Posts Tagged ‘CONGO’

China-Africa: Congo to downsize Chinese deal in debt relief bid

Wednesday, August 19th, 2009

By Joe Bavier

KINSHASA, Aug 18 (Reuters) - The Democratic Republic of Congo announced on Tuesday it would downsize a controversial infrastructure-for-minerals deal with China, winning IMF assurances it could be in line for swift debt relief.

The International Monetary Fund feared the contract to use Congo’s mineral reserves as a guarantee for infrastructure projects could plunge the African nation deeper into debt and had delayed forgiveness of most of the $10 billion Congo owes.

The changes will narrow to $6 billion from $9 billion the value of the deal with China, which has overtaken the United States as Africa’s top trading partner.

“During our visit the authorities … told us that the partners have accepted the amendments in the project of the Sino-Congolese agreement including the removal of the government’s guarantee on the mining project,” IMF mission chief for Congo Brian Ames told reporters after talks in Kinshasa.

Congo central bank governor Jean-Claude Masangu told the same news briefing it would suspend a $3 billion infrastructure phase of the project that also raised IMF concerns.

“When the IMF services confirm that the revised agreement is compatible with the viability of the debt, the Congolese authorities will be in measure to solicit financial assurances for (a new IMF) program from the lenders of the Paris Club,” said Ames.

“The administrative council of the IMF will then rapidly be able to examine the request for a new three-year HIPC (Heavily Indebted Poor Countries) program,” he added of a plan launched in 1996 to help poor countries with their debt burden.

“Today, we have swept away all the problems that the Chinese contract could pose,” said Masangu.

ON THE BACK-BURNER

The IMF did not detail the extent of possible debt relief. A figure of $7 billion worth of non-commercial loans has previously been mooted, which would save Congo around $400 million in annual payments.

The IMF had previously cited the two amendments as critical to ensuring the deal would not add to Congo’s debt burden.

The contract with China is a cornerstone of Congo’s post-conflict reconstruction policy following decades of dictatorship and a 1998-2003 war that left the former Belgian colony’s infrastructure in ruins.

The deal was to have included two phases of infrastructure projects with a total price tag of $6 billion aimed at rehabilitating thousands of kilometers of road and rail connections and constructing schools and hospitals.

“The second phase of infrastructure for three billion, we’ve put on the back-burner,” said Masangu. “So with this three billion gone, we are now talking about six billion.”

In addition to the first phase of infrastructure projects that will remain, $3 billion is earmarked to develop new Chinese copper and cobalt mines in mineral-rich Katanga province.

“Concerning the mining project, there was a guarantee from the state. The Chinese partners are no longer demanding a guarantee from the state. We are left with an purely commercial contract,” said Masangu.

China-Africa: Congo Defends China Mineral Deal

Thursday, August 13th, 2009



The Democratic Republic of Congo is defending a $9 billion mineral deal with China that is holding up a major international agreement aimed at reducing the DRC’s external debt.

China’s biggest investment deal in Africa would give state-owned firms the right to develop Congolese copper and cobalt mines in exchange for building roads, railways, hydroelectric dams, universities, airports and hospitals.

But the International Monetary Fund is holding off on debt relief for Congo because it says the agreement could lead to an explosive growth in debt, in part, because it is financed on commercial terms at a time when low commodity prices mean mining revenue may not cover as much of the infrastructure costs as originally planned.

Congolese Foreign Minister, Alexis Thambwe Mwamba says the agreement with China is good for Congo after generations of mineral exploitation by foreign firms.

For more than 100 years, Mwamba says, the riches of Congo have served to develop foreign countries, but not Congo, in what he calls a geologic scandal.

Some members of the Paris Club, an informal group of financial officials from several the world’s richest countries, are critical of the agreement because it gives the consortium of Chinese state-owned firms financial guarantees, including specific revenue set-asides, that make China a privileged creditor.

Congolese Foreign Minister Mwamba says it is not just about China.

Mwamba says President Joseph Kabila’s government is taking a new approach with partners to use mineral resources to help build the country’s infrastructure. He says it is not only about China and that it could include business partners from Australia, France, Belgium and the United States who want to help ease poverty in Congo by investing in water and electricity.

Hillary Clinton addresses panel discussion in Goma, Congo, 11 Aug 2009
Hillary Clinton addresses panel discussion in Goma, Congo, 11 Aug 2009

The foreign minister spoke to reporters following a meeting with U.S. Secretary of State Hillary Clinton. U.S. officials would not say whether Clinton brought up the Chinese mineral deal. When asked about China’s growing influence in Africa, Clinton said she is not looking at what anyone else is doing, only at what the United States can do.

The secretary of state did bring up the issue of illegal ore and diamond mining in Eastern Congo, the profits of which help fund militias there.

“I think the international community must start looking at steps we can take to try to prevent the mineral wealth from the DRC ending up in the hands of those who fund the violence here,” Clinton said. “Of course, you know that many of the mineral producers are very small operations; they are not corporations even. They are certainly not international. So this is a very challenging problem. But we are going to address it.”

Clinton told President Kabila that she would like Congo to comply with the Norwegian-based Extractive Industries Transparency Initiative, which aims to improve accountability in oil and natural gas production as well as mining.

Africa: Clinton Gets Irritated in Congo When Asked About Husband Bill

Tuesday, August 11th, 2009

By Janine Zacharia

(Bloomberg) — U.S. Secretary of State Hillary Clinton showed irritation today in the Democratic Republic of Congo when she was asked what her husband, former President Bill Clinton, thought about a Chinese deal with the African nation.

“You want me to tell you what my husband thinks?” Clinton responded to a question, posed through a translator, from a university student at a town hall meeting in the capital, Kinshasa. “My husband is not secretary of state. I am. If you want my opinion I’ll tell you my opinion. I’m not going to be channeling my husband.”

An aide to Clinton said State Department officials on the trip listened later to a tape of the question and determined it had been translated correctly. Afterward, the student approached Clinton and apologized, said the aide, who discussed the matter on the condition of anonymity.

China has proposed a $9 billion loan for infrastructure improvements in Congo in exchange for control of 10 million metric tons of copper and 600 million tons of cobalt.

The International Monetary Fund said in May that Congo wouldn’t qualify for $10 billion in debt relief until the offer is altered so the Congolese government is no longer the guarantor for the Chinese loan. The IMF wants to avoid burdening Congo with further debt.

The start of Clinton’s seven-country trip to Africa was overshadowed last week as her husband flew to North Korea, met with dictator Kim Jong Il, and won the release of two U.S. journalists, Laura Ling and Euna Lee, who had been detained for more than four months.

To contact the reporter on this story: Janine Zacharia in Kinshasa, Congo, at jzacharia@bloomberg.net

(bloomberg.com)

China-Africa: Congo’s laborers find harsh conditions at Chinese-run plants

Saturday, July 25th, 2009

LUBUMBASHI, Congo — Here in one of the richest mineral belts in the world, where copper and cobalt almost seem to burst from the rugged earth, the people have grown accustomed to foreign opportunists. Anger is mounting, however, at some of the newest arrivals: businessmen from China.

At lunch hour outside the smelters near Lubumbashi, the gritty capital of southern Congo’s mining country, workers in fraying clothes and canvas sneakers rattle off complaints about their Chinese employers: wages of as little as $3 a day, backbreaking hours and a lack of safety equipment, which many said had led to severe on-the-job injuries and even deaths.

“We don’t have a choice but to keep working. Life is hard, and we have to survive,” said Andre, 26, whose younger brother died in an accident last year while toiling on the graveyard shift at a private, Chinese-owned smelter. While raking a slag pit early one morning, a sudden noise startled 21-year-old Akahika, who lost his balance, fell into the scorching slag and was burned to death almost instantly.

Like many workers who were interviewed for this story, Andre asked that his full name not be used, in order to shield him from retribution by his employers. His story and those of other workers offer a glimpse into a little-known — and little-regulated — slice of China’s dramatically expanding relationship with the world’s poorest continent.

As Beijing increasingly looks to Africa as a market for its inexpensive goods and a major source of raw materials, war-torn Congo, which boasts enormous natural wealth yet needs help with almost everything else, has emerged as a key trading partner. As the countries prepare to cement a record $9.5 billion trade deal, however, Congolese activists say that Beijing is turning a blind eye to substandard labor practices at the dozens of small, privately owned Chinese smelters that have cropped up across the southern mining province of Katanga.

A leading Congolese watchdog group, Action Against Impunity for Human Rights, says it’s documented dozens of cases of abuses. In one case from last year, a worker said he was punched repeatedly by three supervisors, including one Chinese man. In another, a worker suffered debilitating burns on his legs when he fell into an oven, and his employer refused to pay the medical bill.

Chinese companies can treat their employees pretty much as they please, the group wrote in a forthcoming report, because workers are desperate and local authorities either lack the capacity to enforce domestic labor laws or are easily bribed to ignore violations. In June, civil servants in Katanga went on strike after several weeks without receiving paychecks.

“The weakness of our government, for the Chinese, represents a business opportunity,” said Jean-Pierre Okemba, one of the rights group’s investigators. “We don’t want a relationship like that.”

Chinese officials say these are private businesses, unattached to the government in Beijing, and that they have no power to regulate them. China’s trade with Africa soared to a record $107 billion last year, surpassing the volume of trade between Africa and the United States for the first time. If the mammoth China-Congo trade deal is approved, Beijing would win lucrative mining concessions in exchange for building roads, railways and other infrastructure that Congo desperately needs.

“They keep their workers in really the bare minimum of conditions,” said Jean-Pierre Muteba, a Congolese trade union leader. “They operate right on the limits of what is legal.”

Isaac Sesemba, 24, worked last year at Huaxin Mining, a small smelter hidden behind a red gate a few miles outside Lubumbashi. He handled raw metals but was never given gloves, and though a noxious metal dust constantly swirled around the compound, few workers had masks.

Sesemba earned $3 a day, but despite working for nearly a year, he was never offered a contract, as Congolese labor laws require. When copper and cobalt prices plummeted last year during the worldwide economic crisis, the company shut down and Sesemba and dozens of other workers were laid off, some of them still owed days’ worth of pay.

A McClatchy reporter attempted last month to interview officials at Huaxin and four other Chinese smelters but was denied entry repeatedly. Wu Zexian, China’s ambassador to Congo, said he was aware of the allegations but that the Chinese government wasn’t responsible for the actions of private companies.

“The Chinese government’s position is very clear: Every Chinese company working overseas must strictly follow the laws of the country it works in,” he said.

He added: “I have confidence in the Congolese authorities to regulate their activities.”

Experts said, however, that Beijing did indeed have leverage over private entrepreneurs, most of whom are backed by financing from state-owned Chinese banks.

“Any Chinese operation in Congo has a fairly strong level of state ownership in it,” said one Western expert who works in Katanga. “The only way they can be operating is if they have liquidity and cash for investment.” She spoke only on the condition of anonymity in order to protect her organization’s impartiality.

To be sure, there are few saints in Congo’s mining industry, a rough-and-tumble sector populated by U.S. and European corporate giants and small-time speculators from places such as China, Lebanon and India. In recent years, however, the large Western companies — such as Phoenix-based Freeport-McMoRan — have raised salaries and instituted workplace reforms, often after pressure from domestic politicians and watchdog groups.

The small-scale sector, which has come to be dominated by Chinese entrepreneurs, is far less well-regulated. These individuals don’t own official mining concessions; instead, they purchase raw metals from individuals and process them for export — often to neighboring Zambia, along a Chinese-built road.

While Beijing likes to describe its investments as a “win-win” for African nations, a case of developing nations helping each other, many Congolese have grown deeply resentful of Chinese business practices. When metals prices plunged late last year, dozens of Chinese firms closed down without warning, leaving hundreds of workers unemployed. Labor activists said that in some cases, workers showed up one morning to find gates padlocked and their employers’ cars missing.

At the time, the governor of Katanga angrily vowed not to allow the firms to return. Several companies have resumed operating in recent months, however, and tired-looking men who muttered that they hated working for the Chinese nonetheless lined up outside the gates of smelters at daybreak, hoping for a day’s pay.

“There’s a sense of racism between the Congolese and the Chinese, and the dynamic has become very antagonistic on the ground,” said Lizzie Parsons, a Congo expert with Global Witness, a British-based watchdog group, “but people are desperate for jobs, so they do it.”

MORE FROM MCCLATCHY

(mcclatchydc.com)

China-Africa: China vows closer bonds with DR Congo

Tuesday, July 21st, 2009

Xinhua

Wu   Bangguo and Evariste Boshab

China and the Democratic Republic of Congo (DR Congo) agreed on Wednesday to strengthen bonds between parliaments and ruling parties.

The agreement was reached in a meeting between China’s top legislator Wu Bangguo and Evariste Boshab, speaker of the DR Congo’s National Assembly and secretary general of the People’s Party for Reconstruction and Democracy (PPRD), the country’s ruling party.

Wu praised the vibrant exchanges between governments, parliaments and political parties, and trade, military and education cooperation and close coordination in regional and international affairs.

Wu, chairman of the Standing Committee of the National People’s Congress (NPC), China’s top legislature, said China appreciated the support of DR Congo on major issues concerning China’s core interests.

He vowed to continue support for the DR Congo in its efforts to maintain national security and social stability.

The DR Congo was an important cooperative partner in Africa, and the Chinese government and the ruling party were ready to strengthen exchanges and explore new ways to step up cooperation.

Boshab told Wu Congo’s government and ruling party had made a strategic decision to develop relations with China. His country appreciated China’s domestic and foreign policies.

He called for closer cooperation in trade, infrastructure construction, energy and resources.

Wu said he hoped the Chinese NPC and the DR Congo’s National Assembly would strengthen dialogue among special committees while maintaining high-level exchanges.

Boshab rejected criticism of China-Africa cooperation as “new colonialism” at a joint press conference with the Chinese media, saying that only African and Chinese peoples were in the position to comment truthfully on the Africa-China cooperation.

“Those critics, bearing their own ulterior motives, only hope to see Africa always struggling in poverty and wars,” Boshab said through a Chinese translator.

Boshab said the use of the word “neocolonialism” to tar Africa-China cooperation only aimed to frustrate China and force African countries to return to the past colonialists for cooperation.

“Ever since we succeeded in national independence, we found China as a good partner for cooperation…and it’s our own choice (to cooperate with China) and no matter what those critics may say, we will adhere to our choice to develop cooperation with China,” Boshab said.

China never had a history of colonialism and always honored the principles of equality, mutual respect and mutual benefit when promoting cooperation with African countries, unlike the countries that used to colonized Africa, Boshab said.

He cited China-DR Congo cooperation as an example of the benefits of cooperation in fields such as trade, infrastructure, public health and education, especially to the Congolese people.

“As a country torn by wars and just starting its efforts on post-war construction, the DR Congo values its cooperative relations with China. To us, it’s vital for our national development,” Boshab said.

Boshab’s fourth visit to China, from July 13 to 19, is at the invitation of the Communist Party of China.

()

China-Africa: China vows closer bonds with DR Congo

Thursday, July 16th, 2009
Wu Bangguo (R), member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of        China and        chairman of the Standing Committee of the National People's Congress, China's top legislature, meets with Evariste Boshab, speaker of the National Assembly of the Democratic Republic of Congo (DR Congo) and secretary general of the People's Party for Reconstruction and Democracy, in Beijing, capital of China, on July 15, 2009. (Xinhua/Pang Xinglei)

Wu Bangguo (R), member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China and chairman of the Standing Committee of the National People’s Congress, China’s top legislature, meets with Evariste Boshab, speaker of the National Assembly of the Democratic Republic of Congo (DR Congo) and secretary general of the People’s Party for Reconstruction and Democracy, in Beijing, capital of China, on July 15, 2009. (Xinhua/Pang Xinglei)
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BEIJING, (Xinhua) — China and the Democratic Republic of Congo (DR Congo) agreed on Wednesday to strengthen bonds between parliaments and ruling parties.

The agreement was reached in a meeting between China’s top legislator Wu Bangguo and Evariste Boshab, speaker of the DR Congo’s National Assembly and secretary general of the People’s Party for Reconstruction and Democracy (PPRD), the country’s ruling party.

Wu praised the vibrant exchanges between governments, parliaments and political parties, and trade, military and education cooperation and close coordination in regional and international affairs.

Wu, chairman of the Standing Committee of the National People’s Congress (NPC), China’s top legislature, said China appreciated the support of DR Congo on major issues concerning China’s core interests.

He vowed to continue support for the DR Congo in its efforts to maintain national security and social stability.

The DR Congo was an important cooperative partner in Africa, and the Chinese government and the ruling party were ready to strengthen exchanges and explore new ways to step up cooperation.

Boshab told Wu Congo’s government and ruling party had made a strategic decision to develop relations with China. His country appreciated China’s domestic and foreign policies.

He called for closer cooperation in trade, infrastructure construction, energy and resources.

Wu said he hoped the Chinese NPC and the DR Congo’s National Assembly would strengthen dialogue among special committees while maintaining high-level exchanges.

Boshab rejected criticism of China-Africa cooperation as “new colonialism” at a joint press conference with the Chinese media, saying that only African and Chinese peoples were in the position to comment truthfully on the Africa-China cooperation.

“Those critics, bearing their own ulterior motives, only hope to see Africa always struggling in poverty and wars,” Boshab said through a Chinese translator.

Boshab said the use of the word “neocolonialism” to tar Africa-China cooperation only aimed to frustrate China and force African countries to return to the past colonialists for cooperation.

“Ever since we succeeded in national independence, we found China as a good partner for cooperation…and it’s our own choice (to cooperate with China) and no matter what those critics may say, we will adhere to our choice to develop cooperation with China,” Boshab said.

China never had a history of colonialism and always honored the principles of equality, mutual respect and mutual benefit when promoting cooperation with African countries, unlike the countries that used to colonized Africa, Boshab said.

He cited China-DR Congo cooperation as an example of the benefits of cooperation in fields such as trade, infrastructure, public health and education, especially to the Congolese people.

“As a country torn by wars and just starting its efforts on post-war construction, the DR Congo values its cooperative relations with China. To us, it’s vital for our national development,” Boshab said.

Boshab’s fourth visit to China, from July 13 to 19, is at the invitation of the Communist Party of China.

China-Africa: Problems remain over Congo’s Chinese contract -IMF

Monday, May 25th, 2009

By Joe Bavier

KINSHASA, (Reuters) - Congo and the International Monetary Fund have yet to resolve disagreements over a Chinese infrastructure-for-minerals package that is blocking much needed debt relief, IMF Managing Director Dominique Strauss-Kahn said on Sunday.

Under the $9 billion package signed early last year, cash-strapped Democratic Republic of Congo granted Chinese companies lucrative copper and cobalt concessions in exchange for the building of roads, railways, and hospitals.

IMF officials worry the contract, a key element of President Joseph Kabila’s post-war economic policy, will plunge the central African nation deeper into debt, and have delayed forgiveness of most of the $10 billion Congo already owes.

Strauss-Kahn, who is in Congo on a three-day visit aimed at relaunching a formal programme there, told journalists after a meeting with Kabila and Prime Minister Adolphe Muzito that the two parties were still seeking a way out of the impasse.

“I think that it’s possible, but it’s not certain … If we leave things as they are, there could be elements of contradiction,” he said.

The IMF has said it will wait for the results of the Chinese contract’s feasibility study, expected next month, before it takes a decision on debt relief.

Congolese officials say the government will not incur any further debt as a result of the deal and that the projects are necessary to rebuild the vast country after decades of dictatorship and a devastating 1998-2003 war.

“These two things are sometimes a bit difficult to put in place at the same time. That is why we must work on this. But I think that it is possible to get there. It’s not done yet. We’re not there yet,” Strauss-Kahn said.

He said he hoped the issue of debt relief could be resolved in the coming weeks.

ECONOMY IN CRISIS

Congo’s mining-driven economy has been crippled by the global economic downturn that has led to a fall in demand for mineral exports, its primary foreign currency earner. Income from mining and oil exports make up around 60 percent of state revenues.

Benchmark world prices for copper MCU3, Congo’s primary mineral export, on the London Metal Exchange traded at around $4,600 per tonne on Friday, down from a record high of almost $9,000 per tonne last July.

In March, the IMF slashed Congo’s 2009 growth forecast to 2.7 percent from an October projection of more than 10 percent.

Direct foreign investment, primarily in the mining sector, was slashed by around two-thirds.

By February, Congo’s foreign reserves had all but evaporated.

Central bank interventions in the local currency market, backed by an IMF disbursement of around $200 million in emergency funds, have in recent weeks helped stabilise the country’s sliding franc currency <CDF=>. (Editing by Daniel Magnowski and Jan Paschal)

Africa: Baby Gorilla Seized in Trafficking Ring Bust

Tuesday, May 5th, 2009

A baby gorilla has been seized from animal traffickers by ICCN following a 3-month undercover investigation to bust an international wildlife smuggling ring. This operation was led by Emmanuel with the participation of a key group of Rangers and Pierre.

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Here she is - recently rescued with… you guessed it… Faustin

You can read more about it here (we just issued a press release), but here are the main elements:

One suspected trafficker was caught and arrested at Goma International Airport on Sunday while disembarking from a flight from Walikale (in the interior of the country and close to gorilla habitat) with an eastern lowland gorilla (remember these animals are only found in DR Congo). The gorilla was found concealed under clothes at the bottom of a bag and was suffering from over-heating and dehydration after spending over 6 hours in transit.

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The Gorilla Doctors have overseen her care so far. She has a puncture wound on her right leg and has sustained other injuries. Plus she is really weak, dehydrated, and malnourished. Dr Eddy has been tending to her and she is responding to treatment, which is the good news. These next few days are crucial however.

This is what Emmanuel said in the press release:

Our work has revealed a significant upsurge in the trafficking of baby gorillas in recent months, possibly as a result of the war last year. Investigations have yet to reveal where these animals are being sent and who is buying them, but on the ground sources tell us that a baby gorilla can fetch up to $20,000,” said Emmanuel de Merode, Director of Virunga National Park. “We must remember that for each trafficked baby gorilla, several gorillas have probably been killed in the wild. If we want to preserve our gorillas - and other wildlife - significant resources must be invested to put a stop to these trafficking rings.”

Pierre and Katya are just editing a video that they want to upload on YouTube. It is pouring with rain at the moment so the connection is terrible - so please be patient. But the video should be up within the next few hours.

(gorilla.cd)

Africa: Is Congo Moving in the Right Direction? President Kabila Thinks so

Tuesday, April 28th, 2009

In a recent interview with The New York Times, Joseph Kabila, President of the Democratic Republic of Congo (DRC), was asked about how things were going in the Congo (DR). He responds that the country is moving in the right direction and the country as a whole is starting to talk of peace, and long term peace. An optimistic outlook that many Congolese hope will become a reality in near future.

But what got DRC in such chaos state in the first place is not surprising. Like many African nations becoming autonomous from their colonial rulers in the sixties, DRC did so from Belgium in 1960. What followed was a typical Africa’s blueprint for self destruction. A toxic mixture of WMDs: Wars, Military Coups, and Dictatorships that left the country in a huge financial hole: $12 billion in debt and caused 5.4 million deaths from wars since 1998, according to the International Rescue Committee.

In his interview, President Kabila cautions Rwanda’s hidden agenda in reference to the control and illegal exploitation of natural resources - root cause of violence in this Kivu region bordering both countries. Note that, a Group of Experts (an UN-mandated group), in its final report released on December 2008, found evidence that the Rwandan authorities and the Congolese army have given support to opposing rebel groups in the war-ravaged east of the country.

Asked whether he was okay with Laurent Nkunda (the former CNDP rebel leader captured by Rwandan troops) joining the Congolese army as a general. He said that “that’s out of the question.”

On the other hand, Bosco Ntangada, a member of the rebel group CNDP (the National Congress for the Defense of the People), now re-born as a political party, has been considered for a top position in the Congolese army despite the International Criminal Court warrant arrest.

President Kabila also talked about the inefficiency of the 17,000 MONUC troops scattered throughout the country.

On economy, he said that the conflict has been “very painful,” and that “that 80 percent of [his] time, [is] spent on working on how to resolve the problems in North and South Kivu instead of working on [his economy agenda]. An economic agenda mainly based on infrastructure buildings, job creations, education, water and electricity and health.

He also talked about the controversial $9 billion development deal with China. A deal, to which Western donors have threatened to hold the cancellation of a planned debt relief package of $11bn if Congo (DR) went ahead with it.

About AFRICOM having a military base in the Congo, he said that “[c]reating a base in the Congo is out of the question. We don’t believe the Congo should be the base for anybody or any power, not at all. But we do have a plan for the American government to train some of our troops.” This explains the two-day visits this week by the US commander of US Africa Command, General William E. Ward, in the capital of Congo, Kinshasa.

To read the complete interview, visit the New York Times, here.

(Africaloft.com)

China-Africa: China provides humanitarian aid to DR Congo

Wednesday, March 25th, 2009

KINSHASA, (Xinhua) — Chinese Assistant Foreign Minister Zhai Jun arrived in the Democratic Republic of Congo (DR Congo) for a two-day visit during which he unveiled humanitarian aid to refugees in the central African country.

Zhai and his Congolese counterpart Ignace Gata Mavita held talks before signing economic and trade agreements between the two countries, including 4 million RMB (about 600,000 U.S. dollars) in humanitarian aid to the refugees in the eastern part of the country.

Congolese Prime Minister Adolphe Muzito met with Zhai later in the day to discuss cooperation between the two countries and the global financial crisis.

“China is ready to deepen the win-win cooperation between our two countries, even in the face of the financial crisis which hits the whole world. China is always convinced about the prospects for the Sino-Congolese relations,” the visiting Chinese diplomat announced after talks.

DR Congolese President Joseph Kabila is scheduled to receive Zhai on Tuesday.

The Chinese official is on a three-nation African trip which will also take him to Benin and Equatorial Guinea.

Editor: Bi Mingxin

China-Africa: China in the Congo

Tuesday, February 10th, 2009

Chinese officials like to describe burgeoning relations between Beijing and Africa as “win-win”. Africa wins from Chinese investment, infrastructure and loans. China wins by gaining access to African markets and resources to fuel domestic growth. The reality, however, is rarely so simple and in the Democratic Republic of Congo, where China pitched its most ambitious African deal in 2007, all sides, now risk emerging as losers.

The China-Congo deal provided for $9bn of Chinese investment in roads, railways, schools and clinics and in the rehabilitation of the mining sector. In return, Congo would cede majority rights in a joint venture to develop copper and cobalt concessions. Any difference that might emerge between the cost of infrastructure and revenues from the mines would be underwritten by the Congolese state.

For the Chinese it was a classic win-win scenario. Congo is struggling to emerge from a decade of conflict and three prior decades of dictatorship. Its infrastructure and institutions are not so much in ruins as non-existent. No other investor or foreign donor has come forward with as ambitious a development programme. Nor can any other African country match Congo’s untapped reserves of base and precious metals.

On paper, even if the details contain flaws, the deal could benefit Congo. If it has not turned out so, it has much to do with the toxic legacy of Congo’s relations with the west. The country is saddled with $10bn of external debt stored up from the days of Mobutu Sese Seko, the dictator. It has little to show for it, and certainly no roads or schools. This was money used to appease a cold war ally long after it became clear President Mobutu was stashing it in Swiss banks. Yet Congo’s western creditors are reluctant to write it off only to see new debt contracted to China on commercial terms.

The Kinshasa government is squeezed on all fronts. It has failed, through poor governance of its own, to make the moral case for debt relief, which is as strong in Congo as in any indebted African country. In the short term its finances are in desperate shape, and it must curry favour from traditional western donors. Yet China’s alternative development financing looks a more ambitious long-term bet.

It ought to be possible to have both. By insisting that Congo renegotiates its deal on more favourable terms than Beijing is prepared to give, western donors risk leaving Congo with neither. Yet the bill for continuing state failure will land in Europe, not Beijing.

Copyright The Financial Times Limited 2009
(http://www.ft.com)

China-Africa: Republic of Congo, China inaugurate radio-television building

Friday, February 6th, 2009

KINSHASA, Feb. 6 (Xinhua) — The president of the Republic of Congo, Denis Sassou, inaugurated a Chinese-built project for national radio and television broadcast in the capital city Brazzaville on Thursday, according to reports reaching here.

Chinese Ambassador in the central African country Li Shuli attended the inauguration of the cooperation project of 7.5 billion FCFA (15 million U.S. dollars).

“With the new building, we will pass from analog to digital (broadcast),” Congolese Minister of Communication Alain Akouala Atipault said at the ceremony to mark the occasion.

The shift is important for media, a must in the Republic of Congo which was the first to build a TV transmission station in sub-Saharan Africa in 1962, according to the minister.

The newly completed project is a five-story building containing a number of studios, enough for 350 professionals for radio broadcast and 450 others for television programs. One of the studios is for public use with a capacity of 250 seats.

The project is seen as a fresh fruit in bilateral cooperation between the two countries, which are bracing for the 45th anniversary of the establishment of their diplomatic relations in the coming days.

Republic of Congo, China hail development in bilateral ties over 45 years

BRAZZAVILLE, Jan. 28 (Xinhua) — The Republic of Congo and China have hailed the development in bilateral ties over the past 45 years, saying celebrations will be held in March to mark the time honored friendship.

The two countries established the diplomatic relations on Feb. 22, 1964, when the Republic of Congo joined the first African countries to recognize the People’s Republic of China. Full story

Africa: DR Congo cancels timber contracts

Friday, January 23rd, 2009

DR Congo cancels timber contracts

Logging worker in eastern DR Congo

Our correspondent says past logging contracts were corruptly agreed

The Democratic Republic of Congo government has cancelled nearly 60% of timber contracts in the world’s second-largest tropical rainforest.

It follows a six-month review of 156 logging deals aimed at stamping out corruption in the sector and enforcing legal and environmental standards.

At the end of the World Bank-backed process, government ministers found that only 65 timber deals were viable.

New contracts will be issued for 90,000 sq km (35,000 square miles) of forest.

Environment Minister Jose Endundo told a news conference in the capital Kinshasa that the other agreements would be cancelled.

“I will proceed within the next 48 hours to notify those applicants having received an unfavourable recommendation from the inter-ministerial commission through decrees cancelling their respective conventions,” he was quoted as saying by Reuters news agency.

“Upon notification of the cancellation decision, the operator must immediately stop cutting timber.”

Mr Endundo also said the government planned to respect a moratorium, introduced during Congo’s 1998-2003 war but widely ignored, on granting new logging deals.

The BBC’s Thomas Fessy in Kinshasa says all the timber agreements were struck during the conflict.

Promises

Amid rampant corruption, huge concessions were gifted to logging companies, which paid almost no tax, he says.

Monday’s decision should reduce the surface area exploited by timber firms by up to half, according to our correspondent.

The Congo Basin is home to the second largest tropical forest in the world after the Amazon, but campaigners say it is being eaten away by logging, mining and agricultural land clearance.

Sarah Shoraka, of Greenpeace, says the new rules must be enforced to protect a vital resource.

“Real economic development is what’s needed,” she told the BBC’s Focus on Africa programme.

“We’ve highlighted tax evasion, and there’s often quite serious disputes between local people and these logging companies.

“The logging companies promise hospitals and schools and they hardly ever deliver these things on the ground.”

(http://news.bbc.co.uk)