China in the Democratic Republic of Congo (DRC)

DRC has large reserves of minerals. Including 34% of the world’s coltan reserve and 10% of copper. However, output does not meet capacity due to bad management and lack of infrastructure among other things. Natural resources played a great part during the war at the end of the century. Coltan and other commodities were looted by forces, foreign as well from within the country. Thus prolonging the conflict. DRC has recently announced that they plan to implement coltan certification during 2009.

Exports consist of diamonds (69,3% - of which industrial 14,4%) and oil (8,8%) to a large extent. China imports mainly cobalt and copper from DRC, but also wood.

In 2007 DRC signed deals with Chinese for varying projects, in particular one where Chinese ExIm Bank would provide US$8,5 billion to build infrastructure and develop the mining industry. The IMF has warned of the possible effects such a loan would have on the DRC economy, but with the economic condition Congo is in, counting as one of the poorest countries in the world, it might be a welcome boost. Congo has set terms to the agreement, regarding what is to be done, the labor force and environmental costs for example, and that could prove to be a smart move.

Chinese embassy in DRC
Information on the US $8,5 billion loan