China Agrees To Change Terms Of Investment Deal in Africa
China and DR Congo (former Zaire) have agreed to change the terms of the biggest Chinese investment deal in Africa.
International Monetary Fund (IMF) Country Director Brian Ames said the changes to a minerals-for-infrastructure deal, initially valued at 9 billion US dollar, should allow Congo to push ahead with a request for debt relief.
Under the original deal, a consortium of state-owned Chinese companies agreed to build roads, railways, hospitals and universities in return for the right to develop a copper and cobalt mine.
But pressure to alter it had come from western donors that refused to offer DR Congo relief on a historic debt of 11 billion dollar because of concerns over state financial guarantees the deal contained, which could threaten DR Congos ability to manage its debt.
The changes will narrow to 6 billion from 9 billion dollar the value of the deal with China. The World Bank has estimated some 7 billion dollar of debt owed by DR Congo to international institutions and other governments would be written off.
World Bank President Robert Zoellick said after talks with President Joseph Kabila during a visit to DR Congo last week that the country would aim to complete economic and social targets to win debt relief by March next year.
The former colony of Belgium is a huge mineral-rich country in the heart of the continent, bordering nine other African nations, and untill recently haunted by a bloody civil war, costing millions of lives
According to a report released by the Chinese Ministry of Commerce (MOC) Tuesday Chinas direct investment in Africa rose 81 percent in the first half year from the same period last year to 552 million dollar.
Kilde: www.worldbank.org
