The Conversation posted on 3 April 2019 an analysis titled "The DRC and China's Sicomines: Why Future Deals Should Be Different" by Andoni Maiza Larrarte, Universidad del Pais Vasco in Madrid, and Gloria Claudio-Quiroga, Francisco de Vitoria University in Madrid.
More than a decade on, the Sicomines minerals for infrastructure deal has not lived up to expectations. There have been infrastructure project delays as well as unexpected costs. The DRC will not receive any substantial income from the agreement in the foreseeable future. The Sicomines agreement never included any guarantee of the actual value that the Congolese population would get in exchange for the country's main source of wealth. The authors argue that future deals in Africa need to follow a new model.
Showing posts with label copper. Show all posts
Showing posts with label copper. Show all posts
Thursday, April 11, 2019
Monday, October 1, 2018
China, Africa and Debt
South Africa's Sunday Times published on 23 September 2018 an article titled "'Say No To China': Anger Mounts in Zambia over Beijing's Presence." Zambia's main opposition political party has put the country's debt to China at the forefront of its campaign to unseat the current government.
Kenya's Daily Nation published on 23 September 2018 an article titled "Are China's Financial Dealings in Africa a Debt Trap or Bailout?" by Aggrey Mutambo. The article looks at the positive and negative side of China's loans to Africa without reaching a conclusion.
Kenya's Daily Nation published on 23 September 2018 an article titled "Are China's Financial Dealings in Africa a Debt Trap or Bailout?" by Aggrey Mutambo. The article looks at the positive and negative side of China's loans to Africa without reaching a conclusion.
Friday, July 13, 2018
China's Consumption-led Growth and Impact on Africa
The New African published on 4 July 2018 an article titled "What Impact in Africa as China Shifts To Consumption-led Growth?" by Regina Jane Jere.
Based on a recent Moody's report, the author says China's shift from consumption-led growth will have mixed credit implications for African states, flattening the trade volumes of oil and iron ore exporters while benefiting the exporters of non-ferrous metals (copper, cobalt and aluminum) and tourist destinations in Africa.
Based on a recent Moody's report, the author says China's shift from consumption-led growth will have mixed credit implications for African states, flattening the trade volumes of oil and iron ore exporters while benefiting the exporters of non-ferrous metals (copper, cobalt and aluminum) and tourist destinations in Africa.
Wednesday, July 4, 2018
China Scales Down Investment in Democratic Republic of Congo
Foreign Policy published on 27 June 2018 an article titled "The Belt and Road Bubble Is Starting to Burst" by David G. Landry, international development consultant.
In 2007, the DRC signed a resource-for-infrastructure deal originally valued at $9 billion with a consortium of Chinese companies. The Chinese consortium misjudged the market it was entering and the project has been scaled back significantly. The author suggests the project is part of the Belt and Road Initiative (BRI), although it predates announcement of the BRI.
In 2007, the DRC signed a resource-for-infrastructure deal originally valued at $9 billion with a consortium of Chinese companies. The Chinese consortium misjudged the market it was entering and the project has been scaled back significantly. The author suggests the project is part of the Belt and Road Initiative (BRI), although it predates announcement of the BRI.
Wednesday, May 16, 2018
China-DRC: Resource-for-Infrastructure Deal
The China-Africa Research Initiative (CARI) at Johns Hopkins School of Advanced International Studies published in May 2018 a study titled "The Risks and Rewards of Resource-for-Infrastructure Deals: Lessons from the Congo's Sicomines Agreement" by David G. Landry, researcher and consultant.
The Sicomines resource-for-infrastructure agreement signed by the Democratic Republic of the Congo and China in 2007 outlined a mammoth deal worth over $9 billion. It was subsequently scaled back considerably but has remained highly contentious. This paper explores the agreement and highlights the role risk has played from its inception until now. The author concludes that the deal has become much less lucrative for China, largely due to the downward reevaluation of the copper mine's estimated deposits, the downward spiral in copper prices, the the delays and setbacks that have plagued the operations.
CARI also published a policy brief with the same title.
The Sicomines resource-for-infrastructure agreement signed by the Democratic Republic of the Congo and China in 2007 outlined a mammoth deal worth over $9 billion. It was subsequently scaled back considerably but has remained highly contentious. This paper explores the agreement and highlights the role risk has played from its inception until now. The author concludes that the deal has become much less lucrative for China, largely due to the downward reevaluation of the copper mine's estimated deposits, the downward spiral in copper prices, the the delays and setbacks that have plagued the operations.
CARI also published a policy brief with the same title.
Monday, November 6, 2017
Social Impact of Chinese Mining Operations in Africa
The German Institute of Global and Area Studies (GIGA) published in October 2017 a paper titled "At Africa's Expense? Disaggregating the Social Impact of Chinese Mining Operations" by Tim Wegenast, Georg Struver, Juliane Giesen, and Mario Krauser, all of whom are affiliated with GIGA and/or the University of Konstanz.
The paper examines whether Chinese-controlled mining promotes anti-Chinese sentiments among the local populations of sub-Saharan African countries. It concludes that the effect of Chinese mining companies on African local development is ambiguous. While proximity to Chinese-operated mines is associated with anti-Chinese sentiments and unemployment, populations living close to Chinese mining areas enjoy better infrastructure such as paved roads or piped water.
The paper examines whether Chinese-controlled mining promotes anti-Chinese sentiments among the local populations of sub-Saharan African countries. It concludes that the effect of Chinese mining companies on African local development is ambiguous. While proximity to Chinese-operated mines is associated with anti-Chinese sentiments and unemployment, populations living close to Chinese mining areas enjoy better infrastructure such as paved roads or piped water.
Monday, July 10, 2017
China and Angola: A Cautionary Railway Tale
Business Live posted on 6 July 2017 an account titled "Angola's Ghost Railway" by journalist John Grobler.
The rehabilitated 1,348 kilometer Benguela railway between Lobito port on the Atlantic and Angola's border with the Democratic Republic of the Congo (DRC) was to have served as the artery for exporting minerals from the DRC to the Atlantic. The railway, rehabilitated by the Chinese Railway Engineering Corporation and financed by sending Angolan oil to China, ends abruptly on the Katanga side of the Angola-DRC border, a casualty of Angola's crippled economy. The project has also been hobbled by inappropriate Chinese locomotives, faulty bridges, and poorly engineered rail sidings.
The author concludes that the rail project "seems destined to remain a very expensive, made-in-China white elephant."
The rehabilitated 1,348 kilometer Benguela railway between Lobito port on the Atlantic and Angola's border with the Democratic Republic of the Congo (DRC) was to have served as the artery for exporting minerals from the DRC to the Atlantic. The railway, rehabilitated by the Chinese Railway Engineering Corporation and financed by sending Angolan oil to China, ends abruptly on the Katanga side of the Angola-DRC border, a casualty of Angola's crippled economy. The project has also been hobbled by inappropriate Chinese locomotives, faulty bridges, and poorly engineered rail sidings.
The author concludes that the rail project "seems destined to remain a very expensive, made-in-China white elephant."
Wednesday, April 5, 2017
China, Zambia and Resource Nationalism
The East Asia Forum published on 31 March 2017 an analysis titled "China and Zambia's Resource Nationalism" by Celine Wang, Public Policy Centre in Kazakhstan.
The author argues that the failure of Zambia's industrial development to deliver greater benefits for the Zambian people has resulted in resource nationalism and anti-Chinese sentiments.
The author argues that the failure of Zambia's industrial development to deliver greater benefits for the Zambian people has resulted in resource nationalism and anti-Chinese sentiments.
Monday, October 17, 2016
China in Ghana and Zambia
The latest issue of "Made in China: A Quarterly on Chinese Labour, Civil Society, and Rights" contains three articles devoted to China and Africa.
The articles are:
--Fighting the Race to the Bottom: Regulating Chinese Investments in Zambian Mines by Mukete Beyongo Dynamic
--There and Back Again: Conceptualising the Chinese Gold Rush in Ghana by Nicholas Loubere and Gordon Crawford
--A Chinese Empire in the Making? Questioning Myths from the Agri-Food Sector in Ghana by Jixia Lu
The articles are:
--Fighting the Race to the Bottom: Regulating Chinese Investments in Zambian Mines by Mukete Beyongo Dynamic
--There and Back Again: Conceptualising the Chinese Gold Rush in Ghana by Nicholas Loubere and Gordon Crawford
--A Chinese Empire in the Making? Questioning Myths from the Agri-Food Sector in Ghana by Jixia Lu
Monday, July 25, 2016
Chinese Firms Pursue Minerals in DRC
Mining.com just published remarks titled "Fresh Wave of Chinese Firms To Go after Congo's Riches - Report" by Cecilia Jamasmie.
It underscores that the Democratic Republic of the Congo remains one of the preferred destinations for exploiting copper, cobalt, and gold by Chinese companies. The information comes from a recent report done by BMI Research.
It underscores that the Democratic Republic of the Congo remains one of the preferred destinations for exploiting copper, cobalt, and gold by Chinese companies. The information comes from a recent report done by BMI Research.
Saturday, March 5, 2016
Zambia: Impact of China's Economic Slowdown
The Wall Street Journal published on 4 March 2016 a detailed article titled "Mining Collapse Cripples Africa's Dreams of Prosperity" by Patrick McGroarty and Joe Parkinson.
The article focuses on the impact of China's economic slowdown on Zambia's economy, which is heavily dependent on the export of copper. Slowing Chinese demand has nearly halved the price of copper in two years. While China's demand for copper and other minerals once enriched Zambia and other mineral exporting countries in Africa, these countries are now facing the downside of decreasing demand and lower commodity prices.
The article focuses on the impact of China's economic slowdown on Zambia's economy, which is heavily dependent on the export of copper. Slowing Chinese demand has nearly halved the price of copper in two years. While China's demand for copper and other minerals once enriched Zambia and other mineral exporting countries in Africa, these countries are now facing the downside of decreasing demand and lower commodity prices.
Friday, October 9, 2015
Reduced Chinese Copper Imports Impact Africa
Mineweb.com published on 6 October 2015 an article titled "China vs Copper: That Sinking Feeling" by Nastassia Arendse.
The slowdown in industrial activity in China has had an important impact on copper producers since China consumes 45 percent of all copper output. Copper prices have been falling steadily. Glencore, the world's biggest copper supplier, plans to reduce output by about 20 percent over the next 18 months by shutting two of its flagship operations in Africa. The Democratic Republic of the Congo and Zambia will be the most affected.
The slowdown in industrial activity in China has had an important impact on copper producers since China consumes 45 percent of all copper output. Copper prices have been falling steadily. Glencore, the world's biggest copper supplier, plans to reduce output by about 20 percent over the next 18 months by shutting two of its flagship operations in Africa. The Democratic Republic of the Congo and Zambia will be the most affected.
Monday, July 13, 2015
Mineral Prices Drop Sharply and Impact Africa
Mining.com published an article on 7 July 2015 titled "China Panic Crushes Mining Stocks" by Frik Els. The value of base and precious metals fell to multi-year lows following a stronger dollar, turmoil in the Eurozone, and especially the stock market crash in China. Gold, silver, copper, iron, nickel, tin, zinc, lead, platinum, and palladium were all on the downside. African countries are major suppliers of most of these metals and have have been impacted negatively.
Wednesday, August 13, 2014
China-Zambia Economic Relations
The Center for International Forestry Research (CIFOR) just published a study titled "The Developmental Implications of Sino-African Economic and Political Relations: A Preliminary Assessment for the Case of Zambia" by George Schoneveld, Laura German, and Davison Gumbo.
The study concludes that China's investments have made a valuable contribution to Zambia's struggling economic recovery. It did identify concerns over conflicts between Chinese companies and their employees and Chinese environmental practices in remote parts of the country.
The study concludes that China's investments have made a valuable contribution to Zambia's struggling economic recovery. It did identify concerns over conflicts between Chinese companies and their employees and Chinese environmental practices in remote parts of the country.
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