The Sicomines Contract: A Controversial Renegotiation and Persistent Imbalances

Since its signing in 2008, the Sicomines Convention has sparked intense debates in the Democratic Republic of the Congo (DRC). This partnership between the Congolese state and a consortium of Chinese companies initially promised a massive investment of USD 9.2 billion, with USD 6 billion allocated to infrastructure and USD 3.2 billion to mining development. However, after years of implementation, the expected results have not materialized, leading to a renegotiation that failed to address structural imbalances.

A Disappointing Outcome

According to the analysis by the Congo N’est Pas à Vendre (CNPAV), only USD 888 million had been disbursed for infrastructure by 2022, representing less than one-third of the initially promised amount. Additionally, the repayment of loans contracted for infrastructure and mining development remains largely insufficient, exposing the DRC to an increased risk of debt.

Addendum 5: An Illusory “Victory”

After months of negotiations, Addendum 5 to the Sicomines Convention was signed in March 2024. The Congolese government presented this addendum as a major achievement, guaranteeing an annual funding of USD 324 million for infrastructure. However, this funding is conditional on the fluctuations of copper prices in the global market. If copper prices drop below USD 5,200 per ton, the DRC will receive no funds.

Furthermore, cobalt, classified as a strategic mineral by the DRC, was not included in the calculation of funds allocated for infrastructure, despite Sicomines producing 34,000 tons of cobalt hydroxide between 2019 and 2023.

A Tax Model That Is Not Beneficial for the DRC

One of the main criticisms raised by the CNPAV concerns the continuation of generous tax and parafiscal exemptions granted to Sicomines. These exemptions, which have never been assessed or controlled, have already cost the Congolese state hundreds of millions of dollars. Moreover, the management of Sicomines continues to bypass traditional financial circuits, fostering opacity and a lack of transparency.

Recommendations for Necessary Reform

Given these alarming findings, the CNPAV recommends:

• Ending the special status of the Sicomines Convention and applying the Mining Code to the project.
• Conducting a thorough evaluation of the impact of tax and parafiscal exemptions.
• Carrying out a rigorous audit of Sicomines to identify losses and irregularities.
• Increasing transparency in the management of funds and investments.

Ultimately, while Addendum 5 brings some improvements, it does not address the fundamental imbalances of the Sicomines Convention. The DRC must urgently review this partnership to ensure that it genuinely contributes to its economic development and benefits its population.