$5bn Chinese loan secures DRC resources

China has agreed the terms of a $5 billion loan to the Democratic Republic of Congo (DRC); the money will be used for the development of the country’s infrastructure.

In return for the funding, which is well above other international loans secured by the DRC, China will be given rights to the country’s extensive natural resources, including copper and cobalt, timber and agricultural products.

Civil war has destroyed much of the DRC’s infrastructure and the money will be spent on roads, railways, hospitals, health centres, housing and universities.

The news has surprised western financiers, partly because of the size of the loan.

China has committed $20 billion to finance trade and investment in Africa and the $5 billion package is the largest single loan to be offered to any African country.

An initial $3 billion will finance transport infrastructure projects in the DRC, including a 3,400km highway between the city of Kisangani in the northeast, and Kasumbalesa, which is on the border with Zambia.

There will also be a 3,200 km rail link between the country’s mining region in the south, linking it to the main Atlantic port of Matadi.