Goodwill and Hard Bargains: The DRC, China and India

The document analyzes the differing strategies of China and India in the Democratic Republic of Congo (DRC). China employs a state-led approach, utilizing loans from the Export-Import Bank to secure mining assets and fund infrastructure in exchange for resources. India's engagement is characterized as more market-driven, with private companies operating in mining and telecommunications, though the Indian government provides some credit lines for power projects. While both are drivers of growth, the paper notes concerns regarding transparency, labor conditions, and environmental pollution associated with smaller firms from both nations.

• China utilizes a state-directed model to secure mining access, using loans from the state-owned Export-Import Bank to facilitate access for state-owned companies to large mining deposits in the DRC.
• India's approach to the DRC is described as more free-market and non-interventionist compared to China, with Indian mining companies being privately owned and competing without significant government assistance.
• A major resources-for-infrastructure deal signed in September 2007 involved the state-owned mining company Gécamines and two Chinese state construction companies, funded by China's Exim Bank.
• The 2008 Exim Bank loan for infrastructure was reduced from $9 billion to $6 billion in October 2009 following objections from the IMF and the Paris Club regarding the DRC's debt levels.
• Bharti Airtel Ltd is the largest telecommunications investor in the DRC, having acquired the network of Zain Group in mid-2010 and planning a $400 million investment by mid-2012.
• China's total trade with the DRC grew significantly from $44 million in 1996 to $1.4 billion in 2009, with the DRC exporting primarily raw materials such as cobalt and copper.
• Indian trade with the DRC is relatively low; official exports peaked at $15 million in 2009, though the author notes official figures are likely underestimated due to unrecorded pharmaceutical imports.
• There are widespread reports of poor labor and environmental standards among smaller Indian and Chinese mining firms in Katanga, including allegations of 'barbaric' conditions and pollution.
• China has provided the DRC with significant diplomatic support at the UN, including vetoing a candidate for a UN 'Group of Experts' in early 2010 at the DRC government's request.
• India has been a primary troop contributor to UN missions in the DRC (Monuc and Monusco), though relations became strained following allegations of gold trading by some Indian peacekeepers in 2007.

APA

Mthembu-Salter, G. (2012). Goodwill and Hard Bargains: The DRC, China and India. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf

Chicago

Mthembu-Salter, Gregory. Goodwill and Hard Bargains: The DRC, China and India. South African Institute of International Affairs, 2012. https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf.

Wikipedia

{{cite report |last1=Mthembu-Salter |first1=Gregory |title=Goodwill and Hard Bargains: The DRC, China and India |publisher=South African Institute of International Affairs |date=March 2012 |url=https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mthembusalter2012goodwill, author = {Mthembu-Salter, Gregory}, title = {{Goodwill and Hard Bargains: The DRC, China and India}}, institution = {South African Institute of International Affairs}, year = {2012}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }