occasional-paper-114-de13758fb96162af.pdf

This research paper by Gregory Mthembu-Salter for the South African Institute of International Affairs (SAIIA) examines the historical, political, and economic relationships between the Democratic Republic of Congo (DRC), China, and India. It analyzes how these two Asian powers engage with the DRC's mining, telecommunications, and infrastructure sectors, highlighting the contrast between China's state-led, resource-for-infrastructure strategy and India's more fragmented, private-sector-driven approach.

• China and India employ fundamentally different financial strategies in the DRC; the Chinese government uses state-owned banks to facilitate access to large mining deposits for state-owned companies, whereas Indian mining companies are privately owned and operate without significant government assistance.
• China's engagement with the DRC is characterized by a 'resources-for-infrastructure' model, exemplified by the Sicomines joint venture. This involves a $3 billion loan from China's Exim Bank to develop copper and cobalt deposits in Katanga, conditional on a feasibility study proving reserves of 10 million tonnes of copper.
• The DRC's trade with China grew significantly between 1996 and 2009, increasing 33-fold from $44 million to $1.4 billion. DRC exports to China consist almost entirely of raw materials, specifically cobalt, copper, timber, tungsten, niobium, tantalum (coltan), and zinc.
• India's official trade figures with the DRC are considered under-reported, particularly regarding pharmaceutical imports. While recorded exports to the DRC peaked at $15 million in 2009, total exports are estimated to be unlikely to exceed $50 million annually, which is insignificant compared to India's trade with South Africa and Kenya.
• In the telecommunications sector, India's Bharti Airtel is the largest investor in the DRC, targeting eight million users by 2012 and planning an investment of $400 million by mid-2012. In contrast, Chinese companies like Huawei act primarily as equipment suppliers to various networks, including Airtel.
• Political relations between the DRC and China are close, with Beijing providing diplomatic support in the UN and military assistance. Conversely, relations with India are more strained, partly due to allegations that some Indian UN peacekeepers traded gold with Rwandan rebel militias.
• Chinese construction companies, specifically China Railways Construction Company (CREC) and Sinohydro Corporation, are dominating the DRC's infrastructure sector. They have implemented projects such as the rehabilitation of the road from Kasumbalesa to Lubumbashi and the 30 Juin Boulevard in Kinshasa.
• There are widespread negative perceptions of both Chinese and Indian companies in the DRC regarding labor practices, with reports of low wages, hostile working conditions, and a lack of transparency. Opposition politician Etienne Tshisekedi threatened to suspend Chinese contracts if elected.
• The DRC's mining sector in southern Katanga involves numerous small Chinese and Indian companies that purchase ores from artisanal diggers. However, large-scale takeovers, such as Jinchuan Group's acquisition of Metorex and Minmetals Group's takeover of Anvil Mining, are shifting the landscape toward larger Chinese state-owned entities.

APA

South African Institute of International Affairs (n.d.). occasional-paper-114-de13758fb96162af.pdf. https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf

Chicago

South African Institute of International Affairs. occasional-paper-114-de13758fb96162af.pdf. n.d. https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=occasional-paper-114-de13758fb96162af.pdf |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{southafricaninstituteofinternationalaffairsndoccasionalpaper114de13758fb96162afpdf, author = {{South African Institute of International Affairs}}, title = {{occasional-paper-114-de13758fb96162af.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2012/03/Occasional-Paper-114.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }