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Congo-Kinshasa

Kinshasa prepares the ground for a bond sale

Feted at South Africa’s Mining Indaba as it marketed critical minerals, Tshisekedi’s government is heading for the money markets

There is optimism in Kinshasa that it can follow other African countries in benefiting from eurobond interest rates that are close to their lowest since the 2007-8 financial crisis. President Félix Tshisekedi’s government says it hopes to raise US$750 million from a bond issue likely to be held in April.

Its neighbour Congo-Brazzaville's return to the bond market on 12 February has been hailed as a triumph after it raised $700m after receiving offers worth more than $2 billion. But the interest rate of 11.6% is eye-wateringly high, even for bonds that will start to be repaid in five tranches between 2031 and 2035.

That suggests that Kinshasa is also likely to face double digit interest rates when it goes to market. Finance Minister Doudou Likunde told journalists on 11 February that the cash would go towards financing infrastructure projects, including modernising the international N'djili Airport and road network in Kinshasa, as well as hydropower plants and rural infrastructure.

With Congo-K set to be the main beneficiary from the United States’ dash for critical minerals, Likunde is on a public relations charm offensive to promote his country’s economy (AC Vol 67 No 4, Trump picks top Africa official as policies home in on resources and security). He says that other ratings upgrades are expected to follow S&P Global Ratings which put Congo-K ’s B- credit rating on a ‘positive outlook’ in January.

Separately, Congo-K is set to receive several billion dollars in funding from the US and European Union to rehabilitate hundreds of kilometers of railway connecting it to Zambia’s Copperbelt as part of the so-called ‘Lobito Corridor’ project (AC Vol 66 No 23, Brussels pushes Global Gateway to rival US-China deal-making & Dispatches 13/10/25, Africa on track to profit from EU’s minerals interest). Likunde said that the US International Development Finance Corporation had now committed $530m for a tender to operate the railway.



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