The DRC’s credit rating makes it a challenge to attract project investment. At CCC it is a full three steps below investment-grade opportunity in the eyes of credit agencies around the world. This means that it’s difficult to attract anything other than development funding and grants. The completion of this project with government assistance, yet run independently, financed independently, will chart a path for project finance investment into the DRC. It is our intention to design a border that is more modern, and efficient than any other on the continent, and to make it the standard by which other border crossings are judged.
The DRC’s credit rating makes it a challenge to attract project investment. At CCC it is a full three steps below and investment-grade opportunity in the eyes of credit agencies around the world. This means that it’s difficult to attract anything other than development funding and grants. The completion of this project with government assistance, yet run independently, financed independently, will chart a path for project finance investment into the DRC. It is our intention to design a border that is more modern, and efficient than any other on the continent, and to make it the standard by which other border crossings are judged.
To do this GED has brought together some of the best minds in the world and designed a project that only works if goods can pass more quickly at a reduced price. Inefficiency never before seen on the continent; goods traffic passing through within 24 hours. For transport companies this will mean that their trucks can transport more goods each year with the same equipment, reducing the cost per ton. This savings would be passed on to the mines as transporters compete with each other.
More importantly, this savings and goods transport costs will inevitably lead to greater mining royalties for the DRC government.
In 2018 the DRC raised mining royalties pushing many copper mines from 2nd and 3rd quadrants into 4th pricing quadrant. This meant an increase in revenues to the state, but it also meant that mines were more susceptible to a decrease in the price of copper. In the DRC mines have direct transport costs of 15 to 20%, this combined with indirect transport costs for consumables used to refine copper means the transport costs are a significant portion of production cost output. Reducing these transport costs by 30%, will mean that the majority of DRC mines can move back into 2nd and 3rd quadrants on the copper price curve. Which will give the DRC government the opportunity to again raise royalties without endangering the mines the copper price fluctuations.
This project will be the spark that lights the flame of economic development in the region.
This concession generates tax revenue that allows the Government to develop industries that create multiplying synergistic return. For example, having a border where good vehicles carrying perishable goods can cross in under 24 hours, means, for the consumer less expensive, yet fresher goods. This impacts the poorest the greatest.
Read more about this project :
- Zambia : Mwenda – Kashiba Road …
- Une nouvelle route pour booster le commerce entre la RDC, la Zambie et la Tanzanie…
- New route : Lubumbashi to Dar es salam …
- US$ 475m earmarked for Mwenda – Kashiba road …
- La Zambie et la RDC signent un protocole d’accord de 473 millions USD pour la construction de la route transfrontalière Kasomeno – Mwenda et du pont de Luapula
- Kasomeno – Kasenga – Chalwe – Mwenda Road PPP
- Zambia and DRC sign MOU to build Kasomeno – Mwenda toll road and Luapula Bridge project
