China's multinational corporations in the Democratic Republic of Congo's mining industry: An Afrocentric critique

• Date: 01 May 2020
• Author: Kgothatso B. Shai,Makhura B. Rapanyane
• DOI: http://doi.org/10.1002/pa.2046
• Published date: 01 May 2020

ACADEMIC PAPER

China's multinational corporations in the Democratic Republic

of Congo's mining industry: An Afrocentric critique

Makhura B. Rapanyane | Kgothatso B. Shai

Department of Cultural and Political Studies,

University of Limpopo, Sovenga, South Africa

Correspondence

Makhura B. Rapanyane, Department of

Cultural and Political Studies, University of

Limpopo, Sovenga, South Africa.

Email: Makhurabenjamin2@gmail.com

China's entrance in Africa in the early 2000s through the Forum on China–Africa

Cooperation has apparently signalled several mutual beneficial agreements. However,

there is a view that the Asian tiger's (China) arrival on the African soil was driven by

its national interests. Such interests were particularly in the continent's rich mineral

resources complex, which are deemed significant for its own economic boom. This

observation reflects that scholars and practitioners alike have not uniformly under-

stood China's engagement with Africa. Therefore, this paper problematizes what is

often cited as the second “scramble for Africa”within the context of the Democratic

Republic of Congo (DRC). It argues that Chinese mining companies' operations in

DRC are no different to the early colonial masters who only came to Africa for noth-

ing else but mineral resources in order to develop their own nations at the peril of

Africa's own development. Based on Afrocentricity as the alternative theoretical lens,

this paper seeks to critique the involvement of Chinese Multinational Corporations in

the mineral resources complex of DRC. Methodically, this paper relies on document

review and analysis in its broadest sense.

1|INTRODUCTION

Since the year 2000, China has shown an increasing strategic interest

in several parts of Africa. Although China's engagement in Africa can

be observed at the governmental level, its China's multinational cor-

porations (MNCs) have also assumed a notable role of a nonstate

actor in Beijing's (capital city and administrative hub of the govern-

ment of China) international relations. Among key African countries

that have served as a magnet for Chinese MNCs' economic engage-

ment is Democratic Republic of Congo (DRC). In order to provide a

proper and broader perspective on Chinese MNCs' engagements in

DRC, it is important to briefly highlight the historical evolution of the

ties between the two countries and the tangible/intangible precondi-

tions that drives them. Kushner (2013) observed that the increase in

the value of DRC's copper and cobalt has encouraged most of the

Chinese business people to start their business proceedings overseas

in places such as the Katanga province of DRC. This is done in order

for them to be able to access the mineral resources that are gouged

by artisans in the mines of DRC. In line with Kushner (2013), it is

important to note the significance of Africa to China within the

context of the wealth of minerals needed for the Asian tiger's econ-

omy, which is largely driven by manufacturing. Nearly half of the

global reserves of cobalt are found in DRC. This is exactly what drove

China to formulate the biggest deal with DRC in its history, otherwise

called Sicomines. This brand new epitome of expenditure replica

ensured that China overtakes United States as the sole biggest trading

partner of Africa (Kushner, 2013). Although this deal met rebukes and

uncertainty consequent to its execution, its confidentiality motivated

the International Monetary Fund (IMF) and civilians to recommend

that it be put on the public platform for everyone (Kabemba, 2016).

To be precise, this mining deal works to expand the foreign debts

owed by DRC to China to levels which are unacceptable. Lest it be

said that even after IMF recommended to both countries involved to

lessen the size of this deal, its reduction still would not be able to do

away with the disparity complications it brought. This was simply due

to not doing away with the curtailment of the deep pockets ventures

of China in DRC which also appears to lead to the immense reduction

of the mineral resources of DRC for the MNCs of China. This deal also

stipulates that the mining corporations of China acquires budgetary,

festival and tariffs immunity. This normally excoriate the countries of

Received: 1 May 2019 Accepted: 26 October 2019

DOI: 10.1002/pa.2046

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https://doi.org/10.1002/pa.2046