By: Creamer media

Mining Weekly can report that the objective of the agreement is to establish a broad framework within which the IDC and the FPI institutions can collaborate, co-develop and co-invest in projects, and exchange other information, which is in turn promising to catalyse energy and transport infrastructure development, industrial and manufacturing activity, skills demand, and employment creation on the continent.

As Africa’s biggest mining platform, the Mining Indaba is helping to build momentum towards the realisation of a timely new Africa partnership era. “After we, as a continent, hosted the G20, we’ll also be finding solutions at Mining Indaba that are about partnership, working together, integrating the region, and inclusive involvement,” Mining Indaba executive advisory board chairperson Frans Baleni commented to Engineering News & Mining Weekly ahead of this year’s Indaba.

Now IDC/FPI rapprochement has happened at a time when one senses there is considerably more ‘toenadering’ to come across a broad African front as the benefits of Indaba meetings begin to unfold.

FPI is primarily funded through the Taxe de Promotion de l’Industrie, a levy collected on imports and industrial goods in the DRC, and has a balance sheet that supports financing allocations ranging from $50 000 to $1-million per project.

Since establishment of FPI in 1989, this industry promotion fund has backed more than 600 projects spread across the DRC, primarily in agro-industrial sectors and infrastructure rehabilitation.

The MoU is the first of its kind and is aimed at fostering collaboration in areas of mutual economic interest to South Africa and the DRC for the benefit of the region.

The IDC’s continental strategy has identified the DRC as a key priority country for proactive engagement. The objective is to strengthen and develop regional value chains characterised by value addition, regional cooperation, local development and intraregional trade, in alignment with the Africa Continental Free Trade Area.

The DRC is the biggest copper-producing country on the continent. It is also rich in cobalt, tin, gold and coltan, rare earths and other critical minerals which are critical to developing regional value chains.

"The DRC's a country of interest to us,” IDC CEO Mmakgoshi Lekhethe stated in a release to Mining Weekly.

In 2014, the IDC invested in tin mining operation Alphamin Bisie, providing a good return on investment.

FPI director-general Herve Claude Ntumba Batukonke outlined the significance of development financial institutions (DFIs) and the DRC institution's deep insight into the Central African country's local operating environment and market dynamics.

“Fostering strategic partnerships among national DFIs will help us to structure some risk-sharing agreements critical for co-financing opportunities, thereby mitigating risk,” said Batukonke.

The IDC’s continental investment guidelines, developed for cross-border investments and lending activity in target markets on the African continent, prioritise building strategic partnerships with other DFIs.

“We believe that this partnership is of mutual benefit to both the IDC and the FPI. Through this partnership, we hope to enhance our efforts to co-invest in key projects so together we can industrialise our respective economies and catalyse new and emerging industries such as green hydrogen; critical minerals; electric vehicles value chain and infrastructure; advanced manufacturing; e-commerce; and high-value agriculture and agroprocessing,” said Lekhethe.

The IDC, founded in 1940 to promote economic growth and industrial development, is owned 100% by the South African government.