More than 60 representatives from the Democratic Republic of Congo (DRC) visited South Africa's administrative capital of Tshwane and Durban this week as part of the Africa Trade and Investment Council's (ATIC) major new initiative, the Trans-Congo RSA Industrialisation Corridor.
This visit, which kicked off on Tuesday and is wrapping up on Thursday, March 13, seeks to transform the economic relations between South Africa and the DRC.
The Investment Director of the Africa Trade and Investment Council (ATIC), Zwelethu Dlamini, indicated that this large-scale project intends to stimulate and drive significant growth in trade and investment between the two countries.
Launched by ATIC Holdings and Africa Union Development Holdings, this corridor will stretch across 3 100km of the DRC and aims to develop 12 special economic zones (SEZs), along with new cities and vital port infrastructure.
Dlamini also revealed that this will result in strengthened trade flows while also providing the foundation for a thriving manufacturing base in the region.
“Trade between SA and the DRC is currently limited, but this project will offer SA businesses a strong platform to expand into the DRC market, especially in manufacturing,” said Dlamini.
The visit saw government officials and business leaders from the two countries engaging in a series of meetings with the Department of Trade, Industry and Competition, commercial banks, and development finance institutions.
The delegation also made a stop at the 200ha Tshwane Automotive Special Economic Zone, the continent's first automotive city, and the Dube Trade Port Special Economic Zone in Durban, which has developed manufacturing and logistics infrastructure, cargo operations, warehousing, agricultural production and processing, as well as commercial office real estate.
One of the key discussions during the three-day gathering centred around the DRC-RSA Industrialisation Project, a transformative infrastructure initiative that aims to establish a critical 3 100km transportation corridor across the DRC.
The corridor is strategically designed to enhance the flow of goods, people, and services, linking the southern border town of Kipushi to the western coastal region and culminating at the key port of Malela.
Dlamini further revealed that the end goal of the corridor is to reduce transportation and logistics costs for mineral exports by up to 30% and to create faster and more cost-efficient export routes connecting the DRC’s interior to the global market while at the same time expected to significantly boost the country’s economic performance by increasing annual exports by 40% by 2030.
"By creating a conducive business environment and attracting investors, the SEZs aim to facilitate $5 billion in Foreign Direct Investment (FDI) inflows within the next decade as it seeks to provide South African companies direct access to the DRC’s vast mineral resources, particularly cobalt and copper. The country boasts 70% of global cobalt reserves, which are essential for renewable energy and electric vehicle production," he added.
Furthermore, the corridor will also facilitate the efficient export of goods from South African ports through the DRC, creating additional trade routes to Central and West African markets. The project is expected to boost South Africa-DRC bilateral trade from $1.3 billion to $3 billion annually over the next five years.
The foundation for this project has been laid over the past two decades, during which South Africa has been instrumental in supporting peace and stability in the DRC, providing military assistance through the United Nations and regional peacekeeping missions.