Weak demand for metals as a result of the global financial crisis will push Democratic Republic of Congo's economic growth below 10 percent next year and force a scaling back of mining projects, the central bank chief said on Tuesday.
Governor Jean-Claude Masangu said during a presentation in the capital Kinshasa that economic growth had been forecast at around 11 percent, but would now be less than 10 percent in 2009. Growth for 2008 has been projected at 12 percent. Slowing global growth had undermined demand for metals, said Masangu, whose country has huge reserves of cobalt, copper, gold and a range of other minerals.
"As a result, several investment projects, both start-ups and expansions, have been postponed or halted," he said. Masangu did not give details of which projects were affected, or which investors were involved. But he said a multi-billion dollar investment deal with China would be adjusted once a feasibility study had been completed, due to slowing economic growth in the Asian economy.
Congo's planning minister said in February that a loan and investment deal signed with China would be worth $9 billion - far higher than the initial $5 billion value given when the deal was first announced last year. He said the joint venture mining company being created by Congolese state miner Gecamines and a Chinese consortium would be affected by the market environment, "just like every mining company". "The subsequent feasibility study will involve adjustments," Masangu said on Tuesday.