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Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project
The Democratic Republic of Congo (DRC) has been attracting investors? attention since the colonial era. It started from the country?s early colonial history under King Leopold II of Belgium when the then colony nearly single-handedly satisfied global demand for rubber to manufacture tires for the gr...
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2017
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| _version_ | 1867613522484002816 |
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| access_status_str | Open Access |
| author2 | OluSoyeju, Olufemi Olugbemiga |
| author_browse | OluSoyeju, Olufemi Olugbemiga |
| author_facet | OluSoyeju, Olufemi Olugbemiga |
| collection | Thesis |
| dc_rights_str_mv | © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | The Democratic Republic of Congo (DRC) has been attracting investors? attention since the colonial era. It started from the country?s early colonial history under King Leopold II of Belgium when the then colony nearly single-handedly satisfied global demand for rubber to manufacture tires for the growing automobile sector. It has substantial untapped gold, diamonds, uranium, cobalt and high-grade copper reserves. The DRC accounts for 55% of the global production of Colombo-tantalite (coltan), a vital component of mobile phones. Though, itsmining sector presents a high-risk high-return opportunity for investors, it also presents significant political and security risks underlined by a lack of robust infrastructure, especially power infrastructure. Given the lack of critical infrastructure to support its mining industry, the DRC signed a Memorandum of Understanding (MoU) in 2009with the Republic of South Africa (RSA) in order to build Africa?s largest hydropower project with an ability to supply electricity to both countries as well as a considerable number of other countries on the African continent. This was followed by the Grand Inga Hydropower Treaty of 29 October 2013. This treaty allowed them to finance the building of the huge Grand Inga Hydropower Project. This dam, when built, will also have the capacity to impact positively on their economies as well as that of the SADC region and the African continent. In the light of the budgetary constraints, the DRC Government has been exploring various options to fund this colossal project especially from private sources. Unfortunately, the nature of the DRC?s legal system and the kind of financing requirements are not too appealing to investors. Besides, the framework for managing legal risks in the funding of such critical infrastructure projects in the country is not well developed. In the face of significant political, security and legal risks associated with project financing in the DRC, this study argues that there is a need to identify, assess and mitigate these risks, especially those of a legal nature, to facilitate the funding of the Grand Inga project. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/58734 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:29.335Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/58734 Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project OluSoyeju, Olufemi Olugbemiga nkongolonjules@gmail.com Nkongolo, Nkita UCTD Grand Inga Hydropower Treaty of 29 October 2013 Law theses SDG-16 SDG-16: Peace, justice and strong institutions The Democratic Republic of Congo (DRC) has been attracting investors? attention since the colonial era. It started from the country?s early colonial history under King Leopold II of Belgium when the then colony nearly single-handedly satisfied global demand for rubber to manufacture tires for the growing automobile sector. It has substantial untapped gold, diamonds, uranium, cobalt and high-grade copper reserves. The DRC accounts for 55% of the global production of Colombo-tantalite (coltan), a vital component of mobile phones. Though, itsmining sector presents a high-risk high-return opportunity for investors, it also presents significant political and security risks underlined by a lack of robust infrastructure, especially power infrastructure. Given the lack of critical infrastructure to support its mining industry, the DRC signed a Memorandum of Understanding (MoU) in 2009with the Republic of South Africa (RSA) in order to build Africa?s largest hydropower project with an ability to supply electricity to both countries as well as a considerable number of other countries on the African continent. This was followed by the Grand Inga Hydropower Treaty of 29 October 2013. This treaty allowed them to finance the building of the huge Grand Inga Hydropower Project. This dam, when built, will also have the capacity to impact positively on their economies as well as that of the SADC region and the African continent. In the light of the budgetary constraints, the DRC Government has been exploring various options to fund this colossal project especially from private sources. Unfortunately, the nature of the DRC?s legal system and the kind of financing requirements are not too appealing to investors. Besides, the framework for managing legal risks in the funding of such critical infrastructure projects in the country is not well developed. In the face of significant political, security and legal risks associated with project financing in the DRC, this study argues that there is a need to identify, assess and mitigate these risks, especially those of a legal nature, to facilitate the funding of the Grand Inga project. tm2017 Centre for Human Rights LLM Unrestricted 2017-01-31T12:47:55Z 2017-01-31T12:47:55Z 2016 Mini Dissertation Nkongolo, N 2016, Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project, LLM Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/58734> D2016 http://hdl.handle.net/2263/58734 en © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Grand Inga Hydropower Treaty of 29 October 2013 Law theses SDG-16 SDG-16: Peace, justice and strong institutions Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title | Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title_full | Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title_fullStr | Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title_full_unstemmed | Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title_short | Managing legal risks in project finance in the Democratic Republic of Congo : the example of the Grand Inga Project |
| title_sort | managing legal risks in project finance in the democratic republic of congo the example of the grand inga project |
| topic | UCTD Grand Inga Hydropower Treaty of 29 October 2013 Law theses SDG-16 SDG-16: Peace, justice and strong institutions |
| url | http://hdl.handle.net/2263/58734 |