Bloomberg ran the following story today: « Barclays Capital Says Congo ‘Maximum Risk’ Investment, » quoting a daily briefing put out by the UK bank.
The bank considers the Congo to be « the most significant risk…for the metals and mining sector, » following the repossession of large copper and oil concessions from multinational corporations. The briefing also includes the following line: « Perhaps most worrying is that US State Department officials consider President Kabila to be at his most unpredictable, which does not bode well. »
Indeed. The legal squabbles with First Quantum and Tullow were somewhat compensated by the $12 billion in debt relief and the relatively good economic indicators, but the Barclays briefing suggests that the government’s behavior will have long term effects on international investment.