(Ecofin Agency) - • DRC signs deal with China’s Zhongshi Wozen to build 450 km Kinshasa–Banana highway
• Project to support Banana deep-water port and reduce supply chain costs
• No timeline or budget disclosed; execution faces funding and security risks

The Democratic Republic of Congo (DRC) is intensifying its efforts to overcome logistical challenges, most notably by signing an agreement with Chinese firm Zhongshi Wozen Technology Co. LTD to construct a highway between Kinshasa and Banana on May 20.

The proposed corridor, whose exact route is yet to be determined, will extend roughly 450 km and is intended to relieve the isolation of the Kongo-Central region where the new deep-water Banana port is being built. The port is expected to significantly transform the nation's supply chain, according to the Ministry of Infrastructure.

The highway project comes as there is a growing need for both pre- and post-shipment infrastructure for the new port. If these needs aren't met, analysts warn that the platform's attractiveness could be jeopardized due to potentially higher logistics costs arising from the site's distance from key consumer markets, including the capital, Kinshasa.

This could mean regional ports like Pointe-Noire (Republic of Congo) and Lobito (Angola) continue to hold sway in the DRC's overall supply chain. If the highway project comes to fruition, it could facilitate the quick and secure transportation of goods from the coast to Kinshasa and the country's interior. Ultimately, the infrastructure could be integrated into regional routes, connecting the DRC with other Central and Southern African countries.

There are several challenges that can be anticipated as the project moves forward. No timeline or budget details have been released for the construction of the highway. Possible obstacles may include securing funding, meeting execution conditions, and ensuring investment security, particularly as the proposed route passes through areas with potential security concerns. These uncertainties have, for example, previously hindered a proposed railway project servicing the port, which has yet to materialize.

Moreover, the success of the highway project may also depend on its compatibility with other major investments, particularly in the port, customs, and energy sectors, to ensure a smooth and competitive supply chain.