Jul 11, 2024
With vast natural resources, including minerals such as cobalt and copper—critical to emerging technologies such as electric vehicles— hydroelectric, and some of the most fertile agricultural land in Africa, The Democratic Republic of Congo (DRC) could be one of the richest countries on the continent.
Yet underinvestment in the DRC has limited its development and created one of the biggest infrastructure gaps in the world, according to the African Development Bank. For example, the majority of the DRC’s road network is in poor condition, with less than 2% tarred.
To realize its ambition of becoming an emerging market, the DRC needs ambitious partners to invest in its future.
Matadi is a vital sea gateway into the DRC—which is almost entirely landlocked. It sits along the Congo river, one of Central Africa’s main arteries, 93 miles (150 kilometers) upstream from the Atlantic Ocean. It is also the most cost-efficient route for trade in and out the country.
However, Matadi’s port facilities were worn out and in need
of repair until recently, but support from the DRC's National Agency for Investment Promotion (ANAPI) is helping to unlock the port’s immense potential to drive trade by attracting much-needed domestic and foreign investment in critical sectors such as infrastructure.
As part of this forward-thinking initiative, Philippines-based International Container Terminal Services (ICTSI), together with a local partner, the Ledya Group, has invested $350 million in the construction of Matadi Gateway Terminal (MGT). Over a nine-year period, the terminal has been gradually upgraded with an extended quay, increased yard area, and the installation of more efficient equipment such as lower-carbon gantry cranes to reduce emissions. The investment has also included improvements to surrounding civil infrastructure such as access roads. Driven by an increased demand for services that has grown at a CAGR of 26% since it opened in 2016, MGT has grown its capacity to 350,000 containers a year—
a substantial boost for DRC’s economy.
“We invest where we see underdeveloped infrastructure in regions with demographic potential that come with a high demand for service delivery and capacity,” says Christian Martin R. Gonzalez, Executive Vice President of ICTSI. “We believe in the immense potential of Africa and the DRC, and our investments aim to help accelerate economic growth.”
ICTSI is now investing in a third phase that could have a much greater economic impact in the region in the longer term: deepening the mouth of the Congo river.
The $100-million project will involve dredging the waterway in phases to an eventual depth of at least 12.5 meters, enabling much larger vessels to reach the dock at Matadi. Not only will this boost container capacity, it will reduce logistics costs for commodities such as wheat, food products, and oil products.
By establishing and expanding the Matadi Gateway Terminal, ICTSI has become a key player in the DRC’s economic development. Its successful partnership with the DRC government has enhanced port capacity and efficiency, helped to narrow the country’s infrastructure gap, fostered economic growth, increased trade competitiveness, and improved overall connectivity with the rest of the world.
The project also demonstrates ICTSI’s commitment to responsible infrastructure development. For example, it introduced handling equipment with a lower carbon footprint—among the
first in African ports.
ICTSI’s investment in the DRC underscores its willingness and ability to tackle complex challenges, and transform ports like Matadi into resilient global trade destinations.