Afreximbank, the African Export-Import Bank, has signed a financing agreement under its project preparation facility for a private sector renewable energy project in the Democratic Republic of Congo (DRC), marking a significant step in the expansion of green infrastructure in Central Africa.
In partnership with Kipay Investments SAS (Kipay), Afreximbank will finance technical and bankability studies, legal fees, financial advisory, and fundraising for the development of a hydroelectric reservoir project with a capacity of up to 200 MW.
The project will be located along the Lufira River. Afreximbank will also play a key role in structuring the debt financing for the project, according to a statement from the bank.
Aligned with Afreximbank’s climate finance strategy, this project marks the bank’s first private sector initiative in renewable energy in the DRC.
The renewable energy project will offer significant benefits, providing clean, reliable, and affordable energy to mining companies, enriching critical minerals like copper and cobalt, and fostering significant value retention in the DRC.
It will also extend electricity access to the surrounding communities, improving access to education and healthcare facilities.
Once completed, the project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tons of CO₂ equivalent per year, helping the DRC meet its climate goals under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
Kanayo Awani, Afreximbank’s Executive Vice President in charge of Intra-African Trade and Export Development, signed the agreement on behalf of Afreximbank, while Eric Monga, CEO of Kipay Investments SAS, signed on behalf of his company.
Commenting on the deal, Ms. Awani said: “This signing ceremony underscores Afreximbank’s commitment to supporting renewable energy projects that drive industrialization and export development while promoting a just energy transition. Afreximbank is committed to supporting the DRC’s energy transition, enhancing the country’s energy security, and leveraging its vast renewable energy potential to develop sustainable energy infrastructure that fosters trade.”
“This financing strengthens Afreximbank’s commitment to mobilising private capital to develop renewable energy projects and ensure a sustainable future for the DRC and the region. We are also proud to highlight the innovative structure deployed, which includes a captive market enhancing the project’s bankability,” she added.
Eric Monga, CEO of Kipay Investments SAS, noted that the project has generated renewed optimism for socio-economic development within the local population and across the country. “It is important that local communities benefit from the project, including the creation of new jobs and capacity building for the future renewable energy sector in the DRC,” he said.
Upon completion, the project is expected to create over 2,000 direct jobs and 952 potential indirect jobs, as well as boost fishing and other economic activities around the dam. Other benefits include tax revenue for the DRC government over the 30-year life of the project and the development of industrial hubs around the mining zone.
Kipay Investments SAS was established to develop, design, construct, install, commission, operate, and manage a 200 MW hydroelectric reservoir.
TE/lb/as/APA