Afreximbank Signs Financing Agreement for Renewable Energy Project in DRC
African Export-Import Bank (Afreximbank) has taken a significant step towards expanding green infrastructure in the Central African region by signing a project preparation facility financing agreement for a private-sector renewable energy project in the Democratic Republic of Congo (DRC).
Teaming up with Kipay Investments SAS (Kipay), Afreximbank will provide funding for technical and bankability studies, legal, financial advisory, and fundraising costs for the development of a reservoir-based hydropower project along the Lufira River with a capacity of up to 200 MW. The Bank will also lead in structuring the project’s debt financing.
This initiative aligns with Afreximbank’s climate finance strategy and represents its first private-sector renewable energy venture in the DRC. The project aims to deliver clean, reliable, and affordable power to mining companies, enabling the beneficiation of critical minerals like copper and cobalt within the country. Additionally, it will improve electricity access for the local community, enhancing education and healthcare facilities. Once operational, the project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂-equivalent annually, supporting the DRC in meeting its climate targets under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
During the signing ceremony, Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development at Afreximbank, expressed the Bank’s commitment to supporting renewable energy projects that drive industrialization, export development, and a just energy transition. She emphasized the importance of leveraging the DRC’s renewable energy potential to develop sustainable trade-enabling energy infrastructure.
Mr. Eric Monga, CEO of Kipay Investments SAS, highlighted the project’s positive impact on socio-economic development in the local population and across the country. He emphasized the need for the project to benefit local communities through job creation, capacity building, and economic development in the renewable energy sector.
Upon completion, the project is expected to create over 2,000 direct jobs, 952 potential indirect jobs, and enhance economic activities in the area. It will also generate tax revenues for the DRC government over a 30-year period and support the development of industrial clusters around the mining region.
Kipay Investments SAS is specifically established to develop, design, construct, install, commission, operate, and manage a reservoir-based hydroelectric power plant with a capacity of up to 200 megawatts.
This financing agreement underscores Afreximbank’s commitment to mobilizing private capital for renewable energy projects and promoting sustainable development in the DRC and the region. The innovative structure of the project, including a captive market, enhances its bankability and sustainability.
For more information about Afreximbank and its initiatives, visit www.Afreximbank.com.
