Afreximbank signs landmark hydropower project in Democratic Republic of Congo (DRC)
African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has signed a project preparation financing agreement for its private sector renewable energy projects in the Democratic Republic of Congo (DRC), marking an important step in expanding green infrastructure in the Central African region.
The bank, in partnership with Kipay Investments SAS (Kipay), will provide technical and financial research, legal, financial advisory and fundraising fees for the development of a reservoir hydropower project with a capacity of up to 200 MW along the Lufila River. The World Bank will also take the lead in structuring debt financing for the project.
The project is aligned with Afreximbank’s climate finance strategy and marks Afreximbank’s first private sector renewable energy program in the Democratic Republic of Congo. This self-generated power project will bring significant benefits. It will provide mining companies with clean, reliable and affordable electricity to enable the beneficiation of critical minerals such as copper and cobalt within the Democratic Republic of the Congo and facilitate significant value retention. Additionally, it will expand electricity supply to nearby communities and improve access to education and healthcare facilities. Once completed, the project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tons of carbon dioxide equivalent per year, helping the Democratic Republic of the Congo achieve its climate goals under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
Ms. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank The agreement was signed on behalf of Afreximbank Mr. Eric Monga, CEO of Kipay Investments SAS, Signed on behalf of his company.
When commenting on this transaction, Mrs. ahwahnee, said: “This signing ceremony underlines Afreximbank’s commitment to supporting renewable energy projects that stimulate industrialization and export development activities while promoting a just energy transition. Afreximbank is committed to supporting energy in the Democratic Republic of the Congo transformation to enhance the country’s energy security while leveraging its vast renewable energy potential to develop sustainable trade-facilitating energy infrastructure.”
“This financing reinforces Afreximbank’s commitment to mobilizing private capital to develop renewable energy projects and secure a sustainable future for the Democratic Republic of the Congo and the region. We are also proud to highlight the innovative structure deployed, which includes a captive market , which can improve the financing capacity of the project,” Mrs. Awani added.
While delivering a speech at the signing ceremony, gentlemen. Eric Monga, CEO, Kipay investment companystressing that the project has revived optimism among local residents and socio-economic development 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 industry in the Democratic Republic of the Congo,” he said.
Upon completion, the project is expected to create more than 2,000 direct jobs and 952 potential indirect jobs, as well as increase fishing and other economic activities at the reservoir. Other benefits include tax revenue for the Congolese government over the 30-year life of the project and the development of an industrial cluster around the mine site.
Kipay Investments SAS develops, designs, constructs, installs, commissions, operates and manages reservoir hydroelectric power plants with a nominal capacity of up to 200 MW.
Distributed by APO Group on behalf of Afreximbank.
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vincent city
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About Afreximbank:
The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution whose mission is to finance and facilitate intra-African and external trade. For 30 years, the World Bank has been providing financing solutions through innovative structures to support the transformation of Africa’s trade structure, accelerate industrialization and intra-regional trade, thereby promoting Africa’s economic expansion. As a staunch supporter of the African Continental Free Trade Agreement (AfCFTA), the African Export-Import Bank launched the Pan-African Payments and Settlement System (PAPSS) and was adopted by the African Union (AU) as a payment settlement platform to support the African Continental Free Trade Agreement. implementation. African Continental Free Trade Area. The World Bank is working with the African Continental Free Trade Area Secretariat and the African Union to establish a US$10 billion adjustment fund to support countries that participate effectively in the African Continental Free Trade Area. As of the end of December 2023, Afreximbank’s total assets and contingencies exceeded US$37.3 billion, with shareholder funds reaching US$6.1 billion. Afreximbank has investment grade ratings from GCR (International Grade) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity consisting of the Bank, its impact fund subsidiary Africa Export Development Fund (FEDA) and its insurance management subsidiary AfrexInsure (together the “Group”). The bank is headquartered in Cairo, Egypt.
For more information, please visit: www.Afreximbank.com
