Marking a major step forward in expanding green infrastructure across the Central African region, the African Export-Import Bank (Afreximbank) has signed a project preparation facility financing agreement for its private-sector renewable energy project in the Democratic Republic of Congo (DRC).
Partnering with Kipay Investments SAS (Kipay), the Bank will finance the technical and bankability studies, legal, financial advisory and fundraising costs for development of the up to 200 MW reservoir-based hydropower project to be located along the Lufira River. The Bank will also take the lead in structuring the project’s debt financing.
Aligning with Afreximbank’s climate finance strategy, the project marks its first private-sector renewable energy initiative in the DRC. It will deliver significant benefits, providing clean, reliable and affordable power to mining companies, enabling beneficiation of critical minerals including copper and cobalt within the DRC and fostering significant value retention.
Additionally, it will expand electricity access to the nearby community, enhancing access to education and healthcare facilities. Once completed, the project is expected to result in the reduction of greenhouse gas emissions by approximately 108 000 metric tonnes of CO₂-equivalent annually, thereby helping DRC meet its climate targets under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
Afreximbank’s Kanayo Awani said the project underscored the organisation’s commitment to supporting renewable energy projects that spur industrialisation and export development activities while promoting a just energy transition.
“This financing reinforces Afreximbank’s commitment to mobilising private capital to develop renewable energy projects and secure a sustainable future for DRC and the region,” she added.
Kipay Investments SAS is incorporated to develop, design, construct, install, commission and operate and manage a reservoir-based hydroelectric power plant with a nameplate capacity of up to 200 megawatts.
