Landmark hydropower project for DRC

African Export-Import Bank (Afreximbank), a pan-African multilateral financial institution, has signed a project preparation facility financing agreement for its private-sector renewable energy project in the DRC

The bank, in partnership with Kipay Investments SAS, will finance the technical and bankability studies, legal financial advisory and fundraising costs for the development of a reservoir-based hydropower project in the country. Located along the Lufira River, the up to 200MW project mark the bank’s first private sector renewable energy initiative in the DRC and, when completed, will provide clean, affordable power to mining companies.

The plant will also reportedly expand electricity access to the nearby community and is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂-equivalent annually.

“Afreximbank is committed to supporting DRC’s energy transition, enhancing the country’s energy security whilst leveraging its vast renewable energy potential to develop sustainable trade-enabling energy infrastructure,” remarked Kanayo Awani, executive vice president intra African trade and export development at Afreximbank. “This financing reinforces Afreximbank’s commitment to mobilizing private capital to develop renewable energy projects and secure a sustainable future for DRC and the region. We are also proud to highlight the innovative structure deployed that encompasses a captive market that enhances the project’s bankability.”

Upon completion, the initiative is expected to lead to the creation of over 2,000 direct jobs and 952 potential indirect jobs, and augmentation of fishing and other economic activities on the reservoir. Others benefits include realisation of tax revenues to the DRC government over the 30-year duration of the project, and development of industrial clusters around the mining area.