Cairo, Egypt, December 18, 2024: The African Export-Import Bank (Afreximbank) has signed a financing agreement under the Project Preparation Facility for its private sector renewable energy project in the Democratic Republic of Congo (DRC), marking a major milestone in the expansion of green infrastructure in the Central African region.
In partnership with Kipay investments SAS (Kipay), the Bank will finance technical and bankability studies, legal fees, financial advice and fundraising for the development of a hydroelectric reservoir project of up to 200 MW which will be located along the Lufira River. The Bank will also play a leading role in structuring the debt financing for the project.
Aligning with Afreximbank’s climate finance strategy, the project marks Afreximbank’s first private sector renewable energy initiative in the DRC. This dedicated energy project will bring significant benefits. It will provide clean, reliable and affordable energy to mining companies, enabling the beneficiation of critical minerals, including copper and cobalt, with the DRC and enabling significant value conservation. Additionally, the project will expand access to electricity to the neighboring community, thereby improving access to education and health facilities. Once completed, the project is expected to deliver a reduction in greenhouse gas emissions of approximately 108,000 metric tons of CO₂ equivalent per year, helping the DRC achieve its climate goals under the Paris Agreement and updated nationally determined contributions (NDCs).
Ms. Kanayo Awani, Executive Vice President of Afreximbank, in charge of Intra-African Trade and Export Development signed the agreement on behalf of Afreximbank while Mr. Eric Monga, Managing Director of Kipay Investments SAS, initialed on behalf of his company.
Commenting on the transaction, Ms. Kanayo Awani said that “this signing ceremony highlights Afreximbank’s commitment to supporting renewable energy projects that drive industrialization and export development activities while promoting a just energy transition. Afreximbank is committed to supporting the DRC’s energy transition, strengthening the country’s energy security while leveraging its vast renewable energy potential to develop sustainable and trade-friendly energy infrastructure.”
“This financing reinforces Afreximbank’s commitment to mobilizing 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 encompasses a captive market improving the bankability of the project,” added Ms. Awani.
Speaking at the signing ceremony, Mr. Eric Monga, CEO of Kipay Investments SAS, noted that the project had generated renewed optimism for socio-economic development among the local population and at large of the country. He said: “It is important that local communities benefit from the benefits of the project – including the creation of new jobs and capacity building for the future renewable energy sector in the DRC.”
Once completed, the initiative is expected to lead to the creation of more than 2,000 direct jobs and 952 potential indirect jobs, as well as increased fishing and other economic activities around the dam. Other benefits include the collection of tax revenues by the DRC government over the 30 years of the project, and the development of industrial clusters around the mining area.
Kipay investments SAS was incorporated to develop, design, construct, install, commission, operate and manage a hydroelectric reservoir with a nominal capacity of 200 megawatts.
About Afreximbank:
The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. For 30 years, Afreximbank has deployed innovative structures to provide financing solutions that facilitate the transformation of African trade structure and accelerate industrialization and intra-regional trade, thereby supporting economic expansion in Africa. A strong supporter of the African Continental Free Trade Area Agreement (AfCFTA), Afreximbank launched the Pan-African Payment and Settlement System (PAPSS) which was adopted by the African Union (AU) as the platform for payment and settlement to support the implementation of the AfCFTA. In collaboration with the AfCFTA Secretariat and the AU, the Bank established a US$10 billion Adjustment Fund to help countries participate effectively in the AfCFTA. As of the end of December 2023, the Bank's total assets and collateral stood at approximately US$37.3 billion and its shareholders' funds stood at US$6.1 billion. Afreximbank is rated A by GCR International Scale, Baa1 by Moody's, A- by Japan Credit Rating Agency (JCR) and BBB by Fitch. Over the years, Afreximbank has grown into a group consisting of the Bank, its impact financing subsidiary called the African Export Development Fund (FEDA), and its insurance management subsidiary, AfrexInsure, (the three entities form “ the Group”). The Bank is headquartered in Cairo, Egypt.
