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Afreximbank to structure debt for DRC hydropower project
Deal marks bank’s first private-sector renewable energy initiative in Central Africa country
Michael Marray   8 Jan 2025

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 the Congo ( DRC ).

Partnering with Kipay Investments, Afreximbank will finance the technical and bankability studies, legal, financial advisory and fund-raising costs for the development of up to 200-megawatt 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 the bank’s first private-sector renewable energy initiative in the DRC. The power project will provide clean, reliable and affordable power to mining companies, enabling beneficiation ( treatment of raw materials for smelting ) of critical minerals including copper and cobalt, and fostering significant value retention.

Once completed, the project is expected to result in the reduction of greenhouse gas emissions by approximately 108,000 metric tonnes of carbom dioxide equivalent annually, thereby helping the DRC meet its climate targets under the Paris agreement and updated Nationally Determined Contributions ( NDCs ).

“This signing ceremony underscores Afreximbank’s commitment to support renewable energy projects that spur industrialization and export development activities while promoting a just energy transition," says  Kanayo Awani, executive vice president for intra-African trade and export development at Afreximbank.

"Afreximbank is committed to supporting DRC’s energy transition, enhancing the country’s energy security while leveraging its vast renewable energy potential to develop sustainable trade-enabling energy infrastructure.”

Other benefits include tax revenues for the DRC government over the 30-year duration of the project, and the development of industrial clusters around the mining area.