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), marking a major step in expanding green infrastructure across the Central African region.
Aligning with Afreximbank’s climate finance strategy, the project marks Afreximbank’s first private-sector renewable energy initiative in the DRC. This captive power project will deliver significant benefits. It will provide 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).
Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development, Afreximbank signed the agreement on behalf of Afreximbank while Mr Eric Monga, Chief Executive Officer of Kipay Investments SAS, signed on behalf of his company.
Commenting on the transaction, Mrs. Kanayo Awani, said: “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. 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.”
“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.” Mrs. Awani added.
Speaking at the signing ceremony, Mr. Eric Monga, CEO of Kipay Investments SAS, highlighted that the project had led to renewed optimism for socio-economic development among the local population and across the country. He said: “It is important that local communities reap the benefits of the project — including creation of new jobs and capacity building for the future renewable energy sector in the DRC.”
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.
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.
About Afreximbank
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
