Afreximbank Signs Landmark Deal for Hydropower Development in the DRC

The African Export-Import Bank (Afreximbank) has signed a project preparation facility financing agreement to support the development of a 200 MW hydropower project along the Lufira River in the Democratic Republic of Congo (DRC). This marks a significant milestone in advancing renewable energy and green infrastructure in Central Africa.

Partnering with Kipay Investments SAS, Afreximbank will fund technical and bankability studies, as well as legal and financial advisory services, to bring the project to fruition. The Bank will also lead efforts to structure the project’s debt financing.

As Afreximbank’s first private-sector renewable energy initiative in the DRC, this project aligns with its climate finance strategy and promises transformative benefits. It will provide clean, reliable, and affordable energy to mining companies, enabling value-added processing of critical minerals like copper and cobalt, while supporting local community access to electricity, education, and healthcare. The project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂ annually, aiding the DRC in meeting its Paris Agreement commitments and updated climate goals.

The agreement was signed by Mrs. Kanayo Awani, Afreximbank’s Executive Vice President of Intra-African Trade and Export Development, and Mr. Eric Monga, CEO of Kipay Investments SAS.

Commenting on the transaction, Mrs. 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.