Afreximbank Funds First Hydropower Project in DRC
The project is expected to generate over 2,000 direct and around 950 indirect jobs in the sectors concerned.
It will help the DRC reduce greenhouse gas (GHG) emissions by about 1,08,000 metric tonnes of CO2 annually.
The African Export-Import Bank (Afreximbank), a financial institution promoting and financing trade between Africa and other regions, will fund a large hydropower project in the Democratic Republic of Congo (DRC) in partnership with Kipay Investments SAS.
The agreement entails building a hydroelectric plant with a capacity of up to 200 megawatts (MW) on the Lufira River in the DRC. This plant uses a reservoir-based system, which stores water to generate power.
The bank will support technical studies, legal advice, and financial planning and will be responsible for organising the debt financing required to fund the project. This is also its first private-sector renewable energy project within the DRC, which aligns with its strategy to support climate finance and clean energy projects across Africa.
Mrs. Kanayo Awani, Executive Vice President Intra African Trade and Export Development, Afreximbank, 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.”
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Source: Afreximbank
