Afreximbank and Kipay Partner to Launch 200 MW Hydropower Project in DRC

The partnership involves funding technical and bankability studies, legal and financial advisory services, and fundraising activities to ensure the project's success.

The African Export-Import Bank (Afreximbank) has signed a project preparation facility financing agreement with Kipay Investments SAS (Kipay) to advance the development of a 200 MW reservoir-based hydropower project on the Lufira River in the Democratic Republic of Congo (DRC). This agreement represents a milestone in scaling up renewable energy infrastructure across Central Africa.

The partnership involves funding technical and bankability studies, legal and financial advisory services, and fundraising activities to ensure the project's success. Afreximbank will also lead the debt financing structuring for the hydropower plant.

Once operational, the plant will supply clean, reliable, and affordable energy to support mining operations, particularly for copper and cobalt beneficiation, fostering significant value retention within the DRC. It will also expand electricity access for local communities, improving education, healthcare, and economic opportunities.

This initiative aligns with Afreximbank’s climate finance strategy, contributing to DRC’s climate goals under the Paris Agreement and Nationally Determined Contributions (NDCs). The project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂-equivalent annually.

Economic and Social Impact

Beyond renewable energy production, the project is set to generate wide-ranging socio-economic benefits, including:

• Creation of over 2,000 direct jobs and 952 indirect jobs during construction and operation.
• Boosting fishing and other economic activities around the reservoir area.
• Capacity building for the future renewable energy sector in the DRC.
• Increased tax revenues for the government over the project’s 30-year lifespan.
• Development of industrial clusters around mining zones, enhancing regional economic integration.

Leadership Perspectives

Speaking at the signing ceremony, Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, emphasized the bank’s dedication to supporting sustainable projects that fuel industrialization and trade.

“This agreement underscores Afreximbank’s commitment to advancing renewable energy projects that not only drive industrialization but also support a just energy transition. By leveraging DRC’s vast renewable energy potential, we are enhancing energy security and creating sustainable infrastructure for trade and development,” said Mrs. Awani.

Highlighting the innovative financing structure, she noted the project's reliance on a captive market for energy supply, ensuring its bankability and long-term viability.

Mr. Eric Monga, CEO of Kipay Investments SAS, expressed optimism about the project's transformational impact. “This initiative represents a renewed hope for socio-economic progress in the DRC. It will not only provide clean energy but also create jobs, build capacity in the renewable energy sector, and ensure local communities benefit directly,” he said.

Strategic Role of Kipay Investments SAS

As the project developer, Kipay Investments SAS is responsible for designing, constructing, installing, commissioning, and managing the hydropower plant. The plant’s reservoir-based design will ensure energy reliability while supporting the DRC’s broader industrialization goals.

Advancing Green Energy in Central Africa

This initiative is Afreximbank’s first private-sector renewable energy project in the DRC, setting a precedent for further investments in sustainable energy in the region. It underscores the Bank’s commitment to mobilizing private capital for green energy projects, reinforcing the importance of public-private partnerships in achieving energy transition goals.

The hydropower project is not just a step toward meeting climate targets; it is a foundation for long-term socio-economic growth, fostering regional stability, and enabling the DRC to position itself as a hub for sustainable industrial activities.