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).

The bank will finance technical and bankability studies, legal, financial advisory, and fundraising costs for the development of a 200 MW reservoir-based hydropower project along the Lufira River.

The project aligns with Afreximbank's climate finance strategy and is its first private-sector renewable energy initiative in the DRC.

The power project will provide clean, reliable, and affordable power to mining companies, enabling beneficiation of critical minerals like copper and cobalt within the DRC and fostering significant value retention.

It will also expand electricity access to nearby communities, enhancing access to education and healthcare facilities.

Once completed, the project is expected to reduce greenhouse gas emissions by approximately 108,000 metric tonnes of CO2-equivalent annually, helping the DRC meet its climate targets under the Paris Agreement and updated Nationally Determined Contributions (NDCs).

Afreximbank's commitment to mobilising private capital for renewable energy projects reinforces its commitment to supporting industrialisation and export development activities while promoting a just energy transition.

Eric Monga, CEO of Kipay Investments SAS, highlighted the project's potential to create over 2,000 direct jobs and 952 potential indirect jobs, as well as augmentation of fishing and other economic activities on the reservoir.

Other benefits include realising tax revenues to the DRC government over the 30-year duration of the project and developing industrial clusters around the mining area.