Africa Finance Corporation (AFC), a key player in the infrastructure sector in Africa, recently announced a major investment in the Kamoa-Kakula copper complex in the Democratic Republic of Congo (DRC). The granting of a $150 million senior loan to Kamoa Copper marks a significant milestone in the development of this underground copper mine, one of the largest on the continent. This project demonstrates AFC's commitment to promoting local value addition of natural resources and driving economic prosperity in Africa. This summary integrates key points from two separate articles on this topic, providing a coherent and in-depth overview of this strategic initiative. [1]

Expansion Details

The Kamoa-Kakula complex, located at the western end of the Central African Copperbelt, is known for its production of high-quality, low-carbon copper. Since the start of production in July 2021, the site is undergoing its third expansion phase, aiming to increase its production capacity by 33%, to reach over 600,000 tonnes of copper per year. This expansion also includes the construction of Africa's largest copper smelter, capable of producing 500,000 tonnes per year of 99% pure copper anodes.

In parallel, the rehabilitation of turbine number 5 of the Inga II hydroelectric dam will add 178 megawatts of renewable hydroelectric production capacity. The completion of this phase is scheduled for the end of 2024, positioning Kamoa-Kakula as the largest copper producer on the continent and the third largest globally. This expansion phase aims not only to increase production capacity but also to strengthen the energy and industrial infrastructure of the DRC. With a workforce made up of 91% Congolese, the project stands out for its positive impact on the local economy. Since the start of operations, over $600 million has been paid in taxes and royalties to the government, underscoring the project's commitment to responsible mining and the valorization of local resources. [2]

Economic and Environmental Impact

The expansion of Kamoa-Kakula has a significant economic impact for the DRC. In 2023, the mine contributed 4% of the DRC's Gross Domestic Product (GDP), highlighting its key role in the national economy. The project also serves as an example of how mining can be carried out sustainably and responsibly. Independent consultants, Skarn Associates and WSP Group, have confirmed that Kamoa-Kakula is among the copper mines with the lowest greenhouse gas emissions per ton produced in the world. The AFC initiative goes beyond increasing mining production. It also includes infrastructure projects such as the rehabilitation of the Inga II dam, which will increase renewable energy production capacity.

This development contributes not only to the global energy transition but also to the reduction of carbon emissions associated with mining.

Furthermore, the Kamoa-Kakula complex has become the first industrial user of the Lobito Atlantic railway corridor, a railway line connecting the copper belt of the DRC to the Atlantic port of Lobito in Angola. This use of the corridor is expected to significantly reduce the logistical costs and carbon footprint of mining product exports. [3]

Role of Africa Finance Corporation (AFC)

Africa Finance Corporation, founded in 2007, is a key player in financing and developing essential infrastructure in Africa. As a leading provider of infrastructure solutions, AFC has played a crucial role in supporting and structuring the financing of major projects such as Kamoa-Kakula. AFC has also acted as a financial advisor for the consortium Trafigura, Mota-Engil, and Vecturis in the operation of the Lobito railway corridor, a railway line connecting the copper belt of the DRC to the Atlantic port of Lobito in Angola.

AFC acted as a financial advisor for the consortium Trafigura, Mota-Engil, and Vecturis, which obtained a 30-year concession for railway and logistics services. The use of this corridor is expected to significantly reduce logistics costs and carbon emissions associated with the export of mining products from the copper belt of the DRC. AFC's involvement in this project underscores its commitment to developing infrastructure that supports economic growth and industrialization on the continent.

Since its inception, AFC has invested $13 billion across 43 member countries, positioning itself as the partner of choice for high-quality infrastructure projects in critical sectors such as energy, natural resources, heavy industry, transportation, and telecommunications.[4]

Outlook for the Future

The expansion of the Kamoa-Kakula complex marks a major advancement for the mining industry in Africa and the economy of the DRC. This ambitious project, aiming to make Kamoa-Kakula the third largest copper producer globally, solidifies Africa's strategic position in the global natural resources market. By increasing production capacity to over 600,000 tons of copper per year, the complex meets the growing demand for copper, an essential metal for global energy transition. The construction of Africa's largest copper smelter and the integration of renewable energy infrastructure, such as the rehabilitation of the Inga II dam turbine, demonstrate the project's commitment to adopting sustainable and low-carbon industrial practices. The Africa Finance Corporation's (AFC) initiative in this project goes beyond just increasing mining production. It embodies a holistic vision of economic and industrial development in Africa. By focusing on industrialization and carbon emission reduction, the AFC offers an innovative model for sustainable economic development.

The use of the Lobito Atlantic railway corridor for the export of mining products demonstrates a strategic approach aimed at reducing logistical costs and carbon footprint, while strengthening regional economic integration. This project, through its positive economic and environmental impacts, paves the way for responsible mining exploitation and a prosperous future for the DRC in particular and Africa.[5]