The Africa Finance Corporation (AFC) has made a significant move to boost mineral beneficiation in Africa by investing $150 million in the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC).
This investment underscores AFC’s commitment to supporting local economies and enhancing Africa’s position in the global copper market.
Kamoa-Kakula Copper Complex Expansion
Key Highlights of the Expansion:
- Increased copper production capacity by 33%
- Construction of Africa’s largest copper smelter
- Renewable hydroelectric generation capacity restoration
Located on the western edge of the Central African Copperbelt, the Kamoa-Kakula Copper Complex is set to become Africa’s largest copper producer.
The project includes a significant expansion aimed at increasing production capacity to over 600,000 tonnes per annum (tpa) and constructing a copper smelter with a capacity of 500,000 tpa of 99% pure copper anodes.
By the end of 2024, this ambitious expansion will add 178 megawatts of renewable hydroelectric capacity through the refurbishment of turbine #5 at the Inga II dam.
Impact on the Local Economy and Employment
The investment by AFC is poised to create numerous job opportunities and drive economic growth in the DRC.
The Kamoa-Kakula Copper Complex currently employs a significant number of local Congolese, contributing over $600 million in taxes and royalties to the DRC since operations began.
In 2023, the complex accounted for 4% of the country’s GDP, highlighting its economic significance.
Samaila Zubairu, President and CEO of AFC said:
“This is a key milestone in our mission to develop infrastructure ecosystems that help integrate economies and drive economic transformation in Africa.”
“Copper is one of the critical minerals for the global energy transition and this mine expansion will not only solidify Africa’s position in the global copper market but contribute to the continent’s path to net zero while creating employment opportunities and generating significant revenue for the DRC.”
Sustainable and Responsible Mining
Kamoa-Kakula is renowned for its sustainable approach to mining. The operation is one of the world’s lowest greenhouse gas emitters per tonne of copper produced.
This is a testament to the joint venture between Ivanhoe Mines, Zijin Mining, and the Government of the DRC, which prioritizes environmental stewardship and social responsibility.
AFC’s Role in Infrastructure Development
AFC’s involvement in the Kamoa-Kakula project extends beyond financing. The Corporation has been instrumental in developing infrastructure that supports industrialization and enhances the continent’s global competitiveness.
Notably, Kamoa-Kakula became the first industrial user of the Lobito Atlantic Railway Corridor, a crucial development that AFC helped facilitate.
Stretching from the DRC Copperbelt to the Atlantic port of Lobito in Angola, this rail line will cut logistics costs and carbon emissions for mineral exports.
About Africa Finance Corporation
Established in 2007, AFC has become a key player in driving infrastructure development across Africa.
With 43 member countries and investments totaling $13 billion, AFC has built a reputation for delivering high-quality infrastructure projects that support economic growth and development.
The Corporation combines industry expertise with financial and technical advisory, project structuring, and risk capital to address Africa’s infrastructure needs.
Sources: THX News, BMI, The Africa Report, Metalex, Oxfam & African Finance Corporation.
