Affirma Capital Invests $145 Million to Boost Power Supply for Copper Mines in DRC and Zambia
(Agence Ecofin) – The Democratic Republic of Congo (DRC) and Zambia are the two leading copper producers in Africa.
While the electricity supply for mines remains a challenge in these two countries, the investment announced by Affirma Capital can contribute to improving the situation.
On January 8, Affirma Capital, the former private equity branch of Standard Bank, announced a $145 million investment in the Copperbelt Energy Corporation (CEC).
With a $50 million contribution from Standard Bank of South Africa, this investment will be used to enhance access to electricity for copper mines in Zambia and the DRC.
CEC’s main activity is to distribute electricity to most mines operating in the Central African copper belt. CEC has a 34 MW operational solar power plant, and another 60 MW plant is expected to be commissioned in January 2024.
As a 34.64% shareholder in the company, Affirma Capital is injecting these new funds to enable CEC to develop its renewable energy capacities and expand access to electricity in Zambia and the DRC.
Affirma’s investment is good news not only for Central African mines but also for achieving goals related to the energy transition, for which copper is essential.
The DRC and Zambia are indeed the two largest African producers of the red metal, and the reliability of electricity supply remains a concern for companies operating in these two countries.
In November last year, Li Chaochun, Chief Investment Officer of Chinese company CMOC, estimated that the available electricity capacity in the DRC does not support the short-term expansion of the group’s operations in the country.
Zambia, which aims to triple its annual copper production by 2030, is also affected by the problem.
It is worth noting that Affirma’s investment also received contributions from Norwegian entities KLP and the Norwegian Investment Fund for Developing Countries (Norfund).
