Afreximbank and the UN Economic Commission for Africa: Endorsed Project Framework agreement with Zambia and DR Congo

Posted On 20 Apr 2023

By Abdul Rahman Bangura–

NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone- African communities are enriched with important minerals utilized in the manufacture of batteries for EVs.

The DR. Congo catalogs for roughly 70% of global cobalt supply and 88% of cobalt exports. The two nations altogether allot 11% of all copper supply globally. Mining is moreover a significant area for both nations, providing 70% of Zambia’s foreign exchange. Cobalt reports for 26% of the DRC’s exports.

“DRC and Zambia are well positioned to establish leadership in the strategically pivotal electric vehicle (EV) sector, being well-endowed with the resources necessary to produce battery minerals,” said the Bank.

Afreximbank and ECA will take advantage of a facilitating function as financial and technical partners.

“The two institutions will lead the establishment of an Operating Company (OpCo) in consortium with investors from DRC and Zambia.

“As well as international investors such as Afreximbank’s impact fund subsidiary, the Fund for Export Development in Africa (FEDA),” the Bank said.

Electric vehicles important for Zambia, DRC to benefit from the green mineral boom. This OpCo will develop SEZs dedicated to producing “battery precursors, batteries, and electric vehicles in both the DRC and Zambia.“

“The project will deploy well-established and proven EV technology that will enable both countries to exploit their mineral resources at scale,” said the Bank.

Oluranti Doherty – Afreximbank’s Director of Export Development, explained SEZs are “critical tools the continent can deploy to fast-track its industrial infrastructure development, promote Intra-African Trade…”

Antonio Pedro, ECA Interim Executive Secretary, let out the consensus was significant to ensure “enabling” procedures are put in place for the region to profit from the “green mineral boom.”

For New Africa Daily News Abdul Rahman Bangura Reports, Africa Correspondent