The signing ceremony in Berlin.
DRC Embraces a Sustainable Energy Future
The government of the Democratic Republic of Congo has entered into a Memorandum of Understanding with Eurasian Resources Group to mobilise US $300 million of investment in new battery storage and photovoltaic capabilities.
The agreement, which was confirmed at a signing ceremony attended by Nicolas Kazadi, DRC's Minister of Finance in Berlin on 27th August, is expected to contribute to the economic diversication of the country away fro oil and natural gas.
The signing coincides with the fourth G20 Compact for Africa Summit (which is also known as the "Compact with Africa") and aims to mobilize private investment from around the world for the benefit of the DRC in order to diversify the economy and make it more competitive.
Under the terms of the agreement,, ERG will spearhead investment in three new projects; namely (a) the construction of a national energy storage system using batteries to facilitate the implementation of projects related to any revenue-generating sector, (b) a project is to build one of the largest Solar PV plants in the DRC to generate electricity, a major pioneering initiative driven by the private mining industry to contribute to the green energy transition, and (c) a project to build a downstream enrichment facility to produce battery materials and ensure the transformation of some 20 per cent of cobalt production whilst adding an estimaged 15 per cent in added value.
The initiative is the latest effort by the government of the DRC to mobilize private investment from major international groups to support the country's economic recovery through the recently launched Investment Fund for Economic Diversification and job creation.
The new investments come at an opportune moment because they will contribute to support the economic recovery after the crisis of the COVID-19 pandemic. The three investment projects will address the exorbitant energy bills that mining and oil companies, hospitals, and educational institutions in the DRC are constantly facing.
Benedikt Sobotka, ERG Chief Executive Officer, congratulated the DRC for embarking on a pioneering initiative that will reassure investors in all sectors.
Incorporated in Luxembourg law, Eurasian Resources Group S.a.r.l. (ERG) currently holds several mining assets in the DRC indirectly and is the parent of the ERG group of companies - one of the world's largest integrated mining companies with an existing portfolio of assets located in Asia, Latin America, and Africa.