The African Export-Import Bank (Afreximbank) has signed a series of project-preparation agreements committing initial funding and technical support to energy projects in Nigeria, Zimbabwe, and Malawi. These deals, announced during the bank’s 2025 Annual Meetings, are expected to catalyse approximately US$1 billion in investment when fully mobilised.
What Was Signed
- Nigeria (Sapele Gas Plant)
Afreximbank signed a US$4.0 million Project Preparation Facility (PPF) heads-of-terms agreement with Proton Energy Ltd. The funds will cover feasibility studies and transaction advisory for a grid-connected, gas-fired power plant in Sapele, Delta State. The plant will have a nameplate capacity of 500 MW, starting with an initial 150 MW phase. Power will be sold under a 20-year Power Purchase Agreement (PPA) to Eko Electricity Distribution Company. The project could unlock around US$300 million in financing once bankable.
- Zimbabwe (Lake Kariba Floating Solar)
A US$4.4 million PPF agreement was signed with Green Hybrid Power Private Limited for a 1,000 MW hybrid floating solar photovoltaic (PV) project on Lake Kariba. The first 500 MW phase will serve industrial off-takers under a 20-year PPA. The goal is to reduce reliance on hydropower which has been affected by recurring droughts and to attract an estimated US$350 million in investment.
- Malawi (Joint Project Preparation Facility)
Afreximbank entered a Joint Project Preparation Facility Framework Agreement with NBS Bank Plc. Over three years, the partnership will fund early-stage preparation for projects in energy and other sectors. The arrangement aims to move projects from concept to bankable stage, unlocking a pipeline of investment opportunities for Malawi.
Also read: Ethiopia’s Ambitious Wind Farm Deal at COP28: A Paradigm Shift or Overinvestment?
Why the PPF Approach Matters
The Project Preparation Facility model allows Afreximbank to take on the early-stage risk that often deters private investors. By funding technical feasibility studies, environmental and social impact assessments, and transaction structuring, the bank reduces uncertainty for future lenders and equity partners. This strategy is designed to multiply impact small preparatory investments today and trigger much larger flows of capital tomorrow.
The three agreements are part of a wider set of project-prep deals signed at the 2025 Annual Meetings, collectively targeting around US$1 billion in follow-on investment across Africa.
What Each Project Could Change
Nigeria _Sapele Gas Plant
Nigeria’s national grid suffers from chronic shortfalls, unstable frequency, and high distribution losses. The proposed Sapele gas plant offers quick-deployment capacity close to demand hubs. By staging development starting with 150 MW before scaling to 500 MW the project limits early exposure while building investor confidence. The PPF will pay for the studies, engineering work, and PPA structuring needed to attract large-scale financing.
Zimbabwe — Lake Kariba Floating Solar
Lake Kariba’s hydropower output has dropped repeatedly due to low water levels, forcing Zimbabwe to import power or ration supply. Floating solar technology provides a renewable alternative that uses existing water surface without competing for land. It can also reduce evaporation rates from the lake, preserving water for hydropower use. The project’s industrial off-taker focus is designed to stabilise power supply for Zimbabwe’s mining and manufacturing sectors, potentially boosting foreign exchange earnings through value-added exports.
Malawi — JPPF with NBS Bank
Malawi’s deal differs from Nigeria and Zimbabwe’s in that it doesn’t target a single mega-project. Instead, it sets up a project preparation pipeline that could serve multiple energy and infrastructure initiatives. By embedding the process in a local bank, Afreximbank aims to ensure projects are aligned with domestic priorities and can access both local and international financing sources.
Risks and What to Watch
- Power Purchase Agreements and Tariffs
Both the Sapele and Kariba projects hinge on long-term PPAs. These contracts must be backed by financially stable off-takers and offer cost-reflective tariffs to ensure bankability. Weak utility finances or unfavourable terms could deter private capital.
- Climate and Hydrology Concerns
The Kariba solar project is partly a climate adaptation measure but it still depends on a stable hydrological environment for its hybrid model. Extended droughts or erratic rainfall could affect both hydro and solar-hybrid operations if water levels drop too low.
- Local Content and Value Chains
Zimbabwe’s industrial off-taker focus will only deliver real economic gains if the power fuels local processing and manufacturing, not just raw commodity exports. Clear frameworks for local job creation, technology transfer, and value addition will be critical.
- Mobilisation Risk
PPF agreements are not full project financings. They increase bankability, but market conditions, interest rate trends, and political stability will still determine whether the larger investment flows materialise.
Afreximbank’s current strategy reflects a pragmatic energy mix combining gas for immediate grid stability and large-scale renewables for long-term sustainability. Nigeria’s gas-fired plant addresses urgent reliability gaps, while Zimbabwe’s floating solar aims to diversify and climate-proof generation. Malawi’s pipeline model builds long-term capacity to prepare and finance projects domestically.
The multiplier effect of project preparation funding is especially important for African infrastructure: for every dollar spent on bankability work, Afreximbank hopes to mobilise dozens more in private capital. This could accelerate the pace at which African countries close their energy access gaps and shift towards cleaner, more resilient systems.
