The European Investment Bank (EIB) has paused financing decisions for the $760 million Ruzizi III hydropower project due to ongoing conflict between the Democratic Republic of Congo (DRC) and Rwanda-backed M23 rebels. The decision raises concerns about a project expected to improve electricity access for the DRC, Rwanda, and Burundi.
Violence Disrupts Project Plans
In January, the M23 rebel group launched an offensive, capturing Goma and Bukavu. These key cities are near the Rwandan and Burundian borders. The attacks sparked international condemnation and increased pressure on the conflicting sides. As violence escalates, the future of the Ruzizi III project remains uncertain.
Situated on the Ruzizi River, which forms a natural border between the DRC, Rwanda, and Burundi, the 206-megawatt project was undergoing assessment before final financing approvals. However, renewed clashes have placed the site in a conflict zone.
“With the M23 gaining ground in South Kivu, the Ruzizi III site is now within the conflict area,” an EIB spokesperson stated. “We are taking a ‘wait and see’ approach while coordinating with our co-financiers.”
Investors Review Their Involvement
Several international lenders back the project, including Germany’s KfW, the French Development Agency (AFD), the African Development Bank, and the World Bank. However, security concerns have led some investors to reconsider their commitments.
Germany’s KfW bank cited a March 4 statement from the federal government suspending new financial agreements with Rwanda while reviewing their cooperation. An AFD spokesperson said the timeline for finalizing project financing would depend on how the situation develops.
The World Bank remains engaged with all three countries and the regional energy body, Energie des Grands Lacs, to push the project forward despite the challenges.
A Decade-Long Effort in Jeopardy
Ruzizi III has been in development for over a decade and is set to become Africa’s first public-private renewable energy partnership using shared water resources. Once completed, it could supply electricity to 30 million people.
TotalEnergies, through its subsidiary SN Power, declined to comment on the financing situation. Nairobi-based Industrial Promotion Services, another key stakeholder, did not respond to inquiries.
The Ruzizi River already hosts two smaller hydropower dams, with discussions underway for a fourth phase. If completed by 2030, Ruzizi III is expected to double Burundi’s power generation capacity and increase Rwanda’s by a third.
However, as conflict intensifies, the project’s future remains uncertain. The situation highlights the risks of developing infrastructure in conflict-prone regions of Africa.