The U.S. International Development Finance Corporation (DFC) to Highlight United States (U.S.) Capital Mobilization for Africa at Houston Energy Forum

Zawya

3 days ago

The U.S. International Development Finance Corporation (DFC) is set to take the stage at the U.S.–Africa Energy Forum (USAEF) in Houston next month, with Director Selam Demissie confirmed as a featured speaker. Her participation comes at a pivotal moment as the DFC deepens its commitment to mobilizing U.S. private capital into Africa's energy and critical minerals sectors, particularly in underfinanced markets.
Despite being resource-rich and technically viable, many African energy projects continue to face challenges reaching financial close, held back by a lack of early-stage capital, limited credit guarantees and high perceived political risk. This financing gap continues to stall progress across upstream and midstream segments, particularly in markets where private investors remain cautious. The DFC is stepping into this space with the clear goal of derisking investment environments and making U.S. participation not only viable, but attractive.
Through its suite of financial tools – including political risk insurance, debt financing and equity investment – the DFC is uniquely positioned to provide the kind of blended finance packages that catalyze private sector involvement. Its products are designed specifically to absorb risk where commercial lenders will not, helping to crowd in capital for large-scale energy and infrastructure projects. By offering coverage of up to $1 billion per project, the DFC protects investors against challenges such as expropriation, political violence and currency inconvertibility – barriers that often delay or derail investments in complex African markets.
One of the DFC's recent moves was its $553 million loan to support the rehabilitation and upgrade of the Lobito Atlantic Railway, which stretches over 1,300 kilometers from the border of the Democratic Republic of Congo (DRC) to the Angolan coast. This investment includes rail infrastructure and port facilities, designed to enable the efficient transport of critical minerals, such as cobalt and copper, from the DRC to global markets. The corridor represents a major shift in regional logistics strategy – offering a competitive and secure alternative to existing routes – and speaks to a broader U.S. push to build more resilient and transparent supply chains for critical materials central to the energy transition.
The DFC's participation at USAEF also signals that its focus extends beyond minerals. In the energy sector, the DFC has extended political risk insurance to gas and infrastructure projects, including in markets like Mozambique, where it played a role in supporting early-stage development of LNG facilities despite significant security and operational challenges. These efforts highlight how U.S. development finance can help move forward energy projects that might otherwise remain stalled in frontier markets.
At USAEF 2025, the DFC's participation underscores its expanding role in Africa's energy and critical minerals sectors. The agency's growing footprint reflects a clear recognition of Africa's pivotal role in the future of global energy systems and supply chains. By providing risk-tolerant capital for infrastructure such as gas processing, terminals and transport corridors, the DFC is helping to catalyze private investment and strengthen U.S. economic and strategic engagement across the region.
Distributed by APO Group on behalf of Energy Capital&Power.
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