AFC supports Angola to finance bridges and roads to the tune of more than $380 million

AFC supports Angola to finance bridges and roads to the tune of more than $380 million
AFC supports Angola to finance bridges and roads to the tune of more than $380 million

The project specifically aims to improve accessibility in remote areas and supports industrial and commercial activity, promoting prosperity by reducing transport costs and travel times, and reducing poverty through job creation

The signing of this important agreement, attended by Angolan President Joâo Lourenco, between Africa Finance Corporation (AFC) and the Angolan government took place on May 9, 2024 in Dallas, United States of America. It was during the 2024 Summit on US-Africa Affairs, organized by the CCA from May 6 to 9, 2024.

This financing agreement, amounting to 381.5 million euros, is intended to finance engineering and procurement. and the construction of 186 bridges and much-needed improvements to Angola’s road network.

American investment banks finance

AFC, acting as mandated lead arranger for the commercial tranche, has committed to invest €85 million, in combination with export credit agency financing from the Export-Import Bank of the United States and the Private Export Funding Corporation of the United States. Other key partners include Standard Chartered Bank as coordinating and structuring bank; Conduril, a major Portuguese civil engineering company which is the main EPC contractor; and Acrow, a US construction industry giant, as a bridge supplier.

Opening up remote areas to strengthen the agricultural sector

Initiated by the Ministry of Public Works, Urban Planning and Housing of Angola, the project specifically aims to improve accessibility in remote areas and supports industrial and commercial activity, promoting prosperity by reducing construction costs. transport and travel times, and reducing poverty through job creation. Improving road interconnectivity particularly helps the agricultural sector to produce and market cereals essential for human and animal nutrition, providing a resolute response to the increase in food imports and promoting the localization of food chains.

“AFC is proud to work with the government and other partners on this historic project which is expected to transform the country’s road transport infrastructure as Angola strives to diversify its economy away from oil” , said Sanjeev Gupta, AFC board member and head of financial services. “This project not only supports the country’s drive to make agriculture a foundation of economic growth, but it also prioritizes the development of climate-resilient infrastructure, which significantly contributes to the country’s climate adaptation plan. Angola.

As a reminder, in October 2023, AFC was appointed lead developer of the Lobito Corridor project linking northwest Zambia to the Benguela railway line in Angola and, ultimately, to the Lobito port, in collaboration with the government United States, the European Union, the African Development Bank and the governments of Angola, the Democratic Republic of Congo and Zambia. AFC’s investment in the new road project showcases the Lobito Corridor Consortium’s partnership beyond rail to support rural transport connectivity that will serve to connect communities and the greater regional corridor. Angola has been a shareholder and member state of the AFC since 2022.

By Micah DarePermanent Correspondent

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