ANGOLA – The Africa Finance Corporation (AFC) is spearheading a EUR 381.5 million (USD 410.9 million) financing package in a development move aimed at streamlining Angola’s infrastructure.
This initiative targets the enhancement of Angola’s road network, encompassing the construction of 186 bridges and critical infrastructure upgrades.
The AFC, serving as the mandated lead arranger for the commercial tranche, has pledged EUR 85 million (USD 91.65 million) towards this endeavor.
The funding is a collaborative effort, with support from the Export-Import Bank of the U.S. and the U.S. Private Export Funding Corporation.
Noteworthy contributions also come from Standard Chartered Bank, Conduril, a prominent Portuguese civil engineering firm, and Acrow, a leading U.S.-based bridge supplier.
The project, initiated by Angola’s Ministry of Public Works, Urban Planning and Housing, is strategically focused on enhancing accessibility in remote regions.
By facilitating industrial and commercial activities, the initiative aims to drive economic prosperity. One of the key objectives is to reduce transport costs and travel times, thereby fostering job creation and poverty alleviation.
Improved road connectivity is particularly vital for the agricultural sector, enabling the efficient production and distribution of cereals, livestock, and other essential commodities.
Sanjeev Gupta, AFC Board Member and Head of Financial Services, underscored the transformative potential of the project, stating, “AFC is proud to work with the government and other partners on this landmark project which is set to transform the country’s road transportation infrastructure as Angola makes strides to diversify its economy away from oil.”
He emphasized the project’s alignment with Angola’s broader economic diversification goals and its contribution to climate resilience.
This initiative builds upon AFC’s previous involvement in Angola’s infrastructure development. In October 2023, AFC was appointed as the lead project developer for the Lobito Corridor, a crucial transportation route connecting northwest Zambia to the Benguela rail line and the port of Lobito in Angola.
By investing in the new roads project, AFC is extending its commitment to rural transport connectivity, which serves to link communities and enhance regional trade.
Empowering agricultural communities
The impact of improved logistical infrastructure is already being felt by agricultural communities in Angola.
Since the delivery of 20 vans in October 2022, the flow of agricultural products from the six municipalities of the Angolan province of Zaire, has seen significant improvements.
The economic operators of rural trade in the region have responded to requests, especially from cooperatives interested in selling large quantities of agricultural products, namely cassava, ginguba, oranges and bananas in the markets of the city of Luanda.
André Dilumengene Mavuide, is president of the Dimagres Agricultural Cooperative, with an area of 150 hectares located in the village of Nsiesie.
The entity mainly grows cassava, peanuts and soybeans and expects to use the means provided by the government, to transport the production to Luanda, next June.
André Dilumengene Mavuide, president of the Dimagres Agricultural Cooperative, expressed optimism about the upcoming harvest season, stating, “I’m waiting for the harvest period in June, the month foreseen for the harvest and sale of cassava. But I already have the contacts and all I have to do is ask, I’m sure I’ll be able to sell my products.”
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