AFC leads €381.5Million funding to enhance Angola's transportation network

Sanjeev Gupta, AFC Board Member and Head of Financial Services, highlighted the project’s alignment with Angola's strategic goals.

The Africa Finance Corporation (AFC) is at the forefront of a major infrastructure development project, leading a €381.5 million initiative to enhance Angola's transportation network through the construction of 186 bridges and significant road improvements. This initiative, crucial for the economic diversification and development of Angola, will focus on boosting accessibility, particularly in remote areas, thereby fostering industrial growth and reducing poverty.

As the mandated lead arranger for the commercial tranche, AFC has committed €85 million to the project, complemented by financing from the Export-Import Bank of the U.S. and the U.S. Private Export Funding Corporation. The project has garnered further support from key partners including Standard Chartered Bank, Portuguese civil engineering firm Conduril, and U.S. construction giant Acrow. The agreements were formalized at the recent US-Africa Business Summit in Dallas, Texas, demonstrating a robust international collaboration.

Sanjeev Gupta, AFC Board Member and Head of Financial Services, highlighted the project’s alignment with Angola's strategic goals. “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 stated. The project is not only aimed at enhancing the agricultural sector's capacity to produce and market essential goods but also at developing infrastructure resilient to climate impacts, contributing to Angola’s climate adaptation strategies.

In addition to this, in October 2023, AFC was appointed the lead project developer for the Lobito Corridor. This corridor is designed to connect northwest Zambia to the Benguela rail line in Angola and ultimately to the port of Lobito. This venture, in partnership with the US government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia, represents a significant step in enhancing regional connectivity and economic integration.

Angola's active participation as a shareholder and member state of AFC since 2022 underscores the nation's commitment to leveraging AFC's expertise in infrastructure development to propel national and regional progress. This comprehensive approach to improving infrastructure not only aims to transform Angola’s economic landscape but also to connect communities and enhance the overall quality of life across the region.