The Africa Finance Corporation (AFC) announced on Friday that it has signed a €381.5-million financing package for road transport infrastructure development in Angola.
Founded in 2007, the AFC actively catalyzes private sector-led infrastructure development across Africa. This latest financing package will fund the engineering, procurement, and building of 186 bridges, as well as other essential enhancements to Angola’s road network.
The AFC has taken the lead investor role for the commercial tranche of the package and has committed to contributing €85-million to the total.
The US Export-Import Bank and the US Private Export Funding Corporation are providing export credit financing for the construction program. Standard Chartered Bank is fulfilling the key role of coordinating and structuring the financing.
Portuguese civil engineering group Conduril is the main engineering, procurement, and construction contractor, while giant US construction group Acrow will supply the bridges.
The financing agreement was signed in Dallas, Texas, during the US-Africa Business Summit, organized by the Corporate Council on Africa.
AFC board member and financial services head Sanjeev Gupta affirmed, “AFC is proud to collaborate with the government and other partners on this landmark project, which will transform the country’s road transportation infrastructure as Angola moves to diversify its economy away from oil.
This project not only supports the country’s drive to make agriculture a foundation for economic growth but also prioritizes the development of climate-resilient infrastructures, significantly contributing to Angola’s climate adaptation plan.”
Initiated by Angola’s Public Works, Urban Planning and Housing Ministry, the project aims to improve access to remote areas, supporting industrial and commercial development. By reducing travel times and transport costs, the program will alleviate poverty and foster prosperity.
Notably, it will stimulate the agricultural sector by providing access to markets, enabling local farmers to grow more cereals for human and animal consumption and raise more livestock. This will help reduce the country’s increasing food imports and promote the localization of food chains.
Source: Press release AFC