The Export-Import Bank of the United States (EXIM) has approved a historic $1.6 billion loan to construct 65 solar mini-grids with energy storage in Angola. The initiative will boost access to electricity and clean water across four southern provinces, improving health, education, and social well-being for communities that have struggled with inadequate infrastructure.
Transforming Angola’s Solar Infrastructure
This loan will fund a major project led by ING Capital, Sun Africa, and Omatapalo to transform Angola’s infrastructure landscape. These mini-grids will power water collection, treatment, and purification systems, directly addressing the critical needs of provinces with limited access to essential services. This approval builds on EXIM’s previous work in Angola, which includes a direct loan of over $900 million to the Ministry of Energy and Water for two photovoltaic solar power plants. These plants are set to generate more than 500 megawatts of renewable power, supporting Angola’s climate commitments and expanding access to clean energy.
EXIM’s Commitment to Renewable Energy and Economic Growth
EXIM President and Chair Reta Jo Lewis praised the approval, highlighting the project’s importance in advancing access to clean energy and potable water in Angola. “Today’s approval underscores our firm commitment to championing renewable energy projects, supporting U.S. exporters doing business in sub-Saharan Africa, deepening our economic relationship with Angola, and advancing President Biden’s Partnership for Global Infrastructure (PGI) initiative,” said Lewis.
This landmark approval deepens the economic ties between the two nations. By supporting investment projects that enhance infrastructure and promote sustainable development, EXIM helps lay the foundation for long-term economic growth and stability.
The project is also expected to generate significant economic benefits and support approximately 3,100 U.S. jobs. The initiative also aligns with EXIM’s mission to facilitate U.S. exports and bolster American competitiveness through financing options such as export credit insurance, working capital guarantees, loan guarantees, and direct loans.
Angola’s Renewable Energy Strategy
Angola’s National Strategy for New Renewable Energies 2025 aims to generate at least 7.5% of the country’s electricity from renewable sources by 2025. The strategy focuses on enhancing rural energy access, advancing grid-connected renewable technologies, and encouraging investment. Approved in May 2023, the General Guidelines for Rural Electrification outline plans to electrify remote areas without access to the national grid by boosting private sector involvement, offering fiscal incentives, and developing public tender projects for mini-grid installations.
The Angolan government has identified significant potential in solar energy, given the consistently high solar radiation across its territory. Current projects include the construction of solar plants in Benguela, Moxico, Luanda Sul, Bié, Huambo, and Luanda Norte, with a combined capacity of 370 MW. The country’s first two solar power plants were completed in 2022 in Biópio and BaÃa Farta, featuring more than 500,000 solar panels and a total capacity of 285 MW.
The $1.6 billion loan approval from EXIM marks a significant milestone in Angola’s transition to sustainable energy and improved water infrastructure. This project not only promises to enhance the quality of life for many Angolans but also strengthens economic ties between the U.S. and Angola, paving the way for a more sustainable and resilient future.
