The Export-Import Bank of the United States (EXIM) has approved a historic $1.6 billion loan for constructing 65 solar mini-grids with energy storage in Angola. This initiative will boost access to electricity and clean water in four southern provinces; with aims to improve health, education, and social well-being in areas with previously inadequate infrastructure.
Transforming Angola's Solar Infrastructure
The Board of Directors of the Export-Import Bank of the United States (EXIM) has approved an unprecedented $1.6 billion direct loan to support the construction of 65 solar mini-grids equipped with energy storage facilities in Angola. This groundbreaking project aims to enhance access to electricity and potable water in four southern provinces. It will significantly improve health, education, and social well-being in regions that have long struggled with inadequate infrastructure.
The approved loan will fund a massive undertaking involving ING Capital, Sun Africa, and Omatapalo; with aims to transform the infrastructure landscape in Angola. The project will establish energy mini-grids that will power water collection, treatment, and purification systems. Likewise, it will directly address the critical needs of several provinces with limited access to these essential services.
This latest approval builds upon EXIM’s previous work in Angola, including a direct loan exceeding $900 million to the Ministry of Energy and Water of the Republic of Angola for constructing two photovoltaic solar power plants. These plants are set to generate over 500 megawatts of renewable power, further 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 expressed pride in the approval of the project, highlighting its importance in advancing clean energy and potable water access 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 historic loan approval builds on EXIM’s recent work in Angola, further solidifying economic ties between the two nations. By supporting projects that enhance infrastructure and promote sustainable development, EXIM is helping to create a foundation for long-term economic growth and stability in Angola.
The project is expected to create substantial economic benefits, with estimates indicating that it will support approximately 3,100 U.S. jobs. This aligns with EXIM’s mission to facilitate U.S. exports and bolster American competitiveness in the global market. By providing financing options such as export credit insurance, working capital guarantees, loan guarantees, and direct loans, EXIM plays a crucial role in supporting tens of thousands of jobs within exporting businesses and their supply chains across the United States.
Recent Developments and Future Goals
Angola's National Strategy for New Renewable Energies 2025 aims to have 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. The General Guidelines for Rural Electrification which was approved in May 2023 outline plans to electrify remote areas without national grid access. The Guidelines stated the objectives to boost private sector involvement, offer fiscal incentives, and develop public tender projects for mini-grid installations.
The Angolan government has identified significant potential in solar energy, with high and constant solar radiation across the territory. Current projects include the construction of solar plants in multiple provinces such as Benguela, Moxico, Luanda Sul, Bié, Huambo, and Luanda Norte, with a combined capacity of 370MW. The country’s first two solar power plants were completed in 2022 in Biópio and Baía Farta, totalling more than 500,000 solar panels and a capacity of 285MW.
The $1.6 billion loan approval by EXIM marks a significant milestone in Angola’s journey towards 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. As EXIM continues to support renewable energy projects and U.S. exporters, the benefits extend beyond immediate economic gains and pave the way for a more sustainable and resilient future.