Recently, on the margins of the Corporate Council on Africa’s U.S.-Africa Business Summit, the United States and the Republic of Angola celebrated the signing of final agreements to finance three major infrastructure projects in the Partnership for Global Infrastructure and Investment (PGI)’s flagship Lobito Corridor.
The agreements, for projects totaling more than $1.3 billion for clean power, radio connectivity, and transportation infrastructure, demonstrate the U.S. government’s continued commitment to support and accelerate the economic investment priorities of Angola.
Awarded less than a year after President Biden announced the flagship Lobito Corridor, these infrastructure projects represent the largest U.S.-backed PGI financing package to any country since the inception of the initiative and will create Angolan and American jobs.
In October 2023, the U.S. Government signed a seven-side MOU with the governments of Angola, the Democratic Republic of Congo, Zambia, and the European Commission, alongside the African Development Bank and the Africa Finance Corporation (AFC), to develop the Lobito Corridor, including key rail infrastructure investments in all three African countries.
Last week’s signing ceremony in Dallas is an important example of the holistic PGI investment approach, where G7 public financing and project de-risking across multiple sectors simultaneously can unlock economic growth and opportunities while supporting responsible businesses practices.
The Export–Import Bank of the United States’ direct $872 million financing—the largest renewable energy transaction in EXIM’s history—will support U.S. developer Sun Africa’s construction of two solar energy power plants generating more than 500 megawatts of renewable power to Angola’s national grid.
The project is a result of a successful U.S. whole-of-government approach, including crucial advisory assistance at different stages from Power Africa and Prosper Africa and support from the Department of Commerce Advocacy Center.
Bringing together EU, Republic of Korea, and Swedish-produced equipment with American technology and U.S. equipment suppliers, and supported by ING Capital LLC, the solar farms will provide clean, sustainable electricity to 3.3 million people and help the Angolan Government to further reduce its CO2 emission.
The $450 million Acrow Bridge project, investing in modern transportation infrastructure through the engineering, procurement, and construction of 186 bridges throughout Angola, involves financing and support from EXIM, the Private Export Funding Corporation, and Standard Chartered Bank.
AFC’s commercial loan for a portion of the project is an example of the Lobito Corridor consortium partnering beyond rail to support rural transport connectivity that will serve to connect communities to each other and the larger regional corridor.
The Angola FM Radio Signal Expansion and Studio Modernization Project, supported by Ohio-based GatesAir technology, is a $40 million project to expand analog FM radio coverage to 95 percent of the Angolan population.
This turnkey deal will supply 168 Flexiva FM transmitters, installation of antennas, towers, auxiliary RF systems and studio upgrades across the country, in a successful collaboration between GatesAir, EXIM-guaranteed lender Deutsche Bank, and the Republic of Angola.
The Corporate Council on Africa brings together partners from around the world to promote the growth and economic imperatives that the United States and Africa share, including PGI’s Lobito Corridor development.
SOURCE:lobitocorridor.org
