+27 71 448 3496
leon@whyafrica.co.za

Funding of min-grids in Angola will benefit rural communities

Share Article
Angola is investing in the construction and development of photovoltaic electricity distribution infrastructure across large parts of the country. Image credit: Wikipedia Commons

Funding of min-grids in Angola will benefit rural communities  

The construction of photovoltaic electricity distribution infrastructure in Angola will benefit more than one million Angolans across the country.

The project, developed by the Angolan Ministry of Energy and Water, will be funded by Standard Chartered to the tune of EUR 1.29-billion. The new generation systems will support rural villages across the country to become more self-sufficient and less reliant on Angola’s main electricity network.

The electrification project is expected to benefit more than 203,000 households (about one million Angolans) in 60 communities[1]. These

Communities are in the provinces of Moxico, the country’s largest province located in the East, Lunda Norte and Lunda Sul in the North East, Bié in the central part of the country and Malanje in the North West. WhyAfrica will visit the Moxico Province later this week as part of its WhyAfrica 2023 Road Trip through Namibia, Zambia, Angola, Botswana and South Africa.

Diversifying the national electricity grid (Funding of min-grids in Angola will benefit rural communities)   

The loan will fund 48 hybrid photovoltaic generation systems with energy storage that act as ‘mini grids’ and operate autonomously and will provide access to 100% renewable electricity[2] for communities not connected to the national electricity grid.

Additionally, the financing will support the expansion of the national grid in Malanje and build new lines and networks connecting other municipalities. The installation of the new electricity network will help diversify the country’s energy mix and calculations[3] show that it can save up to 7.9 megatonnes of CO2 emissions.

The financing is backed by German Export Credit Agency Euler Hermes[4] and the contractor MCA Group[5] is managing the construction and project management.

Of the EUR 1.29 billion total, EUR 1.2 billion is supported through Euler Hermes and the remaining EUR 0.09bn is a commercial loan.

Standard Chartered acted as sole Bookrunner, Original Lender, Facility Agent, Structuring Bank and Mandated Lead Arranger. The Bank structured the financing to help meet eight of the United Nations’ Sustainable Development Goals[6] and align to environmental and social risk management international best practices.

This transaction follows the recent announcement[7] of EUR 238-billion of ECA-supported financing for the government of Angola to build new infrastructure, supporting the country’s agricultural industry and transport network, and EUR 149 million of Social Loan financing for the Angolan Ministry of Finance to build a new hospital in Kilamba, with a specialist burns ward[8].

In September 2021, the Bank also announced[9] USD1.1-billion financing to develop critical water supply infrastructure to serve the Angolan capital Luanda.

Funding of min-grids in Angola will benefit rural communities

ADVERTISEMENT

WhyAfrica provides on the ground information and business intelligence about the sustainable utilisation and extraction of natural resources in Africa, and can assist your company through:  

  1. Membership:
  • WhyAfrica’s membership offers great business insights to you, your company, and clients.
  • Amongst many other benefits, we will publish editorial content about you or your company on the WhyAfrica online platform and on all WhyAfrica’s social media pages – the annual fee is R5,500 and you can find out more or subscribe here: https://www.whyafrica.co.za/product/membership/ 
  1. Sponsorship:
  • WhyAfrica’s annual 45-day African Road Trip takes place in July and August. We will visit more than 30 project sites and this year we plan to visit Angola, Zambia and Malawi. Sponsoring the Road Trip, or to be a WhyAfrica member, gives you unparalleled insight into the business environment of the countries that we travel to and the project sites we visit.
  • To be a member or sponsor allows you access to invaluable, on the ground, business intelligence and a great marketing opportunity for all companies doing business in Africa.
  • The main aim of our Road Trips is to promote Africa as an investment destination and to showcase Africa’s greatest companies, and projects to our large global audience, which includes a list of potential investors, venture capitalists and serial entrepreneurs.
  • To view the photos of last year’s Southern Africa Road Trip click on the gallery link or follow our Instagram account at why.africa https://www.whyafrica.co.za/road-trips/whyafrica-road-trips/. 
  1. Advertising:
  • We publish daily online articles on our WhyAfrica platform and post them on social media every day. Our combined online reach is more than 45,000. In-article banner ads are highly successful advertising tools as is advertising space on our website.
  • In addition to our bi-weekly newsletters, we publish two printed- and two interactive digital magazines per year. The printed magazines are distributed at major events and conferences throughout the year, and also on our WhyAfrica Road trips.
  • Digital magazines are e-mailed to all our subscribers and shared on our social media platforms. A copy of the latest edition is automatically attached to all our outgoing e-mails.
  • WhyAfrica magazines provide great marketing opportunities. There are also in-article and on-line advertising opportunities at exceptional rates. Contact me for more information on leon@whyafrica.co.za or give me a call.
  • To subscribe to WhyAfrica’s free newsletters and magazines click on the link and register: https://www.whyafrica.co.za/subscribe/  
  1. 4. Partnerships
  • Maximise your African exposure and link with our large business network through becoming one of only 10 WhyAfrica partners. We have only five prime partnership positions left for 2023, so contact me at leon@whyafrica.co.za before the end of March to get the best deal.

Funding of min-grids in Angola will benefit rural communities  

[1] Data provided by MCA Group

[2] Data provided by MCA Group

[3] Data provided by MCA Group

[4] German Export Credit Agency Euler Hermes: exportkreditgarantien.de/en

[5] https://www.mcagroup.com/

[6] These are UN SDGs One, Two, Seven, Eight, Ten, Eleven, Twelve and Thirteen

[7] https://www.sc.com/uk/2022/12/01/standard-chartered-announces-eur-238-million-of-financing-to-build-agricultural-and-transport-infrastructure-in-angola/

[8] Standard Chartered announces EUR 149 million Social Loan financing to build a new hospital in Angola | United Kingdom (sc.com)

[9] https://www.sc.com/en/feature/usd-1bn-financing-project-water-infrastructure-angola/

Share Article

Sectors

AgricultureEnvironmental Management & Climate ChangeEnergyESGInfrastructureMiningPolitical EconomyTourism and ConservationWater Management