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Funding of min-grids in Angola will benefit rural communities

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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


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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/

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AgricultureEnvironmental Management & Climate ChangeEnergyESGInfrastructureMiningPolitical EconomyTourism and ConservationWater Management