Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, is leading commercial funding for a €381.5 million package to finance engineering, procurement and construction of 186 bridges and crucially needed enhancements to Angola’s road network.
AFC, acting as mandated lead arranger for the commercial tranche, has committed to invest €85 million, combining with export credit agency financing from the Export-Import Bank of the U.S. and the U.S. Private Export Funding Corporation. Other key partners include Standard Chartered Bank as the coordinating and structuring bank; Conduril, a leading Portuguese civil engineering firm which is the main EPC contractor; and Acrow, a U.S. construction industry giant as the bridge supplier. The signing took place at this week’s US-Africa Business Summit in Dallas, Texas, organized by the Corporate Council on Africa.
Initiated by the Ministry of Public Works, Urban Planning and Housing in Angola, the project specifically targets improved accessibility in remote areas and supports industrial and commercial activity, advancing prosperity by reducing transport costs and travel times, and easing poverty through job creation. Improving road interconnectivity particularly helps the agricultural sector produce and market much needed cereals for human food and animal feed, as well as livestock, providing a resolute response to increased food imports and fostering localisation of food chains.
“AFC is proud to work with the government and other partners on this landmark project which is set to transform the country’s road transportation infrastructure as Angola makes strides to diversify its economy away from oil,” said AFC Board Member and Head of Financial Services, Sanjeev Gupta. “This project not only supports the country’s drive to make agriculture a foundation for economic growth, but it also prioritises the development of climate resilient infrastructure which contributes significantly to Angola’s climate adaptation plan.”
In October 2023, AFC was appointed lead project developer for the Lobito Corridor connecting northwest Zambia to the Benguela rail line in Angola and ultimately to the port of Lobito, working with the US government, the European Union, the African Development Bank and the governments of Angola, the Democratic Republic of Congo and Zambia.
AFC’s investment in the new roads project showcases the Lobito Corridor consortium partnering beyond rail to support rural transport connectivity that will serve to link communities and the larger regional corridor. The Republic of Angola has been a shareholder and member state of AFC since 2022.