AfDB approves $1 bln loan to develop energy network in Angola - CNBC Africa

AfDB approves $1 bln loan to develop energy network in Angola

Southern Africa

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AFDB approves 1 billion dollar loan to develop energy network in Angola.

The loan will also facilitate reforms to government financial management, the bank said in a statement.

“In support of the Government of Angola’s efforts to reform the power sector, the board of directors of the AfDB has approved on 1 billion US dollar loan for the Angola Power Sector Reform Support Program,” the bank said.

The overarching objective of the energy sector budget support program is to promote inclusive economic growth by improving operational and cost efficiency in the sector and consolidating public financial management reforms.

“The Government of Angola has already shown strong ownership and commitment to the power sector and the public financial management reform process,” said Alex Rugamba, Director of the AfDB’s Energy, Environment and Climate Change Department in a statement on the Banks website.

“The bank is happy to help government to effectively implement the ongoing reforms with needed financing and technical expertise, in collaboration with other partners. We expect that the program will ultimately impact positively on economic competitiveness and poverty reduction,” Rugamba said

Angola's power network was devastated by a 27-year civil war that ended in 2002 and the country has grappled with frequent and long outages, forcing households and businesses to rely on expensive diesel-fuelled generators.

African Development Bank said that to support implementation of the Angola Power Sector Reform Support Program, it will also provide technical assistance and capacity-building support, to undertake a comprehensive public financial management diagnostic and produce a medium-term action plan to address weaknesses in public financial management.

Angola’s current Energy and Water Action Plan requires 23 billion US dollars between 2013 and 2017. To implement the reforms in the power sector, the government has launched the Electricity Sector Transformation Program with a clear roadmap.

The Angolan government has requested assistance from the bank to meet these medium- and long-term financing requirements. The bank’s support is aligned with the Electricity Sector Transformation Program. 

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