African Trade Insurance Agency (ATI) has supported Deutsche Bank with a comprehensive nonpayment insurance cover, insuring the bank against non-payment by the Government of Angola on the loan facility advanced to the Ministry of Finance to fund the construction and rehabilitation of an Angolan National Road.
The loan valued at US$305 million will fund the construction of the road infrastructure project, which is a priority for the Government of Angola and is of great importance in terms of development as it will facilitate trade and improve the transportation and logistics network in a geographically strategic corridor.
Part of a 1,100km corridor, that is the main axis of the Luanda Metropolitan Region, it will increase access to the port of Luanda, while serving as an auxiliary route to the Luanda Railway.
The ATI credit-wrapped loan will be utilized to finance the rehabilitation of EN230, between the sites of Muamussanda in the province of Lunda Norte and Saurimo in the province of Lunda Sul over a length of 267 km (Lots 6 to 9).
In addition, it includes the construction of the new circular variant of Saurimo over an extension of 39.5 km (Lot 10), thus totaling 306.5 km in length.
In a statement, the Angolan Ministry of Finance expressed the government’s appreciation to ATI’s support and collaboration on the Rehabilitation of EN230: Malanje – Saurimo section project in particular, and for the future benefits to come from Angola’s membership with ATI.
“The EN230: Malanje – Saurimo section is a strategic investment for the construction of road infrastructure for provincial interconnection that will allow the connection between the North and East of the country for better dynamism in the movement of people and goods,” the Angolan finance minister Ms Vera Daves said in a statement.
“The project was prioritized by the Executive Branch and is included in the National Development Program (PND) 2022-2027 of the Angolan Executive. With the execution of this project, it will be possible to leave the country’s capital and travel to the easternmost part of the country and perhaps to the border with the Republic of Zambia.
“With the completion of the works, air transport will no longer be the only way to travel in that region and we intend to solve the problem of desertification of the population.”
This project marks a significant milestone as the first-ever financing initiative in Angola to benefit from a first loss cover provided by ATI.
The rehabilitation and extension of the EN230 is part of a broader development plan aimed at enhancing the country’s transportation infrastructure.
With its geographical positioning in the Atlantic Ocean and the presence of mineral-rich landlocked countries around it, Angola has the potential to become a major logistics hub for Southern Africa.
Commenting on the facility, Maryam Khosrowshahi, Co-Head of Africa Coverage, Head of CEEMEA Public Sector Debt Capital Markets, and Chair of Global SSA at Deutsche Bank said the bank was proud of the multifaceted history of its relationship with the Republic of Angola and the Ministry of Finance.
“We are honoured to have been selected as their partner of choice on this very critical infrastructure development initiative. In addition, we would like to thank ATI for our partnership and their support on this occasion, leading to a successful execution.
“As part of the country’s commitment to their economic reform agenda, we continue to cooperate closely on a number of priority financing transactions with high social and/or sustainability impact, paving the way for lasting change for the people of Angola.
“Deutsche Bank remains at the forefront of structuring innovative financings on the African Continent in the past few years,” Ms Khosrowshahi said.
ATI CEO Manuel Moses said the pan-African insurer was confident that this project is viable as the Government of Angola had re-emphasized its commitment to this project as a priority.
“ATI, as the largest DFI Insurer on the continent, continues to play its pivotal role in supporting strategic infrastructure projects in its member countries and will continue to support the Republic of Angola in its efforts to enhance infrastructure and foster sustainable economic growth,” Mr Manuel said.
In the photo: Angolan minister of finance Ms Vera Daves.
