Approximately $305M will be provided for the construction and rehabilitation of strategic roads in Angola.
This came to light following an announcement that the African Trade Insurance Agency (ATI) would offer Deutsche Bank comprehensive nonpayment insurance coverage. The insurance will cover a loan of the aforementioned amount provided to Angola’s Ministry of Finance to fund the project.
Particularly, ATI said the loan will be utilized to finance the rehabilitation of EN230, between Muamussanda Norte and Saurimo. The distance between the two towns is over a length of 267km (Lots 6 to 9). Additionally, the project for the construction and rehabilitation of strategic roads in Angola includes the construction of the new circular variant of Saurimo over an extension of 39.5km (Lot 10). Therefore, the whole road project is 306.5 km in total.
The infrastructure project is part of a 1,100km corridor that is the main axis of the Luanda Metropolitan Region. Importantly, the road project will escalate access to Luanda port, while serving as an auxiliary route to Luanda Railway.
Noteworthy, this is the first-ever financing initiative in Angola to benefit from a first loss cover provided by ATI.
Also Read: Construction of major roads in Angola Kicks off
Expectations of the construction and rehabilitation of strategic roads in Angola.
Once completed, air transport will cease being the only transport mode in the region and will solve the population desertification problem. Angola has the potential to become a major logistics hub for Southern Africa with its geographical positioning in the Atlantic Ocean. Additionally, the presence of mineral-rich landlocked countries around it will be a major boost.
Moreover, this project will ease movement between the country’s capital, the easternmost part of the country and through to Zambia.
ATI CEO Manuel Moses praised: “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.”
