- The Export-Import Bank of the United States (EXIM) approved a $1.6 billion loan to Sun Africa to build a solar mini-grid in southern Angola, which will boost rural electrification and access to clean water.
- Sun Africa will develop 65 solar mini-grids, install 200 solar cabins, and 60,000 solar home systems, electrifying 350,000 homes and supplying drinking water to 1.1 million people across multiple Angolan provinces.
- The loan, part of the China and Transformational Exports Program (CTEP), supports U.S. exporters competing with China, which has been heavily involved in Angola’s infrastructure projects, including significant hydroelectric developments.
The Export-Import Bank of the United States (EXIM) has approved a $1.6 billion loan to Sun Africa, a Miami-based company. The loan will fund a solar mini-grid project in southern Angola. This financing, part of the China and Transformational Exports Program (CTEP), also involves partners ING Capital and Omatapalo. The project aims to improve the region’s rural electrification and access to clean water.
The project is expected to create 3,100 jobs in the United States. Sun Africa will build 65 solar mini-grids with energy storage systems. These grids will provide electricity to households and power water systems in several Angolan provinces, including Cunene, Huila, Namibe, and Cuando Cubango.
Sun Africa plans to install 200 solar cabins and 60,000 solar home systems, supplying electricity to over 827,000 people. Additionally, 64 communities will benefit from 220 MW of solar capacity and 286 MWh of battery storage. The project also extends to the Catete and Lauca provinces, where six municipal distribution networks will be built. These networks will bring electricity to an additional 45,000 homes.
In addition to mini-grids, Sun Africa will build solar farms with a combined capacity of 600 MW. These farms will support Angola’s national grid. Overall, the project will electrify 350,000 homes and provide drinking water to 1.1 million people.
This investment shows the US government’s interest in Angola, especially in countering China’s regional influence. The CTEP funding aims to support American exporters competing with Chinese companies. China has played a significant role in Angola’s infrastructure development. China Energy Engineering Corporation recently recommissioned the 34 MW Luachimo hydroelectric power station. Meanwhile, China Gezhouba Group Corporation is constructing Angola’s largest dam on the Kwanza River.
This project is a significant step for Angola’s rural electrification and access to water. It also marks a pivotal moment in the U.S.-China competition in African infrastructure projects. The $1.6 billion loan will bring energy and water to millions of Angolans and create thousands of jobs in the US, furthering American interests abroad.