US Exim Bank Releases $900m Loan for Solar Power Plants

  • The Export-Import Bank of the United States of America (US Exim Bank) provides a $900 million loan to the Angolan government.
  • The Washington-based financial institution also provides this financing as part of the China and Transformational Exports Program (CTEP).

The Export-Import Bank of the United States of America (US Exim Bank) provides a $900 million loan to the Angolan government. This financing, a first of its kind for developing renewable energy in Africa, will support the construction of two solar photovoltaic power plants with a combined capacity of 500 MWp. Washington supports the development of renewable energy in Angola. The US Exim Bank has approved a $900 million loan to the Angolan Ministry of Energy and Water. The financing is intended to construct two solar photovoltaic power plants with a combined capacity of 500 MWp.

The project to build these two solar farms, announced on the sidelines of the G7 summit in 2022, is an initiative of the Angolan government in partnership with the American companies AfricaGlobal Schaffer and Sun Africa. Sun Africa has pledged to invest $1.5 billion in Angola’s water and energy sectors from 2021. With an office already set up in the Angolan capital Luanda, Sun Africa aims to make these investments in the southern provinces of Cunene, Namibe, Cuando Cubango and Huíla.

The Washington-based financial institution also provides this financing as part of the China and Transformational Exports Program (CTEP), a programme mandated by the US Congress to support American exporters facing competition from China. And in the solar market, Chinese companies are leading the way, supplying equipment throughout Africa and elsewhere. The largest solar power plants in operation, or currently under construction, notably in South Africa and Egypt, are equipped by Chinese manufacturers.

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