- The Export-Import Bank of the United States of America (US Exim Bank) is providing a $900 million loan to the Angolan government.
- This financing, is a first of its kind for the development of renewable energy in Africa, will support the construction of two solar photovoltaic power plants with a combined capacity of 500 MWp.
Washington encourages Angola to strengthen its renewable energy sector. The Angolan Ministry of Energy and Water has been granted a $900 million loan by the US Exim Bank. Two solar photovoltaic power facilities with a combined capacity of 500 MWp are the subject of the financing.
The Angolan government, in collaboration with the American businesses AfricaGlobal Schaffer and Sun Africa, has proposed a project to construct these two solar farms on the fringes of the G7 conference in 2022. Sun Africa has promised to invest $1.5 billion starting in 2021 in Angola’s energy and water industries. 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.
As part of the China and Transformational Exports Program (CTEP), a program established by the US Congress to assist American exporters facing competition from China, the financial institution with headquarters in Washington is also contributing to this financing. Chinese businesses are leading the way in the solar market and are exporting equipment to Africa and other parts of the world. Chinese manufacturers outfit the biggest solar power plants that are running or being built, most notably in Egypt and South Africa.
This is the situation with the LONGi-supplied modules for the Kom Ombo solar power plant. With 174.8 GW of installed capacity in 2018 and supplying 60% to 70% of the world’s solar panels, China is by far the largest market for solar energy. This is according to the Futura-Sciences platform. Power Africa estimates that out of a total installed capacity of 6,143 MW, Angola is 56% dependent on hydroelectricity for the development of its economy.