The President of Angola has authorized the signing of three new financing agreements with national and international banking institutions, totaling over $350 million. These funds will be used to implement priority projects in the social and urban mobility sectors in Luanda and to support the treasury for the 2026 General State Budget (OGE). The move aims to boost infrastructure development and alleviate financial pressures.
One of the loan packages, worth 40 billion kwanzas, will be contracted with the Banco de Fomento Angola (BFA). This funding will cover priority projects in various sectors, including health, education, urban planning, energy, water, sports, infrastructure, tourism, and public security. These projects will be implemented by the Luanda Provincial Government.
Another loan, valued at 209.2 billion kwanzas, has been authorized to address infrastructure needs in Luanda's outskirts. This funding is for the second phase of the construction of the Integrated Infrastructure of Lar do Patriota. The loan will be operationalized by the Banco de Comércio e Indústria (BCI) as the agent bank, using a shared risk model.
Internationally, the President has approved an agreement with Nedbank Limited (London Branch) worth $150 million. This operation involves a risk mitigation commission of 4.50%, ensuring immediate liquidity of $143.25 million for the state's coffers. The funds will be used to pay overdue invoices and finance strategic infrastructure projects.
The Nedbank loan is structured into two tranches. The first tranche, valued at $9.2 million, will settle outstanding debts to Tecnovia Angola, the contractor responsible for the reformulation of the Samba/Pedro de Castro Van-Dúnem "Loy" intersection. The second tranche, worth $140.7 million, will be raised under the "best efforts" regime to finance general strategic infrastructure and provide direct support to the treasury within the 2026 OGE.
With the entry into force of this presidential decree, the previous decree 390/26, of October 14, has been formally revoked. In all three documents, the President delegates full powers to the Minister of Finance to negotiate and sign all documentation on behalf of the Republic of Angola.
The President's decision to secure these loans demonstrates the government's commitment to addressing infrastructure gaps and supporting the treasury. The implementation of these projects is expected to have a positive impact on the local economy and improve living conditions in Luanda.
Key points
- The President of Angola has authorized over $350 million in loans for infrastructure projects in Luanda and treasury support.
- The loans will be used to implement priority projects in various sectors and support the 2026 General State Budget.
- The agreements were signed with national and international banking institutions, including the Banco de Fomento Angola and Nedbank Limited.
