The U.S. Export-Import Bank (EXIM) has approved a 1.6 billion USD loan to support solar energy and clean water access in Angola. The project, undertaken by Sun Africa and its partners, aims to install mini solar grids and water treatment systems across several provinces.
Investment in Sun Africa and its partners
This historic loan granted by Washington is dedicated to improving access to clean water and energy in rural Angola. The American company Sun Africa, in partnership with ING Capital and Omatapalo, is spearheading this large-scale initiative. The plan includes constructing 65 mini solar grids equipped with energy storage systems. These installations will power households and provide solutions for water collection, treatment, and purification.
This major renewable energy and water access project in Angola aligns with the United Nations Sustainable Development Goals (SDGs). Furthermore, the initiative marks a significant step toward reducing regional infrastructure disparities within the country. Besides enhancing Angola’s energy independence, the program will create 3,100 jobs in the United States.
Through this initiative, the United States affirms its commitment to strengthening economic relations with Angola and promoting clean energy in Sub-Saharan Africa, while competing with other powers active in the region. «The approval highlights our firm commitment to advancing renewable energy projects, supporting American exporters operating in Sub-Saharan Africa, deepening our economic ties with Angola, and advancing President Biden’s Global Infrastructure Partnership (PGI) initiative », states EXIM’s Chairwoman, Reta Jo Lewis.
Goal : Access to clean water and electricity
Sun Africa’s project in Angola involves a series of installations aimed at improving access to electricity and clean water in several provinces. The regions of Cunene, Huila, Namibe, and Cuando Cubango will benefit from 200 solar cabins and 60,000 domestic solar systems. These installations will provide electricity to approximately 827,000 people.
Additionally, 64 communities will receive electrification through a solar capacity of 220 MW and battery storage of 286 MWh. These efforts will electrify 350,000 households and provide clean water to 1.1 million people.
Furthermore, Sun Africa is committed to constructing solar parks with a combined capacity of 600 MW to bolster Angola’s national power grid. This extensive infrastructure program will also support local development by enhancing living conditions, health, education, and social well-being.
By optimizing the use of Angola’s abundant solar resources, these initiatives contribute to reducing dependence on fossil fuels, promoting environmental sustainability, and improving the quality of life for rural communities.
Strategic scope of the loan : Competing with China
The EXIM Bank financing is part of the China and Transformational Exports Program (CTEP). This program supports American companies facing intense competition from China, particularly in Angola, where China is making substantial investments in energy infrastructure. For example, China Energy Engineering Corporation recently recommissioned a 34 MW hydroelectric power plant and is continuing construction of the country’s largest dam, with a planned capacity of 2,172 MW.
In response to this competition, the United States aims to strengthen its presence in Sub-Saharan Africa and promote American exporters in strategic projects. By supporting rural electrification and clean water access, the U.S. seeks to demonstrate its commitment to sustainable development and clean energy in Africa while reinforcing its economic and diplomatic relations with Angola.
