27 of October 2023

AfDB's investment portfolio in Angola reached US$1 billion in 2019

The investment portfolio of the African Development Bank (AfDB) in Angola exceeded US$50 million, reached in 2012, to US$1 billion in 2019 for a greater focus on the Angolan energy sector.


The information was conveyed by the AfDB’s representative in Angola, Pietro Toigo, noting the expansion of funding that has taken place in the last five years. For the AfDB representative, the Angolan energy sector is a priority for the banking institution, which has invested US$500 million in the last five years.


According to Pietro Toigo, the AfDB’s investments are focused on connecting the northern electricity system to the system in the southern region of Angola, as it has four independent energy systems.


"The northern [system] is particularly rich in hydroelectric power, clean and cheap, but the south and east aren’t interconnected, and the south of the country still depends on thermal energy, which is more polluting, I would say, and with much more costs," he pointed out.


Interviewed by LUSA, he argued that the connection of the electricity system should allow the exploitation of clean energy and "also an interconnection with the Southern African system, where Angola will be able to sell surplus energy and collect revenues there".


"It is important that all Angolans can benefit from energy. Right now, access is 42%, but it's still extremely low and the goal of having access to 60% in the next two years is necessary and important," he said.


The AfDB's actions in Angola, he said, are within the scope of the goals of the National Development Plan (NDP) and the 2030 Sustainable Development Goals (SDGs), especially goal 7, "which is universal access to energy".


To ensure greater development in the energy sector, Pietro Toigo pointed out that it is necessary to achieve the "financial sustainability of the system, for this it is important that users pay the right amounts and [prepaid] meters are a very simple and effective way", adding that US$500 million has already been approved for this purpose.


"This is important for there to be a fair collection, because at the moment the richest are paying for the cheapest energy, because many of the tariffs are estimated. Therefore, the first step towards greater investment in the expansion of the system is to collect the consumption that is actually made," he said.


The official thus guaranteed the bank's continued commitment to actions to diversify the Angolan economy, also promising to expand the investment portfolio for the private sector in Luanda.


Source: LUSA/ Ver Angola