African Trade Insurance Agency (ATI) announced on Wednesday it is supporting Deutsche Bank with a comprehensive nonpayment insurance cover on a $305 million loan facility advanced to Angola’s Ministry of Finance to fund the construction and rehabilitation of strategic national road.

ATI said in a press statement that the loan insured by ATI will be utilised to finance the rehabilitation of EN230, between the sites of Muamussanda in the province of Lunda Norte and Saurimo in the province of Lunda Sul over a length of 267km (Lots 6 to 9). In addition, it includes the construction of the new circular variant of Saurimo over an extension of 39.5km (Lot 10), thus totaling 306.5 km in total.

The infrastructure project is part of a 1,100km corridor that is the main axis of the Luanda Metropolitan Region, and will increase access to the port of Luanda, while serving as an auxiliary route to the Luanda Railway. 

This is the first-ever financing initiative in Angola to benefit from a first loss cover provided by ATI.

According to a statement issued by the Ministry of Finance, “The EN230: Malanje – Saurimo section was prioritised by the Executive Branch and is included in the National Development Programme (PND) 2022-2027 of the Angolan Executive. 

With the execution of this project, it will be possible to leave the country's capital and travel to the easternmost part of the country and perhaps to the border with the Republic of Zambia.

With the completion of the works, air transport will no longer be the only way to travel in that region and we intend to solve the problem of desertification of the population.”

With its geographical positioning in the Atlantic Ocean and the presence of mineral-rich landlocked countries around it, Angola has the potential to become a major logistics hub for Southern Africa.

Commenting on the facility, Maryam Khosrowshahi, Co-Head of Africa Coverage, Head of CEEMEA Public Sector Debt Capital Markets, and Chair of Global SSA at Deutsche Bank said the bank was proud of the multifaceted history of its relationship with The Republic of Angola and the Ministry of Finance.

“We are honoured to have been selected as their partner of choice on this very critical infrastructure development initiative. In addition, we would like to ATI for our partnership and their support on this occasion, leading to a successful execution.”

ATI CEO Manuel Moses added: “ATI, as the largest DFI Insurer on the continent, continues to play its pivotal role in supporting strategic infrastructure projects in its member countries and will continue to support the Republic of Angola in its efforts to enhance infrastructure and foster sustainable economic growth.”

(Writing by SA Kader; Editing by Anoop Menon)