ATI Supports USD305 Million Road Project in Angola Financed by Deutsche Bank
African Trade Insurance Agency (ATI) has supported Deutsche Bank with a comprehensive nonpayment insurance cover, insuring the bank against non-payment by the Government of Angola on the loan facility advanced to the Ministry of Finance to fund the construction and rehabilitation of an Angolan National Road.
This was contained in a statement by Mike Omuodo of Media Fast PR, made available to this medium today.
The infrastructure project, is a priority for the Government of Angola and is of great importance in terms of development as it will facilitate trade and improve the transportation and logistics network in a geographically strategic corridor.
Part of a 1,100km corridor, that is the main axis of the Luanda Metropolitan Region, it will increase access to the port of Luanda, while serving as an auxiliary route to the Luanda Railway.
The ATI credit-wrapped loan will be utilized 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 267 km (Lots 6 to 9). In addition, it includes the construction of the new circular variant of Saurimo over an extension of 39.5 km (Lot 10), thus totaling 306.5 km in total.
In a statement, the Angolan Ministry of Finance expressed the government’s appreciation to ATI’s support and collaboration on the Rehabilitation of EN230: Malanje – Saurimo section project in particular, and for the future benefits to come from Angola’s membership with ATI.
“The EN230: Malanje – Saurimo section is a strategic investment for the construction of road infrastructure for provincial interconnection that will allow the connection between the North and East of the country for better dynamism in the movement of people and goods.
“The project was prioritized by the Executive Branch and is included in the National Development Program (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,” the statement reads.
This project marks a significant milestone as the first-ever financing initiative in Angola to benefit from a first loss cover provided by ATI. The rehabilitation and extension of the EN230 is part of a broader development plan aimed at enhancing the country’s transportation infrastructure. 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. As part of the country’s commitment to their economic reform agenda, we continue to cooperate closely on a number of priority financing transactions with high social and/or sustainability impact, paving the way for lasting change for the people of Angola. Deutsche Bank remains at the forefront of structuring innovative financings on the African Continent in the past few years,” Ms. Khosrowshahi said.
ATI CEO Manuel Moses said the pan-African insurer was confident that this project is viable as the Government of Angola had re-emphasized its commitment to this project as a priority.
“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,” Mr. Manuel said.
The Republic of Angola became ATI’s 21st Member State and the 1st Lusophone Member State in February 2023, with a capital subscription of USD25 million. The membership was funded by Angola’s Ministry of Finance and proceeds from the landmark BITA water project – a strategic public investment for the construction of infrastructure for the treatment, supply and storage of drinking water that will benefit 2.5 million people in Angola The BITA project financing was also guaranteed by ATI jointly with IBRD.
Although a recent member, ATI has already supported, and has a pipeline, in excess of USD 1 billion for Angola. Sectors supported include construction, energy & gas, infrastructure, trade & transport, water supply and wholesale & retail sectors, with supported transactions valued in excess of USD1.4B.
ATI has grown from a small African start-up, operational in just seven countries in 2001, into a pan-African institution with presence across Africa and with a significant global reach. The multilateral insurer will unveil its new brand in July, during its AGM. The new brand will provide a better fit to its growing stature as the largest provider of investment and trade credit insurance on the continent with the ultimate goal of accelerating its impact on Africa’s development.
ATI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATI predominantly provides Political Risk, Credit Insurance and Surety Insurance. Since inception, ATI has supported USD78 billion worth of investments and trade into Africa. For over a decade, ATI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATI obtained an A3/Stable rating from Moody’s, which has now been revised to A3/Positive. www.ati-aca.org
