US EXIM Bank Approves $900 Million Loan for 500 MW Solar Projects in Angola
The loan also aims to create opportunities for American businesses
The Export-Import Bank of the United States (EXIM) has approved a direct loan exceeding $900 million to support the construction of two solar power projects in Angola.
The construction of the two solar projects will generate over 500 MW of renewable energy.
The loan marks a substantial milestone in promoting renewable energy and facilitating clean energy access in the Central African country.
The development aligns with President Biden’s Partnership for Global Infrastructure and Investment (PGII), a flagship program to advance global digital and energy infrastructure.
Supporting the U.S. Exports
The loan agreement not only facilitates the development of renewable energy infrastructure but also creates opportunities for U.S. exporters.
The project will support the export of various equipment, including solar panel mounting systems, connectors, switches, and sensors, fostering economic growth in the U.S.
The transaction is estimated to support approximately 1,600 jobs, benefitting American workers and manufacturers in the clean energy sector.
The approved loan also falls under EXIM’s China and Transformational Exports Program, a program mandated by Congress to provide support to U.S. exporters facing competition from China.
The Angolan government initially announced the projects during the 2022 G7 Summit.
EXIM President and Chair Reta Jo Lewis said, “This transaction not only aligns with President Biden’s PGII initiative but also advances EXIM’s efforts to promote clean energy exports, strengthen the U.S.-Africa commercial relationship and support U.S. exporters and American workers facing foreign competition.”
In January, UAE government-owned renewable energy company Masdar signed agreements with Angola, Uganda, and Zambia to develop renewable energy projects with a combined capacity of up to 5 GW to help African nations make the energy transition.
Angola (284 MW), South Africa (111.8 MW), Egypt (80 MW), Ghana (71.3 MW), and Mozambique (41.9 MW) were the top countries for solar capacity additions in 2022, according to a report published by the Africa Solar Industry Association.