UK Invests €22 Million in Angola's Water Supply Project: A Boon for Rural Communities and UK Exporters

The UK Export Finance (UKEF) agency has announced a €22 million direct loan to support the construction of a rural water supply project in the Quiminha region of Angola. This project, delivered by British firms, will rehabilitate the Quiminha Dam and introduce new infrastructure for water storage and distribution. It is expected to provide clean water for around 100,000 people in rural communities like Vila Catete, Vila Quiminha, Vila Lalama, Calumbunze and Camizunzo.

Impact on Rural Communities

The project's impact on these rural communities extends beyond access to clean water. It is anticipated to improve living conditions and bolster economic development in the Quiminha region, a significant agricultural area. By providing a reliable source of potable water that can also meet industrial and agricultural needs, the project sets the stage for a more robust and sustainable future for the region.

Boosting UK Export Opportunities

The UKEF loan not only benefits the Angolan communities but also creates opportunities for UK exporters. The project is expected to generate around €8 million in UK subcontracts, contributing to the UK economy and supporting UK businesses. The project highlights the UK's commitment to supporting sustainable infrastructure development across its markets, aligning with the UK's wider strategic objectives.

Partnerships for Sustainable Development

The project's success is a testament to collaborative efforts between the UK and Angola. The UK Minister for Africa, Lord Collins of Highbury, emphasized the strength of the UK-Angola partnership, stating that this funding will provide significant benefits, including new water supplies and protection from the harsh impacts of climate-related events, such as droughts. He underscored the importance of working together to address climate change and create a resilient and sustainable future. Standard Chartered, mandated by the Ministry of Finance, Angola, as the sole Coordinator and Structuring Bank, Social Loan Coordinator and Mandated Lead Arranger, played a key role in this project. Mustafa Sajjad Hussain, Executive Director, Structured Export Finance, Standard Chartered, highlighted the bank's commitment to driving capital into areas requiring sustainable infrastructure, underscoring their dedication to making a positive difference across geographies and communities.

A Commitment to Clean Growth

Elecnor Servicios y Proyectos S.A.U., the company delivering the project, expressed pride in contributing to Angola's development and clean growth in both the water and energy sectors. Natalia González-Úbeda, Head of Export Finance at Elecnor, highlighted their third transaction with UKEF in Angola, emphasizing their commitment to fostering economic growth and enhancing the quality of life in Angola. This project epitomizes the positive impact that international collaborations can have on both local communities and the global economy, contributing to sustainable development and a better future for all.

UK Export Finance: A Catalyst for Growth

This project is a prime example of UK Export Finance's commitment to supporting UK businesses and driving sustainable development globally. UK Export Finance has recently demonstrated its role as a catalyst for growth across various sectors. Examples include:

• Barnsley business Slime Party UK securing financing for a new factory and new workers.
• UK economy and workers benefiting from the government export credit agency’s highest level of business since 2020.
• KBC Bank NV, London Branch becoming the 10th bank to offer working capital loans accredited by the UK government.
• Dean’s of Huntly using trade finance provided by Virgin Money and guaranteed by UK Export Finance to meet overseas demand as far afield as Australia and China.
• Award-winning Hampshire-based ship outfitter securing government-backed funding from Lloyds Bank as it meets growing post-pandemic demand.
• The government department outlining new ambitions for supporting UK business with the publication of its new business plan.
• The UK’s export credit agency completing its first transaction in support of overseas offshore oil and gas decommissioning.
• Leicester business Unimed Procurement Services securing government-backed financing to help it deliver life-saving medical equipment around the world.
• Memorandum of understanding signed at CERAWeek energy conference signals closer cooperation on joint financing for clean energy projects.

This project in Angola exemplifies the power of international cooperation in driving sustainable development. The UK's commitment to supporting clean infrastructure and fostering economic growth through its export finance agency is evident in this project, which will benefit both Angolan communities and the UK economy.