Standard Chartered has announced a financial package of €1.29 billion (~$1.45 billion) to support the Angolan Ministry of Finance in constructing 48 hybrid solar power generation systems equipped with energy storage to create autonomous mini-grids. These systems will provide 100% renewable electricity to communities without access to the national electricity grid.

The funding will support the expansion of the national grid in Malanje, as well as the construction of new transmission lines and networks connecting other municipalities. Introducing this electricity infrastructure will contribute to the diversification of Angola’s energy mix, potentially reducing up to 7.9 megatons of CO2 emissions.

Led by the Angolan Ministry of Energy and Water, the electrification project will benefit around one million Angolans residing in 60 communities, encompassing provinces such as Moxico, Lunda Norte, Lunda Sul, Bié, and Malanje.

The financing package is backed by the German export credit agency Euler Hermes, with the MCA Group overseeing construction and project management. Of the total funding, €1.2 billion (~$1.35 billion) is supported by Euler Hermes, while the remaining represents a commercial loan.

Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered Bank, said: “We are thrilled to complete the financing of this important project for the Angolan government to supply renewable energy-sourced electricity to local communities. It’s another great example of our collaboration with ECAs and contractors to deliver for our clients.”

Standard Chartered was the sole book runner, original lender, structuring bank, and mandated lead arranger. The bank designed the financing structure to align with eight of the United Nations’ sustainable development goals and adhere to international best practices for environmental and social risk management.

Earlier this year, the Export-Import Bank of the United States approved a direct loan exceeding $900 million to support construction of two solar power projects in Angola.

According to a report released by the Africa Solar Industry Association, Angola emerged as the frontrunner among African countries in terms of solar capacity expansions in 2022, with an installed capacity of 284 MW.