ATI offers Deutsche Bank insurance cover worth $305 million to undertake road projects in Angola

NAIROBI, Kenya - The African Trade Insurance Agency (ATI) provided $350 million assistance to Deutsche Bank with a thorough nonpayment insurance cover.

This insurance cover will protect the bank against non-payment by the Government of Angola on the loan advanced to the Ministry of Finance. The ministry will build and repair Angolan National Road.

The infrastructure project is a top priority for the government of Angola and is crucial for the country’s growth.

It would strengthen the transport and logistics system in a geographically important corridor while facilitating trade. It will improve access to the port of Luanda while acting as a supplemental route to the Luanda Railway.

The railway is a 1,100km track that forms the major axis of the Luanda Metropolitan Region.

The 267km long road between Muamussanda and Saurimo towns will be financed by an ATI credit-wrapped loan. It also covers the construction of the new round Saurimo over a length of 39.5km, for a total distance of 306.5km.

In a statement from the Angolan Ministry of Finance, the government expressed gratitude for the project for the Rehabilitation of EN230: Malanje-Saurimo sector in particular and the prospective benefits from Angola’s membership in ATI.

The building of Malanje-Saurimo segment is a strategic investment in the development of road infrastructure in Angola. It will help connect the North and East of the nation for better dynamism in the flow of people and products.

The National Development Programme 2022–2027 of the Angolan Executive gives the project priority. The project will make it possible to depart from the nation’s capital and go to the country’s easternmost region. It will help spur trade between Angola and Zambia. Air travel will no longer be the only option for travel into that area once the road is done.

This project marks a significant milestone as the first financing initiative in Angola to ever deploy the first loss protection provided by ATI.

The EN230’s restoration and expansion are part of a larger strategy of improving Angola’s transport. Angola has the potential to grow into a significant logistical hub for Southern Africa. Its location in the Atlantic Ocean and proximity to mineral-rich landlocked nations offers it an advantage.

Maryam Khosrowshahi, Co-Head of Africa Coverage, Head of CEEMEA Public Sector Debt Capital Markets, and Chair of Global SSA at Deutsche Bank, commented on the facility and expressed pride in the bank’s long history of working with the Ministry of Finance and the Republic of Angola.

“We are honoured to have been chosen as their go-to partner on this extremely important infrastructure development project. In addition, we would like to thank ATI for our collaboration and their assistance on this occasion, which made the execution effective.

“We continue to work closely together on a number of priority finance transactions with significant social and/or sustainability effects, setting the way for long-lasting change for the people of Angola as part of the nation’s commitment to its economic reform plan.”

According to Ms. Khosrowshahi, Deutsche Bank is at the forefront of structuring creative financings in Africa.

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