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$1 Billion AfDB Loan to Revive Angola’s Electricity Network

$1 Billion AfDB Loan to Revive Angola’s Electricity Network

Although the country’s civil war ended more than two decades ago, the state of the power sector and network remains damaged, a Reuters Africa report revealed. Most people in the country source energy from diesel generators, a habit that can be pricey.

Reuters also noted that in spite of development following the 27-year war, which came to an end in 2002, infrastructure progression is stagnant as electricity is the backbone of many sectors.

This is why the African Development Bank (AfDB) will be lending the country a loan of $1 billion to rebuild electricity sources and also to encourage useful reforms.

“The bank is happy to help the government to implement the ongoing reforms with needed financing and technical expertise, in collaboration with other partners,” AfDB energy, environment and climate department director Alex Rugamba said in the report.

“The government has already shown strong ownership and commitment to the power sector and the public financial management reform process.”

According to a recent U.S. Energy Information Administration analysis, Angola’s government earned nearly 80 percent of overall revenue from oil in 2011. Reliance on oil has decreased because of electricity issues and power sector cracks.

Funding from the African Development bank loan will also go to financial management, which will help stabilize revenue streams that contribute to oil production, Reuters Africa reported.