Support from UK Export Finance means British companies have won contracts to upgrade critical infrastructure in Benguela province and protect the region from future flooding.
The UK government has issued guarantees allowing Standard Chartered Bank to arrange financing for a €415 million contract between exporter Innovo Group and Angola
UKEF’s largest ever sovereign transaction completed in Sub-Saharan Africa will enable the delivery of critical infrastructure in Benguela Province, a coastal area of Angola vulnerable to flooding and poor drainage
More than a third of the contract – over £140 million – will be spent on British goods and services, with both the British and Angolan communities benefiting from the deal
The United Kingdom has issued loan guarantees that will enable British exporter Innovo Group to secure a €415 million contract to implement critical infrastructure projects in Benguela Province, a region in western Angola bordering the Atlantic Ocean.
The support has been provided through UK Export Finance (UKEF) – the government’s export credit agency – and means that projects will now be implemented to improve drinking water supplies, storm drainage, sanitation, roads, public lighting and commercial infrastructure in the region to improve. This includes the municipalities of Benguela, Baía Farta, Catumbela and Lobito.
The program consists of 23 separate projects and is expected to support 11,000 local jobs over the next five years across a range of sectors, including construction.
At the UN’s COP28 climate change summit, UKEF is announcing the deal as an example of the role international trade plays in supporting global adaptation to climate change and extreme weather.
Benguela province is a coastal area vulnerable to flooding and poor drainage. UKEF’s support allows the Angolan government to finance Innovo Group’s contract using funds arranged by Standard Chartered Bank, as structuring and coordinating bank, bookrunner and mandate holder.
This will allow Benguela Province to benefit from new water supplies, stormwater channels and drainage networks aimed at reducing the risk and impact of floods and other climate-related events.
The projects will generate a direct spend of more than £140 million on UK exports, which is expected to support water supply and drainage projects, road repairs and community facilities.
Andrew Mitchell, UK Secretary of State for Development and Africa, said: “This ground-breaking agreement will deliver vital infrastructure that will transform lives and reaffirm our commitment to building mutually beneficial partnerships as we prepare for the UK-Africa Investment Summit next year.
“Our partnership with Angola is long-standing and this financing will deliver enormous benefits to the people of Benguela Province, including new water supplies and protection from the harsh effects of climate-related events, including flooding.
“By working together now to tackle climate change, we will create a more resilient and sustainable future – it’s clear that if we go together, we can go far.”
Paul Woodman, CEO of Innovo Projects, said: “We are delighted to have secured this landmark project, which will have a hugely positive impact on the people and communities of Benguela Province, and make the region more resilient to the impacts of climate change. climate change. This is the third contract we have won in Angola with the support of UK Export Finance and we would like to thank all stakeholders, including the Ministry of Works and Housing, for their cooperation in delivering this project.”
Faruq Muhammad, Global Head of Structured Export Finance at Standard Chartered Bank, said: “We are proud to once again be the long-standing banking partner of the Angolan government and deliver positive social, cultural and economic change for thousands of people in Benguela . Province, with improved infrastructure, water supply and renovation of buildings.”
Innovo Group will also implement projects that support the development of the local economy, including road repairs, renovation of historic buildings and the construction of a fish market in Benguela City for traders who currently work outdoors without refrigeration.
This follows the export credit agency’s announcement in January of support for Innovo (then trading as ASGC UK) to build a specialist burn hospital in the Angolan capital Luanda.
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