Angola has finalised financing for a €200 million water infrastructure initiative designed to substantially expand access to safe drinking water across Luanda and Icolo e Bengo, signalling a pivotal moment in regional public service modernisation and long-term human development planning. The agreement, reached with HSBC and backed by European export credit agencies (ECAs), represents a layered and sovereign-led financing structure with a clear emphasis on risk mitigation, strategic import partnerships, and sustainability.
The ProÁgua project, as confirmed by the Ministry of Finance of Angola, marks a critical investment in the national water sector, which remains challenged by decades of underinvestment and inequitable access—particularly in rural areas where just 34% of the population currently benefit from safe drinking water, according to government estimates.
The financing package is structured across two tranches: a €30 million commercial loan covering the initial 15% downpayment, and a €170 million ECA-backed buyer’s credit constituting the remaining 85%. This model was jointly executed by HSBC, which served as coordinating and mandated lead arranger, and supported by Bpifrance Assurance Export and Swiss Export Risk Insurance (Serv). The ECAs provided comprehensive export credit insurance and reinsurance respectively, facilitating access to long-tenor financing on terms not typically available to sovereign borrowers in global capital markets.
This collaborative financing mechanism allows Angola to leverage competitive rates while enabling France and Switzerland to engage in mutually beneficial export frameworks. The transaction also marks a milestone for Bpifrance, issuing its first export credit insurance policy tied to commitments from a Swiss engineering, procurement and construction (EPC) contractor—Mitrelli—operating outside of France.
The EPC implementation is being undertaken by a consortium comprising Swiss-headquartered Mitrelli and France’s Suez International, with Angola’s public water utility acting as the local executing agency. The project scope includes the rehabilitation of four existing water treatment plants, the construction of two decentralised compact units, the installation of six desalination systems, the drilling of 15 new boreholes, and the rollout of digital smart metering and management technologies.
According to stakeholders involved in the structuring of the deal, the financial framework reflects a “robust, de-risked model for infrastructure investment in emerging markets” and is designed to mitigate exposure while reinforcing delivery outcomes. The capacity-building components, particularly the integration of smart utility management systems, offer significant long-term potential for institutional strengthening within Angola’s public utilities landscape.
As articulated by the Ministry of Finance, this investment is expected to deliver reliable, clean water to over nine million residents across the targeted provinces, directly contributing to national water security, improved public health outcomes, and regional resilience in the face of climate-induced variability.
The transaction builds upon a growing trend of African states utilising ECA-backed financing to pursue capital-intensive infrastructure projects under terms that align with national development agendas. It follows similar initiatives such as the US Exim-supported solar-water hybrid project in Angola and a UK Export Finance-supported infrastructure expansion in the same sector, alongside a pan-regional programme in Côte d’Ivoire.
The project’s inclusive architecture reflects a commitment to transparent partnerships that enhance public service delivery without undermining domestic ownership. A second phase is under discussion, which may extend water access to additional regions of the country.
This development positions Angola within a broader continental effort to assert control over essential infrastructure narratives—shifting away from extractive engagements and towards sovereign-led, multi-stakeholder collaborations that prioritise social equity and sustainability.
