The World Bank’s Board of Executive Directors and the Multilateral Investment Guarantee Agency’s Board of Directors have approved the first in a series of operations aimed at supporting Angola’s structural reform agenda and economic diversification. The initiative seeks to promote inclusive growth and expand job creation, particularly for the country’s large youth population.
The operation includes a $750 million development policy loan and a $240 million policy-based guarantee, supported by an additional second loss guarantee. These guarantees cover a $400 million commercial loan, bringing the total financial package to around $1.1 billion. Through this combination of financial instruments and expertise from across the World Bank Group, the initiative aims to maximize development outcomes, maintain debt sustainability, and attract private investment.
According to World Bank officials, the program reflects a strong partnership with the Government of Angola to advance reforms that strengthen fiscal sustainability, improve human capital, and support vulnerable populations. It also focuses on improving public financial management, enhancing transparency, and expanding opportunities for private sector–driven job creation to support long-term and equitable development.
The initiative will further support the development of the Lobito Corridor, a major infrastructure project connecting Zambia and the Democratic Republic of Congo to Angola’s Port of Lobito. This corridor is expected to attract foreign direct investment, create better employment opportunities, and promote regional economic integration and diversified growth.
Additionally, the guarantees will help Angola create fiscal space through a debt-for-development swap. This mechanism allows the government to refinance expensive commercial debt using proceeds from a guaranteed commercial loan, reducing debt servicing costs and improving debt sustainability. Savings generated from this process will partly be invested in expanding access to education, strengthening human capital, and creating better opportunities for future generations.
Overall, the World Bank Group remains one of Angola’s largest providers of long-term development finance, with a portfolio of nearly $5 billion through the International Bank for Reconstruction and Development, $265 million through MIGA, and $200 million from the International Finance Corporation.
