The African Development Bank (AfDB) has approved a US $1 billion loan for the Angola Power Sector Reform Support Program in support of the Angolan government’s of efforts to reform the power sector.

The reform support program aims to promote inclusive economic growth by improving operational and cost efficiency in the sector and consolidating public financial management reforms. It has three components: restructuring the energy sector and improving its regulatory environment; fostering private sector investment in the energy sector; and enhancing transparency and efficiency in public financial management.

Isaac Lobe Ndoumbe, Director of the Governance, Economic and Financial Reforms Department at the AfDB explains that the bank will provide technical assistance and capacity-building support, as well as undertake a comprehensive public financial management diagnostic and produce a medium-term action plan to address weaknesses in public financial management.

“The Government of Angola has already shown strong ownership and commitment to the power sector and the public financial management reform process. Therefore, the bank is happy to help government to effectively implement the ongoing reforms with needed financing and technical expertise, in collaboration with other partners. We expect that the program will ultimately impact positively on economic competitiveness and poverty reduction,” said AfDB director of energy, environment and climate change, Alex Rugamba.