Port Namibe Project
The expansion of Port Namibe and the rehabilitation of Port Sacomar in southern Angola will enable Angola to diversify its economy reducing its dependency on oil.
The expansion of Port Namibe and the rehabilitation of Port Sacomar in southern Angola will enable Angola to diversify its economy reducing its dependency on oil. The expansion of Port Namibe, an operational container terminal, will create a strategic port in the southern region of Angola enhancing agriculture, agro-industry, minerals, timber, oil and tourism in the region. Port Sacomar, which was destroyed by the Angolan civil war, will be rehabilitated and modernised to establish a commodity-focused port for the export of granite, iron ore, marble and manganese, bolstering the mining sector. The project forms part of the Angola Government’s National Development Plan and has been prioritised under the Angolan Public Infrastructure Programme.
The DBSA contributed USD100 million in financing to the project. The total project cost is USD600 million and is funded under a Japanese backed export credit agreement structure and was backed by Japanese banks, the Japan Bank for International Corporation and Sumitomo Mitsui Banking Corporation. The DBSA’s 15% contribution to the project as upfront risk capital unlocked 85% of funding towards the construction of the ports. This has paved the way for the project to reach financial close, which is expected in the first quarter of our 2020/21 financial year.
The project forms part of a transport network that will be integrated into the SADC North-South corridor, as the ports are expected to serve as a gateway for landlocked countries in the region. Additional benefits include maximising of real national income, stimulating growth in the economy, increasing the employment levels, increasing trade, improving the balance of payments and developing regions in the country.
While a set percentage of content will be procured from Japanese companies, suppliers of construction equipment and services in Southern Africa will benefit. The project also positively contributes to the efficiencies required in the logistics industry on the continent and promotes trade in the region.
maximising of real national income
stimulating growth in the economy
increasing the employment levels
improving the balance of payments and developing regions in the country.