June 4 (Bloomberg) -- Angola’s government plans to buy trains and power generators from General Electric Co. worth about $1 billion in a deal financed by the Export-Import Bank of the U.S., the lender’s president said.
Angola’s President Jose Eduard Dos Santos gave a “green light to move forward” with the deal to the Finance Ministry after meeting Ex-Im Bank officials this week, Fred Hochberg said in an interview yesterday in Addis Ababa, the Ethiopian capital. Mario Jorge, Dos Santos’s media adviser, confirmed the projects by phone today from Angola’s capital, Luanda.
The deal is part of the U.S.’s Power Africa initiative, in which Ex-Im Bank will provide $5 billion to help fund private investment in energy projects across the continent. “That’s one of the first and largest,” Hochberg said about the Angolan package. “That’s moving more quickly.”
GE has operated in Angola since 1967, working on power generation and transportation, according to the Fairfield, Connecticut-based company’s website. Patricia Obozuwa, director, corporate communications at GE Africa, didn’t immediately respond to an e-mailed request for comment sent yesterday.
Angola’s $122 billion economy is forecast to expand by 5.3 percent this year, and by 5.5 percent and 5.9 percent in the following two years, according to International Monetary Fund data. Oil output in the continent’s second-biggest crude producer will decline to 1.77 million barrels a day from 1.9 million in 2016, according to the Washington-based lender.
Angola’s state-run Jornal de Angola newspaper yesterday reported that loans from Ex-Im Bank will include $350 million for locomotives and $650 million for power equipment.
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