The European Investment Bank (EIB) has signed a EUR 15 million loan to TVCabo in Angola in support of the development of the information and communication technologies (ICT) sector. TVCabo was established in 2002 and is owned by a partnership between Angola Telecom, the national telecommunication operator, and the Portuguese Visabeira Group.
The EIB loan is the first in Angola in over 15 years. It is a clear sign of the Bank’s commitment to economic growth in this post-conflict country, through the development and reconstruction of infrastructure as well as the promotion of the private sector. The loan will help to finance the construction of a broadband and bi-directional digital network in and around Angola’s capital, Luanda. The project is expected to create benefits for the consumer and corporate markets, providing high-speed internet, radio and TV broadcasting.
Although ADSL has been available in Angola since the end of 2003, access has been severely limited to date due to the poor quality of the fixed line network. The construction of the broadband network by TVCabo will not only tackle the problem of access head-on, but will eventually allow for the development of a wider range of high-value ICT services such as interactive TV, video-conferencing and telemetry. The EIB contributes to the European Union's development aid and cooperation policies in African, Caribbean and Pacific (ACP) countries within the framework of the Cotonou Partnership Agreement of June 2000. Financing of the TVCabo project is fully in line with the Bank’s strategy in the region, providing long-term funding that would otherwise not be readily available on such terms to a private sector company. The EIB loan also helps to build confidence between Angola and the international finance community, contributing to the diversification of funding sources available in the country.
The EIB has been an active development partner in many African, Caribbean and Pacific (ACP) countries since 1963. EIB lending in the region is an integral element of the European financial support package provided under the ACP-EU Cotonou Partnership Agreement of 2000. The Bank’s operations in the region contribute to sustainable social and economic development and poverty alleviation. As well as providing loans from EIB own resources, the Bank manages the Investment Facility (IF), a revolving fund financed by the EU Member States. The IF provides various forms of risk-sharing financing instruments for investment projects in most economic sectors. EIB loans to the ACP region in 2006 amounted to EUR 745 million.