Angola has received formal approval from the World Bank and its Multilateral Investment Guarantee Agency (MIGA) for financial guarantees that will underpin a “debt-for-education” swap aimed at funding new schools.
Under the arrangement, Angola will buy back up to $400 million of its most expensive commercial debt using a lower-cost loan, with the guarantees covering repayment risks. The savings generated from reduced interest payments will be directed toward building schools and funding other educational improvements.
“This operation demonstrates the power of the Guarantee Platform for both liability management and human capital development,” said Muhamet Bamba Fall, MIGA’s Director for Industries.
In a separate approval, the World Bank has also granted Angola a $750 million development policy loan, which the government plans to use for the development of the Lobito Corridor. The project will connect Zambia and the Democratic Republic of Congo’s mining hubs to Angola’s Lobito port, improving regional trade and logistics.
Debt-for-education swaps are designed to reduce interest payments, allowing governments to allocate more funds to critical areas. Angola’s initiative is only the second such World Bank-backed deal, following Ivory Coast’s swap in 2024, which also targeted school construction.
Angola has indicated plans for a future debt-for-health swap, though details on the credit guarantees for that initiative have not yet been disclosed.
