Angola: Operational Framework for Sustainable Finance

The Angolan government has just approved an Operational Framework for Sustainable Finance (the “Framework”) through Presidential Decree 106/23, of 2 May 2023. The Framework was developed in the context of Angola’s commitment to the United Nations Sustainable Development Goals (SDG) and closely follows international standards and best practices, including the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines of the International Capital Market Association (ICMA) and the Loan Market Association (LMA).

Below is an outline of the Framework:

1- Objective: The Framework is aimed at ensuring that Angola’s recourse to international financing is done through sustainable debt instruments which are aligned with the country’s environmental and social strategies.

2- Types of Debt Securities: Under the Framework, Angola may issue the following types of sustainable international bonds and other debt securities:
– “Green Format” – To support environmental projects;
– “Social Format” – To support social projects;
– “Sustainable Format” – To support environmental and social projects.

3- Eligible Projects: The types of eligible projects that may be financed through these instruments include the following:

Green Projects
– Renewable energy;
– Pollution prevention and control;
-Environmental protection;
– Sustainable water use;
– Sustainable oceans (blue economy)

Social Projects
– Education;
– Health;
– Basic infrastructure;
– Support of vulnerable population; 
Employment and competitiveness.

These may consist of new or existing projects. However, refinancing of existing projects should not exceed 25% of total financing raised.

4- Excluded Projects: Projects in the following areas are expressly excluded from sustainable financing under the Framework:
– Hydro plants above a set carbon intensity;
– Exploration and production of fossil fuels; 
– Railways for transportation of fossil fuels;
– Nuclear energy;
– Defense;
– Alcohol, arms, tobacco and gambling/gaming;
– Deforestation;
– Any environmentally harmful or illegal activities.

5- Project selection: Project selection is done by an “ESG Inter-ministerial Committee” (ESG Committee). All projects must be included in the government’s Annual Budget.

In order to be selected, projects must be:

  • Aligned with Angola’s National Development Plan;
  • Economically and environmentally viable;
  • Technically sound;
  • Impactful on the population;
  • Assessed for their legal, financing and operational risks.

6- ESG Committee: The ESG Committee is responsible for managing the international sustainable financing program under the Framework, including selecting eligible projects, approving costs/estimates, allocating funds, producing reports etc..The ESG Committee is chaired by the State Minister for Economic Affairs, and includes the Finance Minister and the Economy and Planning Minister.

The ESG Committee will hold an annual meeting to approve eligible projects and another meeting to prepare an annual report.

7- Reporting: The government will produce annual reports to investors on the progress of financed projects, including the following information:

  • Summary/description of such projects;
  • Funds allocated to each project;
  • Ratio new projects/refinancing of existing projects;
  • Reallocation of resources, if any;
  • Co-financing, if any.
  • The reports will be audited by an independent external firm.

8- Compliance: Moody’s affiliate V.E. (formerly Vigeo Eiris) was appointed to assist in the Framework development, implementation and compliance.



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