Angola received approval from the World Bank and its insurance arm, the Multilateral Investment Guarantee Agency (MIGA), for guarantees backing a planned $400 million debt-for-education swap to help finance new schools.

Debt swaps aim to reduce interest payments so governments can spend more in key areas.

The deal will allow Angola to buy back costly commercial debt using a cheaper loan, with savings redirected to education projects. It would be the second swap supported by the World Bank, following a similar program in Côte d'Ivoire in 2024.

"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.

Separately, the World Bank approved a $750 million development policy loan expected to support the Lobito Corridor, a transport route linking mining regions in Zambia and the Democratic Republic of Congo to Angola's Lobito port.

With aid shrinking and debt pressures rising, countries are increasingly turning to debt swaps to fund priorities such as education, health and environmental protection.