Launch of the subsidy alternatives analysis for water and sanitation services project in Angola

Phoenix is excited to announce the launch of a strategic project aimed at analyzing and defining subsidy mechanisms for water and sanitation services in Angola. This project, funded by the World Bank and in partnership with the Angolan government, is part of the Second Water Sector Institutional Development Project (PDISA-II), aimed at restructuring and improving the management of the water and sanitation sector in the country.

The mission will define subsidy mechanisms and modalities to support low-income populations and identify potential beneficiaries across the country’s 18 provinces. In collaboration with the Regulatory Institute for Electricity, Water Supply, and Sanitation Services (IRSEA), Phoenix will be responsible for proposing innovative and effective solutions for subsidy allocation, taking into account local specificities and the country’s socio-economic realities.

The current subsidy system in Angola’s water and sanitation sector has historically relied on oil revenues for funding. However, since the decline in oil prices in 2014, increasing pressure has emerged to reassess the subsidy framework. This dependence has created challenges in terms of financial sustainability. The Angolan government has started exploring alternatives to ensure stable and sustainable sector financing. By analyzing financial data from operators and assessing the needs and payment capacity of the population, this study aims to determine the level of funding required for the sector to operate profitably. It will also examine existing subsidy mechanisms in other sectors to identify the most suitable models for the Angolan context.

Through this study, the project will seek to define a national subsidy framework, adjust targeting mechanisms, and ensure optimal resource management to guarantee equitable access to essential services, particularly in the most vulnerable regions.