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Navigating infrastructure failure: governance challenges in Angola’s Caculo Cabaça and Laúca Hydropower Projects

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TL;DR

This paper examines Angola’s electricity sector reform, focusing on the Laúca and Caculo Cabaça hydropower projects, and argues that infrastructure failure results from external financial constraints, fragmented governance, and elite incentives driven by high-modernist development ideologies, despite significant investments.

Abstract
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ABSTRACT Despite decades of substantial investment in electricity infrastructure, Angola faces a striking paradox: widespread electricity poverty coexists with significant overcapacity in power generation. By the end of its 2007–2025 development strategy, national electrification had increased only modestly – from 34 per cent to 42 per cent – despite rapid economic growth driven by oil revenues and heavy public investment in energy production. Today, Angola has an installed generation capacity of approximately 6.2 GW, of which only about two-thirds is utilised, while more than half of the population remains without access to electricity due to severe deficits in transmission and distribution infrastructure. This article investigates Angola’s electricity sector reform since the early 2000s, focusing on the construction of the Laúca and Caculo Cabaça hydropower dams as emblematic megaprojects. It asks whether Angola’s energy restructuring can be understood as a case of infrastructure failure and examines how international finance, domestic political settlements, and elite incentives shape infrastructure outcomes. Drawing on a global political economy framework, the paper argues that infrastructure failure in Angola emerges from the convergence of external financial constraints, fragmented principal–agent relations, and elite political incentives reinforced by high-modernist development ideologies.

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