Angola and China have engaged in a mutually beneficial relationship over the last twenty years and above. Both countries have experienced significant growth by 38%, contributing to a rapid growth of economy and industrial development simultaneously.
Angolan President Joao Lourenco visited China from the 14th of March to the 17th of March. During his visit, he praised China’s role in his country’s development.
“China’s support and cooperation have greatly promoted Angola’s infrastructure construction and economic and social development, setting a good example of mutually beneficial cooperation,” he said.
During the visitation, Chinese President Xi Jinping and President Lourenco announced the elevation of bilateral ties to a comprehensive strategic cooperative partnership.
There were also several bilateral cooperation agreements covering important sectors of the economy which include investment, trade, agriculture, and green development.
Gong Tao, China’s ambassador to Angola, praised the bilateral partnership between both countries at the Angola-China Business Forum (FONAC) in Luanda.
One of Angola’s plans to cut excessive reliance on oil includes attracting Chinese private investment. This will be achieved by exporting most of the oil to China to repay loans advanced as the country is been rebuilt after a 27-year civil war.
The end of the war in 2002 opened the doors to Chinese private investment in Angola.
FinTech Telex recalls that former President, Jose Eduardo dos Santos invited Beijing to invest in Angola after they were declined aid for reconstruction by the Western governments.
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How Has Chinese Investment Improved Industrial Development In Angola?
Gong mentioned at the Angola-China Business Forum (FONAC) in 2023that
“[In] 2002, China was the first country to extend its hands to offer strong support to the national reconstruction of Angola.”
Since the partnership started, private Chinese companies have built 2,800 km of railway, 20,000 km of roads, and more than 100,000 homes, 100 schools and 50 hospitals in Angola.
Several Chinese companies are currently building one of the biggest hydroelectric plants in Angola. The Caculo Cabaça hydropower project is a 2,172MW hydroelectric power plant under construction in the Kwanza Norte Province of Angola.
According to reports, the hydroelectric power plant is supposed to be completed by October 2026.
After its construction, the Caculo Cabaça hydropower plant, funded by a loan of approximately US$ 4.1 billion from Industrial and Commercial Banks of China (ICBC) alongside contributions from the Bank of China’s Beijing Branch, China Construction Bank of Beijing, China Minsheng Bank, Ping An Bank, and the Bank of China’s Shanghai Pilot Trade Zone Branch, will become operational.
In May 2023, there was a revision in the construction budget, which was increased to US$5.2 billion. Out of this total, US$3.8 billion was designated for the dam’s construction, while the remaining US$1.4 billion was earmarked for electric generation and transmission equipment.
This project is set to improve power supply in Angola as it’s projected to produce an estimated 8123GWh of electricity each year.
In June 2021, while visiting the industrial park built with Chinese private investments, the Angolan president expressed his satisfaction with the project and its positive impact on the local employment rate, increasing tax revenue, and propelling Angola’s industrialization and economic diversification efforts.
Joao Paulo, a senior external relations manager who has worked at the industrial park for many years highlighted the benefit of the investment to Angolans. He said,
“Working with colleagues from China and other countries has broadened my horizons and made me realize that only through strengthening international cooperation can our country’s development be more hopeful.”
According to Gong, over 400 Chinese companies are presently operating in Angola, with their investments spanning various sectors and totalling over US$24 billion, as per initial figures.
China has held the position of Angola’s primary trading ally for an extended period.
