Chinese involvement with Angola increases in oil, construction and industry

6 February 2006

Luanda, Angola, 06 Feb – China’s involvement in Angola increased in the second half of 2005, particularly within the oil, construction and industry sectors, a report by the Swiss Peace Foundation showed.

As well as these sectors, the Swiss Peace Foundation said in the report published last week, “Chinese involvement has increased even further,” in agriculture, health, education and telecommunications.

According to the report China was particularly active in the oil sector due to an agreement between Angolan state oil concern Sonangol and the joint venture China Sonangol International Limited to jointly explore blocs 3/05 and 3/05A, in October.

Also in October, another Angolan-Chinese consortium, Sonangol Sinopec International, according to intelligence reports secured financing of US$1.2 billion on the international markets in order to develop bloc 18.

The report also points out that Angola’s national steel company ahs been reopened with a significant Chinese stake.

Anotehr important project involving the two countries is, said Swiss Peace, the “strategically crucial,” Benguela railroad, which is due to be fully functioning in 2007.

China loaned some US$2 billion to Angola for reconstruction work in the country.

Among the most important investments made in the second half of 2005, the report included the new diamond cutting factory in Luanda. This unit is the largest in Africa and represents a joint investment by state diamond firm Endiama and Israel’s Lev Leviev.

The report also focused on the Capanda dam, in Malange province, which was financed by Brazil’s Odebrecht, but said that supplying electricity to Luanda, “could take much longer to materialize given the poor state of the distribution network.” (macauhub)