Angola: China grants Angola credits worth US$ 4.5 billion since 2004

11 April 2008

Luanda, Angola, 11 April – Angolan Finance Minister José Pedro de Morais has said China has granted credit lines valued at US$ 4.5 billion to Angola in the last four years.

Speaking in Luanda Thursday, de Morais said China’s loans have mainly been used to fund projects in the energy and water sectors, as well as education.

The minister, addressing a conference on, “Angola: today’s realities, tomorrow’s prospects: China a precious partner that is still controversial”, said the above sectors had benefited from between 18 and 20 percent of the first credit line from China.

“The credit line financing was beneficial to the Angolan economy in that besides energy, water and education, the public works sector also received 14 percent, in addition to telecoms and fisheries with 13 percent each.”

Angola’s health and education sectors also benefited from the Chinese credit to the tune of 12 and 10 percent, respectively, added de Morais.

A new line of credit worth US$ 500 was negotiated with China in 2007 and these funds are being targeted at the sectors of health, 31 percent, education, 28 percent, and telecoms, 13 percent.

A second credit with China worth US$ 2 billion was also negotiated in 2007, said the minister, and these funds have yet to be allocated.

Two-way commercial exchanges between China and Angola are constantly growing and the private sector will be “the engine of growth in economic ties” between the two states in the future, he added.

Angola’s finance minister told the conference, organized by the Angola Center of Strategic Studies, that Chinese firms participating in the reconstruction of Angola’s infrastructures continue to benefit from rival companies due to their use of technology and cheap labor. (macauhub)