China grants US$2 billion credit line to Angola

10 October 2018

The Development Bank of China has opened a US$2 billion credit facility to Angola under a deal signed on Tuesday in Beijing, the Angolan press reported.

The credit line will serve to build and complete various facilities under construction in Angola, and the terms of the agreement, such as the repayment period and the interest rate to be applied, are still unknown.

The loan contract was signed by the Angolan Ministry of Finance and the Development Bank of China, as part of the State visit of Angolan President João Lourenço to China, according to Angolan state news agency Angop.

China granted its first credit line to Angola in 2002, with finance minister Archer Mangueira saying in September in Beijing at the Forum on China-Africa Cooperation (FOCAC) that Angola’s debt to China currently totals US$23 billion.

The Chinese loans have focused on the construction of numerous infrastructure projects, such as power stations, roads, bridges, hospitals and houses, encouraging economic development and improving the lives of the Angolan people.

Regarding the new Chinese financing, the President João Lourenço, told the Chinese Prime Minister, Li Keqiang, that some priority projects have already been identified, for which he requested the allocation of funds.

These projects include the second phase of the Integrated Centre for Public Safety, the new Convention Centre and Hotel, the Luanda Water Supply System, the Zenzo Hydroelectric Power Plant and the medium and high voltage connection of Huambo, Huíla and Namibe.

The list of priorities also includes the requalification of the Zenza-Cacuso rail link, the Luacano-Jimbe rail link, linking the Benguela Railroad to Zambia, a road infrastructures recovery programme and a new Naval Base.

In addition to the agreement on the credit line, the delegations of Angola and the People’s Republic of China signed a memorandum of understanding between the ministries of trade of China and Foreign Affairs of Angola commiting the two countries to an Agreement on Reciprocal Protection and Promotion of Investments.

The parties also signed a memorandum of understanding on the joint implementation of economic and trade measures of the eight actions of the Beijing Summit of the Forum on China-Africa Cooperation, as well as an agreement to eliminate double taxation on income tax and prevent fraud and tax evasion. (macauhub)