Chinese companies in Angola experience drop in turnover

28 April 2020

Chinese companies operating in Angola have so far recorded a drop in turnover of US$350 million and US$500 million due to restrictions resulting from the imposition of a state of emergency to halt the spread of Covid-19, said the vice-president of the Angola-China Chamber of Commerce (CCAC).

Francisco Shen told the Jornal de Angola newspaper that Chinese companies operating in the country in 2019 recorded turnover of US$2.86 billion, and investment that year amounted to US$206 million.

“The first quarter of this year is being characterised by successive losses in business in all private and state companies from China in Angola, and, due to the outbreak of Covid-19 and the general economic situation, the number of citizens and Chinese entrepreneurs in Angola is less than 50,000 of the 200,000 by the end of 2019,” said the vice-president of the CCAC.

Shen recalled that several Chinese companies who have returned to China took an active part in the transformation and modernisation of the country, in the sectors of civil construction, industry, agriculture, fisheries, mining, education, trade and catering.

The sharp drop in the price of oil has led to the suspension of infrastructure construction projects, and construction companies have opted to withdraw from the market or alter their activities.

In 2019, Chen continued, all Chinese companies survived the difficulties, even with the restrictions on access to foreign currency, but at this time of pandemic almost all business, cooperation and exchanges have been suspended.

“Investments are suspended based on the situation of Angolan currency devaluation and the cost of production which is increasingly high,” he explained, adding that companies currently want to ensure only payment of taxes and obligations to their staff.

Chen noted the drop in trade between Angola and China in 2019, 8.35% on year to US$25.71 billion as well that recorded in public works, in which the value of the contracts awarded to Chinese companies reached US$809 million, a decrease of 63.9% compared to 2018. (macauhub)