Angola seeks $15bn from China for infrastructure

21 May 2018 | By GCR Staff 0 Comments

Angola plans to secure a loans worth more than $15.5bn from China for infrastructure and building projects.

Angola’s new president since September 2017, Joao Lourenco, photographed May 2017 visiting the US as Angola’s defence minister (Wikimedia Commons)

The plan was revealed by the Angolan government in a memo sent to investors within the framework of a new bond issuance, reports the Ecofin Agency.

Angolan authorities hope to secure around $2.5bn from Exim bank China for infrastructure and energy projects. Of this, $690m will be for the Corimba coast road, while $760.4m will be for an electricity transmission system at Lauchimo dam. In addition, $1.1 billion will be pumped to build a naval academy in Kalunga.

The country will also negotiate a loan of nearly $13bn from the International and Commercial Bank of China, out of which $1.28 billion will be used to construct a new airport in Luanda and $11.7 billion as a credit line to fund various other projects across the country.

Dependent on oil exports, Angola’s economy has been struggling after a slump in oil prices.

Ecofin comments that Angola is trying to revive its economy by privatising 74 state-owned companies.

The International Monetary Fund recently forecast 2.2% growth for the country this year, Ecofin said.