Angola is China’s largest economic partner in sub-Saharan Africa, accounting for more than US$45 billion between 2000 and 2022 in loans and financing from the Asian country for 258 projects.
According to the Center for Global Development Policy at Boston University, from 2000 to 2022 China has lent more than 45 billion dollars (around 40.2 billion euros at the current exchange rate) to Angola.
This Portuguese-speaking African country is the largest recipient of Chinese funding, followed by Ethiopia, with 14.1 billion dollars (12.6 billion euros), and Kenya, with 9.7 billion dollars (8.6 billion euros) since the beginning of the century.
In the Angolan case, and also according to this renowned study center on the economic and financial relationship between China and Africa, financing is largest in the energy sector, with 26 billion dollars in 37 loans, but is mostly in the transport sector, with 6.2 billion dollars channeled to 67 projects.
In total for the continent, and also according to data from this Center, which is generally recognized as the most comprehensive source of economic and financial information on the relationship between the two blocs, since the beginning of this century the Asian giant has lent 170 billion dollars (153.78 billion euros) to 1,243 initiatives.
Of this total, almost 60 billion dollars were channeled into energy projects and almost 50 billion went into transport projects.
Less funding
Despite still being the African continent’s largest partner, Chinese financing to African countries fell to less than $1 billion (€904.6 million) in 2022, the latest year for which data is compiled, representing the lowest figure in almost two decades.
Since peaking at $28.5 billion in 2016, China has made just seven loans worth $1.22 billion in 2021, and in 2022 the figure fell to $994 million with just nine loans, the lowest level since 2004.
“The Covid-19 pandemic influenced these figures, but much of the decline can be explained by the reduction in the level of exposure” to the evolution of African public finances, commented the researcher at this Centre and one of the managers of the Centre’s databases on this topic, referring to the deterioration of the economic situation of African countries following the pandemic, which deepened already existing difficulties and forced several countries to renegotiate the terms of Chinese loans, with some, such as Zambia and Chad, entering into Financial Default.
In the particular case of Angola, in 2021 China offered a moratorium on loan repayments for two years, and this year it agreed that part of the funds deposited in a loan repayment guarantee account could be used to help the country meet its financial obligations.
In addition to the investments made by China, the debt of the second largest oil producer in sub-Saharan Africa to the ‘Asian giant’ is equivalent to around 40% of all external debt, amounting to around 17 billion dollars, said the Angolan Finance Minister at the beginning of the summer.
These issues, debt, investment and relationship model will be debated at FOCAC 9 this week, which this year has the theme “Join Hands to Advance Modernization and Build a High-Level Sino-African Community with a Shared Future”.
The forum will take place from September 4 to 6 in Beijing, with technical meetings starting today, and will be attended by Chinese President Xi Jinping and delegations from the African Union and dozens of African countries that maintain diplomatic relations with China,” according to the Chinese Ministry of Foreign Affairs.
By LUSA
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2024-09-02 13:29:41