China in Angola

Angola is the second largest producer of crude oil in sub-Saharan Africa, next to Nigeria. Crude petroleum accounts for 94,6% of the Angolan exports and is almost the only commodity China imports from Angola. Angola provides 50% of China’s African oil imports.

In 2006 the Chinese oil company Sinopec managed to close a deal for Angola’s block 18. This was partly due to a much higher bid than the Indian competitor, but also due to the Beijing government’s loan to Angola of US$2 billion, that made the Angolan government independent of IMF conditional ties, that were tied to loans that could be paid.

Beijing has provided expertise, own labor and finance amounting to billions of dollars, to reconstruct the Angolan infrastructure. Examples include US$300.000 – refurbishment of Benguela railway, US$2 billion – rehabilitating railway between port of Namibe and city of Menogue, US$450 million – new Luandan airport and US$3 billion – refinery in Lobito.

China is Angola’s second largest export destination. During the first half of 2006, China accounted for a quarter of Angola’s export. The bulk of bilateral trade is Angolan exports. Import from China is marginal. Chinese oil imports in 2005 stood for around 30% of the Angolan oil exports.