LUANDA — Starting this Friday, the 15th, the Angolan President will carry out an official three-day visit to China, in which he will meet his counterpart, Xi Jinping, the Prime Minister, Li Qiang, and the President of Parliament , Zhao Leji.

China is currently Angola’s largest creditor, under several credit lines opened by the Beijing Government, through state banks.

Until 2019, Angolan debt was estimated at around 23 billion dollars and payment was made with the value of oil sales.

For Angolan economic analysts and politicians, debt payment will be an “unavoidable” issue during the discussions, the par with Chinese investment in Angola, amid current competition from American investors in various sectors of the economy, particularly in the Lobito Corridor, which had initially been awarded to Chinese companies.

Loans and more loans

Business management specialist Estevão Gomes considers China “a strategic partner for Angola over the last 20 years and a primary source of financing in the medium and long term”.

He points to “debt renegotiation” as one of the main reasons for João Lourenço’s visit.

That economist understands that the presence of Chinese companies in Angola is a way for the Asian country to reaffirm its status as one of the world’s economic leaders in Africa.

“The dispute between China and the USA represents the geopolitical struggle to see who will dominate the management of investments and the exploitation of natural resources in Angola”, highlights Estevão Gomes.

That economic analyst also regrets the way in which Chinese loans were spent by Angolan managers, to the point that a large part fell into the hands of individuals.

“Because strategically, China trusted, at that time, in the transparency that our Government presented in terms of public management. But now the Chinese Government has demanded that the timings that were established for debt repayment be complied with in full, practically causing an exchange rate deficit in our market”, maintains Estevão Gomes.

Geopolitical games

Cesário Zalata, a specialist in international relations, considers that the dispute over the Angolan market between China and the USA is part of the fight for influence in Africa, carried out by the two world economic powers.

“And Angola has been carrying out intelligent courtesy diplomacy that does not conflict with either China or the USA”, he points out.

Zalata highlights Chinese investment in Angola after the civil war, but gives a negative note to the fact that the real value of Angolan debt was never revealed and that a lot of money lent by China ended up in the hands of some Angolan dignitaries to the detriment of the State.

“That’s why there is a kind of shame here about being able to disclose the real level of debt because if this amount is announced, people will realize that a large part of this money was not used for the benefit of public interests”, points out Cesário Zalata.

However, journalist Ilídio Manuel is of the opinion that Angola’s opening to American investment may not please China for fear of losing or reducing the volume of investments, in favor of American companies.

Manuel points out that the fact that Beijing went six months without appointing an ambassador to Angola “means that there was diplomatic irritation”, which, ultimately, could also lead China to pressure the payment of the debt “in the manner in which it was agreed” .

“The Americans may also not be looking favorably on (the Chinese presence), since the objective of their approach to Africa is precisely to reduce Chinese influence”, concludes that political analyst.

Agenda in Beijing

Following the Angolan President’s conversations with the highest entities in China, a joint statement should be released, according to the press release sent to the newsrooms.

On this second official visit to Beijing, João Lourenço will also participate in a business forum on investment in Angola and talk to Chinese businesspeople, including those already operating in the national market.

The presidential delegation is scheduled to travel to Xandong province to make contact with sectors of the textile, pharmaceutical and agricultural industries.

Biggest partner in Africa

Since 2007, Angola has been China’s biggest trading partner in Africa, with a turnover that registered, in 2010 alone, a total of 24.8 billion US dollars.

Ten years later, the value of trade with China rose by 61 percent, that is, to 5.55 billion dollars.

In 2018, China approved a new financing line of two billion US dollars.

This partnership is based on equality and mutually advantageous benefits, and can also, in addition to contributing to the development of both countries, help in the establishment of a new international political and economic order and promote the democratization of international relations.

In Angola, China operates in the most varied areas of the country’s economic and social life, with a strong presence in the areas of staff training, such as the construction and equipping of the Integrated Technological Training Center (CINFOTEC) and the Venâncio de Moura Diplomatic Academy and scholarships for young Angolans.

Relations between Angola and China date back to 1983 and reached their highest point in 2000 when the Asian giant began making loans to the country to rebuild infrastructure destroyed by the war and to boost the national economy.