Angola signed a $900 million deal with two private Chinese investors to help develop its free trade zone, part of Luanda’s efforts to diversify its oil-dominant economy. Half of the sum will go toward building a port terminal outside the capital, while the other half will be spent on surrounding infrastructure such as roads, power, and utilities.
The oil-rich southern African nation has made a push to expand its economy beyond crude: A Chinese-backed aluminum plant opened this year, and a cooking oil refinery, logistics platform, and national grain reserve are all under development. Beijing has been a major foreign investor in Angola — Africa’s top recipient of Chinese loans — since the turn of the century, pioneering what came to be known as the Angola Model, in which Luanda repaid its Chinese loans with oil exports. But the arrangement was weakened when oil prices tumbled and China diversified its suppliers.