Africans In China

LUANDA (AFP) — In the lobby bar of one of Luanda’s few decent hotels, suited businessmen sit in deep leather armchairs waiting for a meeting in the oil-rich country which could change their fortunes.

“Angola is one of the last great emerging market opportunities,” one European man told AFP between sips of whisky.

“I don’t care about the logistical problems as long as the solutions and rewards are there — I’m in this for the long term to make money.”

Thanks to high oil prices and a peacetime construction frenzy, Angola has enjoyed annual double-digit growth since a 27-year civil war ended in 2002 to become one of the world’s fastest growing economies.

Growth is set to slow this year, but interest from international investors has not abated with a recent flurry of high profile trade delegations, all hoping to get a piece of the action.

The government’s response to falling commodity prices, which threaten public spending aimed at Angola’s poor majority, is diversification into areas such as agriculture and manufacturing.

Until now, Angola’s main foreign players have been Brazilian and Portuguese firms, and Chinese companies helped along by close ties and credit lines believed to exceed five billion dollars.

But along with visits from the United States, France and South Korea in the past month, there have also been business forums in Rome and Cairo and state visits by President Jose Eduardo dos Santos to Germany and Portugal.

Last week a trade agreement was signed with US Secretary of State Hillary Clinton in Washington.

Among the recent American delegation was Delta Air Lines which hopes to launch the first direct scheduled flight from the United States to Luanda in September.

“There’s no question, Angola is a very strong market and there is a lot of potential,” the airline’s government affairs advisor Scott Yohe told AFP.

“The amount of time it takes to get to Angola from the US, via Europe or via South Africa, has an impact on trade and the new flight will definitely be a catalyst for investment.”

Dubai-based Emirates starts flying three times a week from Luanda to Dubai in August.

“Angola is a country which is really moving,” explained Nigel Page, senior vice president of Emirates in Americas and Africa.

“We predict that there will be a lot of business exchanges between Luanda and Dubai and this route will channel more companies into Angola from the east.”

There is already plenty of Asian investment in Angola, particularly from China which holds a number of key construction contracts, including four 2010 Africa Cup of Nations football stadiums.

China’s interest in Angola has aroused concern in the west, especially as a number of the loans have been oil backed, but Alex Vines, of the London-based think tank Chatham House, believes the Sino-Angolan relationship may be waning.

“From a geo-strategic point of view, Angola wants to woo lots of different investment, not just from China,” he told AFP.

“And that’s why we’ve seen Dos Santos making these high profile visits to Europe and these other trade trips being invited to Angola.”

Despite predicting a three-percent contraction in 2009, World Bank economist Ricardo Gazel said: “Angola’s economy is still in a much better position than most and medium and long term, the prospects are very good.

“There is a lot of investment interest, particularly in the non-petroleum sector which is good for diversifying the economy and for the economy as a whole.”

For businesses hoping to break into the Angolan market however, it’s not easy and good contacts go a long way.

The World Bank’s Doing Business Report ranks Angola as one of the hardest places to set up a company with 68 days needed to start a business, although this has halved since 2008.

But, big on capital if low on know-how, Angola has been spreading the word about investment opportunities and it seems the world is listening.

Cape Town, South Africa, – The deepening international financial crisis and increasing uncertainty in international markets, the price of oil and in credit markets will strengthen the economic relationship between Angola and China, researcher Lucy Corkin concluded in a periodical publication published by Stellenbosch University, South Africa.

Noting a visit to China by Angolan President José Eduardo dos Santos to China, the second in a five month period, Corkin said that Angola was increasingly looking to China as a source fo economic stability.

“Despite policies outlined in Luanda to diversify the Angolan economy and its economic partners, following global financial uncertainty, China is considered to be a guarantee for difficult times. Especially when Angola’s access to foreign capital is limited,” said Corkin, a researcher at the Asia-Africa Centre at the School of Oriental and African Studies (SOAS), of the University of London.

In the “China Monitor” publication of the Centre for Chinese Studies of Stellenbosch University – the latest edition of which is themed “Chinese Involvement in Angola: Mutually Beneficial Commercial Pragmatism?” Corkin analysed the possible effects of the current economic crisis on relations between Angola and China, concluding that Beijing would know how to take advantage of the crisis, at least in relation to Angola.

The researcher said that the global economic crisis had made the Angolan state’s financial position weaker, particularly because the drop in oil prices had reduced the influx of foreign currencies, investment, revenue and capital. The adoption by Western oil companies of a more conservative risk profile in terms of oil investments had also reduced Angola’s room for manoeuvre, Corkin said.

“China thus has more trump cards, as one of the few buyers with capacity to increase oil imports. As well as this, Chian’s considerable incvolvement in funding Angola’s government projects puts Beijing in a stronger position, particularly in the current economic climate and because the national reconstruction project was seens as one of the most important political priorities,” she added.

“With oil at high prices it was easy to play between the interests of the new arrivals [China] against more traditional investors such as Brazil and Portugal, but with funding drying up over the last six months, the Angolan government’s options have also dried up,” said Corkin.

The author also cited World Bank official as saying that China may already have granted Angola funding that had not been announced of up to US$8 billion. (macauhub)

Cuito, Angola, – The Public Works Director of Bié province in Angola, João Marques Banco said Tuesday in Cuito that over 1,000 kilometres of roads would be rebuilt in the province over the next few years.

Speaking to Angolan news agency Angop, Marques Banco noted that after the refurbishment of roads, a further 1,500 kilometres of secondary and tertiary roads would be rebuilt, in a project co-funded by municipal authorities and the Local Management fund.

Marques Banco said he was satisfied with the road reconstruction programme and noted that asphalting of the Cuito-Chitembo road was progressing well and that base and sub-base work had been completed on the Cuito-Andulo and Calussinga section (Kwanza Sul).

He said that work was going well on the Andulo-Nharea contract, in the hands of Chinese company Sinohydro.

He also added that on the 78-kilometre Kuito-Kamacupa road, in the hands of the Clamar company, work was also progressing satisfactorily.

The road reconstruction programme in Bié province involves constrution companies, Empresa de Terraplenagem e Pavimentações (Paviterra), Clamar, Monte Adriano and Sinohydro, amongst others. (macauhub)

Luanda – The African Union is seeking a consensus on the creation of a Union’s Government, said in Luanda the director for Africa and Middle East of the Angolan Foreign Ministry, Nelson Cosme.

Speaking to Angop on the occasion of the Africa’s Day, May 25, the official said a debate is underway, seeking a consensus, in view of existing divergences.

He said there are positions defending an agreement or ratification from states for the transformation of a supra-national structure.

According to the official, there are indications that the process is moving towards an intergovernmental institution, adding that the debate on the issue is still going on.

Nelso Cosme characterised the activity of the continental over three decades as comprising two stages.

He mentioned that the political purpose – the constitution of the Organisation of African Unity (OUA) was accomplished, as well as the liberation of the peoples from colonial rule and attainment of their independences, of which the Western Sahara is left.

To him, there is a component concerning the economic integration and the role the continental institution can play in the prevention and management of conflicts.

The diplomat stated that these two elements have been essential to the current structure of the organisation that is the African Union Commission, with specific programmes to respond to the economic matters and adoption of an architecture capable of responding for the management and prevention of conflicts, namely with the creation of the Peace and Security Council and other structures that did not exist in the past.

Commenting on coup d’Etats in the continent, the Foreign Ministry’s Africa and Middle East director, said the African Union should not accept this way of winning power.

He recalled that in the light of the dispositions contained in the Lome and Alger accords, institutionalised later by the AU, this purpose has been fulfilled, mentioning the example of Mauritania, Guinea Conakry and others whose states ceased to have a seat within the organisation, after they were found to have used violence to win power.

The OAU was created on May 25 1963, in Addis Ababa, Ethiopia, on an initiative by the Ethiopian emperor, Hailé Selassié, through the signing of its constitution by representatives of 32 Governments of African independent countries.

The continental organisation was replaced by the African Union on July 9, 2002.
(portalangop.co.ao)

Luanda, Angola, 15 May – Angola was China’s largest trading partner in Africa in 2008, with trade of US$25.3 billion, after over US$22 billion in 2007, Jornal de Angola reported.

Bilateral trade has seen significant growth, according to an assessment by the Permanent Commission of the Council of Ministers, on summarising its trade with the Asian giant.

Angola exports crude oil to China, and is its biggest African supplier of the product, diamonds and scrap metal and imports food, machinery, equipment, electronic devices, clothing and footwear.

Exports of oil, diamonds and scrap metal to China reached an approximate value of US$7 billion between 2004 and 2006. (macauhub)

Beijing – The Angolan ambassador to China, João Manuel Bernardo, Friday last week, symbolically inaugurated in Beijing the premises of the Defence Chancellery.

The diplomat on the occasion considered the opening of the Defence Chancellery as a very important landmark in the reinforcement of cooperation existing between Angola and China.

João Manuel Bernardo also expressed the wish for a successful cooperation, having highlighted the effort by everyone directly and indirectly involved.

The Defence Chancellery with the Angola Embassy in China started its official functions on February 18, but it was operating from a transitional premises.

The defence attache with the Angolan embassy in China, brig. Barbosa Epalanga, has since then been carrying out several activities promoted by the Ministry of National Defence of the People’s Republic of China, within the framework of the Association of Defence Attaches based in Beijing.

Brig. Barbosa Epalanga, 48, married and father of four, until his nomination, held the post of chief of Department of International Relations of the National Department of Defence Policy of the Ministry of National Defence (MINDEN).

The ceremony of inauguration of the Angolan Defence Chancellery in Beijing was witnessed by officials of the Angolan embassy in the People’s Republic of China.

(portalangop.co.ao)

Luena, Angola, 6 May – Reconstruction and extension work on Luena airport, in Angola’s Moxico province, is due to re-start this week after being halted due to the rainy season, the project’s inspector told Angolan news agency Angop.

Manuel Catraio said that Chinese company Sinohydro Corp. had been making up cement and gravel to lay the last 300 metres of the runway.

After this phase, teh inspector said, the final layer of cement would be laid on the more than 3000 metres of the runway’s length and 45 metre width.

According to Catraio, the Chinese company expects to finish work on the runway in June and then move on to working on access roads and water draining, the airport apron, lighting and fencing the entire facility.

Over 2,000 metres of the runway have so far been concluded, and the project, which began in 2007, is due to be finished in September/October. (macauhub)

Chinese group CITIC International Contracting wants to widen its investments in Angola in the areas of petroleum, mining and agriculture - the group’s vice president Wang Jiang Sheng said in Luanda on Wednesday.
Wang  said that the group had been involved since last August, in a construction project to build 20,000 apartments in the town of Kilamba Kiaxi in the Angolan capital of Luanda, after meeting with the acting speaker of Angolan National Assembly, João Lourenço.
The project is said to be worth 3.5 billion US dollars.
Wang Jiangsheng added that CITIC International Contracting group was one of the biggest in China and it would also be involved in the construction of infrastructures such as roads in Angola.

(macaudailytimesnews.com)

Angola Chamber of Commerce and Industry head António dos Santos and Association of Macau Small and Medium Enterprises head Stanley Au signed a co-operation protocol on Friday.
At the end of the ceremony Dos Santos said his group was taking one more step to work closely with their counterparts in developing trade and business.
Dos Santos added that most companies are small- to medium-sized in Macau, so the agreement represents another way to meet the current needs of Angolan entrepreneurs seeking to enter international markets.
The Chinese government donated five million yuan to Angola. Vice minister of Trade Jiang Zengwei said the authorities were satisfied with the co-operation established with Angola and the active role of Chinese companies reconstructing the country.
Despite the global financial crisis, he stressed the need to invest more efforts in both countries so obstacles could be “overcome” as they arise.
He added that the visit head of state José Eduardo dos Santos made to China last year contributed to further strengthening the friendship ties between the two countries.
Jiang also considered the conclusion of the agreement of reciprocal protection of investments signed earlier between both countries important, he said.
Funds were formally delivered on Friday through the signing of confirmation letters between Jiang and Angolan deputy foreign minister Exalgina Gamboa at the end of the China-Angola Intergovernmental Bilateral Commission in Luanda.
The Angolan vice minister said the government continues to honour its commitments and is committed to continuing program reforms, while calling for greater rigour in managing public expenses.

(macaudailytimesnews.com)

Luanda – The Angolan deputy minister of Foreign Affairs, Exalgina Gamboa, said Friday in Luanda that the country’s authorities received the announcement that China is ready to increase the financial cooperation, through the granting of one more loan.

Exalgina Gamboa was speaking at the opening of the 4th session of the Angola-China Bilateral Commission.

According to the deputy minister, the Chinese authorities are also ready to grant an additional non-refundable loan which, she added, confirms the Asian nation’s readiness to increase the volume of financial cooperation and expand existing technical cooperation programmes.

The official stated that the Angolan Government will continue honouring its commitments and is engage in continuing the programme of institutional reforms, while demanding a stricter management of the public expenditures.

As she said, measures to maintain the macro-economic stability and positive economic growth rates are being adopted.

According to her, the environment of comprehension and openness around the works of preparation of the session show that the two countries are on good path towards the continued strengthening of the programmes underway, and relaunch of new areas of
cooperation.

She reaffirmed the Angolan authorities political will to negotiate new cooperation accords in the domains of agriculture, industry, science and technology, environment and social assistance.

In his turn, the Chine minister of Commerce, Jiang Zengwei, said that his country’s authorities are happy with the trend the cooperation with Angola is taking and the active role the Chinese firms are playing in the national reconstruction process.

In view of the world financial crisis, the Chinese official stressed the need for a combination of effort between the two countries.

Jiang Zengwei added that the visit Angolan head of State, José Eduardo dos Santos, paid to China, in December 2008, contributed to further strengthen the friendship between the two countries.

However, the Chinese minister spoke of the need for the two countries to finalise a reciprocal investment protection accord.

(portalangop.co.ao)

Luanda – The relations between China and Angola are excellent, said Thursday in Luanda the Chinese ambassador to Angola, Zhang Bolun.

Speaking to Angop, the diplomat said the relations gained a momentum after the war in Angola in 2002, thanks to a good understanding, comprehension and friendship between the two countries and peoples.

In the political sphere, the ambassador mentioned the fact that Angolan head of State, Jose Eduardo dos Santos, paid four State visits to China which, according to him, show the proximity between the two states.

Zhang Bolun stated that in 2008, Angola turned out to be the first commercial partner of China in Africa, with a trade of about Usd 25 billion.

In the said year, the source added, the trade balance favoured Angola, as China imported huge amounts of oil (31 million tons), against three million worth of imports from the Asian nation, comprising mainly machinery, construction materials and other assorted goods.

The diplomat said, under the framework accord with Angola, China granted credits of Usd 4.5 billion, to support the national reconstruction effort, especially in the repair of electrical networks, schools, hospitals, roads, railways and other infrastructures.

The ambassador said that currently, the process is being expanded to such areas as construction of airport, telecommunication and construction of economic houses.

He informed that about 50 big Chinese companies are currently operating in Angola, announcing that several smaller ones are based in the country, amounting to about 100 firms.

According to the official, more than 50,000 Chinese workers are currently in Angola.

On the other hand, the diplomat commended the Angolan authorities’ effort in keeping the growth pace, in addition to adopting measures to reduce the impact of the world financial crisis.

He said China is ready to cooperate in all areas and hopes to play a relevant role in the development of agriculture.

The ambassador stressed that Angola has excellent conditions for the production of rice, wheat, cotton, vegetables, fruits and other crops, the reason why Chinese companies are making surveys for the establishment of agro-industrial companies to address the food problem in the country very soon.

Zhang Bolun revealed that about 10,400 Angolans applied for visas to travel to China last year.

Meanwhile, the diplomat said that the 4th session of the Angola-China Bilateral Commission, set for Friday in Luanda, will analyse and strengthen the relations of friendship and cooperation between the two countries.

The meeting will also assess the work so far done under the credit line granted by China and consider other steps.

(portalangop.co.ao)

Luanda - The fourth session of Angola-China Inter-governmental Bilateral Commission will gather next Friday in Luanda, Angop learnt on Tuesday.
According to a communiqué issued by the Foreign Affair Ministry, the meeting will be chaired by the Angolan deputy minister of Foreign Affairs, Exalgina Gâmboa and by Chinese vice-minister of Trade, Jiang Zengwei.
During the meeting, due to take place at the amphitheatre of Foreign Affairs Ministry, there will be carried out the assessment of the bilateral cooperation between the two countries and drafted future actions for the 2009-2010 period.
The press release adds that the Chinese delegation will arrive in the country on Thursday, coming from Johannesburg, South Africa.
In Angola, the Chinese government‘s official will hold courtesy meetings with notable local entities, stresses the note.

(portalangop.co.ao)

Macau,  – China’s Deputy Trade Minister, Jiang Zengwei, left on Monday for a trip to Mozambique, Angola and Portugal to strengthen economic and trade relations between China and the three Portuguese-speaking countries.

In statements made to Portuguese news agency, Lusa, Rita Santos, Coordinator of the Supporting Office to the Permanent Secretariat of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking countries, said that a “successful visit” was expected and stressed that “for the first time, a visit by an official of the Chinese Trade Ministry is supported by the logistical platform of Macau.”

“Yet it also has the support of businesspeople from Macau who have, over recent years, maintained frequent contact with these countries, promoting business and investment,” said Santos.

Macau has been the link between China and the Portuguese-speaking world since 2003, hosting not only the permanent secretariat of the Forum, but also the ministerial meeting which takes place every three years.

The political and business delegation which left for Mozambique, Angola and Portugal includes a dozen Chinese businesspeople, as well as nine from Macau.

The delegation will remain in Mozambique until 26 March from where a part of the delegation will head for Lisbon and the other, led by Jiang Zengwei, will visit Angola and remain in Luanda until 28 March.

The latest available data – collected between January and October – indicate that trade between China and the Portuguese-speaking world totalled US$68.07 billion, an increase of 89.5 percent which is very favourable to the Portuguese-speaking world given that the eight countries imported products worth US$21.12 billion and sold products worth US$46.94 billion. (macauhub)

An economic and trade delegation from the mainland government led by Deputy Minister of Trade  Jiang Zengwei, left yesterday for an official visit to Mozambique, Angola and Portugal, accompanied by a business delegation of the interior and an official delegation from Macau. The trip aims to strengthen economic and trade relations between China and Portuguese-speaking countries.
Another business delegation of representatives of Macau that have cooperative relations with Portuguese-speaking countries will visit Mozambique and Portugal to attend the Meeting of China and Mozambique Entrepreneurs and at the same time, visit Mozambican and Portuguese companies, as well as local Chinese companies.
This visit aims to strengthen the exchange and economic cooperation and bilateral trade between the Mainland, Macau and Portuguese-speaking countries, placing Macau as a platform for economic and commercial services.
Active participation in economic and trade cooperation between China and Portuguese-speaking countries is important in light of the international financial crisis.
Organizers of this mission hope it will help create more business opportunities and develop new cooperative projects for investment.
The Coordinator of the Supporting Office to Forum Permanent Secretariat for Economic and Trade Cooperation between China and Portuguese-speaking countries of Macau, Rita Santos and Deputy Director of the Macau Economic Services, Sou Tim Peng, will accompany the visit and provide logistical support in organising the activities regarding the official and business delegations from the mainland and Macau.
The delegations from the mainland and Macau are composed of a total of 38 people.

(macaudailytimesnews.com)

Malanje, Angola, – Businesspeople associated to state Chinese investment group CITIC plan to invest in the Angolan Province of Malanje in the agri-livestock and industrial sectors, Angolan news agency Angop reported.

Angop said that the delegation made up of businesspeople and officials from the CITIC and the China Development Bank, which funds projects, had met Monday in the city of Malanje with provincial officials in order to obtain information about the province’s potential, including its water resources, arable land, soil fertility and most important crops.

The meeting served for the Chinese delegation to assess the possibility of becoming involved in agriculture and the manufacturing industries.

The province’s agricultural director, João Manuel noted the Kassanje and Malanje plateau areas, along with the Songo region as being the main agricultural production areas, despite their specific characteristics, for producing rice, cotton and other crops.

The director of the evaluation department for the China Development Bank, Meng Ya Ping, said that investments would also involve building infrastructures, adding that the map that was presented showed fertile land in the province.

Following the meeting, the Chinese delegation travelled to the Pungo-a-Dondo plantation (Kapanda) to verify levels of maize production and processing, as well as the experimental production of soy, rice, peanuts and beans in order to have an idea of the fertility levels of the province’s land.

(macauhub)

Macau, China, – A Chinese delegation is to visit Mozambique, Angola and Portugal this month, Portuguese news agency Lusa said Monday, quoting an official source.

The delegation, which includes businesspeople from China and Macau with “investment potential,” leaves for Maputo on 23 March, where it will meet various government departments and local businesspeople.

On 26 March the delegation will leave for Lisbon and then on to Luanda.

The visit to Lisbon will begin on 28 March, with various political and business meetings planned up until the end of the month.

The return to Macau and China is expected to be 1 April.

Lusa has said in its report that the inclusion of businesspeople from Macau in the official Chinese delegation is a result of the “role of platform played by the Special Administrative Region of China” for economic and trade contacts between China and the Portuguese-speaking world.

Between January and October last year trade between China and Portuguese-speaking countries totalled US$68 billion. (macauhub)

LUANDA (AFP) — Angola has secured another billion-dollar (783 million euros) loan from China, state media said Thursday, to be spent on developing its agricultural sector.

The southern African country has already received at least five billion dollars in credit from China to pay for its post-war reconstruction, but the World Bank believes up to eight billion dollars more has not been publicised.

Chen Yuan, CEO of the China Development Bank, announced the latest finance deal late Thursday after a meeting with Angola’s President Jose Eduardo Dos Santos in Luanda, the state news agency Angop reported.

“We are ready to grant a line of credit of more than a billion dollars but we think the amount could be insufficient and it may be increased to meet the needs of Angola’s agriculture, cereal production and processing of agricultural product,” Chen said, according to Angop.

The China Development Bank is one of the country’s largest, and is one of three policy lenders charged with supporting Beijing’s government programmes.

Chen added that he had full confidence in the Angolan government and there were very good prospects for co-operation.

Trade between the two countries was at 25.3 billion dollars in 2008, and Angola is now China’s biggest African trade partner.

Angola, a former Portuguese colony, was a key agricultural producer in the 1950s and 1960s, but millions of farmers left their land during the decades of war that left the soil littered with landmines. Most food is now imported.

The government, which relies on oil and diamonds for more than 90 percent of its income, is suffering amid the global slowdown and is investing in areas like agriculture in a bid to diversify the economy.

Copyright © 2009 AFP

Angola gets over 400 new fishing boats

Luanda - Angola has 440 small and large-sized boats, distributed in the major fishing provinces of Zaire, Bengo, Cabinda, Luanda, Kwanza Sul, Benguela and Namibe, informed last Friday, here, the director of the Artisan Fishing and Aquaculture Development Institute (IPA), Caholo Duarte.
In a joint interview to ANGOP, with the director of the Fund for Assistance to the Fisheries Industry and Agriculture (FADEPA), Verónica Naquela, IPA’s director stated that out of the 440 vessels, 190 are from Spain and 250 from China.
Referring to the Spanish vessels, 160 are 7.40 metres long, 20 (13.80 m), and 10 (12 m), while those from China, 100 measure 9.60m and 150 (7.40m), with Japanese electronic equipment (GPS, VHF system, radio), and as well as Norwegian-made fishing support equipment.
According to Caholo Duarte, the programme dubbed “Renewal of the Fleet” is a project aimed at replacing out of date boats, which are made of wood, with safer ones made of steel.
The intention is to replace, by 2010, about 3,000 boats out of the 6,000 existing in maritime artisan fishing sector.
The source also revealed that the 9.60-metre boats were delivered to the cooperatives at an amount of USD 100,000 each, which is refundable over a period of 10 years, the 7.40-metre vessels are estimated at USD 80,000, while the others measuring 7.40 metres cost 87,000 Euros.
On her turn, the director of FEDEPA, Verónica Naquela, said there are 26 semi-industrial, 08 industrial boats, which were distributed in the provinces of Luanda (6 semi-industrial and 7 industrial), Namibe (11 semi-industrial and 1 industrial), Kwanza Sul (3 semi-industrial) and Benguela (6 semi- -industrial).
The fleet renewal programme is an initiative of the Angolan government and will be implemented during a period of 10 years, and shall include an average supply of 600 vessels per year.
The programme is funded by the People’s Republic of China in an amount of USD 250 million, Poland USD 27.5 million and Spain 81 million Euros.

(portalangop.co.ao)

Angola, dealing with a sharp fall in revenue in 2009 due to the decline in oil prices, should receive at least a further US$ 1 billion of credit from China to support the country’s reconstruction.

Backing for the increase in credit to Angola, currently standing at about US$5 billion, via Eximbank, was given in December 2008, during Angolan president Jose Eduardo dos Santos’ second visit to China in five months.

The Economist Intelligence Unit (EIU) had already reported that the additional amount was around US$1 billion in January and last week a source close to the Angolan Ministry of Finance confirmed this figure to news agency, Reuters.

Finance minister, Severim de Morais, travelled to China last week to arrange “the final details of the loan.”

The Angolan Ministry of Finance has signed three credit agreements with Eximbank, to the value of US$2 billion (March 2004), US$500 million (July 2007) and over US$2 billion (September 2007) which have supported reconstruction projects in the areas of transport, education and health.

Under the second phase of the credit line, Luanda has seen funding of over US1.6 billion approved, according to recently released official figures.

This is in addition to the funding via the China International Fund (CIF), up to an expected maximum of US$2.9 billion.

The EIU said that the available official credit line, estimated at US$5 billion “is practically used up.”

It was this factor, coupled with an internal “funding crisis” as a result of a “halving of oil revenue in 2009,” that led the Angolan president to go to Beijing at the end of last year, said the British study centre in its latest report on Angola.

“The impact of the funding crisis is already reflected in the level of currency reserves; after reaching a maximum of US$19.8 billion in October, it fell to US$18.9 billion in November, the first fall in almost four years,” it said.

It added that this fall reflects the efforts of the Banco Nacional de Angola to maintain the value of the kwanza, indexed to the North American dollar, the designated currency for imports – a policy which helps to contain the cost of imports and control inflation, which is above double figures, though this seems unsustainable in the current situation.

“After five years of sustained economic growth, facilitated by the rise in oil production, record global prices and a significant stream of foreign investment, Angola’s expansion is now under threat. Ironically, at the root of the fall is the very source of Angolan wealth: its substantial oil exports,” says the EIU.

The Angolan government has already made it clear that this year’s investment plan - estimated at US$42 billion - will be scaled down and the president and the prime minister have publicly emphasized the need for greater “austerity” and “selectivity” for future projects. (macauhub)

(http://www.macauhub.com.mo)

LUANDA, Feb 5 (Reuters) - Angola’s government is close to securing a $1 billion loan from China aimed at rebuilding the southwestern African nation as it recovers from a civil war, a source close to the Angolan finance minister said on Thursday.

The source said Angola’s Finance Minister, Severim de Morais, was currently in China to take care of the “final details of the loan.”

“We’re talking about a loan of around $1 billion but it could be more,” the source, who requested anonymity, told Reuters.

Angola has received at least $5 billion in oil-backed loans from Beijing since the end of the war in 2002. In return, tens of thousands of Chinese have come to Angola to work in everything from brick-building plants to road projects.

The latest loan could provide Angola with much-needed cash to rebuild infrastructure and homes for the poor as the price of its two main exports — oil and diamonds — have plunged in recent months.

The Angolan government recently said it would revise downwards a $42 billion spending plan for 2009 due to the ongoing global economic downturn.

Angola rivals Nigeria as sub-Saharan Africa’s biggest oil producer and is China’s biggest source of oil imports.

China’s loans to Angola include two credit lines each of $2 billion from China’s Export-Import Bank and an estimated $2.9 billion from China International Fund.

The former Portuguese colony has also in the past received credit lines from European banks eager to tap into its vast oil and mineral wealth. (Reporting by Henrique Almeida; Editing by Andy Bruce)