Falling oil prices have led to Angola, Africa’s biggest crude producer, facing economical difficulty resulting in the country seeking international financial support.
Last month Ricardo Velloso, the International Monetary Fund (IMF) mission chief for Angola, visited the capital, Luanda, and offered $4.5 billion in loans to help cover the shortfall. However, one month later President Jose Eduardo dos Santos said he was not interested in the loan and discontinued further negotiations with the US-based lender.
In May 2015 Gemcorp Capital, a firm founded by former Goldman Sachs executive, provided the country with a loan worth $300 million and is rumoured to be negotiating a further $500 million, although these loans are still some way off from meeting the nation’s financial needs.
Between November 2015 and June 2016 Angola took on loans worth $7 billion (USD) from the Industrial and Commercial Bank of China, Export-Import Bank of China and the China Development Bank, according to data published by the Angolan Finance Ministry.
It is likely that China will loan even more money to Angola in the future; China is known for providing low interest loans to commodity rich nations.
Between 2000 and 2014 Angola received US$21.2 billion in loans, equating to a quarter of all loans China guaranteed African countries within that time frame, according to the China Africa Research Initiative (CARI) of US John Hopkins University.