Angola’s Debt Reliance on China May Leave It Short-Changed

As Angola seeks to attract foreign investors to help diversify its oil-dependent economy, the country’s biggest trading partner, China, looks set to take a leading role, but the considerable leverage it is able to wield may leave Africa’s third-largest economy short-changed, the Financial Times reported. With Angola heavily indebted to China, Beijing may drive some hard bargains, as has happened in south Asian countries deeply in hock to the Chinese. Important regional partners in China’s Belt and Road Initiative (BRI) have struck deals handing Beijing control of key projects, the ports of Gwadar and Hambantota in Pakistan and Sri Lanka respectively, prompting local concerns over the loss of economic sovereignty. Yet China faces risk too. With Angolan debts stacking up, new loans for economic diversification projects could push Luanda closer to default. Read more. (Subscription required.)