Angola's state-owned oil company, Sonangol, has announced that it is negotiating a substantial $4.8 billion loan with Chinese financial institutions to fund the construction of a new refinery in Lobito, a port city on the Atlantic coast. This initiative is notable as it represents Angola's first borrowing from China since 2017, indicating a renewed interest in developing its oil infrastructure. CEO Sebastião Gaspar Martins has indicated that Sonangol is engaging with multiple Chinese institutions and is also set to send a team to Beijing in April for further discussions regarding the financing terms.

The refinery project is estimated at around $6.2 billion, and the loan from China will only partially cover these costs. Interestingly, unlike previous arrangements where oil was commonly used as collateral for loans, the new terms reportedly do not include oil as collateral, suggesting a potential shift in the dynamics of how Angola approaches financing. This change may reflect broader concerns regarding the volatility of global oil prices and a strategic pivot in Angolan resource management.

The context of Chinese lending to African nations has evolved significantly, especially since Angola has sought to reduce its exposure to resource-backed loans after commodity prices became unstable in 2017. While Chinese investments in Africa peaked in 2019, there has been a noticeable decline since the pandemic, with several projects left unfinished, such as the Kenyan railway. However, despite these setbacks, the Chinese government continues to express its commitment to supporting African investment and trade, which could have positive implications for Angola's economy if the loan discussions progress successfully.