Angola’s state oil company Sonangol is negotiating a landmark $4.8 billion loan from Chinese financial institutions to finance the next phase of its new refinery at the Atlantic port of Lobito — and in a significant departure from nearly two decades of practice, no oil will be used as collateral.
CEO Sebastião Gaspar Martins confirmed on Wednesday that the financing targets the $6.2 billion refinery project, designated a national strategic priority, with support from a Chinese contractor already involved in the project. A Sonangol delegation is set to travel to Beijing in April to advance negotiations, though specific lenders have yet to be confirmed. Angola’s Ministry of Finance has indicated that the China Development Bank could be a potential financier.
The shift away from resource-backed borrowing is striking. Angola reduced its exposure to oil-collateralised loans from China in 2017 amid volatile commodity prices, and government data shows the country’s stock of oil-backed debt to China fell nearly 25% in 2025, declining from $10.146 billion to $7.73 billion. By seeking conventional financing for Lobito, Sonangol aims to secure critical capital while reducing its vulnerability to commodity price swings.
The Lobito refinery, if completed on schedule, is expected to begin producing refined petroleum products by December 2027 — a milestone that could substantially cut Angola’s dependence on costly fuel imports. China’s broader lending to Africa, which peaked in 2019 before declining sharply during the COVID-19 pandemic, has left several projects across the continent unfinished, but Beijing continues to signal its commitment to African investment and trade.
Sources: africanews.com | angolanminingoilandgas.com