Angola's Debt Payments to China Double as Loan Freeze Ends, But Falling Trade Deficit Provides Relief

Angola's interest payments to creditors, mostly Chinese, doubled to $1.57 billion in Q2 2022 as a 3-year debt payment freeze ended.

The increase was offset by a fall in the trade deficit to a 2-year low of $1.77 billion.

Angola is Africa's biggest recipient of Chinese loans, accounting for over 25% of lending since 2000.

The debt freeze from Chinese lenders like CDB and ICBC provided relief, but payments resumed as oil prices rose.

Angola is trying to diversify its economy and rely less on China, but still needs funding for major infrastructure projects.