Angola and China Ink Investment Protection and Promotion Agreement
In the context of the 40th anniversary of diplomatic ties between Angola and China, the Angolan External Affairs Minister Tete Antonio led a delegation to China from 5 to 8 December 2023.
During the visit, Angola and China signed an Investment Protection and Promotion Agreement (#IPPA) in order to boost investment. The IPPA took twelve years of negotiations before its finalization, and it is fitting that its signature occurred on the 40th anniversary of bilateral diplomatic relationship.
The Agreement on the Promotion and Reciprocal Protection of Investments (APPRI) was signed by Angolan External Affairs Minister Tete Antonio and Chinese Minister of Commerce WANG Wentao. It includes clauses regarding expropriation, Most Favored Nation (MFN) status, dispute resolutions, arbitrations.
So far, Angola has similar agreements with South Africa, Guinea-Bissau, Cape Verde, Portugal, Spain, Germany, UK, Italy, France, Russia and Qatar.
China is both the largest exporter to and importer from Angola. Bilateral trade volume reached USD 27.3 billion in 2022 and Angola is the second largest trading partner of China in Africa, behind South Africa.
The petroleum sector make up the lion’s share with nearly 90% of the GDP. Therefore, Angola has been trying hard to diversify its economy during recent years.
One promising sector is agriculture. It is worth recalling in the 1970s, Angola was the world’s 4th largest coffee producer. Some Chinese investors have thus gone into that sector but there is much more scope for growth.
Recent cooperation projects include the 2.2 GW Caculo Cabaca Hydropower Plant, the new International Airport in the Capital Luanda and the Seaport of Caio.
Minister Antonio made the case to leverage the #LobitoCorridor. This Corridor provides better access to #CriticalMinerals in DR Congo and Zambia essential for the #GreenTransition. Thus, cooperation in this area could be mutually beneficial to Angola and China as both pursue goals for a #JustTransition.
In a statement released by the Chinese Ministry of Foreign Affairs (MFA), Chinese FM Wang Yi stated that China is willing to explore cooperation with Angola in the fields of “infrastructure, digital economy, clean energy, healthcare and #FoodSecurity.”