Improvement in economic relations between Angola and China is of mutual benefit to those nations, said the Economist Intelligence Unit (EIU), a British research and analysis agency under media company The Economist Group.
“Angola is deepening its economic relationship with China, hoping to go beyond the traditional model of credit lines paid for oil,” said EIU analysts in a note quoted by Portuguese news agency Lusa this week.
“Foreign private investment is urgently needed in Angola to fight against low oil prices, [oil being] its largest export and source of income,” the EIU said. “Chinese companies have the ability to provide money and know-how to help [Angola] to develop non-oil sectors, such as agriculture and manufacturing, and create much-needed jobs.”
But it warned both nations had first to overcome the high cost of doing business in Angola, and to factor the effects of China’s economic slowdown.
