African nation of Angola resentful of China Investment

[VALKRYIE]

A woman walks past a Chinese construction site in Lubango, Angola, March 5, 2014. REUTERS/Herculano Coroado

LUANDA: When a halving of oil prices left a gaping hole in Angola's finances this year, it became clear sub-Saharan Africa's third largest economy needed help fast: and President Jose Eduardo dos Santos knew exactly where to turn.

But the multi-billion dollar loans he signed with China last month have angered Angolans who say they have been left behind as politicians and China share the spoils and Africa's second-largest oil producer becomes ever more reliant on Beijing.

China has lent Angola around US$20 billion since a 27-year civil war ended in 2002, according to Reuters estimates.

Repayments are often paid with oil or funds go directly to Chinese construction firms that have built roads, hospitals, houses and railways across the southern African country.

This means, however, dollars don't end up entering the real economy, increasing costs for ordinary Angolans.

"I think the president humiliates Angolans," 35-year-old cook Marisa told Reuters as she bartered with a street trader over peanuts and bananas in the capital. "The agreements with China are a benefit for them and the president and not for us."

Police visibility has increased in the streets of Luanda in response to public suspicion and dissent over how much the government would concede to Chinese interests in its bid to revive an economy hit by low crude prices.

More than a dozen people were arrested on June 20 for allegedly planning protests threatening "order and public security" in response to dos Santos' China trip.

FLEC, a militant group that wants independence of the northern oil-rich exclave of Cabinda, demanded China repatriate all its citizens from the region within two months or risk being "severely punished".

Angola has the best-funded military in sub-Saharan Africa and dissent is usually quelled quickly and ruthlessly, making any significant public backlash against the government unlikely, security experts say.

"IN A PICKLE"

Apparently aware of unease at home, dos Santos, a Soviet-educated petroleum engineer who has been in charge for 36 years, kept the details of the latest deals secret and stressed the "cooperation" and "mutual benefits" from his Beijing visit.

Chinese Premier Xi Jinping hinted at a much more lopsided relationship, saying he had agreed to "assist" Angola, China's largest supplier of crude after Saudi Arabia.

It is almost impossible to miss Beijing's influence in Angola, from construction site signs in Chinese script to expensive Chinese restaurants and seedy "Asian-only" massage parlours in the capital's alleyways.

Despite reservations from jobless Angolans, economists see China's dominant role in Angola as necessary.

Angola, which relies on oil sales for 95 percent of foreign exchange revenues, slashed a third off its budget and said it would need to borrow US$25 billion this year - US$15 billion domestically and the rest abroad.

"Lower oil prices have put Angola in a bit of a pickle and the most obvious place to turn is China," said Cobus de Hart, an analyst at NKC African Economics. "If China can help Angola get out of the fiscal hole then it could be a positive step."

Despite this, many Angolans are distrustful of the relationship, pointing to the millions who still live on less than US$2 a day and World Bank studies that rank the country 169 out of 175 countries in terms of income equality.

Beijing's role in Africa has often been criticised by Western governments and some African leaders who call it neo-colonial - taking resources in return for infrastructure that supports China's construction industry.

"CHINA THE MASTER"

There are around 50 Chinese state companies and 400 private companies operating in Angola. They are supposed to use 30 percent Angolan labour but industry sources say this is rarely observed and Angolans tend to get the lowliest positions.

"Always the Chinese will be the master and the Angolan the helper," said Paulo Nascimento, a 29-year-old Luanda taxi driver. "This is our country. We should be in charge."

Chinese firms strongly deny accusations of exploitation, arguing that they have done more to rebuild Angola since the war than Western critics sitting on the sidelines.

"I think Angola does not have too much money so China is a very good choice for them," Pascal Wang, 36, marketing manager at Chinese telcom company ZTE, told Reuters. "We don´t come here just to do business. We want to help Angolans."

With the exception of investment from former colonial power Portugal and offshore oil drilling by U.S. and European oil majors, Western governments, donors and investors have focused their attention elsewhere in Africa.

There are signs this may be changing.

France's AccorHotels, the world's fourth-largest hotelier, sealed a deal last week with Angolan insurance and investment company AAA Activos to open 50 hotels by 2017. The deal coincided with a visit to Luanda by French President Francois Hollande.

The World Bank, meanwhile, agreed to US$650 million in financial support this month, the first funding from the Washington-based lender since 2010.

Until the benefits of investment reach the masses rather than the elite, resentment against foreign investors and the government is likely to fester.

"We have always been slaves," Nascimento said. "We are lost in the world. We are the leftovers."

(Writing by Joe Brock; Editing by Giles Elgood)

Angolans resentful as China tightens its grip - Channel NewsAsia

 

[IR-TR]

Bullcrap, don't post anti-Chinese propaganda here. The sole and only reason Angolans aren't carrying waterbuckets on their head for 20 miles a day is CHINA. They didn't just expoloit them and purchase all the oil and gave the money to some warlord who would go and buy 20 bentleys, they actually invested in infrastructure, ports, rail and other important developments. Which is why Angola is rising.

China has done more for Angola in 15 years than the West has done for 400.

 

[Aepsilons]

Bullcrap, don't post anti-Chinese propaganda here. The sole and only reason Angolans aren't carrying waterbuckets on their head for 20 miles a day is CHINA. They didn't just expoloit them and purchase all the oil and gave the money to some warlord who would go and buy 20 bentleys, they actually invested in infrastructure, ports, rail and other important developments. Which is why Angola is rising.

China has done more for Angola in 15 years than the West has done for 400.

Yes you are right. The Chinese have indeed invested a lot in Angola as well as a host of African countries.

 

[terranMarine]

Funny when Western propaganda like to label China as the new colonial master of Africa but never criticized lets say Japan for her investments in other developing countries. Don't you agree pen pal? @Nihonjin1051

 

[Beast]

Bullcrap, don't post anti-Chinese propaganda here. The sole and only reason Angolans aren't carrying waterbuckets on their head for 20 miles a day is CHINA. They didn't just expoloit them and purchase all the oil and gave the money to some warlord who would go and buy 20 bentleys, they actually invested in infrastructure, ports, rail and other important developments. Which is why Angola is rising.

China has done more for Angola in 15 years than the West has done for 400.

Vietnam troll will always be jealous of China influence and their meaningful contribution.

Angola rail line, built by China, gets rolling - World - Chinadaily.com.cn

You know what troll like OP will claim no Angolan will use this railway. Its only used by Chinese only and Angolan can never benefit from this project

 

[Jlaw]

I guess the west would rather have China "invest" in Africa like them------ with guns ablazing

 

[Ragnar]

Chinese role is net positive in Africa, no doubts about that. I can even understand the position on labour, as trained local professionals maybe hard to come by. My own employer is facing a hiring crunch in Africa and has to source expensive foreign professionals.

 

[yoshi.oda]

Depending on interested rate for loan. Japanese ODA in Africa soft loan based . Maybe Chinese is unpalatable for loan interest?

I guess the west would rather have China "invest" in Africa like them------ with guns ablazing

Competitor threat, you are seen as competitor , size , population, yea!

Yes you are right. The Chinese have indeed invested a lot in Angola as well as a host of African countries.

Hey, patriot fellow, maybe your stay in U.S. make you too soft ? You are a China lover? Traitor?!

 

[XiaoYaoZi]

Hey, patriot fellow, maybe your stay in U.S. make you too soft ? You are a China lover? Traitor?!

@Nihonjin1051 bro I get your feeling.

 

[Thəorətic Muslim]

The article has a few true points.

Contracts and agreements between Angola and China are not public nor is there a bidding process. China demanded this in return for the loans and investments into not just Angola but many African nations.

On top of that the exploitation of the workers. Granted that no western nation or companies want to come to Africa, chinese companies have taken advantage of this.

 

[IR-TR]

The article has a few true points.

Contracts and agreements between Angola and China are not public nor is there a bidding process. China demanded this in return for the loans and investments into not just Angola but many African nations.

On top of that the exploitation of the workers. Granted that no western nation or companies want to come to Africa, chinese companies have taken advantage of this.

Bidding process isn't holy. Why would the bidding be public when the Chinese and Angolan governments agree to a deal? They put up their best groups/companies. They invest. Their money, they decide. WTF is it with public bidding. This isn't some European city purchasing new police cars of anything.
They exploit no workers. First they shipped in Chinese workers and everybody was angry. Then they trained and hired local workers, who were used to working 1 hour a day, and now they have to work full time and that's exploitation?

 

[scherz]

The west doesnt like to see how China takes away their slaves. Yes, they are slaves... even now. The west created a situation in Africa that the Africans are highly dependent on the West. At first the White-People slaved them. After that they suck the very last resources out of Africa. In compensation the White People lend them money which they will/cant not payback and ofcourse for good publicity some developement aid which is just total bullshit because it makes them even more dependent. Now comes China and makes fair trade and the White devils shits their pants about losing their "invisible" colonies.
The Whole west is a devilish institution.

 

[Thəorətic Muslim]

Bidding process isn't holy. Why would the bidding be public when the Chinese and Angolan governments agree to a deal? They put up their best groups/companies. They invest. Their money, they decide. WTF is it with public bidding. This isn't some European city purchasing new police cars of anything.
They exploit no workers. First they shipped in Chinese workers and everybody was angry. Then they trained and hired local workers, who were used to working 1 hour a day, and now they have to work full time and that's exploitation?

ok... there's always 2 sides of the same coin.

You want a private bidding process? Ok sure, but the reason the bids should be made public after a bid has been chosen is for the public to see what their money got them. Did the road made with the bids get washed away? What about the much talked about hospitals how is their foundation stability?

The reason the Africans despots like the Chinese is that they are willing to get into hot zones and organize projects. And not interfere with the domestic policies. Who's going to invest $14 million into the Somali telecommunications?

When you work with the Chinese there's an all around relationship; Political, Economic, and Military. While aid given by Western nations comes through NGOs, China gives it at the State level, maximizing it's interests. I'm not going to care if Save the Children stops their Education program in Angola, if the Chinese government is willing to hand out $24 Billion in aid, all without questions to their usage.

There's enough money to go around and enough to be made, what's it to them if a iPhone made in China will cost 1 cent extra because the local warlord wants a cut? That iPhone is still going to be 7+x cheaper than one made in America.

"We cannot blame the Chinese, or any other foreign power, for our country's problems.” - ex-Lamido Sanusi Governor of the Central Bank of Nigeria.

I'm not bashing China's involvement in Africa, don't get me wrong.

Here's an interesting read, quite neutral from Stratfor: China's Roar in Africa | Stratfor

 

[Echo_419]

Bullcrap, don't post anti-Chinese propaganda here. The sole and only reason Angolans aren't carrying waterbuckets on their head for 20 miles a day is CHINA. They didn't just expoloit them and purchase all the oil and gave the money to some warlord who would go and buy 20 bentleys, they actually invested in infrastructure, ports, rail and other important developments. Which is why Angola is rising.

China has done more for Angola in 15 years than the West has done for 400.

I agree with you the west lacks the moral authority to lecture the Chinese

 

[Kaniska]

Bullcrap, don't post anti-Chinese propaganda here. The sole and only reason Angolans aren't carrying waterbuckets on their head for 20 miles a day is CHINA. They didn't just expoloit them and purchase all the oil and gave the money to some warlord who would go and buy 20 bentleys, they actually invested in infrastructure, ports, rail and other important developments. Which is why Angola is rising.

China has done more for Angola in 15 years than the West has done for 400.

I agree...there are certain nation who always looks for a scapegoat for their own failure...It is the responsibility of Angola and its people to improve its economy...China is not there in Angola to provide free money rather it is doing business there..