Since nearly three decades of civil war ended in 2002, Angola has been relying heavily on China – its key financier of post-war infrastructure – to help the southern African country’s government deliver on its promise of a million new homes.
When the West was unwilling to finance its projects, Luanda secured loans from Chinese state banks under the so-called Angolan model, using its oil as collateral.
Angola became the largest recipient of Chinese financing in Africa, attracting 270 loans worth US$46 billion between 2000 and 2023 – a quarter of all loans advanced to African countries during that period.
China also funded construction of major cities, like the US$3.5 billion Nova Cidade de Kilamba that was financed through an oil-for-infrastructure deal and built by Chinese companies.
The city, about 30km (18.6 miles) south of Luanda, was completed in 2012 as part of Angola’s post-civil war national reconstruction but its initial high prices and lack of credit made it unreachable for many.
The high costs, combined with the development’s location and lack of basic services, kept occupancy low until the Angolan government intervened, dropping prices and introducing long-term mortgages backed by the state oil company Sonangol.
