Angola Slashes China Oil Debt to $7.5 Billion as Financial Strategy Shifts
Angola is set to dramatically reduce its oil-backed debt to China to between $7.5 billion and $8.0 billion by year-end, marking a strategic pivot away from commodity-backed borrowing as the oil-rich nation seeks greater financial stability.
The projected figures represent a continued decline from $10.15 billion at the end of 2024 and $8.94 billion at the end of June 2025, according to Dorivaldo Teixeira, Director of the Debt Management Unit at the Ministry of Finance.
Angola ceased contracting new oil-backed loans from China in 2017, opting instead for more transparent and cautious external borrowing approaches. The government has also paused plans to issue debt on international capital markets, citing ongoing global uncertainty, high interest rates, and volatile investor sentiment.
The shift comes as Angola experienced firsthand the risks of external market exposure, being required to make a $200 million margin call payment to JPMorgan in April 2025 tied to a collateralized bond affected by falling oil prices triggered by renewed U.S. tariff tensions.
Instead, Angola has turned to domestic bond markets, raising 2.2 trillion kwanzas (approximately $2.4 billion) through fixed-rate bond issuances in the first half of 2025 as part of its broader financial reform agenda.
Source: angolanminingoilandgas.com
