By Abbas Nazil
China’s Sinohydro Group has signed a landmark agreement to invest over $100 million in Angola’s agricultural sector, marking the second significant Chinese agriculture investment in the southern African nation within a week.
The deal, concluded late Thursday in Luanda, grants Sinohydro a tax-free 25-year land concession covering 30,000 hectares across six eastern provinces of Angola.
This concession, according to officials, will be used for the cultivation of grain, primarily soybeans, as Angola aims to boost its food production capacity and reduce dependency on imports.
Approximately 60% of the grain output from the project will be exported to China, while the remaining portion is intended to support local consumption.
Angola’s Minister of Agriculture, Isaac dos Anjos, confirmed this detail at the signing ceremony, emphasizing the dual goals of earning foreign exchange and securing domestic food availability.
Sinohydro will make use of equipment already present in Angola to accelerate the development of infrastructure and logistics support for the project.
The company also plans to create a seed research and testing center aimed at boosting crop yields and attracting more Chinese agribusinesses into Angola’s farming sector.
The land concession will be split into plots ranging from 500 to 1,000 hectares to accommodate both large-scale commercial farms and smaller community-led farming initiatives.
Sinohydro’s Managing Director, Li Xunfeng, expressed confidence in Angola’s investment climate, stating that the country offers a better environment than many other African nations.
He pointed out that while Angola has vast tracts of arable land, it suffers from a lack of basic agricultural infrastructure, which presents both a challenge and an opportunity.
This new project aligns with the Angolan government’s broader strategy to revive large-scale farming operations, increase food self-sufficiency, and attract foreign direct investment into the agricultural sector.
The agreement comes just days after another major Chinese investment in Angolan agriculture.
Earlier in the same week, a subsidiary of the Chinese state-owned Citic Group announced a $250 million plan to develop expansive soybean and corn farms in Angola.
That deal further underscored growing Chinese interest in Africa’s agricultural resources and the increasing shift toward long-term food security partnerships.
With over two decades of operational experience in Angola, Sinohydro’s latest venture is expected to act as a catalyst for additional investments by Chinese agribusiness firms, as Angola positions itself as a regional hub for agricultural exports to Asia.
Government officials are optimistic that the combined effect of these deals will create employment opportunities, improve food supply chains, and transform the agricultural landscape of rural Angola.
