Chinese firms deepen Angola ties with US$350M in grain investments

ANGOLA – China’s Sinohydro Group has signed a $100 million deal to develop large-scale grain farms across six provinces in eastern Angola, expanding China’s footprint in the country’s agriculture sector.

This marks the second major investment from China in Angolan agriculture in just a few days.

The agreement gives Sinohydro access to 30,000 hectares of land for 25 years, tax-free. Angola will use the deal to grow soybeans, with 60 percent of the harvest headed to China and the remaining 40 percent intended for local consumption.

Sinohydro, a state-owned engineering and infrastructure firm, plans to make use of existing machinery and logistics systems in Angola to fast-track the setup of operations. A seed testing and research center is also in the pipeline.

According to the company, this will help improve yields and bring in more Chinese firms into Angola’s farming sector.

“This project is more than just a farm,” said an official from Sinohydro involved in the agreement. “We are working closely with the Angolan government to support agriculture while creating value for both countries.”

The project supports Angola’s push to become more self-reliant in food supply, while reducing the amount of grain it imports. The government has been working to revive the country’s farming sector, which had collapsed during years of conflict and instability.

Angola’s Ministry of Agriculture welcomed the move, saying it fits within its national plan to make better use of arable land and increase local production.

Second deal pushes total to US$350M

Just days before the Sinohydro agreement, a separate Chinese firm had also confirmed a US$250 million investment in Angola. A subsidiary of Citic Group, another large state-owned Chinese company, will set up soybean and corn farms under its own agreement with the government.

Together, the two deals add up to US$350 million in new capital aimed at Angola’s rural regions. Both projects are expected to generate new jobs and build critical farm infrastructure.

“This is not just about exports,” said a senior official from Angola’s Ministry of Economy. “These investments bring jobs, skills, and supply chain improvements.”

Analysts see the two deals as part of China’s wider effort to secure long-term food supply while deepening trade ties with African countries. Angola, with its vast land and growing interest in agriculture, is becoming a key player in that plan.

The government has said it will monitor the partnerships closely to ensure the projects also benefit local farmers and communities.

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