China investing US$350 million in Angolan agriculture in drive to boost food security
The deals to grow corn and soybeans involving major state-owned firms come as Beijing seeks to reduce reliance on US agricultural supplies
Last month, two giant state-owned Chinese firms signed deals worth US$350 million to develop tens of thousands of hectares of land in the southern African country.
One of the companies, SinoHydro Group, a hydropower and civil engineering firm, will invest more than US$100 million in return for a 25-year, tax-free land concession covering 30,000 hectares (74,000 acres) to build a large-scale grain base across six eastern provinces, according to the Angolan agriculture ministry.
About 60 per cent of the output will be shipped directly to China, and the company is also planning to establish a seed research and testing centre to improve yields and attract more Chinese companies to invest in the country’s agribusiness.
The other deal involves the conglomerate Citic, which has promised to invest US$250 million over the next five years to develop 100,000 hectares of soybean and corn production.
Citic said land clearing was already under way on 3,000 hectares in Cuanza Norte province and 5,000 hectares in Malanje province. It expects to scale up operations to cover 10,000 to 20,000 hectares next year, aiming to produce eight tonnes of corn and five tonnes of soybeans per hectare.
Gaurav Kochar, an India-based agri-commodities specialist with Gaurav Brothers, a manufacturer and supplier of agro products, said such moves were also designed to expand China’s geopolitical influence and counter Western “de-risking” efforts.
“By securing long-term, tax-free land deals, China reduces its dependence on the US and Brazil for key crops like soy, while also gaining a strategic foothold in Africa,” Kochar said.
But since President João Lourenço came to power in 2017, Angola has been seeking to diversify its oil-dependent economy and reduce food imports, which currently cover around half its food needs.
Angola’s agriculture ministry said the deals signed with the Chinese firms were intended to “diversify the Angolan economy”, adding that the government was “strongly committed to promoting large-scale cereal and grain production projects to ensure food security, combat hunger and poverty, increase production and productivity, create jobs, and reduce imports”.
The oil-for-infrastructure “Angola model” may also be at risk in future as China seeks to move away from fossil fuel-reliant infrastructure and mass production, according to Lauren Johnston, a senior research fellow at the AustChina Institute, a Melbourne-based think tank.
“The Angolan government might not optimally distribute or invest its fuel export returns, meaning the populace does not benefit as much as it might,” she added.
Johnston also noted the political implications of relying on US agricultural supplies, adding: “Consequently, China is seeking to diversify its sources of grains for both human and animal consumption.”
She noted that China had also promised to help African nations alleviate poverty by helping to develop agriculture.
Currently it imports corn and soybeans from South Africa, with Ethiopia and Benin also supplying the latter.
But Africa remains a tiny provider of China’s soybeans, which are a major source of animal feed. For example, Ethiopia only exported 29,408 tonnes to the country in 2024, according to official Chinese data.
China is also making large-scale agricultural investments in Tanzania to grow soybeans, including a deal for China Chaoliang Group to develop a 32,000-hectare site, with Yuan Longping High-Tech Agriculture Company also securing land.