China’s Sinohydro Group will invest more than $100 million in Angola to develop new sources of grain.
- Sinohydro Group is set to invest over $100 million in Angola for grain development.
- Angola granted a tax-free 25-year land concession of 30,000 hectares to Sinohydro.
- The project aims to improve agricultural infrastructure using existing equipment.
China’s Sinohydro Group will invest more than $100 million in Angola to develop new sources of grain, marking the second major agricultural agreement between the two countries in less than a week.
Under a deal signed late Thursday in Luanda, Angola granted Sinohydro a 25-year, tax-free land concession covering 30,000 hectares across six eastern provinces, Bloomberg reported.
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The Chinese engineering and infrastructure giant will utilise equipment already available in the country to expedite the rollout of logistics and agricultural support infrastructure.
“Angola has vast land but lacks basic infrastructure,” said Li Xunfeng, Sinohydro’s Managing Director, at the signing ceremony. “This is the right time to invest; the environment here is better than in many African countries.”
The announcement follows a $250 million investment revealed earlier this week by a subsidiary of Chinese state-owned conglomerate Citic Ltd., which plans to develop large-scale soybean and corn farms in Angola.
Sinohydro, which has been operating in Angola for over two decades, stated that the new project aligns with the Angolan government’s initiative to revive large-scale farming and reduce its reliance on food imports.
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60% of output bound for China
According to Agriculture Minister Isaac dos Anjos, about 60% of the produce, mainly soybeans, will be exported to China, while the remainder will support domestic consumption.
The concession will be divided into plots ranging from 500 to 1,000 hectares to accommodate both commercial farms and community-led initiatives. Sinohydro also plans to establish a seed research and testing centre to improve yields and attract more Chinese agribusinesses to the country.
The government sees Sinohydro’s investment as a catalyst for additional Chinese capital, with land and infrastructure being prepared for future agribusiness ventures.
