Angola’s state oil company Sonangol is seeking to secure up to US$4.8 billion in financing from Chinese lenders to support the development of a new oil refinery, as the country intensifies efforts to expand domestic refining capacity and reduce dependence on imported fuel.
The planned financing underscores Angola’s broader strategy to modernise its downstream petroleum sector and address persistent fuel supply challenges. Despite being one of Africa’s largest crude oil producers, Angola has long relied on imported refined petroleum products due to limited domestic refining infrastructure. This imbalance has exposed the country to global price volatility and foreign exchange pressures.
According to sector officials and regional financial reports, the proposed loan from China would fund the construction and associated infrastructure of a major refinery project aimed at significantly increasing local processing capacity. The financing discussions are taking place against the backdrop of deepening economic ties between Angola and China, which has been one of Luanda’s largest creditors and trading partners over the past two decades.
China has historically financed large scale infrastructure projects in Angola, particularly during the post civil war reconstruction period. Many of these arrangements were structured as oil backed loans, allowing Angola to leverage crude exports to secure long term development funding. The new refinery financing would reflect a continuation of that partnership, although details of the structure, repayment terms and potential oil collateral have not been publicly disclosed.
Angola’s refining ambitions form part of a national plan to strengthen energy security, create jobs and retain more value within the domestic economy. The government has prioritised expanding refining capacity through projects such as the Cabinda refinery and upgrades to the existing Luanda refinery. However, progress has often been slowed by funding constraints, technical challenges and shifting market conditions.
By seeking US$4.8 billion in external financing, Sonangol is signaling the scale and capital intensity of the project. Refinery construction typically requires substantial upfront investment, including processing units, storage facilities, port infrastructure and distribution networks. Securing competitive long term financing is therefore critical to project viability.
For Angola, boosting domestic refining capacity could help reduce costly fuel imports, improve trade balances and stabilize local fuel supply. It could also position the country as a regional supplier of refined products to neighboring markets in Southern and Central Africa, depending on capacity and pricing competitiveness.
The move comes at a time when global energy markets remain in transition, with oil producing nations balancing traditional hydrocarbon investments against longer term diversification goals. Angola continues to rely heavily on oil exports for fiscal revenue and foreign exchange earnings, making downstream expansion a strategic priority for economic resilience.
The success of Sonangol’s financing push will depend on negotiations with Chinese financial institutions, market conditions and Angola’s broader debt management strategy. The country has been working to stabilise its public finances after periods of high external debt and currency volatility.
If finalised, the US$4.8 billion loan would represent one of the most significant recent energy financing arrangements in Angola and could mark a pivotal step in reshaping the country’s petroleum value chain.
Sonangol posts over US$750m net profit in 2025
