Fin24

China grants Angola a discount

2012-11-01 19:22

Luanda - China has granted a 95% tariff discount to exports coming from oil-rich Angola, officials said Thursday, after the signing of a new round of trade deals.

Previously Angola exports entered China with a 65% discount from normal tariff rates.

Crude makes up about 90% of Angolan exports to China.

Africa's second largest oil producer, Angola is the largest supplier of crude to China.

It also exports smaller quantities of diamonds, coffee, sisal and fish.

The decision to reduce the effective tariff rate was part of the three deals signed by the two countries in Luanda on Wednesday.

"China is a very important trading partner for Angola and our country is a prime destination for Chinese investment in Africa," Andre Panzo, the director responsible for Asia in the foreign ministry, told AFP.

Two other deals will see the renovation and expansion of the Luanda General Hospital, and the construction an agricultural research centre.

Angola has maintained close economic ties with China since peace returned to the African country in April 2002.

China has granted credit lines worth several billion dollars to the administration of President Jose Eduardo dos Santos for the rebuilding of infrastructure destroyed during the civil war.

Seeking to tap into Africa's vast natural resources on the continent, Beijing has poured money into the continent over the last 15 years.

China became the continent's largest trading partner in 2009.