Chinese loans fuel Angola’s future cities but analysts cautious over the costs
Luanda turns to its backers in China for help in housing the emerging middle class but prices are out of reach for many Angolans
China also funded construction of major cities, like the US$3.5 billion Nova Cidade de Kilamba that was financed through an oil-for-infrastructure deal and built by Chinese companies.
The city, about 30km (18.6 miles) south of Luanda, was completed in 2012 as part of Angola’s post-civil war national reconstruction but its initial high prices and lack of credit made it unreachable for many.
The high costs, combined with the development’s location and lack of basic services, kept occupancy low until the Angolan government intervened, dropping prices and introducing long-term mortgages backed by the state oil company Sonangol.