Angola’s New Hydropower and Chinese FinanceCEFR B1
17 Dec 2025
Adapted from Vivian Wu, Global Voices • CC BY 3.0
Photo by Isaac Lind, Unsplash
When Laúca began operating on the Kwanza River, it was presented as a major step for Angola’s green energy grid. Built by Chinese contractors and financed largely through Chinese loans, the project added more than 2,000 megawatts of capacity to the national grid. China Pictorial in March 2024 described overseas hydropower cooperation and cited Caculo Cabaça as Africa’s largest hydropower project.
A 2017 report by the Cheng Cheng research center called Angola the first testing ground for an “Angola Model” of resource-for-infrastructure deals, noting that Chinese finance offered longer maturities and grace periods without governance conditions. Data from the Global Development Policy Center at Boston University show Angola received more than USD 40 billion in Chinese loans, much tied to oil-backed repayment.
Local outlets such as Maka Angola highlighted opaque loan terms and discrepancies between loan intentions and fiscal outcomes. A November 2025 Reuters report said Angola faces high external debt and currently has no IMF financing program. Despite higher generation, gaps in distribution mean energy poverty persists.
Difficult words
- hydropower — electricity made from flowing water
- capacity — maximum amount something can produce
- finance — money or credit supplied for projectsfinanced, financing
- loan — money borrowed that must be repaidloans
- contractor — company or person hired to buildcontractors
- opaque — not clear or easy to understand
- discrepancy — difference between two statements or figuresdiscrepancies
- debt — money owed by a country or personexternal debt
- energy poverty — lack of reliable or affordable energy access
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- What are the possible benefits and risks for a country that takes large loans from another country?
- The article says generation increased but energy poverty continued. Why might more generation not reach people at home?
- What do you think about resource-for-infrastructure deals where repayment is tied to oil or other resources?
Related articles
Lake Tana: Turning Water Hyacinth into Home Energy
Fishermen around Lake Tana faced problems from invasive water hyacinth. Researchers led by Yezbie Kassa tested small biogas systems that use the weed and animal dung to make cooking gas and fertiliser, helping some families but facing scaling challenges.
