China is to provide US$249 million (€231 million) to fund a national broadband project in Angola, under the terms of a financing agreement signed on Wednesday, in Luanda, between the two governments.

The Angolan finance minister, Vera Daves, and China’s ambassador to Angola, Gong Tao, were the signatories to this agreement which stipulates that the Asian giant will provide the loan to fund the project.

“The agreement we signed today, due to its characteristics, contributes to further developing friendly relations and promoting our economic, financial and technical cooperation,” Vera Daves said at the time.

According to the Angolan government official, this is a conventional loan on terms that are “more favourable than market conditions with a maturity period of up to 20 years and without associated collateral.

“This funding is totally in line with the strategy adopted by the government for indebtedness and management of public debt, thus contributing to its sustainability,” the Angolan minister said.

The Angolan secretary of state for telecommunications and information technologies, Alé Fernandes, noted the importance of the agreement for the sector and noted that it would make it possible to boost and extend the country’s infrastructure network.

“We are talking about the implementation of around 2,000 kilometres of terrestrial fibre optics that will make it possible to reach areas not yet reached by telecommunications services (…). And we also have a microwave segment that will make it possible to boost communications in Cabinda,” he noted.

For China’s ambassador in Angola, Gong Tao, the instrument that has now been signed means “opening new doors and new chapters” in relations between Luanda and Beijing.

“We will continue to work with the Angolan government, also with Chinese and Angolan companies, in short, we are here working together to serve the cooperation of our sides for the better wellbeing of our two peoples,” said the Chinese diplomat.