Chad pays Angola a debt of $100 million with cattle

Chad is repaying a debt of 100 million dollars to Angola with cattle, the state-owned daily reported. This unusual agreement is seen as creating a win-win situation for both nations – Chad is short of money while Angola needs cows.

More than 1,000 cows have arrived by boat in Luanda, Angola’s capital, as the first payment, the state newspaper reported. In total, Angola would receive 75,000 cattle over ten years, which means it has accepted an amount of US$1,333 per animal.

Chad will send an additional 3,500 head of cattle later this month, the article added. Chad has offered to repay the 2017 debt with cattle, and Angola has agreed because it would help the southern African state rebuild its animals’ population in drought-affected areas, it said.

Angola is often hit by drought, causing animals to die from hunger and thirst and leaving many villagers destitute. Although rich in oil, the country is still struggling to recover from the aftermath of a 27-year civil war that ravaged the country after independence.

Chad is described by the World Organisation for Animal Health (OIE) as a “livestock country par excellence” with about 94 million head of cattle. Livestock accounts for 30 percent of Chad’s exports and is its primary source of foreign exchange after oil.

In a report published last October, the World Bank said Chad’s economy “remains fragile and vulnerable to considerable risks, such as volatile oil prices and regional insecurity” caused by militant Islamist groups operating in the region.