Economic diamond set to shine on global scene
Economic prospects appear bright for resource-rich angola. Enticing investment and business prospects set against a background of Peace and stability are inevitably drawing the attention of the international community to this African jewel

President José Eduardo dos Santos (right) with Secretary-General of the United Nations Kofi Annan (left) in a meeting symbolic of Angola’s enhanced international credibility

Angola’s international image, after almost three decades of civil conflict, has suffered considerably. But the war has been over for more than two years, and the emerging opportunities in this resource-rich country are beginning to be noticed around the world.

Although the economy is still highly dependent on the oil sector, which accounts for nearly half of GDP and about 90% of the government’s revenues and export earnings, the country is also reliant on donor funding. Its relationships with international finance institutions such as the International Monetary Fund (IMF) are key to the ongoing economic recovery. An IMF investigation in April this year cleared the Angolan Government of accusations that donor money was being misappropriated, one of the chief concerns of the international community. “We are entering a new era in our relationship with the IMF,” says Aguinaldo Jaime, the Deputy Prime Minister. The findings go a long way towards eradicating notions of government corruption, one of the principal negative perceptions of the country.

The current peaceful and stable political climate is the opportunity Angola needs to develop its true potential. In addition to oil, Angola boasts reserves of gold and diamonds, and has thriving forests, Atlantic fishing grounds and a favourable climate for agriculture. Indeed, Angola has the fastest-growing economy of the Southern African Development Community (SADC) member countries. The government is aware of the business opportunities that are beginning to blossom in other sectors and is promoting economic diversification as one of its main strategies. “Now that we have stability we will see the non-oil sector developing,” says Mr. Jaime.

To this end, the government is increasing and streamlining investment incentives, and improving both physical and communications infrastructures. Given the massive financial outlay required, Mr. Jaime wants more private involvement in infrastructure development. “We would like to see private-public partnerships,” he says.

AGUINALDO JAIME Deputy Prime Minister

CARLOS FEIJÓ Advisor to the President

“Angola cannot reconstruct itself on its own. The only solution is to create attractive conditions for the intervention of the private sector,” agrees Carlos Feijó, Advisor to the President. New laws aim to make investment easier and reduce bureaucracy. Equal treatment is given to foreign companies and special treatment to companies who employ and train local staff. As Mr. Feijó points out, the correct fiscal and legal conditions are just as important as physical infrastructure.

The country has already made considerable progress in bringing the economy to order. A steadily declining inflation rate, a stable national currency, and the expansion of the banking industry are helping to make Angola an ever more appealing destination for investment. “We have to create a framework for investments,” says Amadeu de Jesus Castelhano Mauricio, the Governor of the Central Bank.

Aware of their importance in creating a strong national economy, the government is seriously committed to providing health and education to all its citizens. Working hard to achieve this is the Eduardo Dos Santos Foundation (FESA), which is helping the population to deal with the new challenges arising in the post-war period. Ismael Diogo da Silva, the Foundation’s President says, “It’s necessary to educate the people.” His opinion is reiterated across the board. “Through education we now have greater opportunities to generate an improved integration of newfound Knowledge,” says General Kundi Paihama, the Minister of Defence.

The message is clear. Angola is taking stock of its natural riches, both human and material, and is finding the best way to make use of them. Foreign involvement, particularly from the U.S. because of their expertise in most economic sectors, is being actively sought. And the potential rewards are high. “What people must understand is that stability is irreversible,” says the Deputy Prime Minister.