More than a decade after the end of Angola's year civil war, the country still faces a variety of socioeconomic problems, including poverty, high maternal and child mortality, and illiteracy. Despite the country's rapid post-war economic growth based on oil production, about 40 percent of Angolans live below the poverty line and unemployment is widespread, especially among the large young-adult population.
Fewer than half of women deliver their babies with the assistance of trained health care personnel, which contributes to Angola's high maternal mortality rate. Of the estimatedAngolans who fled their homeland during its civil war, most have returned home since Inthe UN assessed that conditions in Angola had been stable for several years and invoked a cessation of refugee status for Angolans. Following the cessation clause, some of those still in exile returned home voluntarily through UN repatriation programs, and others integrated into host countries.
Angola's economy is overwhelmingly driven by its oil sector. Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food is still imported.
A postwar reconstruction boom and resettlement of displaced persons led to high rates of growth in construction and agriculture as well. Some of the country's infrastructure is still damaged or undeveloped from the year-long civil war However, the government since has used billions of dollars in credit from China, Brazil, Portugal, Germany, Spain, and the EU to help rebuild Angola's public infrastructure.
Land mines left from the war still mar the countryside, and as a result, the national military, international partners, and private Angolan firms all continue to remove them. Lower prices for oil and diamonds also resulted in GDP falling 0. Angola formally abandoned its currency peg in but reinstituted it in April and maintains an overvalued exchange rate.
In lateAngola lost the last of its correspondent relationships with foreign banks, further exacerbating hard currency problems. Continued low oil prices, the depreciation of the kwanza, and slower than expected growth in non-oil GDP have reduced growth prospects, although several major international oil companies remain in Angola. Corruption, especially in the extractive sectors, is a major long-term challenge that poses an additional threat to the economy.
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If you know of an imminent threat to a location inside the U.Economy - overview: Angola's economy is overwhelmingly driven by its oil sector. Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food is still imported. A postwar reconstruction boom and resettlement of displaced persons led to high rates of growth in construction and agriculture as well.
Some of the country's infrastructure is still damaged or undeveloped from the year-long civil war However, the government since has used billions of dollars in credit from China, Brazil, Portugal, Germany, Spain, and the EU to help rebuild Angola's public infrastructure. Land mines left from the war still mar the countryside, and as a result, the national military, international partners, and private Angolan firms all continue to remove them.
Lower prices for oil and diamonds also resulted in GDP falling 0. Angola formally abandoned its currency peg in but reinstituted it in April and maintains an overvalued exchange rate. In lateAngola lost the last of its correspondent relationships with foreign banks, further exacerbating hard currency problems. Continued low oil prices, the depreciation of the kwanza, and slower than expected growth in non-oil GDP have reduced growth prospects, although several major international oil companies remain in Angola.
Corruption, especially in the extractive sectors, is a major long-term challenge that poses an additional threat to the economy. Unemployment rate: 6. No claims are made regarding the accuracy of Angola Economy information contained here. All suggestions for corrections of any errors about Angola Economy should be addressed to the CIA or the source cited on each page.
For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order.
Page last updated on January 27, Economy - overview: Angola's economy is overwhelmingly driven by its oil sector.Find Out. A vast country with a long coastline and central plateau, Angola thrusts inland across Southern Africa to border Namibia, Botswana, Zambia, and the Democratic Republic of the Congo. Its principal cities, including its capital, Luanda, look west over the South Atlantic to Brazil, another Portuguese-speaking nation like itself.
It has a population of more than Despite significant progress on macroeconomic stability and structural reforms, Angola is still suffering the effects of lower oil prices and production levels, with an estimated gross domestic product GDP contraction around 1. The transformation of a state-led oil economy to a private-sector-led growth model is a complex and long-term process and the oil sector will continue to play an important role during this transition period.
The government has delivered on several key reforms since taking office in Two laws that are essential to enhance private sector-led growth and competitiveness have been approved: the private investment law and the antitrust law, followed by the creation of a competition authority.
The government took first steps to reform public utilities, utility tariffs and subsidies, and to privatize or liquidate some state-owned companies by creating IGAPE — the state-owned enterprise SOE oversight agency. The government also established a social protection registry to protect the most vulnerable from the reforms.
Macroeconomic stability has been restored and maintained through a more flexible exchange rate regime, restrictive monetary policy, and fiscal consolidation. The policy response since late has been adequate and effective in reducing domestic imbalances.
The Banco Nacional de Angola BNA adopted a restrictive monetary policy to anchor inflation and to offset the impact of the exchange rate devaluation; however, the tight monetary policy stance has been relaxed somewhat in with interest rate cuts in January and May to stimulate economic activity.
Inflation remains high but continued to decline from The authorities are actively addressing financial sector vulnerabilities. The BNA increased minimum capital requirements for banks, which led to the closure of three banks. Angola has maintained political stability since the end of the year civil war in Ina constitution established a presidential parliamentary system with the president no longer elected by direct popular vote but instead as the head of the party winning the most seats.
The Constitution sets a limit of two, five-year presidential terms. Internationally, Angola is becoming more assertive and demonstrating a more steadfast commitment to peace and stability in Africa, particularly in the Great Lakes region.
Economy of Angola
Very recently it facilitated an agreement to end mounting tensions between the neighbors Rwanda and Uganda. Angola has made substantial economic and political progress since the end of the war in However, the country continues to face massive development challenges, which include reducing its dependency on oil and diversifying the economy; rebuilding its infrastructure; and improving institutional capacity, governance, public financial management systems, human development indicators, and the living conditions of the population.
Large pockets of the population live in poverty without adequate access to basic services, and the country could benefit from more inclusive development policies. The government is creating a social protection scheme program aimed at assisting the poorest of the poor. The overarching strategy of the CPF is the promotion of more inclusive development, and it consists of two core objectives pillarsand one foundation plank possessing a cross-cutting nature.
Angola Economic Outlook
The pillars and foundation are as follows:. During the third phase of the project, 1, pieces of community infrastructure were constructed and rehabilitated in all 18 provinces of the country, enabling about 2. Mechanisms and practices for participatory governance systems have been established, in which local governments are increasingly more accountable to their constituencies.
The RAPP pre-test was successfully implemented in early July and the main data collection throughout the country is expected to be completed by the end of December The project has established pedagogical influencing zones ZIP in the project implementation areas.Despite this, government revenue increased in due to higher oil prices.
Reduced revenues have caused GDP growth to decelerate from an annual average of The government has reacted by cutting expenditure and increasing non-oil revenue, as well as by devaluing the kwanza.
It has also adopted an expansionary fiscal policy to boost economic activity, pegged its currency, increased forex sales, and tightened liquidity to contain inflation. This contained a downward spiral in the short-term but failed to rein in macro imbalances. Public debt, estimated at Oil production also fell by 5. Angola has external imbalances, including forex shortages, which have hurt the private sector, and rapidly declining reserves.
Net international reserves have decreased by This was mainly the result of the National Bank of Angola's BNA strategy to defend the currency and combat inflation by repegging it at The BNA's monetary policy was successful at substantially decreasing money supply, which pushed interbank and open market rates higher, even though the benchmark rate has held steady since April at BNA's deflationary policy mix helped decrease the annual inflation rate from But all interest rates have remained negative in real terms.
Major diamond reserves are located in northeastern Angola, a region endowed with the finest and top quality stones. These resources have so far been unexplored. Marble is especially consumed at the local market, while black granite is on demand and exported to United States and Japanese markets. Angola also enjoys a considerable agricultural potential having a climate, soil, and topography appropriate for modern and large scale agricultural production of a wide range of crops.
Furthermore, the country has an important hydropower, forest, and fishery potential. Angola has made substantial economic and political progress since the end of the war in However, the country continues to face massive development challenges, which include reducing its dependency on oil and diversifying the economy; rebuilding its infrastructure; and improving institutional capacity, governance, public financial management systems, human development indicators, and the living conditions of the population.
Vice President Bornito de Sousa is also new to office. Angola's new president unveiled a programme of corporate tax sweeteners intended to boost foreign investment and ease the oil-rich country's dependence on the lacklustre price of crude. Angolan Economy. Other Mineral Resources. Development Challenges. Acual Political Context.Click on the button below to get started. Sign Up. Read more. The Angolan kwanza plunged against the U. Consumer prices in the province of Luanda rose 1.
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Precious Metals. Region Reports. Country Reports. Annual Subscriptions. Economic Forecasts from the World's Leading Economists. Angola Economic Outlook February 25, The economy appears to have remained trapped in recession in the fourth quarter of after contracting at the sharpest rate in a year in the third quarter. Activity in the all-important oil sector seemingly shrank again in Q4 as slumping domestic output likely outweighed higher global crude prices compared to Q3.
Adding to the slew of negative news, a depreciating kwanza boded ill for household spending in the final quarter ofthus curbing domestic demand growth. Turning to Q1available data continues to paint a gloomy picture. Both Angolan oil output and global crude prices fell in January, suggesting the oil sector increasingly dragged on overall economic activity. Angola Economic Growth The growth outlook was chopped again in February against the backdrop of sliding global oil prices and deteriorating global demand for black gold.
That said, the economy should emerge from recession this year, supported by ongoing economic reforms and IMF assistance, which should prop up domestic demand and accelerate diversification away from the oil sector. FocusEconomics panelists see GDP growing 0. Ingrowth is seen accelerating to 1.It is the seventh-largest country in Africabordered by Namibia to the south, the Democratic Republic of the Congo to the north, Zambia to the east, and the Atlantic Ocean to the west.
Angola has an exclave province, the province of Cabinda that borders the Republic of the Congo and the Democratic Republic of the Congo. The capital and largest city of Angola is Luanda. The territory of Angola has been inhabited since the Paleolithic Erahosting a wide variety of ethnic groups, tribes and kingdoms.
The nation state of Angola originated from Portuguese colonisationwhich initially began with coastal settlements and trading posts founded in the 16th century. In the 19th century, European settlers gradually began to establish themselves in the interior. The Portuguese colony that became Angola did not have its present borders until the early 20th century because of resistance by groups such as the Cuamato, the Kwanyama and the Mbunda. After a protracted anti-colonial struggleindependence was achieved in as the Marxist—Leninist People's Republic of Angolaa one-party state supported by the Soviet Union and Cuba.
The sovereign state has since become a relatively stable unitarypresidential constitutional republic. Angola has vast mineral and petroleum reservesand its economy is among the fastest-growing in the world, especially since the end of the civil war; however, the standard of living remains low for most of the population, and life expectancy in Angola is among the lowest in the world, while infant mortality is among the highest.
A highly multiethnic country, Angola's Angolan culture reflects centuries of Portuguese rule, in the predominance of the Portuguese language and of the Catholic Church. The name Angola comes from the Portuguese colonial name Reino de Angola 'Kingdom of Angola'which appeared as early as Dias de Novais 's charter. Ndongo in the highlandsbetween the Kwanza and Lukala Riverswas nominally a possession of the Kingdom of Kongobut was seeking greater independence in the 16th century.
Modern Angola was populated predominantly by nomadic Khoi and San prior to the first Bantu migrations. The Khoi and San peoples were neither pastoralists nor cultivatorsbut rather hunter-gatherers. A number of political entities were established; the best-known of these was the Kingdom of the Kongobased in Angola, which extended northward to what is now the Democratic Republic of the Congothe Republic of the Congo and Gabon.
It established trade routes with other city-states and civilisations up and down the coast of southwestern and western Africa and even with Great Zimbabwe and the Mutapa Empirealthough it engaged in little or no transoceanic trade. The Portuguese established their primary early trading post at Soyowhich is now the northernmost city in Angola apart from the Cabinda exclave. Benguela was fortified in and became a township in The Portuguese established several other settlements, forts and trading posts along the Angolan coast, principally trading in Angolan slaves for Brazilian plantations.Angolacountry located in southwestern Africa.
The capital and commercial centre is Luandaa large port city on the northern coast that blends Portuguese-style colonial landmarks with traditional African housing styles and modern industrial complexes. Angola at the beginning of the 21st century was a country ravaged by war and the related effects of land mines and malnutritionand it was often dependent on the international community for the basics of survival.
It is a country that is nevertheless rich in natural resources, including precious gems, metals, and petroleum; indeed, it ranks among the highest of the oil-producing countries in sub-Saharan Africa. It is the largest and wealthiest of the Portuguese-speaking African states, and Portuguese influences have been felt for some years, although Angola acquired its present boundaries only in An anticolonial struggle that began in finally led to independence in Beginning inhowever, with the ending of the war, Angola had more hope for a peaceful future than it had in the previous quarter century.
Angola is bordered to the far northwest by the Republic of the Congoto the north and northeast by the Democratic Republic of the Congo, to the southeast by Zambiato the south by Namibiaand to the west by the Atlantic Ocean.
From a narrow coastal plain, the land rises abruptly to the east in a series of escarpments to rugged highlands, which then slope down toward the centre of the continent. The coastal plain varies in width from about miles km in the area south of Luanda to about 15 miles 25 km near Benguela. The almost featureless plateau that covers the eastern two-thirds of Angola gradually falls away to between 1, and 3, feet and 1, metres at the eastern border.
The highest point in the country is Mount Moco, near the city of Huambowhich reaches an elevation of 8, feet 2, metres. The Lunda Divide forms a watershed on the plateau, separating north- and south-flowing rivers.Doing business in Angola: updated rules and less red tape
In the northeast, rivers such as the Cuango Kwango flow out of Angola into the mighty Congo Riverwhich forms the boundary between Angola and the Democratic Republic of the Congo for the final 90 miles km of its course.
The southwestern part of the country is drained by the Cunene River Kunenewhich heads south before turning west and breaking through the escarpment at the Ruacana Falls, after which it marks the boundary between Angola and Namibia to the Atlantic Ocean.
Some rivers in the southeast of the plateau flow into the Zambezi Riverwhich itself crosses the Cazombo region in the far eastern extension of the country. Other rivers in this area feed the Okavango Swamps of northwestern Botswana. Small rivers in the south run into the internal drainage system of the Etosha Pan in Namibia, while others, often seasonal in nature, drain the steep western slopes of the escarpment.
The coastal plain consists of alluvia, chalk, and sand, underlain by oil-bearing formations over the northern two-thirds. Crystalline bedrock of Precambrian age between about million and 4 billion years old emerges along the escarpment, and mineral deposits sometimes lie close to the surface.
Considerable erosion has occurred in this area, and laterite formations are common. Most of the plateau in the eastern two-thirds of the country lies buried under deep deposits of infertile windblown Kalahari sands. The river gravels of the northeast contain diamonds, and rare kimberlite pipes occur in this area. Angola has a tropical climate with a marked dry season. The climate is largely affected by the seasonal movements of the rain-bearing intertropical convergence zonethe northward flow of the cold Benguela Current off the coast, and elevation.
Rainfall is the key determinant of climatic differentiation, and it decreases rapidly from north to south and in proximity to the coast. In contrast, Luanda, on the dry coast, receives about 13 inches mmwhile the southernmost part of the coastal plain gets as little as 2 inches 50 mm.
The rainy season lasts from September to May in the north and from December to March in the south. Droughts frequently afflict the country, especially in the south. Temperatures vary much less than rainfall, however, and generally decrease with distance from the Equator, proximity to the coast, and increasing elevation.
Natural or man-made fires occur frequently in savanna vegetation, and tree species are thus usually resistant to fire. True desert is confined to the Namib in the far southwest, which extends north from Namibia and is the home of a unique plant, the tumboa Weltwitschia mirabiliswhich has a deep taproot and two broad, flat leaves about 10 feet 3 metres long that lie along the desert floor.
The fauna is typical of the savanna lands of Africa. Carnivores include leopards, lions, and hyenas, while the plant-eating animals are represented chiefly by elephants, hippopotamuses, giraffes, zebras, buffaloes, gnu wildebeests and various other antelopes, and monkeys. Angola is rich in bird species and has a wide variety of reptiles, including crocodiles. The numerous insects include mosquitoes and tsetse flies, both serious pests that carry disease.
There are about a dozen national parks and nature reserves, notably Iona National Park in the southeast corner of the country and Quicama National Park just south of Luanda, but checks on hunting largely broke down with the spread of civil war. The giant sable antelope Hippotragus niger varianifound in the south, is particularly vulnerable.