Angola
Economy

Angola has vast mineral and petroleum reserves. Its economy is among the fastest-growing in the world, especially since the end of the civil war. But economic growth is highly uneven, with most of the nation's wealth concentrated in a disproportionately small part of the population. The largest investment and trade partners are China, the European Union, and the United States.

Most Angolans have a low standard of living; life expectancy is among the lowest in the world, while infant mortality is among the highest. Since 2017, the government of João Lourenço has made fighting corruption its flagship program, so much so that many individuals from the previous administration are either jailed or awaiting trial. Whilst this effort has been recognised by foreign diplomats to be legitimate, some skeptics see the actions as being politically motivated.

Angola is a member of the United Nations, African Union, the Community of Portuguese Language Countries, and the Southern African Development Community. As of 2023, the Angolan population is estimated at 37.2 million. Angola is multicultural and multiethnic. Angolan culture reflects centuries of Portuguese influence, namely the predominance of the Portuguese language and of the Catholic Church, intermingled with a variety of indigenous customs and traditions.

Angola has diamonds, oil, gold, copper and rich wildlife (which was dramatically depleted during the civil war), forest and fossil fuels. Since independence, oil and diamonds have been the most important economic resource. Smallholder and plantation agriculture dramatically dropped in the Angolan Civil War, but began to recover after 2002.

Angola's economy has in recent years moved on from the disarray caused by a quarter-century of Angolan civil war to become the fastest-growing economy in Africa and one of the fastest-growing in the world, with an average GDP growth of 20% between 2005 and 2007. In the period 2001–10, Angola had the world's highest annual average GDP growth, at 11.1%.

In 2004, the Exim Bank of China approved a $2 billion line of credit to Angola, to be used for rebuilding Angola's infrastructure, and to limit the influence of the International Monetary Fund there.

China is Angola's biggest trade partner and export destination as well as a significant source of imports. Bilateral trade reached $27.67 billion in 2011, up 11.5% year-on-year. China's imports, mainly crude oil and diamonds, increased 9.1% to $24.89 billion while China's exports to Angola, including mechanical and electrical products, machinery parts and construction materials, surged 38.8%. The oil glut led to a local price for unleaded gasoline of £ 0.37 a gallon.

As of 2021, the biggest import partners were the European Union, followed by China, Togo, the United States, and Brazil. More than half of Angola's exports go to China, followed by a significantly smaller amount to India, the European Union, and the United Arab Emirates.

The Angolan economy grew 18% in 2005, 26% in 2006 and 17.6% in 2007. Due to the global recession, the economy contracted an estimated −0.3% in 2009. The security brought about by the 2002 peace settlement has allowed the resettlement of 4 million displaced persons and a resulting large-scale increase in agriculture production. Angola's economy is expected to grow by 3.9 per cent in 2014 said the International Monetary Fund (IMF), robust growth in the non-oil economy, mainly driven by a very good performance in the agricultural sector, is expected to offset a temporary drop in oil production.

Angola's financial system is maintained by the National Bank of Angola and managed by the governor Jose de Lima Massano. According to a study on the banking sector, carried out by Deloitte, the monetary policy led by Banco Nacional de Angola (BNA), the Angolan national bank, allowed a decrease in the inflation rate put at 7.96% in December 2013, which contributed to the sector's growth trend. Estimates released by Angola's central bank, said the country's economy should grow at an annual average rate of 5 per cent over the next four years, boosted by the increasing participation of the private sector. Angola was ranked 132rd in the Global Innovation Index in 2023.

Although the country's economy has grown significantly since Angola achieved political stability in 2002, mainly due to fast-rising earnings in the oil sector, Angola faces huge social and economic problems. These are in part a result of almost continual armed conflict from 1961 on, although the highest level of destruction and socio-economic damage took place after the 1975 independence, during the long years of civil war. However, high poverty rates and blatant social inequality chiefly stems from persistent authoritarianism, "neo-patrimonial" practices at all levels of the political, administrative, military and economic structures, and of a pervasive corruption. The main beneficiaries are political, administrative, economic and military power holders, who have accumulated (and continue to accumulate) enormous wealth.

"Secondary beneficiaries" are the middle strata that are about to become social classes. However, almost half the population has to be considered poor, with dramatic differences between the countryside and the cities, where slightly more than 50% of the people reside.

A study carried out in 2008 by the Angolan Instituto Nacional de Estatística found that in rural areas roughly 58% must be classified as "poor" according to UN norms but in the urban areas only 19%, and an overall rate of 37%. In cities, a majority of families, well beyond those officially classified as poor, must adopt a variety of survival strategies. In urban areas social inequality is most evident and it is extreme in Luanda. In the Human Development Index Angola constantly ranks in the bottom group.

In January 2020, a leak of government documents known as the Luanda Leaks showed that U.S. consulting companies such as Boston Consulting Group, McKinsey & Company, and PricewaterhouseCoopers had helped members of the family of former President José Eduardo dos Santos (especially his daughter Isabel dos Santos) corruptly run Sonangol for their own personal profit, helping them use the company's revenues to fund vanity projects in France and Switzerland. After further revelations in the Pandora Papers, former generals Dias and do Nascimento and former presidential advisers were also accused of misappropriating significant public funds for personal benefit.

The enormous differences between the regions pose a serious structural problem for the Angolan economy, illustrated by the fact that about one third of economic activities are concentrated in Luanda and neighbouring Bengo province, while several areas of the interior suffer economic stagnation and even regression.

One of the economic consequences of social and regional disparities is a sharp increase in Angolan private investments abroad. The small fringe of Angolan society where most of the asset accumulation takes place seeks to spread its assets, for reasons of security and profit. For the time being, the biggest share of these investments is concentrated in Portugal where the Angolan presence (including the family of the state president) in banks as well as in the domains of energy, telecommunications, and mass media has become notable, as has the acquisition of vineyards and orchards as well as of tourism enterprises.

Angola has upgraded critical infrastructure, an investment made possible by funds from the country's development of oil resources. According to a report, just slightly more than ten years after the end of the civil war Angola's standard of living has overall greatly improved. Life expectancy, which was just 46 years in 2002, reached 51 in 2011. Mortality rates for children fell from 25 per cent in 2001 to 19 per cent in 2010 and the number of students enrolled in primary school has tripled since 2001. However, at the same time the social and economic inequality that has characterised the country for so long has not diminished, but has deepened in all respects.

With a stock of assets corresponding to 70 billion Kz (US$6.8 billion), Angola is now the third-largest financial market in sub-Saharan Africa, surpassed only by Nigeria and South Africa. According to the Angolan Minister of Economy, Abraão Gourgel, the financial market of the country grew modestly since 2002 and now occupies third place in sub-Saharan Africa.

On 19 December 2014, the Capital Market in Angola was launched. BODIVA (Angola Stock Exchange and Derivatives, in English) was allocated the secondary public debt market, and was expected to launch the corporate debt market by 2015, though the stock market itself was only expected to commence trading in 2016.
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