Economy of Angola

 

 

Angola's economy is in disarray because of a quarter century of nearly continuous warfare. Despite its abundant natural resources, output per capita is among the world's lowest. Subsistence agriculture provides the main livelihood for 85% of the population.

 
Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% of exports. Control of the oil industry is consolidated in Sonangol Group, a conglomerate which is owned by the Angolan government. Notwithstanding the signing of the Lusaka Accords in November 1994, millions of land mines remain, rural violence is a possibility, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. Despite the increase in the pace of civil warfare in late 1998, the economy grew by an estimated 4% in 1999.

The government introduced new currency denominations in 1999, including a 1 and 5 kwanza note. Expanded oil production brightens prospects for 2000, but internal strife discourages investment outside of the petroleum sector. With the advent of peace in 2002 a strategic partnership with China is set in motion [1], so huge investments by Chinese companies are now in place, especially in the construction sector and more recently in the metallurgical sector.
 

 
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