54 AFRICAN COUNTRIES

Principle Economic Sectors of Angola

Angola is located in southern central part of Africa. The country's GDP in 2008 was US $ 112.8 Billion. Angola is Africa’s third largest producer of oil behind Nigeria and Libya. The country also became the 12th member of the Organization of Petroleum Exporting Countries (OPEC) in 2007. Growth in Angola is almost entirely driven by rising oil production. Oil produces 40% of GDP and 80% of government revenues. The sectors which are important in Angola's economy are agriculture, fishing, oil and mining.

Year  GDP(PPP) USD Billion 2006 82.94 2007 100.5 2008 112.8

Agriculture,Forestry and Fishing :

Angola has a diverse climate which provides for the growth of both tropical and semi-tropical crops. Thus diversification of agriculture is possible. Angola’s most successful crops include coffee, bananas, timber, tobacco and sunflowers.

This sector accounts for about 8.8% of gross domestic product (GDP) and receives less than 1% of public expenditures. Still the agriculture is a fundamental economic activity in a country with a large rural population and small industrial sector leaving of an exception of the oil industry.Agriculture is the main source of employment and food supply for Angola’s people and is thus considered the key to poverty alleviation and food security. It employs about two-thirds of the working population.

Sector  % of GDP (2007) Oil and Gas  56.80% Services 16.90% Agriculture 8.00% Manufacturing 5.30% Construction 4.90% Diamond  1.80% Energy 0.10% Others  7.20%

Fisheries

Angola has 1650 kms long coastline which is considered one of the richest fishing grounds in Africa. The annual catch usually averaged at about 30,000 tons a year before independence Angola’s independence.The country has set up the Angolan Support Fund for Fisheries Development for the development of the industry with the help of the World Bank. A study on the potentially lucrative fishery sector has been commissioned recently by the US Trade and Development agency.

Electric Power

Angola possesses enormous hydroelectric potential because of the large and powerful rivers. There is an ongoing project of 520 MW Capanda Hydro-Electric dam on Kwanza river will double the country’s  generating capacity and will provide enough power to meet the country’s need for the next 4 decades when completed. Angola could become a regional exporter of hydroelectric energy as it generates more electricity than it requires. Angola is part of an international consortium to develop power stations along its borders with Namibia.

Oil and Gas Sector

The majority of the oil in Angola is found in the offshore region of Cabinda. Cabinda produces more than half of the country’s oil and is responsible for nearly all of its foreign exchange earnings. Because of this political tension often remains high in the area, as the separatists demand a larger share of oil revenue for the province population.The crude reserves of oil are found around the city of Soyo which is offshore in the Kwanza Basin north of Luanda and offshore on the north coast. The crude oil Angola produces is of high quality.The national oil company Sonagol, is the sole concessionaire for exploration and production and the only way a foreign company can enter into this market is through joint venture and production sharing agreements (PSA) with Sonagol. The largest foreign companies operating in Angola are: Chevron Texaco, Total FinaElf and Exxon Mobil.

Mining sector

The Mining sector contributes to 12% of the country’s GDP that is excluding the oil sector of which diamonds are responsible for over 98% of the earnings made by the government.The diamond industry of Angola has come under the spotlight after the implementation of the Kimberley Process that was set up to deal with the issue of conflict diamonds. It is a widely accepted truth that ongoing civil war in Angola has been funded to a large extent by the trade of rough diamonds. There is a potential for base metals and gold, but has not been properly exploited due to the ongoing civil war, which hampers access to most of Angola. Still Angola is considered an extremely attractive target for the discovery and development of world class ore deposits.

Manufacturing Sector

The manufacturing sector, employs around 200,000 people and produced $650 million worth of goods before independence in Angola. Previously, Angola was into production of sugar, wheat flour, cooking oil, textiles, soaps, paint, plastic and glues. But after independence the heavy industry cement and steel tube production account for about 15% of the country’s manufacturing output. Due to a lot of capital being put into technology and training, the food processing and light industry is also expected to recover soon.

Tourism :

Angola is a country which has places rich of interest for travelers like Luanda, Benguela and Huila. There are many Natural Parks which has rare animal species like the Big black antelope, Zebra, large herds of elephants. Lagoons hippopotamus, crocodiles and white rhinoceros are prominent near and around the rivers. Places of tourist attraction include - The famous creek of Tundavala, The Mountain range of Leba in the province of Huila ,The Falls of Calendula, The Rocks of Pungo-A-N-Dongo and Miradouro de Lua.Angola has a coastal range of 1650 Kms which is full of beaches with excellent natural condition not only for bathing and swimming but also for water sports.Angola also its own rich and vibrant Bantu culture based in African history and tradition. The influence of Latin culture mainly in the music, dance and food is seen.

For Further Refrence

African Economic Outlook

BBC News

World Bank