Angola

The year 2002 saw the conclusion of a civil war that lasted 27 years. After Angola became sovereign from Portugal in 1975, a conflict broke out between the Popular Movement for the Liberation of Angola (MPLA), led by Jose Eduardo DOS SANTOS, and the National Union for the Total Independence of Angola (UNITA), led by Jonas SAVIMBI. Fighting between the two restarted again after the 1992 elections, when UNITA lost the election to MPLA; peace had seemed forthcoming at the time of these elections. UNITA lost power following SAVIMBI's death in 2002; as president, DOS SANTOS has rescheduled legislative elections to take place in 2008 and Presidential elections in 2009, but no timetable has been created.

Main Airports

Luanda (LAD)

U.S. Embassy

Rua Houari Boumedienne No. 32, Miramar, Luanda, Angola

Statistics

GDP: purchasing power parity:

$45.93 billion (2005 est.)

GDP - real growth rate:

19.1% (2005 est.)

GDP - per capita: purchasing power parity:

3,200 (2005 est.)

Inflation rate (consumer prices):

23% (2005 est.)

Labor force:

5.58 million (2005 est.)

Exports:

$26.8 billion f.o.b. (2005 est.)

Exports - partners:

US 38.9%, China 29%, France 7.7%, Chile 5.3%, Taiwan 4.5% (2005)

Imports:

$8.165 billion f.o.b. (2005 est.)

Imports - partners:

South Korea 27.5%, Portugal 12.6%, US 11.8%, South Africa 7.2%, Brazil 5.4%, France 4.9%, China 4.7% (2005)

Population:

12,127,071 (July 2006 est.)

Population growth rate:

2.45% (2006 est.)

Population Below Poverty Line:

70% (2003 est.)

Major Industries:

petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing, brewing, tobacco products, sugar; textiles; ship repair

Employing Workers: 167*

Registering Property: 161*

Enforcing Contracts: 133*

Closing a Business: 149*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Angola	Region
Procedures (number)	13	11.1
Time (days)	124	61.8

Angola Risk Assessment

Country Rating

Rating: C

A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour. Corporate default probability is high.

Risk Assessment

The growth rate achieved by Angola in 2007 was among the world's highest, driven by increased oil extraction and soaring world prices. The non-oil sector — gas and civil engineering — has also contributed to the economic dynamism. Growth should exceed 26 per cent in 2008 thanks to exploitation of new offshore fields and a construction sector buoyed by the prospect of hosting the African Nations Cup football championships in 2010. A notable easing of inflation in a framework of tight fiscal policy and higher interest rate has accompanied the economic dynamism.

The oil export revenues have allowed Angola to maintain a comfortable public finance situation and an excellent position on external accounts. The strong GDP growth has moreover allowed it to improve its debt ratios. The fiscal and current account deficits nonetheless continue to give cause for concern, reflecting an insufficiently diversified economic fabric and Angola's failure to undertake major structural reforms.

After many postponements the first legislative and presidential elections since the civil war ended in 2002 have been announced for 2008 and 2009 respectively. While concluding the democratic transition process initiated after the 27 years of civil war ended, they should also consolidate the pre-eminence of incumbent President José Eduardo dos Santos' party the Movement for the Liberation of Angola. Corruption and poor governance are nonetheless still endemic. In such conditions the establishment of a legal framework conducive to development and less-inegalitarian distribution of oil revenues will remain uncertain.

STRENGTHS

• With the peace process firmly on track the country's reconstruction has begun in earnest.
• Sub-Saharan Africa's second largest oil producer, Angola joined OPEC in January 2007 and was expected to reach the two million barrel-a-day threshold late that same year.
• The prospect of exploiting new deepwater offshore oilfields has spurred foreign direct investment inflows.
• The country's broad economic potential ranges from diamonds to minerals, hydroelectricity, agriculture, and fishing and the emergence of a middle class has spurred development of new consumer markets.
• The efforts made to adopt good economic management since the civil war ended has allowed the country to benefit from international community financial backing.

• Underpinned by an oil sector representing 65 per cent of GDP and 90 per cent of export revenues the economy is very vulnerable to a price downturn.
• Marked regional inequalities compounded by dilapidated infrastructure and the health and social consequences of 27 years of civil war have impeded development.
• A difficult business environment has hampered the economy
• By borrowing from China with oil resources as guarantee, Angola has been able to skirt the IMF's stricter conditions on reform.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation