Angola Archives - Economy Watch

Angolan President Appoints Daughter as Head of National Oil Company

President Jose Eduardo dos Santos appointed his daughter, Isabel dos Santos, as head of state oil company Sonagaol after disbanding the old board, according to Reuters. The president wishes to improve oil production as the economy struggles, and he believes his daughter has the necessary business savvy to excel in the post. Angola became OPEC’s largest oil producer in Africa as Nigeria undergoes cutbacks stemming from militant attacks.

Central Bank Warns Angola to Clean up Its Act: Economy Remains Stagnant

Central Bank Governor Valter Filipe da Silva stated that Angola needs to rid the banking sector of money laundering and terrorist financing, according to Reuters. To Angola’s credit, the globally operated Financial Action Task Force removed the Southern African state from its blacklist after officials instilled various reforms, but additional policies are necessary.

Yellow Fever Outbreak Worsens in Angola as Economy Stalls

Medical professionals announced a worldwide vaccine shortage as 1,100 Angolans suffer from yellow fever, according to CNN. The disease has spread from Angola to neighboring countries, including China, and officials require all travelers to be vaccinated before entering the Southern African country.

Angola’s Economy Suffers in Low-Priced Energy Market

The Angolan government faces a financial crisis as lower oil prices shrink revenue streams, according to AFP. The Southern African country’s currency, the kwanza, receded 35% in value in 2015 against the dollar, and the central bank devalued the kwanza by 15% this year to bolster exports. Angola holds some of the most precious natural resources on the planet, but its citizens suffer from high infant mortality rates and severe poverty.

Portuguese Migrants Flood Angola for New Opportunities

The Angolan government announced the construction of a detention center that will hold large numbers of illegal arrivals from Portugal, according to the New York Times. Migrants have been entering Angola in the tens of thousands to search for work and a better life. The migration started in 2010, when Portugal’s economy underwent an economic downturn, highlighting Angola’s status as a lucrative emerging market.

Low Oil Prices Hurt, but Angola has Other Problems

A few years ago, Luanda, the capital of Angola, was on every ambitious investor’s lips. With large infrastructure and housing projects rapidly changing its appearance, the city seemed to be leaving behind the country’s 27-year civil war. However, hopes for renewal are slowly dissipating as the price of the commodity on which Angola’s future was being constructed – oil – steadily declines.

Angola Struggles as Oil Prices Suffocate Revenues

Angola, the largest African crude-oil producing country after Nigeria, has turned to international lenders, including, but not limited to, major financial institutions like Goldman Sachs Group Inc. for help. The move has come as the nation probes for cash in a desperate attempt to adapt to the lowest crude-oil prices in over five years. The African country has reportedly secured over 250 million dollars, each from New York-based investment banks as well as Gemcorp Capital LLP of London.

Angola Fast Facts

Angola is a lower middle-income economies coming under the Sub Saharan African region, as to the classification made by the World Bank on the basis of income and region for the year 2006.

Major crops in the country are millet, maize, coffee, cotton, oil palm and sisal. Important industries of the country are textiles, cement and oil refining. It is the second largest oil producing country in the sub-Saharan African region. The country’s exports are coffee, diamonds, iron ore, and crude petroleum.

Angola Economic Forecast

The oil and gas sector is the primary driving force behind Angola’s substantial growth rate, in part from benefits associated with the high cost of oil and gas internationally. Thanks to a boom in building and reconstruction after the war, as well as displaced people settling in, other sectors to include building, construction, farming, fishery, and agricultural have also seen significant growth. However, because of the 27-year civil war, a large portion of Angola’s facilities and infrastructure remain damaged or undeveloped.