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ANGOLA*
View from Ilha de Luanda to the bay of Luanda, Angola’s capital city and economic and commercial hub
Background
Angola is still rebuilding its country since the end of a 27-year civil war in 2002. Fighting
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, followed independence from Portugal in 1975. Peace seemed imminent in 1992 when
Angola held national elections, but fighting picked up again in 1993. Up to 1.5 million lives may
have been lost - and 4 million people displaced - during the more than a quarter century of
fighting. SAVIMBI’’s death in 2002 ended UNITA’’s insurgency and cemented the MPLA’’s hold
on power. President DOS SANTOS pushed through a new constitution in 2010; elections held in
2012 saw him installed as president.
Capital: Luanda
Geography
Area:
Total: 1,246,700 sq km
Land: 1,246,700 sq km
Water: 0 sq km
Location:
Southern Africa, bordering the South Atlantic Ocean, between Namibia and Democratic
Republic of the Congo
Climate:
Semiarid in south and along coast to Luanda; north has cool, dry season (May to October) and
hot, rainy season (November to April)
Natural resources:
Petroleum, diamonds, iron ore, phosphates, copper, feldspar, gold, bauxite, uraniumh
Geography - note:
The province of Cabinda is an exclave, separated from the rest of the country by the Democratic
Republic of the Congo
Population: 18,565,269 (July 2013 est.)
Economy Overview
Angola’s high growth rate in recent years was driven by high international prices for its oil.
Angola became a member of OPEC in late 2006 and its current assigned a production quota of
1.65 million barrels a day (bbl/day). Oil production and its supporting activities contribute about
85% of GDP. Diamond exports contribute an additional 5%. Subsistence agriculture provides
the main livelihood for most of the people, but half of the country’s food is still imported.
Increased oil production supported growth averaging more than 17% per year from 2004 to
2008. A postwar reconstruction boom and resettlement of displaced persons has led to high
rates of growth in construction and agriculture as well. Much of the country’s infrastructure is still
damaged or undeveloped from the 27-year-long civil war. Landmines left from the war still mar
the countryside, even though peace was established after the death of rebel leader Jonas
SAVIMBI in February 2002.
Since 2005, the government has used billions ofdollars in credit lines from China, Brazil,
Portugal, Germany, Spain, and the EU to rebuild Angola’spublic infrastructure. The global
recession that started in 2008 temporarily stalled economic growth. Lower prices for oil and
diamonds during the global recession slowed GDP growth to 2.4% in 2009, and many
construction projects stopped because Luanda accrued $9 billion in arrears to foreign
construction companies when government revenue fell in 2008 and 2009. Angola abandoned its
currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan
of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000
to about 10% in 2012. Higher oil prices have helped Angola turn a budget deficit of 8.6% of
GDP in 2009 into an surplus of 12% of GDP in 2012. Corruption, especially in the extractive
sectors, also is a major challenge.
Economic Indicators
GDP (purchasing power parity): $126.2 billion (2012 est.)
GDP (official exchange rate): $114.8 billion (2012 est.)
GDP - real growth rate: 6.8% (2012 est.)
GDP - per capita (PPP): $6,200 (2012 est.)
GDP - composition by sector:
Agriculture: 10.2%
Industry: 61.4%
Services: 28.4% (2011 est.)
Agriculture - products:
bananas, sugarcane, coffee, sisal, corn, cotton, cassava (manioc), tobacco, vegetables,
plantains; livestock; forest products; fish
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
Industrial production growth rate: 5% (2010 est.)
Electricity - production: 4.08 billion kWh (2009 est.)
Electricity - consumption: 3.659 billion kWh (2009 est.)
Electricity - exports: 0 kWh (2010 est.)
Electricity - imports: 0 kWh (2010 est.)
Crude Oil - production: 1.84 million bbl/day (2012 est.)
Crude Oil – exports: 1.757 million bbl/day (2009 est.)
Crude Oil – imports: 0 bbl/day (2009 est.)
Exports: $71.95 billion (2012 est.)
Exports - commodities:
crude oil, diamonds, refined petroleum products, coffee, sisal, fish and fish products, timber,
cotton
Exports - partners:
China 36.3%, US 18.5%, India 10.6%, Taiwan 8%, Canada 6.9% (2012 est.)
Imports: $22.32 billion (2012 est.)
Imports - commodities:
machinery and electrical equipment, vehicles and spare parts; medicines, food, textiles, military
goods
Imports - partners:
China 36.3%, Portugal 16.5%, South Korea 11.3%, Netherlands 9%, China 8.8%, US 8.1%,
South Africa 4.9%, Brazil 4.5%, France 4.2% (2012 est.)
Exchange rates: kwanza (AOA) per US dollar - 95.54 (2012 est.), 93.74 (2011 est.),91.91
(2010 est.),79.33 (2009),75.02 (2008)
Economic Indicators
India – Angola Relations
India and Angola enjoy close and friendly relations dating back to pre-independence era of
Angola. India supported Angolan freedom struggle against the Portuguese colonial rule. Later,
India continued to support the MPLA which has been at the helm of affairs of the country since
independence in 1975. India was a part of all the three UN Angola verification Missions in
Angola between June 1989 and June 1997. Late Prime Minister Rajiv Gandhi visited Angola in
May 1986 and President José Eduardo Dos Santos visited India in April 1987. Angolan Minister
for External Relations Mr Joao Bernardo de Miranda visited India in May 2006. Prime Minister
Dr Manmohan Singh and President Jose Eduardo Dos Santos met on July 10, 2009 during the
G8 Summit in L’Aquila, Italy. Other important visits were: Shri Eduardo Faleiro, MOS, External
Affairs in October 1986; Shri A. Shreedharan MOS for Commerce in 1990, Shri Anand Sharma,
Minister of State for External Affairs from June 8~ 9, 2007; Shri Jairam Ramesh, Minister of
State for Commerce from March 28 to April 1, 2008; Shri Murli Deora, Minister of Petroleum and
Natural Gas during January 26~27, 2010. The other visits from Indian side were of a delegation
from MMTC Ltd on Nov 2010., M G Vaidya, Executive, State Bank of India on Jan 2011. Dinesh
Kumar, ED Training, AAI, Nov 2011. A number of private business delegations have also visited
Angola in the recent years resulting in a steady growth of bilateral economic and commercial
relations Notable visits from Angola to India were of
(1) Dr Manuel Calado, Chief of ENDIAMA, a Government of Angola enterprise for exploring,
mining and trading of diamonds from October, 2006 and again from April, 2007;
(2) Mr Aguinaldo Jaime, Assistant Minister in the office of the Prime Minister of Angola;
(3) Mr Paulo T Jorge, Secretary, Political Bureau of International Relations of the ruling MPLA
Party;
(4) Mr Joaquim Duarte da Costa David, Minister of Industry;
(5) Mr Gilberto Buta Lutukuta, the then Minister of Agriculture;
(6) Vice Minister for Health in September 2001 and December 2007 to participate in a
Conference on Avian and Pandemic Influenza held in New Delhi in December 2007;
(7) Minister for Planning and Chairman of the SADC Council of Ministers in July 2003,
(8) Mr Abrahao Pio Dos Santos Gourgel, Vice Minister of Industry in August 2005; and two
private visits of Mr Jose Eduardo Zu Du Pdos Santos (son of the President of Angola) in May
2007 and February 2008
(9) Jose Maria Botelho De Vasconcelos. Minister for Petroleum visited New Delhi on Oct 2010
to attend the Petrotech Conference.
(10) A delegation from Ministry of IT and Telecoms (e governance) to assess the Pan Africa
Enet Project on Dec 2010. (11) George Rebello Chicoti, Foreign Minister, Feb 2011 to attend
the LDC Conference.
Bilateral agreements
The two countries have not signed any agreements. However, decisions have been taken, in
principle, to sign Agreements for the Promotion and Protection of Investments and Creation of
Bilateral Commission for Cultural, Technical, Scientific and Economic Cooperation. The Angolan
State owned Oil company SONANGOL and India’s Oil and Natural Gas Commission (ONGC)
signed a Memorandum of Understanding on January 27, 2010 in which the two entities
envisage bilateral collaboration in Angola, India and third countries. A MOU between the
Ministry of Petroleum, Government of Angola and the Ministry of Petroleum and Natural Gas,
Government of India was signed in New Delhi on October 2010. India regularly buys large crude
oil consignments from Angola.
Government of India ( GOI ) extended a line of credit of US$ 40 million to Government of Angola
for a project for the rehabilitation of CFM (Railway Company of Mocamedes) Railway, the first
major Government–to-Government initiative between the two countries and the project was
implemented by Rail India Technical and Economic Consultancy Services (RITES) Limited.
EXIM Bank of India extended three credit lines of US$ 5, 10 and 13.8 million for agricultural
equipment and Indian tractors. The State Bank of India which opened its Representative Office
in Luanda in April 2005 has also extended commercial lines of credit of US$5 million for supply
of tractors and import of capital equipment from India. Some other term loans are under
consideration. GOI has in July 2010 approved US$30 million for setting up an Industrial park
and US$15 million for setting up a cotton ginning and spinning plant.
Indian Banks and other Organizations
State Bank of India has been maintaining a representative office in Luanda since April 18, 2005.
Indian companies such as Tatas, Mahindra and Mahindra, and a number of other companies in
the area of pharmaceuticals, paper, plastics and steel have had business interests in Angola for
several years.
Indian Community
Till about three years ago, Indian community in Angola was limited and comprised of persons
mainly in business and professionals at offshore oil fields. In the last couple of years the number
has surged to nearly 5,000. About 1800 Indians are working in a single project of Angola –LNG
with M/S Bechtel in Soyo. About 1200 are working with ETA Star for construction of a cement
plant in Sumbe. Some of the smaller Indian companies engaged in Plastics, Steel and trading
have also recruited Indians. There are a large number of people of Indian origin who hold
Passports of different nationalities including of African nations like Mozambique, Dem Republic
of Congo, etc engaged in trading and construction businesses.
Bilateral Trade Export Import Data Bank
Values in US $ Millions
\Year
2008-2009
EXPORT
370.45
%Growth
India’s Total Export 185,295.36
%Growth
%Share
0.20
IMPORT
1,386.25
%Growth
India’s Total Import 303,696.31
%Growth
%Share
0.46
TOTAL TRADE
1,756.70
%Growth
India’s Total Trade
488,991.67
%Growth
%Share
0.36
TRADE BALANCE
India’s Trade Balance -118,400.95
2009-2010
635.07
71.43
178,751.43
-3.53
0.36
4,242.79
206.06
288,372.88
-5.05
1.47
4,877.85
177.67
467,124.31
-4.47
1.04
2010-2011
675.44
6.36
251,136.19
40.49
0.27
5,112.12
20.49
369,769.13
28.23
1.38
5,787.56
18.65
620,905.32
32.92
0.93
-109,621.45
-118,632.94
2011-2012
454.33
-32.7
305,963.92
21.83
0.15
6,622.90
29.55
489,319.49
32.33
1.35
7,077.23
22.28
795,283.41
28.08
0.89
2012-2013
488.79
4 7.59
300,274.12
-1.86
0.16
8,243.13
24.46
491,945.05
0.54
1.68
8,731.91
23.38
792,219.17
-0.39
1.10
-183,355.57
-191,670.93
Note: Since 2006-07, Petroleum figures are being computed from Import Daily Trade Returns (DTRs) to generate country-wise/port
wise tables. Up to 2005-06 consolidated petroleum import figures were being received from the Petroleum Ministry.
Electricity Note
The electricity sector in Angola falls under the authority of the Ministry of Energy and Water.
Angola’s electricity sector is run almost exclusively by the state company Empresa Nacional de
Electricidade (ENE), but some private companies in the extractive industries have built power
plants to run their operations. Angola is a member of the Southern African Power Pool (SAPP),
a group that includes Botswana, the DRC, Lesotho, Malawi, Mozambique, Namibia, South
Africa, Swaziland, Tanzania, Zambia, and Zimbabwe. The SAPP is designed to promote
cooperation between member countries with the aim of creating a common electricity market
that can provide reliable, and affordable, electricity to the citizens of member countries. At
present, Angola does not have a national electricity grid, instead relying on three independent
systems that provide electricity to different parts of the country: The Northern, Central, and
Southern Systems. The government hopes to link the three independent grids as part of a
national grid system, and eventually to link its grid with neighboring SAPP members. Currently,
only 30 percent of Angolans have regular access to electricity, with that figure declining to below
10 percent in rural areas according to IHS. Limited existing infrastructure and a lack of funding
for the power sector mean that Angola’s ability to improve these rates substantially is limited. In
late 2011, the Angolan government announced that it intends to invest $16 billion in the
electricity sector by 2016 in an effort to improve the country’s transmission and distribution
networks, and to help bring electricity to the country’s remote rural regions. The plan proposes
to increase overall electricity supplies by 12 percent in order to help meet rising domestic
demand.
The installed generation capacity of Angola in June 2009 was 11 87 MW, but the available
capacity was only 930 MW, or 78% of the installed generation capacity. The power situation has
however improved from 2008, when only 871MW or 75% of total installed capacity was
available. The lack of capacity of the distribution network is due to natural ageing of the
equipment, its poor maintenance and lack of investment, as well as the effects of war. The
distribution network that is in place is generally old, with certain sections over 30 years old.
Important Address
Embassy of the Republic of Angola
5, Poorvi Marg Vasant Vihar, Vasant Vihar,
New Delhi - 110 057.
Tel: +91-11-26146195 / +91-11-26146197
Fax: +91-11-26146184/ +91-11-26146190
Email: [email protected]
[email protected]
Embassy of India, Luanda, Angola
Mr Debraj Pradhan, Ambassador
Tel: 222-371060
Email: [email protected]
Website - http://www.indembangola.org/contact_us.html
Source:
1. CIA World Fact book
2. Department of Commerce - http://www.commerce.nic.in/
3. Ministry of External Affairs, India
4. eia – U. S. Energy Information Administration - http://www.eia.gov/countries/analysisbriefs/Angola/angola.pdf
5.http://www-wds.worldbank.org/servlet/
WDSContentServer/WDSP/IB/2011/09/27/000158349_20110927140000/Rendered/PDF/WPS5813.pdf
*All inputs collected for consolidated info by Dr SK Mukherjee