About Angola

HISTORICAL BACKGROUND

The earliest inhabitants of the area were the Khoisan. They were largely replaced by Bantu tribes during Bantu migrations. In present-day Angola, Portugal settled in 1483 at the Congo river, where the Kongo State, Ndongo and Lunda existed. In 1575 Portugal established a Portuguese colony at Luanda based on the slave trade. The Portuguese gradually took control of the coastal strip throughout the 16th century by a series of treaties and wars eventually forming the colony of Angola. Angola was a Portuguese colony until 1975 when independence was obtained as a result of a 14-year guerilla war and the overthrow of the fascist government in Portugal. Immediately after independence had been declared, civil war broke out between the countries political and militarized parties. This civil war continued until 2002 after several failed peace accords and an aborted peacekeeping mission by the UN. An estimated 1.5 million lives were lost during the civil war, with 4 million people displaced. The country’s roads, bridges, airports, schools, hospitals, etc., were either destroyed or never maintained. The effects of war will be visible for years to come. Today, Angola has the worst infant mortality rate in the world, the fourth worst life expectancy at birth and approximately 70% of the population lives under the poverty line.

PRESENT ECONOMY

Angola’s economy has undergone a period of rapid transformation since the end of civil war in 2002. Today, the country has the fastest growing economy in Africa and one of the fastest in the world. This growth is mostly driven by increased oil production and high oil prices but also in part due to postwar recovery. The economy grew 18% in 2005 and growth is expected to reach 26% in 2006. The government has accelerated development of a market-based economy and passed new law on private investment providing tax incentives to potential investors. A new customs regime came into effect in March 2005, lowering many tariffs by 5 to 10 percent. Doing business in Angola remains extremely difficult due to several factors such as outdated market regulations, difficulties of acquiring business permits; a constraining administrative, legal, and judicial environment; inadequate infrastructure, and poor contractual and property rights. The return of displaced Angolans to their homeland has revamped the agricultural sector, although landmines represent a constant danger and effectively bar people from productive land. Nevertheless, opportunities abound in all sectors of the economy. Several new government subsidized and private sector projects are underway in areas such as construction, agriculture, fishing, mining, tourism, etc. Angola is one of the most resource rich countries in all of Africa and a natural transportation center for Southern Africa. The challenge is to make these natural factors work for the well being and true prosperity of the entire Angolan population.

U.S.A. - ANGOLA TRADE RELATIONS

Angola is the second largest trading partner of the United States in Sub-Saharan Africa, largely because of its oil exports. Angola supplies approximately 4% of the total U.S.A. crude oil imports. U.S.A. exports to Angola primarily consist of industrial goods and services for the oil industry sector, mechanical equipment, chemicals, and food. On December 30, 2003, President George W. Bush approved the designation of Angola as eligible for tariff preferences under the African Growth and Opportunity Act (AGOA). Theoretically, this designation should have facilitated the expansion in the exports from Angola to the United States into areas other than the oil industry. However, AGOA primarily provides tariff reductions but it does not directly address the many issues still existent with trade between the USA and developing countries such as Angola. Additionally, internal barriers within Angola continue to hamper the country’s ability to produce and become competitive in the world’s trade market.

TECHNICAL DATA

Area (Comparative): 1,246,700 sq. km. (Almost twice the size of the state of Texas)
Administrative Divisions: 18 Provinces, 158 Municipalities
Population: 12.1 million (2006 estimate)
Population Growth Rate: 2.5% (2006 estimate)
Capital: Luanda
Languages: Portuguese (official), Umbundu, Kinbundu, Kikongo, and others.
Climate: Semiarid in the south and along the coast to Luanda; North has cool, dry season (May to October) and hot, rainy season (November to April).
Terrain: Narrow coastal plain rises abruptly to vast interior plateau

Currency (Code): Kwanza (AOA)
Exchange Rate: Kwanza per US Dollar – 89.5 (July 2006)
GDP per capita: $3200 (2005 estimate)

Natural Resources: Petroleum, Diamonds, Iron Ore, Phosphates, Copper, Feldspar, Gold, Bauxite, and Uranium.
Agricultural products: Bananas, sugarcane, coffee, sisal, corn, cotton, manioc, tobacco, vegetables, plantains; livestock; forest products; fish.

Industry Types: Petroleum drilling and refining, diamonds, mining, cement, basic metal products, fishing, fish processing, food processing, brewing, tobacco products, sugar refining, textiles, ship repair.

Exports: USD 26.8 billion F.O.B. (2005 estimate)
Main Export Commodities: Crude Oil, Diamonds, Gas, Coffee, Fish, Sisal, Cotton, and Timber.
Main Export Partners: USA, South Korea, China, France, and Taiwan

Imports: USD 8.2 billion F.O.B. (2005 estimate)
Main Import Commodities: Machinery and electrical equipment; vehicles and spare parts; medicines, food, textiles.
Main Import Partners: South Korea, Portugal, USA, South Africa, Brazil, France, and China.

Interesting Facts

• Sister Cities: Lafayette, Louisiana and Cabinda. Houston, Texas and Luanda.
• Research indicates that 27% of slaves who came to the USA from Africa originated in Angola.
• Angola was the world’s number one producer of Robusta coffee during the early 1970s.

Sources: U.S. Department of State, USAid, Wikipedia.