Angola : Investment Climate Assessment

Successive armed conflicts, which lasted
almost three decades after independence, have devastated
Angola and its economy. However, since the peace accord of
April 2002, Angolans have begun a transition toward national
reconciliation and lasting peace. For the Government of
Angola (GoA), one of the main challenges ahead is to
reconstruct the economy and reunite society after a war that
has left its most visible marks on the millions of displaced
that are returning to their areas of origin and demobilized
former combatants that will need to be reintegrated into
society. Peace in Angola has come hand in hand with a surge
in Gross National Income (GNI) per capita over the past
years: per capita GNI rose from USD 470 in 2001 to about USD
1,980 in 2006, primarily as a result of increased oil
production and revenue. Even though the national income is
currently above the average level in Sub-Saharan Africa,
Angola was nonetheless ranked 161st out of 177 countries in
the United Nations Human Development Index (HDI) of 2006.
This underscores the magnitude of Angola's challenges
in the social sphere. The World Bank's Interim Strategy
Note (ISN) of February 2005 was set to support the
government's program for 2005-2006 and emphasized the
need to encourage the private sector's role through a
stronger public/private dialogue frame work and a more
propitious operating environment for the private sector. The
World Bank's ISN of May 2007 reinforced this need,
whilst at the same time recognizing that there has been
progress: 'the GoA has adopted legislation to
streamline the regulatory framework and clarify land rights
and has improved customs procedures. It has also taken steps
to improve access to financial services, including
microfinance, by allowing new entrants into the market.
Investments in infrastructure, including roads, railways,
and electricity generation and transmission will also
improve the investment climate'.