Angola Country Report

Prepared by: Adam Ragozzino April, 25, 2020

Geopolitical Landscape

Economy in Distress

Angola Economy Visualization

Angola’s economy depends almost entirely on oil. It accounts for 94% of their exports and more than 75% of the government revenue. 12,13 Diamonds make up another 4% of exports, leaving very little contribution from other parts of the economy. Commodity prices, and oil specifically, dictate how much Angola can spend on development projects, loan payments, infrastructure improvements, services, and save. Diversifying the economy remains a priority of the government. However, diversifying the economy of a resource rich country is not straight forward. 14 Oil extraction doesn’t always produce the skilled labor necessary to convert to more advanced production manufacturing. According to Dr. Alan Gelb, senior fellow at the Center for Global Development, there are several common themes for successful diversification. Three standout for Angola. First, strong institutions, that is democracies with balances of power, transparency, and accountability, prevent patronage schemes and personal politics from subverting resource income. Second, investments in human capital, that is the creation of a skilled labor force, dictate the complexity of sectors available for diversification. The last theme is the importance of openness to foreign investors, skills and new markets. “The manufacturing industry, for example, is… more dependent on strong contract enforcement, a rule of law, and a generally strong business environment.” 14

Agriculture is one example where that diversification is coming from. But some challenges remain. It’s already the main source of income for 90% of rural Angolans but more than half the country’s food was imported. 15 Enabling small farms and agribusinesses to grow and connect them to supply chains and

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