OSISA report looks at the structure of the Angolan oil industry - explaining how it drives an enclave economy that enriches wealthy political elites and leaves the masses in dire poverty. State-owned Sonangol exerts undue political and economic power, and is only accountable to the president. Millions of dollars are being diverted from the state treasury, either through institutionalised or straight up corruption. Oil revenues, which should be invested in social sectors and in diversifying the economy to support the country’s long term sustainable development, are instead reinvested by Sonangol in joint ventures and subsidiary businesses, which benefit just an elite few. Environmental impacts of the industry go largely unmitigated, while communities in oil producing provinces receive no real benefits.
