President vows to support Investment in Rural Areas and to end Monopolies
In a first rightful step to free the Angolan economy from nepotism and artificial price inflation, the Angolan government will submit to parliament a proposal for a competition law to bring an end to monopolies and other imperfections in the country’s market, the new Angolan president said on Monday in Luanda, cited by Angolan news agency Angop.
João Lourenço, in a State of the Nation address at the opening meeting of the First Legislative Session of the 4th Legislature of the National Assembly, said that the government would establish a legal framework to facilitate the operation of companies, which promote and defend free enterprise, competitiveness and competition in order to safeguard consumers’ rights. He also said that he will p…
2 GW Hydro Electric Plant opened at Lauca Dam
Angolan President Jose Eduardo dos Santos, who steps down from office at the end of this month, today officially opened the country’s largest hydro-electric dam. Being built by Brazilian conglomerate Odebrecht at an estimated cost of US$ 4.3bn, it is designed to produce 2 070 megawatts and aims to reduce power outages in Angola, a major oil producer.
It will be one of the most powerful plants on the African continent and the first two of six turbines on the Lauca hydroelectric dam, built on the Kwanza River, were switched on today. It is the third dam built on the Kwanza and should be fully operational by next year. Dos Santos appeared in good health but did not speak, according to footage shown on public television.
Customs Procedures for Import & Export being simplified
he Angolan Tax Authority (AGT) has moved to simplify and harmonise customs formalities in the process of importing and exporting goods, with a view to facilitating legal trade, said the head of the institution, Hermenegildo Gaspar.
The director of the AGT, speaking at the opening of the 1st Forum on Customs Regimes and Procedures, pointed out that the correct application of customs procedures contributes to speedy goods clearance, reduced costs in the logistics chain, as well as improving the business environment.
This procedure also contributes to the growth and competitiveness of the national economy, said Gaspar, quoted by Angolan news agency Angop.
The purpose of the meeting addressed to customs agents, importers and busines…
Fibre Optic Cable from Brazil in 2018
The installation of the submarine fibre optic cable that will connect Angola to Brazil is expected to be completed in 2018, a project estimated to cost US$170 million, the chairman of Angola Cables said recently in Luanda.
António Nunes, speaking on the sidelines of a conference on the state of telecommunications in Angola, said that the company is working to ensure that Internet access reaches the most remote places in the country quickly, at a time when fibre optic cables are already installed in various regions. Nunes pointed out, however, that for the interior of the country to have easy access to information and broadband Internet, “it will also be necessary to improve infrastructure, such as roads and other public places,” accor…
The majority of Financial Transactions today still does not involve any Bank Accounts
More than half of Angola’s population lacks a bank account and it is estimated that 60% of the country’s Gross Domestic Product (GDP) circulates between people without ever going through the financial system, said in Luanda the chair of the Angolan Post Office.
Maria Luisa Andrade, who was speaking at the official opening of Angola’s newest commercial bank, Banco Postal, said: “this is a significant loss to Angolan society, to the extent that these resources, as they are outside the financial system, do not generate taxes, they do not drive credit development and limit the growth of the country.”
Andrade, quoted by state newspaper Jornal de Angola, said the opening of Banco Postal intends to respond to increased demand in the count…
Cabinet Reshuffle sees Finance Minister axed
Angolan President José Eduardo dos Santos fired Finance Minister Armando Manuel on Monday two months after the government of Africa’s biggest oil producer broke off talks with the IMF over emergency funding. In a cabinet reshuffle, dos Santos also replaced his agriculture minister and dropped the powerful Chief of Staff in the presidency, Edeltrudes da Costa, who was implicated in a recent land eviction. A statement said Manuel, who was appointed in 2013 and whose term had been due to run to 2017, would be replaced by capital markets commission head Augusto Archer de Sousa Hose, more commonly known as Archer Mangueira.
Over the last two years, Manuel had presided over an economic slump caused by a sharp drop in oil prices that sapped …
Low Oil Price forces government to talk to IMF about Bridging Finance
Angola will begin loan negotiations with the International Monetary Fund (IMF) this month as lower oil prices hammer the finances of Africa’s second-largest crude exporter, the Finance Ministry stated this week. Angola’s economy has grown rapidly since a 27-year civil war ended in 2002, peaking at 12% three years ago, but a sharp drop in oil prices has sapped dollar inflows, dented the kwanza and prompted heavy government borrowing. Oil output represents 40% of gross domestic product and more than 95% of foreign exchange revenue. Brent crude traded below $39 a barrel on Wednesday, down more than 30% compared with a year ago.
“The government of Angola is aware that the high dependence of the oil sector represents vulnerability for the …
Oil Price puts Economy into Crisis ModeSitting under an umbrella in the heat of Angola’s capital Luanda, a vendor holds a makeshift currency exchange board on which is scribbled “335 kwanzas: $1”, more than double the official rate of 155 kwanzas. The drop in the price of crude oil to its lowest level in more than a decade has not only pushed Angola’s currency to record lows, it has plunged the economy of Africa’s second largest crude producer into a crisis. Despite the country’s oil and diamond resources, Angola suffers endemic poverty, with more than a third of the population of around 24 million living below the poverty line, according to the United Nations.
Fallout from the oil price crunch is inflicting even more pain on the already struggling poor, and risks threate…
Economic Growth to slow in Wake of falling Oil Prices
Angola’s oil-dependent economy is set to slow this year, key infrastructure projects will be shelved and swathes of social spending are facing the chop as a global crude price slump takes its toll on Africa’s second-biggest producer. Angola’s cabinet last week sent a revised 2015 budget to parliament, cutting the assumed oil price to $40 a barrel, from $81 previously projected, and slashing US$ 14bn off planned spending, the finance ministry said. The government’s failure to shield sub-Saharan Africa’s third largest economy from tumbling oil prices is likely to intensify public anger towards President Jose Eduardo dos Santos, who has been accused of enriching a political elite and leaving the poor behind during his 35 years in power.
Central Bank sees average Growth at 5%
Angola’s economy should grow at an annual average rate of 5% over the next four years, boosted by the increasing participation of the private sector, Angola’s central bank said earlier this week. The International Monetary Fund said this month that growth was likely to slow to 3.9% in 2014 from an estimated 6.8 % last year, with strong agricultural production offsetting a drop in oil output.
“The outlook for the Angolan economy’s average growth will be around 5% during the next four years and will be pushed by the growing participation of the private sector,” the Angolan central bank said in a message to a conference of Portuguese-speaking central bankers in Lisbon. It said that for that to happen, it was key that the financial sector…