Economic Problems in Angola

Topics: Petroleum, Economics, Investment Pages: 12 (3897 words) Published: April 5, 2013
Economic problems in Angola

Subject: Development economics

Course work: Economic problems in Angola


1 Angola1
1.2 Basic information1
1.2 History3
1.3 Economic situation3
2 Internal economic problems4
2.1 Inflation4
2. 2 GDP composition by sectors5
2. 3 GDP Growth rate8
3 International economic problems10
3.1 Foreign trade problems10
3. 2 Foreign investments to the country and depths problems11
3. 2. 1 Foreign investments11
3. 2. 2 Debt problems12
3. 3 Regional participation (regional integration)13
4 Conclusions15
5 Sources16

1 Angola

1.2 Basic information

Official name: REPUBLICA DE ANGOLA (Republic of Angola)
Area: 1, 25 million sq km
Population: 13 338 541 (estimate 2011)
Capital city: Luanda
Official language: Portuguese
Population below poverty line: 40.5% (2006 est.)
Currency: New kwanza
Figure 1 Flag of Angola

Source: Republic of Angola is a state in southern Africa. It covers 1,246,700 sq km and is the seventh largest country in Africa, covering an area greater than France and Spain combined. Angola has a coastline of about 1600 km. The capital and largest city is Luanda. Angola is bounded on the north and east by the Democratic Republic of the Congo (DRC, formerly Zaire), on the east by Zambia, on the south by Namibia, and on the west by the Atlantic Ocean. Figure 2 Map of Angola

Angola is rich in mineral resources, and further geological exploration is likely to add to the list of known mineral reserves. Among the most notable resources are petroleum, diamonds, iron ore, manganese, copper, uranium, phosphates, and salt. Vegetation varies with the climate. Thick tropical rain forests are found in the north and in the Cabinda exclave. To the south the rain forests give way to savannah, lands of mixed trees and grasses, which in turn grade into grasslands on the south and east. Palm trees are found on much of the coast, and sparse desert vegetation grows south of Namibia. Wildlife is as diverse as the vegetation and includes many of the larger African mammals, such as elephants, rhinoceroses, giraffes, hippopotamuses, zebras, antelope, lions, and gorillas. Also found are crocodiles and various birds and insects. The rich rain forests of Cabinda and the northwest furnished 7 million cu m of round wood for fuel and industrial purposes in 1995. Because of the cool Beguile Current, the waters off the coast of Angola are particularly rich in marine life. Fishing has thus been a traditionally important activity; in 1995 the total catch was 80,723 metric tons, primarily mackerel and sardines. Namibia and Lobito are the principal fishing ports. Petroleum accounts for 90 percent of national exports by value. Most production is from the offshore fields of Cabinda, which were first exploited in the 1960s. The total output of crude petroleum in 1996 was 259 million barrels. Diamonds remain the second most important mineral. Output in 1996 was 4.0 million carats. Iron ore, formerly the third most important mineral, has not been produced commercially since 1975 because the mines were partially destroyed during the civil war. Production of salt and natural gas has continued, despite the disruption of the war. The development of the industrial sector has been limited. The principal manufactured products are beverages and processed foods, such as refined sugar, fish meal, flour, and beer. Other products include textiles, cement, glass, and chemicals. Petroleum refineries are located in Cabinda and at Luanda. Angola has great hydroelectric potential in the numerous streams that descend from the central plateau. Hydroelectric plants have been constructed on the Cuanza, Cunene, Dande, and Catumbela rivers. The total production of electric energy in 1996 was 1.9 billion kilowatt-hours, 75 percent of...
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