ANGOLA
Angola's tormented path to petro-diamond led growth

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Decentralization

enhancing decentralization

Even though Luanda holds the title of Capital and business centre of Angola, it does not hold the monopoly of economic growth. Over the past two years, the Government has implemented various measures geared towards a faster economic and social development of the eighteen provinces composing the country. Namibe and Benguela, located on the coast, may be given as two examples of provinces blessed with an exceptional growth potential and a clearer vision of their development on the long term as the conflict with the UNITA forces is progressively fading away.

Dr. Salomao Jose Luheto Xirimbimbi, Governor of Province of Namibe

The Province of Namibe may already be classified as an exception as such when considering its location and more especially the fact that it is the only province that has never been affected by the war. As simple as it may seem to be, the reason given by Mr. Salomao Xirimbimbi, Governor of the province since 1999, emphasises on the fact that the area is merely "inappropriate to host groups of warriors". The countryside, mainly composed of deserts, canyons and savannah, does not offer any separatist group the possibility to properly settle down. Furthermore, "the Mucubais, Namibe's original population, are nomads and are not sympathetic towards UNITA" the Governor says.


Port of Namibe

But peace only represents the prerequisite to the sustainable development of an economy. Within this framework and given the basis laid by the Central Government, Mr. Xirimbimbi has all the reasons to remain optimistic as he recently confided that a five-year project to rehabilitate the province had just been approved. The latter will be geared towards the rehabilitation of the port, the railway and the road that connects Namibe to South Africa and Windhoek. Further development of the agricultural sector, cattle-raising, fishery, tourism, environment preservation, energy, water and communication infrastructure are also included in the project.

Thus, the local Government has for instance already established solid business relationships with Odebrecht, a Brazilian company, contracted for the rehabilitation of the Matala dam, source of electricity. But one of the major focuses remains getting a more efficient use of the local resources such as tourism and fishery. "Angola used to be the major fish meal producer in the world" claims Mr. Xirimbimbi and "this is the reason we need heavy investments in this sector. We expect the investors not to be limited to catching fish but also to process it and export it" he adds.


On the road from Benguela to Lobito
Certainly, Namibe, like any other province, has its own growth potential but, above all, it gathers all the preconditions to welcome investments that will contribute to a sustainable development of the area, for the benefit of the Angolan population and the private companies daring having a closer look at it.

Driving up along the coast, one will enter the Province of Benguela often seen as the second access door to the Angolan and South African markets, after Luanda. Here again, the Government has been intensifying its efforts to transforming this region into one of the most dynamic in the country, at all levels.


LobitoCrane

Endowed with fertile soils, fish and minerals, Benguela is currently developing its downstream sector focusing on the rehabilitation of the hydroelectric infrastructures, the industrial sector and the Lobito Corridor connected to Benguela railroad, which gives access to the Southern African countries. Thus, the Port of Lobito, the second largest port in Angola, is for example directly connected to Congo by 1,348kms of railway.
 
Unfortunately, unlike Namibe, the province of Benguela has been suffering since the independence from the conflict opposing the MPLA and the UNITA, hence reducing significantly the activity of the Port of Lobito down to 45% of its working capacity, with a figure of 7,073 containers exported and 7,410 containers imported over the year 2000. However, Mr. Carlos Gomes, Director of the Port since 1993, is more optimistic than ever as far as the end of the conflict is concerned. According to him, the Port of Lobito has the potential to become number one under a peace regime. For those reasons, the port has kept on upgrading its infrastructures and its services through major investment in computer-assisted technologies so as to answer to the highest international requirements.

Dr. Jose Carlos Gomes, General Manager of Porto do Lobito

But Benguela will soon no longer only be associated to the Port of Lobito. A three-billion-dollar investment will be placed into the construction of the Lobito Refinery, which should become fully operational by 2006. The refinery, in which Sonangol will have around 40% interest, "will be processing 200.000 barrels a day" according to Mr. Syanga Abilio, Vice-President of Sonangol Holding. "This project is going to generate employment and a great deal of activity for the port, as equipment for the refinery will have to be handled and transported here. Consequently, the port itself, the province and the society will be developed by this project" concludes Mr. Gomes.

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© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Angola published in Forbes Global Magazine. February 18th, 2002 Issue.
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