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

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Foreign affairs

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Luanda has assumed a vital role in shaping the region's economic and political landscape.

A long time opponent of Maubuto's régime in Zaire, Angolan troops helped the late Laurent Désiré Kabila in his 1997 rebellion which saw the creation of the DRC (Democratic Republic of Congo). The Angolan army was also present when Denis Sasso Nguesso returned to Congo Brazzaville to reclaim his position as head of state from Pascal Lissouba a known supporter of Jonas Savimbi.

Since then Luanda has sent troops alongside Zimbabwe and Namibia to help push Rwandan and Ugandan forces out of DRC. While this may not seem compatible with the US's special relationship with Rwanda and Uganda there is a stronger recognition within the new US administration of the critical role Angola now has in the region. Indeed, Luanda has proven it is capable of influencing the course of events in both Congo Brazzaville and Congo Kinshasa. Thanks to this geo strategic role President Dos Santos can guarantee the security of Cabinda, an oil rich enclave stuck between the two Congos that accounts for the lions share of Angola's oil production. He has also used his good relationship with Kinshasa to approach UNITA positions in the border provinces of Uigé, and Lunda Norte, helping regain large areas of diamond-rich territory, most notably the Cuango Basin that Savimbi was using to finance his conflict against Angolan government forces.


Over the past four years since the collapse of Mobutu's regime in ex Zaire, Luanda has strengthened its territorial hold within Angola. While the war is not over, the Angolan army has made important inroads into Unita held territory and benefits from its new allies in neighboring Congo and DRC. UNITA's international reach has been diminished as demonstrated by the imposition of sanctions on the movement by the UN Security Council. The movement is now widely considered nothing more than a terrorist rebellion and thousands of rebels have handed themselves over to the Angolan government, including many senior military figures. Although Unita attacks continue to make it impossible for millions of Angolans to return to their homes, according to an IMF report published in February, the government controls over 90% of the national territory. Jonas Savimbi is no longer in a position to take the country by force.

With government forces controlling the country's mostly offshore oil industry, and UNITA illegally exploiting some of the diamond resources in the north and south-eastern provinces it has been claimed that Angola's mineral wealth has helped prolong the civil war rather than promote its development. However, the Angolan government's access to large and increasing oil revenues ($3.18 billion forecasted for 2001) compared with UNITA's much smaller and diminishing diamond income, may mean that oil is at last starting to contribute to peace by enabling one side to win the war.

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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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