Basic HTML Version
83
www.ebizguides.com
The Angolan Economy
Artisanal fishing – Sangano beach
comparable African countries).
According to a survey conducted in “Inquérito sobre
o Bem-Estar da População, 2009”, 36,6% of the
population lives on the poverty line of US$ 2 per day
(58,3% of the rural population vs. 18,7% in urban ar-
eas). On the social aspect, Angola still has a long
way to go to reach the “Objectives of the Millenium”
in reducing poverty and inequality that differ consid-
erably across regions. The unemployment rate in
Luanda is 17% vs. 28% in the rest of the country. Al-
though recent efforts have been made to decentral-
ize activity to the provinces, the imbalance between
cities and rural areas continues to be an issue. About
75% of GDP is concentrated in Luanda and 15% in
other coastal areas.
The driving forces behind the growth of the Angolan
economy are sound and show a promising tendency
to expand further. Improvements in living standards
reflect a growth in the labour force and its employ-
ability, as well as its productivity.
In demographic terms, the Angolan population has
grown by approximately 2% per year. Data on un-
employment are patchy. However, it is believed
that rates are stable at between 20% and 30% of
the active population. The lack of a strong industry
outside the primary sector, as well as the absence
of a strong tertiary/service sector means that unem-
ployment rates will remain high – especially in urban
centres, which make up over 50% of the geographic
distribution of the country.
The productivity of the labour force is dependent on
investment, as well as on the progress of productive
technology. Therefore, it is worth considering that
22% of the GDP has been directed towards invest-
ments, and that the ratio of savings/investment has
increased in the banking sector.
When speaking of the driving forces behind Angola’s
long-term growth, it is necessary to draw attention to
investments in education. The rate of enrolment in
primary education (2008) was 128% of the country’s
school age population. This figure contrasts with the
average of 107% in Sub-Saharan Africa and 99% in
other lower middle-income countries. However, sec-
ondary schooling rates are lower, with only 15% of
the school-age population enrolled.
Although the situation is improving, Angola still lacks
of qualified local human resources.
Sustained growth, with a moderate risk level, has led
to the formation of a new class of consumers. The
metropolitan area of Greater Luanda, Angola’s capi-
tal, is estimated to have more than five million inhab-
itants and is the hub of Angola’s growth. Its business
centre has led many enterprises to invest in the con-
struction of office buildings with over 40 sky-scrapers
being erected in the capital over the last five years.
Investment in public infrastructure has also been
substantial, with the construction of new roads, and
the reconstruction of Luanda’s harbour and airport.
According to data from the ECA International, Lu-
anda has been classed for the second consecutive
year as the most expensive city in the world for ex-
pats, ahead of Paris and London.
Investments in shopping centres reveal a growing
purchasing power and the consumer needs/trends
linked to leisure activities. Records show three new
shopping centres are being built in the next two
years. The government of Luanda has identified
these and other potential commercial centres of
varying dimensions as part of a strategic sector. An-
gola is currently implementing a vast programme of
reconstruction and investment in logistic and trans-
port for the distribution of essential products to its
population named PRESILD. It will seek to remodel
trade and commerce across the country in order to
increase the supply of essential goods for the popu-
lation, while at the same time, increasing the rate of
consumption of goods produced in Angola. This pro-
gramme forecasts the construction of infrastructure
for bulk and consumer trade.
To illustrate this point, it is worth highlighting the in-
vestment of international designer brands in this new
African market. The designer Fátima Lopes recently
became the first international designer to open a
shop in Angola.