Angola

B

Mining

Angola has some of the richest mineral resources in Africa. Fuels accounted for 94.8 per cent of national exports by value in 1991. Most petroleum production is from the fields off Cabinda, which were first worked in the 1960s. The total annual output of crude petroleum in 2004 was 330 million barrels per year. Diamonds remain the second most important mineral despite falling from an annual output of 2.60 million carats in 1995 to about 5.40 million carats in 2004. Iron ore, formerly the third most important mineral, has not been produced commercially since 1975 because the mines were destroyed at the start of the civil war. Production of salt and natural gas has continued, despite the disruption of the war.

C

Manufacturing

The development of the industrial sector has been limited and suffered decline in the early 1990s. The principal manufactured products are refined petroleum from Cabinda and Luanda, beverages, and processed foods, such as refined sugar, fishmeal, flour, and beer. Other products include textiles, cement, glass, and chemicals.

D

Energy

Angola has great hydroelectric potential in the numerous rivers that descend from the central plateau. Hydroelectric plants have been built on the Cuanza, Cunene, Dande, and Catumbela rivers. The total production of electricity in 2003 was 1.9 billion kWh, of which some 66.41 per cent was generated at hydroelectric plants. At present Angola’s power production exceeds its needs.

E

Currency and Banking

The basic unit of currency is the new kwanza, which replaced the kwanza in 1990. The latter replaced the Angolan escudo in 1977 and was subject to frequent devaluations. After a re-denomination in January 2000, in which the monetary unit was divided by a factor of a million, 75.16 new kwanza equalled US$1 (early 2008). The National Bank of Angola is the central bank and bank of issue, and functions as the state treasury. Commercial and foreign banks were nationalized in 1975. Inflation ran at a staggering 3,660 per cent in 1995.

F

Commerce and Trade

In 2000 imports totalled US$2,351 million and exports US$6,646 million. The chief imports were textiles, foodstuffs, heavy machinery, and iron and steel. Fuels, especially petroleum, account for most of the value of exports (94.8 per cent in 1991), which have traditionally included coffee, diamonds, sisal, fish, and palm oil. Since Angola’s independence, Portugal has been replaced as the country’s leading trading partner by the United States, Cuba, Brazil, and the republics of the former Union of Soviet Socialist Republics (USSR).