Angola recovery
Last reviewed: 04-09-2008
OIL AND DIAMOND-RICH COUNTRY SLOW TO REBUILD

A displaced person from the northern provinces waits for aid at Caxito camp outside Luanda, 1998.
REUTERS/Mike Hutchings
REUTERS/Mike Hutchings
Damaged infrastructure
Poor infrastructure is one of the key obstacles to Angola's economic recovery. Large parts of Angola are almost completely inaccessible - roads, bridges and railways are either mined, or have been washed away or destroyed during the war. This also hampers the delivery of humanitarian aid and basic health and education services. Government officials and aid agencies say they cannot reach many vulnerable communities because of transport problems. Many agencies have to move people and goods by air. Huge transport costs have pushed up the prices of basic commodities and medicines beyond the reach of many Angolans. Water and electricity supplies are also in a bad state, as pylons, dams and reservoirs were mined during the war. In 2005, the World Bank said Angola needed up to $30 billion over the next decade to rebuild its war-shattered infrastructure. The government has begun a major road, school and health-centre building programme, which is funded by a $2 billion loan from China secured against oil revenues. Some donors have been reluctant to give Angola aid because of allegations of large-scale corruption. It regularly comes close to the bottom of Transparency International's annual corruption index.
Landmine legacy

A landmine survivorlearns to walk with a prosthetic leg at an orthopaedic centre in Luanda, 1998.
REUTERS/Mike Hutchings
REUTERS/Mike Hutchings
Oil
Angola is Africa's second-largest oil producer after Nigeria. The government has pledged to make its oil sector more transparent since IMF investigators found evidence of widespread corruption in 2003, estimating that $1 billion a year went missing. Much of Angola's oil wealth lies in Cabinda, an Angolan enclave situated between Democratic Republic of Congo and Republic of Congo, where a decades-long separatist conflict is simmering. The Angolan government is raising major loans on the basis of its oil revenues. China has given the government massive loans against future oil revenues, with the money being used to help rebuild the country's infrastructure.
Diamonds
Angola is one of the world's largest diamond producers. During the war, rebel forces controlled many of the diamond mines and sold diamonds to buy arms. As a result the United Nations imposed sanctions on these "conflict diamonds". In a bid to clean up the industry after the war and crack down on smuggling, the government has expelled hundreds of thousands of illegal foreign miners since 2004. Amnesty International has reported severe human rights abuses carried out by police against suspected diamond smugglers. State diamond company Endiama has signed a series of deals with foreign investors, including De Beers. The diamond giant pulled out of Angola in 2001 over a dispute with the government and Endiama, but has since signed an agreement to prospect for diamonds in a 3,000 square km (1,160 square mile) concession area in northeastern Lunda Norte province. Despite the multi-million dollar earnings from diamond mining, many people living in the diamond-rich provinces of Lunda Norte and Lunda Sul still have no drinking water, electricity or roads, according to Partnership Africa Canada.
Agriculture in crisis
The majority of Angolans depend on agriculture. Before the war, Angola was a major exporter of coffee and maize. But agricultural production plummeted during the conflict, and now hundreds of thousands of people depend on food aid. Many people who were forced off the land for decades have lost their farming skills, the U.N. World Food Programme says. The soil, apart from being contaminated with landmines, has lost its productivity. And the country is prone to periodic flooding and drought, which put farmers at risk of losing everything. Commercial agriculture - including coffee - has not yet recovered and there is little incentive for farmers to move into cash crops because getting them to market is so difficult. Chickens, for example, are transported by air because using roads would take too long, cost too much and many would die.
Displaced people and returnees

A displaced Angolan builds a makeshift shelter at Caxito camp outside Luanda, 1998.
REUTERS/Mike Hutchings
REUTERS/Mike Hutchings
Health and education
Angola has some of the worst health statistics in the world, and one of the lowest life expectancies. Despite the country's oil and diamond riches, spending on health and education is nominal. A quarter of children die before the age of five, many of them killed by malaria, diarrhoea, respiratory diseases, measles, recurrent cholera epidemics and sleeping sickness. Many children are permanently stunted from lack of food, and health services barely extend into rural areas. In 2004 and 2005, an outbreak of the rare Marburg virus haemorrhagic fever killed 329 people, most in northern Uige Province. Access to education is minimal, with fewer than six in 10 children attending primary school. Illiteracy rates, as a result, are high.
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