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Angola Could Boost Southern Africa’s Economy

Angola Could Boost Southern Africa’s Economy

The Angolan economy can serve as an impetus for economic and social development in southern Africa, thanks to the potential and business opportunities that exist in the country, said EY Country Managing Partner Miguel Farinha last week.

According to the consultant’s representative in Portugal, Angola and Mozambique, Angola has the potential to generate a multiplier effect in neighbouring countries, through increased investment and trade.

As part of the second edition of the “Doing Business Angola” forum, which took place this week in Lisbon, Portugal, Mr Farinha said that the African country is currently one of the most important in the Southern African Development Community (SADC), with the second largest Gross Domestic Product (GDP) in the Southern Region.

He pointed out that the country recorded the highest GDP growth between 2000 and 2022 (+12%), was the second largest exporter, the fourth most populous and the third fastest growing in terms of employment (+3.3%) between 2000 and 2021.

Despite these indicators, Farinha said that the country still needs to diversify its economy, which is still very much based on oil.

He pointed to the agricultural sector as one of the examples of economic diversification, representing 8.6 per cent of GDP, with projections indicating that by 2050 this figure will stand at 14.1 per cent of Gross Domestic Product.

Meanwhile, Miguel Farinha stressed that “industry represents 6.7% in the country, and by 2050 it should reach 19.5%,” pointing out that Angola practically doesn’t export to neighbouring countries.

He also stressed that, despite the country’s strategic role in SADC and its commitment to developing infrastructure, there was still work to be done on rail and road links.

For the consultant, Angola’s infrastructure development plan has already been defined, but investment in the railway, road and agricultural sectors needs to be made by the private sector.

Alongside these actions, he said, Angola must continue to invest in the development of human capital.

The second edition of Doing Business Angola is organised by Forbes Lusophone Africa, and brought together diplomats, Portuguese and Angolan businesspeople from different branches of activity.

Source: Further Africa

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