Angola marks a decade of peace in 2012. This paper looks at various indicators to assess what results the peace dividend has delivered over the last decade in Angola and the new challenges it faces.
- Angola's economy is highly dependent on its oil production and oil prices. This dependence can be clearly seen in the ripples created by the international financial crisis in 2008: oil prices dropped dramatically and so did Angola's oil revenue, GDP, FDI and international reserves.
- While inflation has been reduced over the last 10 years, it remains in double digits for the foreseeable future and consumer prices are increasing. This has a particularly severe impact on Angola's poor.
- High GDP growth has contributed to increased human development for Angolans, but the rate of increase has lagged as easy gains are achieved and the developmental challenges become more complex and more difficult to achieve.
- Owing to growth in GDP since 2002 Angolan per capita health spending has increased dramatically. However, high mortality rates of infants and children under five years of age highlight the challenges that Angola still faces. Reducing these may be the greatest challenge for Angolan leaders.
- The Angolan business environment is overall very challenging, with corruption being the main barrier.