This summary was prepared by Whitehouse & Associates for the African Resource Network.
Angola has been wracked by four decades of war. The result of the extended conflict is that the economy, outside of the oil sector is virtually non-existent. Almost the entire infrastructure of the country will have to be rebuilt offering good opportunities to companies that are positioned to take advantage of this. In addition much of the industrial capacity of Angola has fallen into disrepair or has closed down due to the lack of local skill, a complete lack of spare parts and low local demand. In anticipation of an eventual rehabilitation of the economy, the government has embarked on a privatisation campaign and introduced legislation to spur an industrial revival. Despite the current bleak situation, Angola has more potential than any other country in southern Africa. It has abundant natural resources and, given peace and investment could be a powerhouse in southern Africa. Although it remains a traders market to some extent, South African companies would be wise to follow the situation carefully so that they are in a position to take advantage of opportunities once peace returns. Given the current situation with the war, this may not be too far off.
