Country Report Angola December 2008

Summary

The ruling party, Movimento Popular de Libertacao de Angola (MPLA), has cemented its political hegemony by winning a resounding victory in the legislative election on September 5th-6th, securing 81.6% of the national vote.
The Angolan president, Jose Eduardo dos Santos, is anticipated to stand as the MPLA's candidate in the presidential election, which is expected to take place in mid-2009, to be followed by mooted municipal elections in late 2009.
The main opposition party, Uniao Nacional para a Independencia Total de Angola (UNITA), will struggle to redefine itself after securing just 10.4% of the national vote in the legislative election.
With oil production expected to continue to rise, strong real GDP growth is set to be maintained over the forecast period, averaging 8.2% in 2009 and 8.6% in2010.
Sustained high government spending and buoyant domestic demand will keep inflation high, at an average of 11.8% in 2009 and 10.5% in 2010.
The ongoing rise in oil exports is forecast to keep the current account heavily in surplus, although falling international oil prices will reduce it to 12.4% of GDP in 2009, before rising again to 18.1% of GDP in 2010.

Following its heavy defeat in the legislative election, UNITA has demanded changes to the electoral process, which it claims was plagued by irregularities.
The president has announced that the government will introduce a new constitution in 2009, ahead of the presidential election.
The government has denied reports that Angolan troops have once more intervened in the Democratic Republic of Congo to support the president, Joseph Kabila, against rebel forces in the eastern Kivu province.
The National Assembly has approved the 2009 budget, which proposes increasing expenditure to Kz3.18trn (US$42bn), although it is based on a lower reference price for oil of US$55/barrel.
Mrdos Santos has announced the creation of an Angolan sovereign wealth fund, Fundo Soberano Angolano (FSA), which will invest financial surpluses resulting from oil windfalls overseas.
Angola has implemented its OPEC output cut of 99,000 barrels/day, reducing production from 2m b/d to 1.9m b/d.
Work has started on the site of Angola's liquefied natural gas (LNG) plant, where project costs have ballooned to an estimated US$8bn, owing to rising costs for dredging, hydraulic levelling and construction materials.

Source: Country Report

This report covers the following industry codes:
SIC Code: 59;10;15;39
NAICS Code: 44;212;23;31