Angola suffers many of the problems that come with being a post-conflict and oil-rich country. Having only been at peace since 2002, when its destructive civil war ended, its infrastructure is still weak. With many of its adults having barely had an education, its businesses struggle to find skilled workers. And while oil has propelled the economy from being a basket case 12 years ago to the fifth largest in Africa today, it has left the country with huge inequality and done little to reduce joblessness.
Angola’s fragility was revealed when oil prices crashed in the second half of 2008. The country’s economic growth plummeted from more than 10% that year to just 2% in 2009. The current account swung from a surplus of 8.5% of gross domestic product (GDP) to a deficit of 10%, while the kwanza depreciated heavily. The government’s arrears to contractors soared to more than $8bn.
