Since resuming operations in the country in 2001, at the end of civil war, the Bank Group has regularly provided diversified support to Angola’s development efforts characterized by the following sector distribution: agriculture, rural development and environment (49%); social, including health and education (27%); water and sanitation (16%); and multi-sector (8%). To date, the AfDB Group has provided eight loans valued at a total of US $122.4 billion. The portfolio performance is weak, and there is a Country Portfolio Improvement Plan in place to guide on dialogue with the Government of Angola (GoA).
However, AfDB has also been committed to a non-lending program that has resulted in economic and social work (ESW) on topics ranging from gender, education, private sector development, microfinance.
In order to speed up poverty reduction efforts, the Angolan authorities have developed a new vision for the country for 2011–2015 based on a few strategic documents: (a) the long-term vision document entitled Angola Visão 2025; (b) the MPLA’s election program 2009-2012; (c) the Government’s National Biannual Plan for 2010–2011. The goals of this plan include:
- promotion and acceleration of growth and competitiveness through economic diversification;
- poverty reduction through human capital development and targeted interventions, specifically through private sector job creation;
- balanced growth and harmonized development alongside natural resource protection;
- efficiency and accountability in public policies management, with emphasis on institutional strengthening and human capacity development.
The Bank prepared a new Country Strategy Paper (2011-2015) with a new strategy, aligned to the Government of Angola development priorities, focused on achieving the following pillars: (i) stimulus to the competitiveness of the economy; and (ii) support to the economic infrastructure development.
Angola’s graduation to Middle Income Country (MIC) – category C borrower – will inaugurate a completely new phase of its partnership with Bank, with a 460% increase in its prospective portfolio. This will allow the Bank to partner with government in large-scale infrastructure projects which will represent 87.5% of the portfolio. The new strategy will mark also the beginning of private sector operations in the country, with an US $156 million project identified in the financial sector. In addition to the new projects, the Bank has plans to develop reports on regional integration and its impact on economic diversification, and financial intermediation and medium-term development funding in Angola.