Angola : towards an energy strategy by International Energy Agency

Strategy

By International Energy Agency

On the request of the Angolan govt in 2005, the IEA performed a survey of the Angolan power quarter and effort rules. This ensuing record on Angola specializes in components for precedence motion and hones in on strength subsectors more likely to play the biggest function in assembly family call for for contemporary strength prone: significantly electrical energy and oil items. As biomass at present performs a major position in assembly the bulk  Read more...

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5 Even after 1987, when the country abandoned central planning, embraced economic liberalisation and launched a series of anti-inflationary programmes, inflation remained stubbornly high. Price stabilisation was undermined by large fiscal imbalances, together with sizeable central bank operating deficits. In a context of buoyant world prices and rising extraction, oil revenues and expensive oilbacked loans from international commercial banks were used to finance permanent expenditure increases (such as a large army and civil service payroll, arms purchases 5.

There is no plan yet regarding how the eventual electricity market will look, including how independent generating companies, including possible new private entrants, would sell their power. Although Angola is a member of both the Southern African Power Pool (SAPP) and Energy Pool of Central Africa (PEAC), it currently does not have any interconnections with its neighbours, apart from isolated lines serving several towns on the country’s southern border with Namibia. MAIN ACTORS The main actors in the electricity sector are the following: ■ The Ministry of Energy and Water (Ministério da Energia e Águas – MINEA) is the government’s main policy-making institution in the electricity sector.

2 © OECD/IEA, 2006 Table 3 21/09/06 11:31:12 ECONOMIC CONTEXT - 37 Figure 6 Stock of total external debt (percentage of GNP) and debt service (percentage of exports) 700 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Debt/GNP Service/X Source: World Bank. The rest of the economy attracts very little FDI. Investors perceive the business climate as being very risky, even though special incentives and tax exemptions have been granted to make trade liberalisation less uniform across sectors.

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