After two decades of relative stability, Angola is at a crossroads

Politically, Angola is waking up to a new reality. The dominance of the MPLA, which has been ruling the country since its independence in 1975, is under pressure. In order to maintain stability and restore faith in the fledgling democracy, good governance is key. The government needs to implement profound macro-economic and politico-administrative reforms. In order to ensure support, policies must be beneficial to the entire population, especially women and youth. Economically, Angola and Europe are drawn closer together. Some European countries show a renewed interest in Angolan fossil fuels due to global shortages, yet the need to invest in renewable energy remains unabated. Angola is an option. Also, there is a growing awareness in Europe of the importance to phase out dependency on Russia and China regarding other minerals that are critical for our high-tech economies. This further enhances Angola’s appeal. In turn, Angola realizes that it urgently needs to diversify its oil-based economy. Currently, oil accounts for about half of the country’s GDP and 90% of exports. Oil output is projected to decline over time owing to maturing oilfields. In order to release its broad potential and make its economy
more resilient and future-proof, Angola looks to Europe for partnerships. Socially, Angola is one of the most unequal societies in the world. Nearly half of the population lives in poverty. Gender inequality is rampant and high birth rates have led to one of the world’s
youngest populations. Poverty mostly affects women and youth. In order to maintain stability, new generations need a future. This requires tackling poverty by education, health care, job creation and the promotion of sexual and reproductive health and rights.

The combination of opportunities and challenges calls for Dutch involvement

In order to structurally combat poverty and ensure Angola’s future stability, support of thegovernment policy of economic diversification is essential. It includes the improvement of Angola’s stifling business environment, the promotion of local entrepreneurship and support to fight corruption. For maximum impact, job creation should focus on women and youth. Angola’s economic diversification and energy transition agendas can benefit from Dutch knowledge and know-how. They also open up opportunities for Dutch companies, especially those active in agriculture, logistics and renewable energy. The long-standing relationship with the Netherlands, the strong reputation of Dutch institutes and companies, and the personal ties with our country of thousands of Angolans who applied for asylum around the turn of the century but have since
returned, are additional assets in fulfilling our business potential. Historically, Angola is close to Russia. After the end of the civil war China became the major partner. The IMF reforms during the recession, the prospect of economic diversification, and the
strategic importance of raw materials stimulate closer bonds with Europe and the EU. This offers the opportunity to work together to achieve economic and social progress.