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One of the conditions for the consolidation of the Peace Process and the political stabilization (in Angola) is to present incentives that produce economic and social development necessary that will guarantee the creation of jobs and meet basis human necessities to a population ravaged by war. In that context, we have decided to adopt an economic policy addressing free system enterprise, private initiative, inflation control, the reduction of the budget deficit and the revitalization of the productive national fabric through an economic growth stimulus. In order to attract (and retain) foreign investment we have been improving on the applicable legislation, minimizing bureaucratic impediments while addressing measures that will guarantee the protection of investments and ensure the transfer of dividends abroad. On the other hand, our government intends to prioritize the implementation of special incentives on fiscal and customs duties, and define other legal means capable of guaranteeing greater transparency and instill further confidence in the foreign investor. His Excellency Jose Eduardo dos Santos
The President of the Republic of Angola
ECONOMIC AND SOCIAL EVOLUTION
During recent years the low rate of the GDP growth (based on formal sector statistics) has been due essentially to bad agricultural harvests and weak industrial performance. Agriculture has been highly affected by the social and political environment. Other constraints, imposed by the incipient macroeconomic environment, such as high inflation and interest rates, exchange rate fluctuations registered during the last year and the problem of internal debt, have also affected the economy’s structural sectors, such as industry, building and production of other goods and services.
The economy is still deeply dependent on the oil sector. The problem is that no more than 1% of the nation’s workforce is employed in the oil business. So it is imperative that the other sectors improve their importance in the productive structure, providing new jobs, increasing and diversifying the internal market and international exports. The implementation of proper policies is necessary for the development of industry, agriculture, building and services so that the actual GDP structure can be characterised by a major diversification and significant increase in domestic production.
But in terms of orientation and adequacy on economic policies, an important development has been registered. Take, for instance, the measures implemented in the monetary-exchange and tax fields and further developments supported by the International Monetary Fund (IMF) and World Bank (WB), such as the Program of Humanitarian Help for the War Displaced and the initial implementation of the Public Investments Program. Meanwhile, the Government continues its policies of economic reform.
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