As oil-rich Angola seeks to raise at least $2 billion from Western investors with its first international sovereign bond, the key question for investors is the extent to which the country can diversify its economy away from its dependence on crude.
For some underdeveloped economies, oil can be a curse rather than a blessing, as a lack of alternative economic opportunities often fuels discontent over the allocation of oil wealth.
In Angola, oil provides 90% of the country’s export revenue but employs less than 1% of the population. About 63% of the population still depends on agriculture for a livelihood, mostly subsistence farming. A 27-year civil war, which ended in 2002, devastated its agriculture industry, cutting access to seed and fertilizer and severing export routes to sell its products. Once the world’s fourth-biggest coffee exporter and self-sufficient in most crops, the country now is a net importer of food. More…………..