Of Portuguese-speaking countries investors prefer Angola but donors choose Mozambique

24 July 2006

Lisbon, Portugal, 24 July – International investors have a preference for Angola, out of the Portuguese-speaking African countries, for their projects, but Mozambique is the country to receive most international aid, according to the latest report from the United Nations Development Program (UNDP).

In 2004, Angola attracted around one fifth of foreign direct investment (FDI) aimed at a group of 50 least developed countries analyzed ion the Program’s report, or around US$2.1 billion, of a total US$10.7 billion.

Angola, which has mainly benefited from investments in oil production, has lead this group of 50 countries since 2000 and in 2003 the FDI it attracted reached 30 percent of the total.

Mozambique, was the third main destination for development aid, having received US$1.286 billion in 2004.

In this table, Angola placed 12th, with US$531 million.

In terms of aid per capita Sao Tome and Principe placed first, with US$233 per inhabitant, according to the UNDP.

Angola and Mozambique were the only two countries in Portuguese-speaking Africa whose economies grew above average amongst the 50 countries assessed.

In 2004, the Angolan economy grew 11.2 percent, once again thanks to the oil sector, and Mozambique’s GDP grew by 7.8 percent.

Between 2000 and 2004, however, the Mozambican average (6.3 percent) is greater than Angola’s (5.1 percent).

Cape Verde, over the same four years, recorded annual average GDP growth of 2.3 percent and in 2004 was slightly below the average of the 50 least developed countries, with growth of 5.5 percent.

Sao Tome and Guinea Bissau were ranked in the middle of the table, respectively with 4.5 percent and 4.3 percent, but their average for the four years was negative.

East Timor posted a negative average of 5.7 percent since 2000, but in 2004 managed to grow by 1.8 percent. (macauhub)