Angola and Mozambique lead Africa’s economic growth – OECD

20 October 2006

Lisbon, Portugal, 20 Oct – Angola was the African oil producing country to post greatest growth in 2005, while Mozambique posted the greatest growth amongst non-producers, according to a report from the Organization for Economic Cooperation and Development (OECD), published Thursday.

The report entitled “African Economic Outlook 2005-2006,” drawn up by the OECD together with the African Development Bank (ADB), said that real gross domestic product (GDP) growth in Angola grew 15.5 percent in 2005, with projected growth of 26 percent this year and 20 percent in 2007.

Oil exploration, which represents over 50 percent of Angola’s GDP has few links with the rest of the economy, but leads to many opportunities in the construction sector and the “as yet incipient” services sector, the OECD said.

Angola may also benefit from the external climate, particularly high oil prices, to move ahead in the Millennium Development Goals, but the OECD warned that this would, “imply improvements in transparency and planning of development in the long term, as well as the business climate.”

The document said that despite the economic growth registered in Africa it is far from achieving Millennium Development Goals set by the United Nations in 2000, the main goal being reducing poverty by half by 2015.

Amongst non-oil producing countries Mozambique was the country with greatest growth, of 7.7 percent last year, with a forecast of 7.9 percent for this year and 7.3 percent for 2007.

According to the report, which analyzed 30 African countries and the Portuguese version of which was presented in Lisbon, economic activity in Africa increased by around 5 percent in 2005, and is forecast to grow 5.8 percent this year and 5.5 percent in 2007, although oil producing countries posted much greater growth than the other countries.

The 30 countries analyzed in the report represent 86 percent of the African population and 90 percent of the continent’s economic activity. (macauhub)