Angola accumulated US$5.4 billion in foreign currency in 2006

5 June 2007

Luanda, Angola, 5 June – Angola accumulated US$5.4 billion in foreign currency in 2006 and was one of the country’s that contributed most to increase reserves and investment in sub-Saharan Africa according to a report from the World Bank cited Monday by newspaper Jornal de Angola.

The Development Finance report for 2006 showed that foreign currency reserves in the region rose by US$33 billion with the greatest contributions from Nigeria (US$5.9 billion) and Angola and South Africa, with US$4.5 billion each.

Angola and Nigeria, along with the group of oil producing countries, are the “main beneficiaries” of a strong rise in foreign direct investment (FDI), of around 43.5 percent in relation to the previous year, to US$18.5 billion, said the World Bank.

“Investment has been channelled mainly to countries rich in resources and for extraction and services related to this activity, in which cross-border mergers and acquisitions rose three-fold in the first half of 2006,” it said.

The flow of private capital to the region also reached a record of US$39.8 billion, or 5.6 percent of GDP, a quarter more than in 2005, but as a proportion of the world total it remained at 7 percent.

In terms of public support for development of Sub-Saharan African nations, 2006 saw a contraction, after a record high of US$13.2 billion in 2005, and Mozambique and Guinea Bissau are currently amongst the countries that are most reliant on outside funding. (macauhub)