Angola needs US$600 billion to reduce its dependence on oil

21 September 2009

Luanda, Angola, 21 Sept – Angola needs to invest up to US$600 billion, over the next 15 years, to reduce its dependence on oil, the director of the Research Centre of the Angolan Catholic University sais in Luanda.

“If, by 2025, we want to have a transitional industrial economy transformed into a services industry, in which manufacturing represents 30 percent of gross domestic product (GDP) and the services sector 25 percent, it will be necessary to invest between US$400 and uS$600 billion,” said Alves da Rocha during a talk on “Effects of the Financial Crisis on the Angolan Economy.”

The economist said he believed it was a challenge as it involved not only investment in infrastructures, but also qualification of human resources, a rise in public administration capacity to manage, coordinate and guide the process of diversifying the economy.

The guarantee that these targets will be met is based on the fact that, following the end of the civil war in 2002, Angolans now have the necessary conditions to make efforts for sustained development.

However, it is important to ensure public and private investment and to train human resources, the economist noted.

“There is no other alternative, because oil is coming to an end. We are going into the era of more expensive oil, which will have terrible consequences on the world economy, “ he said.

Alves da Rocha noted that, if Angola did find have new oil fields, the current reserves of 13.5 billion barrels would be enough for an exploration period of 20 or 22 years, and thus, he said, oil revenues needed to be well applied, in order to drive the diversification of the economy. (macauhub)