The government of Angola has spent more than US$120 billion on the execution of public works between 2002, at end of the civil war, and 2016, said on Wednesday in Luanda the director of the Centre for Scientific Studies and Research (CEIC) at the Catholic University of Angola.
Economist Alves da Rocha acknowledged that this period corresponded to high Gross Domestic Product (GDP) growth rates but added that from the moment the price of oil broke the momentum, “economic growth no longer has the same characteristics,” according to Portuguese news agency Lusa.
Alves da Rocha said that the high level of public investment for nearly 15 years was not reflected in the productivity of the companies, which continue to see their competitiveness affected, especially in relation to imported products despite the restrictions recently introduced in the customs tariff.
The “2016 Energy in Angola Report,” prepared by the CEIC and published on Wednesday, also shows how the decrease in oil revenues affected the national economy, growth and the possible “degradation of household consumption” and the “substantial reduction or even closure” of companies.
The document said that over US$8 billion had been invested in the electricity sector alone over the past few years, adding that the sector, which had a 1.2% share of GDP in 2012, fell to 0.2 % in 2015, or the equivalent of US$204 million.
At the end of 2015 Angola had an installed capacity of 2,354 megawatts, less than half of the country’s consumption, with 916 megawatts produced from hydroelectric plants and 1,428 megawatts produced in thermal power plants. (macauhub)