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Angola switches economic gear with AFC partnership

By , ITWeb
Angola , 27 Jul 2022

Investment covers all commodities, rail and power, with Angola having recently become Africa’s largest oil producer - but research shows digital readiness still low.

Angola, which recently became Africa’s largest oil producer, is seeking to add more value across the commodity exports spectrum by partnering with the Africa Finance Corporation (AFC) as a shareholder and its 35th member state.

The country’s Finance Minister Vera Daves said Angola’s natural resources is in high demand as Europe seeks alternative sources of fuel and foodstuff in the wake of the Ukraine-Russia crisis.

The partnership with AFC will help to drive the nation’s next growth and development phase, said Daves.

”Membership of AFC offers Angola a much-needed partnership with a highly rated African multilateral institution that can support our transition from a state-led and oil-funded economic model to a private sector-led growth model,” said Daves. ”We look forward to collaborating with AFC as we approach Angola’s next phase of growth and development.”

AFC is working with the government on a pipeline of further potential projects to the value of almost US$1-billion across several sectors including natural resources, transport and power.

AFC is assessing opportunities to support refinery plants that will boost local manufacturing, drive import substitution, and strengthen production networks, along with construction of a railway corridor that will improve exports in Angola’s sub-region.

Digital readiness

In February this year, ITWeb Africa reported that leading African economies that have struggled to improve their infrastructure, business conditions and overall competitiveness are generally performing better against other emerging markets in areas that measure their digital skills and sustainability.

This is according to the 2022 Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets compiled by analysis and logistics industry research firm Transport Intelligence (Ti).

Research shows that Angola is ranked in 48th position in terms of digital readiness, and 47th place in the overall Index.

Angola is the latest in AFC’s rapidly expanding footprint across Africa, having added 16 new member countries in the past four years. Other Southern African member states include Malawi, Namibia, Zambia and Zimbabwe.

With a mission of solving the continent’s infrastructure gap, AFC has invested over US$10-billion, “utilising its unique access to global capital markets to drive development, integrate regional economies and transform lives.”

“Angola’s membership and shareholder status enables AFC to continue to support the government in fostering the industrial transformation necessary to build a resilient and inclusive economy,” said Samaila Zubairu, AFC President and CEO. ”We look forward to growing our partnership with the government of Angola to serve not only in-country projects but across the Central and Southern Africa region.” 

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