What is the New Kwanza (AOA)?
Credit Ratings & Outlook
In the latest credit ratings from December 1970, Moody's gives Angola a Ba3 rating, with a stable outlook. Fitch has a stable outlook with a BB- rating. Finally, S&P last issued a BB- rating, with a stable outlook.
Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
Central Bank Rate
The current central bank interest rate is 10.25%. This is the same as 2011, which was 10.50%.
In 2010 the total GDP was $84,937,012,042 in US Dollars, while the per capita GDP was $4,451. It grew by 5.88% over the previous year.
Consumer Price Index
The latest consumer price index for 2010 is 186.23.
The current head of the government is President José Eduardo dos Santos, who is also the head of state (in an executive role).
The new Kwanza is the official currency used in Angola. Divided into 100 centimos, the Kwanza is denoted by AOA, as well as the informal abbreviation “Kzr.”
Before traveling to Angola, it is important to consider the restrictions that have been placed on the currency:
- All imported currency should be declared on arrival.
- The import of local currency is limited to 5,000 Kzr., while the export of local currency is prohibited.
- The import of foreign currency is unlimited (subject to declaration on arrival) and the export of foreign currency is limited to 5000 USD.
- Those traveling on return tickets purchased in Angola may export up to the equivalent of 5000 USD / year.
Sovereign Ratings for Angola
Angola is not rated.
What does it look like?
Angola’s president holds the majority of political power in the country. As a vital part of the executive branch, the president also works with the prime minister and Council of Ministers. The latter is composed of all government ministers and vice ministers and meets regularly to discuss policy issues. Governors of the 18 provinces of the nation are appointed by and serve the president.
Angola’s Constitutional Law of 1992 establishes the broad outlines of government structure and delineates the rights and duties of citizens. Based on Portuguese and customary law, the legal system is weak and fragmented. Courts operate, for example, in a mere 12 of 140+ municipalities.
The quarter century long civil war in Angola has left the economy in shambles in very visible ways. A generally accepted figure for war-affected people is 4 million, and daily conditions of life throughout the country represent the collapse of the nation’s administrative infrastructure and various social institutions. Hospitals are without medicines or basic equipment, schools are without books, and public employees often lack the basic supplies for their day-to-day work.
The president has announced the government’s intention to hold elections in 2006. These elections would be the first since 1992 and would serve to elect both a new president and a new National Assembly.
- Prominent Figures President: Jose Eduardo Dos Santos
- Foreign Minister: Fernando “Nando” da Piedade Dias Dos Santos
- Governor, National Bank of Angola: Amadeu Mauricio
Key Economic Factors Economic Overview
Due to warfare that has continued for nearly a quarter century, Angola’s economy lies in shambles. After the death of rebel leader Jonas Savimbi in 2002, a supposed peace was established; however, consequences from the conflict remain legitimate problems. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, adding up to almost half of the country’s GDP and even more than half of total exports. Angola has extremely rich natural resources, such as gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits. To make use of these, the country will need to continue reforming government policies and reduce corruption. While Angola made progress in further lowering inflation, from 325% in 2000 to about 106% in 2002, the government has failed to make sufficient progress on reforms recommended by the IMF such as increasing foreign exchange reserves and promoting greater transparency in government spending. Increased oil production supported 7% GDP growth in 2003 and 12% growth in 2004.
- Industries: Petroleum, diamonds, iron ore, phosphates, feldspar, bauxite, uranium, gold, cement, basic metal products, fish processing, food processing, brewing, tobacco products, sugar, textiles, and ship repair.
- Agricultural Products: Bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), tobacco, vegetables, plantains, livestock, forest products and fish.
- Export Commodities: Crude oil, diamonds, refined petroleum products, gas, coffee, sisal, fish and fish products, timber and cotton.
- Import Commodities: Machinery and electrical equipment, vehicles and spare parts, medicines, food, textiles, and military goods.
1 Angolan New Kwanza to:
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- Other Currencies Accepted:United States Dollar
- Currency Peg: No
- Black Market for Currency: Yes
- Currency Volatility: High
- Estimated GDP Per Capita: 2,100 USD (2004)
- Languages Spoken: Portuguese (official), Bantu, and other African languages