Foreign Policy magazine has recently published an advertising supplement which I’ve found to be fairly factual amidst the odd tidbit of propaganda. I’ve decided to omit the portions I felt weren’t entirely factual, but include the majority of the piece, as I truly believe Angola will be a developing nation to watch, given the overwhelming presence of foreign investment from that of China, Germany, Portugal and Spain.

This year, the Angolan government will invest US$40 billion in reconstruction projects to realize President Eduardo dos Santos’ dream of turning his country in to “one vast building site”. Today, the President’s dream is moving ahead at full speed. From the highway network to railroads, from agriculture to commerce, the country is experiencing a rush in private investment and public works, the majority of which are anchored by foreign finance. 

In 2009, the Angolan government has an investment plan that pours some US$40 billion in to reconstruction projects. China will add another $2 billion to finance additional reconstruction projects. This will compensate for the drop in revenues that the country will likely suffer due to the fall in oil prices.

With this new support, provided through Eximbank, China’s total commitment to Angola will stand at US$6.5 billion. This is paid for with petroleum exports. Another US$2.9 billion has been made available through the China International Fund, making the country the largest financier of reconstruction projects in Angola.

Other countries that have supported Angola include Germany, Spain and Portugal. In March, German Chancellor Angela Merkel announced the creation of a US$1.7 billion credit line to finance German investments in Angola in areas such as energy, water, mining health, civil construction and professional training. Spain also made US$600 million available for reconstruction projects. As for Portugal,  the Caixa Geral de Depositos (CGD) - a government-owned bank-provided a line of credit of US$500 million that will finance public infrastructure projects in which Portuguese companies participate.

Investment is the order of the day throughout Angola. In agriculture, for example, public credit lines have been created for a sugarcane program and for the development of 25, 000 hectares in the provinces of Uige, Zaire and Bengo. In industry, the Portuguese company Unicer plans to open a mineral-watter bottling plant in Luanda. The ministry of public works is moving forward with the Luanda sanitation master plan and the construction of highways and parking facilities in the capital. The Luanda airport is also due to undergo repair and upgrading.

Angola’s high-flying optimism, however, is brought down to Earth a little by international organizations. The World Bank continues to warn that the country needs to reduce poverty and improve access to basic services while creating an environment favorable to domestic and foreign investment. International consulting company KPMG argues that Angola must reform its legal and regulatory system, creating a more transparent economy that is open to private investment. The Angolan government states it is aware of it’s problems, and has promised to alter laws, reduce bureaucracy and facilitate foreign investment.

A watchful eye an investor must take with Angola, as for integration purposes alone, one is entering a highly geopolitically competitive environment, where human rights and CSR are normative values in a hegemony of pursuit of economic capital.