Petroleum giant Angola, a land of contrasts

Over 400,000 people live in an area of 40 square kilometers in Cazenga, a poor area in the west of the capital Luanda. There are no tarred roads and many houses lack electricity. Many politicians of the governing MPLA party come from this area. Yet none of them has managed to initiate a development or infrastructure program for Cazenga.

“MPLA is the party of the president! He has been trying to hand over power since the civil war, but the people still want him. So he continues.” This is how 27-year-old Euricleurival Vasco explains his 2012 vote for the MPLA. But critics says that Jose Eduardo dos Santos has not kept a single electoral promise up to now. An example is providing access to running water and electricity.

Around 40 percent of Angolans live off less than one US dollar (75 eurocents) a day. Many had hoped for more job opportunities and wealth from the oil boom. But little has changed and they live from hand to mouth. Many, like these biscuit vendors, work informally.

The oil riches have only reached Angola’s capital, Luanda. It is already one of the most expensive cities in the world. The rent for an apartment can cost US$5,000 (3,750 euros) or more. The wealth is especially visible in the Baia de Luanda, the city’s bay area. New skyscrapers are emerging all over the city.

Angola’s new parliamentary building is being constructed near the Baia de Luanda. The ruling MPLA party currently has 175 out of the 220 parliamentary seats. UNITA, the biggest opposition party, has 32 seats. The opposition parties often lament the MPLA’s strong grip on Angola’s political scenery.

President Jose Eduardo dos Santos gazes out from this campaign poster. Critics say he controls everything from the executive to the judiciary and legislative power. Dos Santo has ruled Angola for 33 years. He succeeded Agostinho Neto on September 20, 1979 as the president and party leader while the country was embroiled in a civil war.

Far from the capital, undiscovered landmines still litter the countryside. Such an area exists near the northern town of Soyo, even ten years after the civil war (1975-2002). A road network now exists between the various provincial towns. In 2002 it was almost impossible to cross the country by road.

Angola's wealth is not only in the form of oil reserves. Just off its coastline, natural gas is also being extracted. The first liquid natural gas (LNG) plant was built in the northern town of Soyo, but it is currently still undergoing tests. It is expected to produce 5.2 million tonnes of gas every year.

Angola is heavily dependent on its oil. In October 2012, the government started a natural oil fund to invest inside and outside the country. With this it hopes to protect itself from the volatile market prices. But oil reserves will only last for another 20 to 30 years. Experts see an alternative in the expansion of agriculture.

Advertisements for Chinese firms can often be seen in Angola. The Chinese are the largest expatriate community in the country, followed by euro-crisis driven Portuguese and the culturally close Brazilians. As Brazil cannot compete with the Chinese investors, it is focusing on technical training.

Angola’s government should “invest in its people and not in the tarmac,” says teacher Fernando Pinto Ndondi. He earns US$300 (225 euros) a month, with which he feeds his five children. Ndondi is officially homeless and lives in the suburb of Viana. His former house in Luanda was in the way of a governmental road project.

Angola ranks 168th out of 182 countries on Transparency International’s Corruption Index. The regime faces accusations of embezzlement of funds. What happened to the US$32 billion (24 billion euros), which the state-run oil company Sonangol earned between 2007 and 2010? It says that the money flowed into infrastructure projects. However, it remains unclear which projects these were.