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Why Angola Needs To Lessen Dependence On Oil

Why Angola Needs To Lessen Dependence On Oil

From Macauhub

Angola is on course to become the largest oil producer in sub-Saharan Africa, but this status comes with a greater urgency to diversify the economy and to boost the importance of the non-oil sector.

Seconding the recent forecast from the International Energy Agency (IEA), the Economist Intelligence Unit (EIU) expects Angola to become the largest oil producer in sub-Saharan Africa in 2016, overtaking Nigeria, which will allow the authorities to take advantage in terms of revenue, but also of “regional and global importance.”

However, the EIU said in its latest report on Angola, oil production will begin to decline in 2020 due to depletion of reserves, “underscoring the importance of the authorities making faster progress in their efforts to diversify the economy.”

According to the Angolan government, the weight of oil production in Gross Domestic Product (GDP) has declined in the last five years, from 60-65 percent to 41-43 percent, reflecting the higher contribution of the other sectors.

Estimated Angolan oil production in 2020 is 2 million barrels a day, retreating sharply to 1.4 million barrels in 2040.

Recently, Finance Minister, Armando Manuel hinted that the long pursued oil production target – 2 million barrels – should be achieved two years later than planned, only in 2017.

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