ANGOLA. Novemberctober 19, 2001
Efforts are underway to diversify Angola’s economy, which is still heavily dependent on the oil and diamonds industries. The government is reorganizing the country along democratic lines, giving more power and funding to provincial governors to aid reconstruction after more than a quarter of a century of civil war.
Provinces

A healthy approach to reform
PROVINCE OF BENGO Health, water and energy are the main priorities, for which investment is urgently required

Mendes: investors
Mendes: investors

ecovery from the effects of civil war poses a major challenge for the government of Bengo, a province to the east of the Angolan capital, Luanda.
Provincial governor Isalino Mendes is quite open about the difficulties facing his government. “The number of refugees and homeless people in Bengo is very high, and they don’t have the financial resources to pay the price of basic products,” he says.
“Our social conditions are far from ideal since we still have many problems in several areas such as our infrastructure, hospitals and schools, which are in need of reconstruction and improvement.

Health priority
“We still have many children who are outside the education system,” he adds. “But at the moment our priority is the health of our population. Our hospitals are in a poor state and we lack qualified staff. In some municipalities there isn’t even a doctor and we lack basic medicines.” Bengo is one of the youngest provinces in Angola and was not created until 1980. Its late start, says Mr Mendes, is why it needs substantial investment in order to compete with other more established parts of Angola.
The province’s location, not far from Luanda, is both an advantage and a disadvantage. On the plus side it is a short distance from the capital, a market of some four million people, and also the site of the most important port in Angola.
There is, however, a downside to its proximity, as Mr Mendes points out: “Business executives prefer to invest in Luanda rather than here because of our problems with electricity supply.”
The provincial capital, Caxito, has only some diesel-fuelled power stations and the absence of sufficient power deters investors from setting up business. “Investors are interested but they’re waiting for a solution to the energy problem,” says Mr Mendes.

The war exacerbated Bengo’s difficulties. The Mabubas dam, which used to supply electricity to the province, was destroyed, although the government plans to rebuild it.
With three major rivers running across Bengo, water is considered one of its most important assets, which could be harnessed with the province’s rich soils to develop agriculture.

A dam is under construction at Kapanda. When complete, it will create 50,000 hectares of good farming land in an area once abandoned because it was constantly under floodwater. Similarly, another dam being built at Kiminha will provide a further 45,000 hectares of fertile land. Mr Mendes says investment is vital for the future. “We want to create in Bengo all the necessary conditions for foreign firms to invest, mainly in the areas of energy, water, reconstruction of infrastructure, commerce and industry because we can create employment with all these. The level of unemployment is very high in Bengo.”
The provincial government offers incentives to investors. “We facilitate the acquisition of land and in many cases we don’t charge for it,” says Mr Mendes. Equipment brought in by investors is also exempt from customs duties, providing it is deemed to contribute to Bengo’s development.

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