Gem recovery raises prospects for growth
PROVINCE OF LUNDA NORTE The government seeks to extend the prosperity created by mining with the provincial population now that things are stabilizing

Maiato: satisfactory

he Angolan military’s success in driving out the rebel forces of Unita leader Jonas Savimbi has led to the recovery of several diamond mining areas in Lunda Norte.
The province is one of the country’s most important diamond-producing regions. But while Lunda Norte’s substantial diamond reserves give it great economic potential in times of peace, they also make it a key military objective in times of war.
At one stage, only four of the nine municipalities in the province were under government control, according to Lunda Norte governor Manuel Francisco Gomes Maiato.

Five diamond-rich areas were occupied by Unita and beyond the reach of the authorities, severely curtailing government revenues from the industry.
“A few years ago, the diamond sector was almost inactive and didn’t contribute much to the general budget of the state,” says the governor. “These days, production has increased with satisfactory results.”
The conflict prevented the government from investing in infrastructure. In effect, this has meant that the prosperity created by the diamond-mining industry has yet to reach much of the provincial population.
“Lunda Norte still does not have social and economic infrastructure because in the past the province served for diamond exploration only,” says Mr Maiato.

His government has set about trying to correct this legacy from the days when the province was effectively the private fiefdom of the diamond mining companies. “This province needs infrastructure because the social conditions are very poor,” he says.

The central hospital in the provincial capital, Dundo, had to be rebuilt. The war also impinged on education and schools were only built in the relative safety of urban zones. In the hope that the fighting is now finally over, the government plans to construct new schools in rural areas.
As ever, the key to economic growth and social progress is the diamond industry. “The sector will play a very important role because the more production we have, the greater the contribution we will be able to make to the general budget of the state,” says Mr Maiato.
The province receives 10 per cent of the taxes paid and other revenues raised from the diamond industry.
“Our province depends on the general budget – the bigger the contribution we make to the budget, the bigger our share will be. With these funds we will be able to execute several social and economic projects in Lunda Norte,” says Mr Maiato.

The other issue is illegal diamond mining. Tackling this problem is no easy task, given that Lunda Norte extends over an area of 104,000 sq km, making it one of the biggest provinces in the country. “It is difficult to control the illegal miners throughout the entire province,” the governor says.
The government is trying to encourage the unlicensed miners, known as ‘garimpeiros’, to join a legal company, and Mr Maiato claims the policy is having some success. “The illegal miners in Lunda Norte are disappearing step by step because of the measures we are implementing to legalize their activities.”

Self-sufficiency
While diamonds are undoubtedly the centerpiece of the economy, Lunda Norte also has potential in agriculture and cattle raising. “Lunda Norte is the province with most rivers in Angola, and it rains for nine months every year, which means we have very fertile soil for cultivating all sorts of products,” he says.
The government intends to promote farming, not only to make the province self-sufficient in food supply but also to diversify the economy. “At this time we want to promote agriculture because we think that we can’t develop the province if it is dependent only on the diamond sector,” says Mr Maiato.
Rehabilitating agriculture in Lunda Norte and diversifying the economy will require substantial investment, much of it from the private sector. “All national and foreign investment is welcome,” the governor says.
“We think foreign investment is important because it brings in know-how, which we need very much. We are counting on foreign and national investors who want to invest in the diamond sector as well as in other fundamental sectors such as agriculture,” the governor adds.