Angola's Poverty: A Complex Reality

Angola is a country in southwestern Africa with a population of over 33 million people. It is a resource-rich country and the second-largest oil producer in sub-Saharan Africa, yet it struggles with high rates of poverty. Angola has a projected poverty rate of 12.4 million in 2024, with 33% of its population living on less than $2.15 per day. The country faces challenges such as food insecurity, inadequate access to clean water, limited educational opportunities, and insufficient infrastructure, which contribute to the high poverty rates. Angola's agricultural resources remain underutilized, and the country is vulnerable to the impacts of climate change, with cyclical droughts affecting food production and contributing to malnutrition.

Angola's poverty rate is projected to be 12.4 million in 2024

Angola, the second-largest oil producer in Sub-Saharan Africa, is facing a growing poverty problem. The country's poverty rate for 2024 is projected to be 12.4 million, with an estimated 33% of Angolans living on less than $2.15 per day. This projection is based on rising food prices and slowing economic growth in 2023. The issue of poverty in Angola is complex and multi-faceted, and it has been a persistent problem for the country. Over 15.1 million people in Angola lived in extreme poverty as of 2022, with this number expected to increase to 16.3 million by 2026.

To address this issue, the United Nations Sustainable Development Framework has offered support to Angola and the Central African region. The UN has developed a plan for 2024-2028 that focuses on key areas such as education, infrastructure, and healthcare. These sectors are crucial for the country's development and for reducing poverty.

One of the priorities for reducing poverty in Angola is education. Despite the sector's growing importance, there is a lack of resources in schools, which has led to families sending their children overseas for an education. Additionally, less than 1% of Angolans attend university in the country. To address this issue, the World Bank has pledged $150 million over 10 years to improve school governance, teacher training, and education courses.

Infrastructure development is another key priority. Currently, only a few areas in Angola have a good network of roads and transportation. The UN's 2024-2028 plan aims to develop rural roads and improve the overall infrastructure, which has been commended by the US Secretary of State, Antony Blinken.

Finally, medicine and healthcare access are also crucial for reducing poverty. According to Kenda, a volunteer worker in Angola, accessing medicine is difficult and expensive for locals, and drug shortages are common. While the Angolan pharmaceutical market is expected to grow, more investments are needed to keep up with the demand and reduce poverty.

Overall, Angola's projected poverty rate of 12.4 million in 2024 highlights the urgent need for improvements in education, infrastructure, and medicine. These sectors are key to reducing poverty and improving the lives of Angolans. With the support of the international community and organisations like the UN and the World Bank, there is hope that Angola can make significant progress in addressing these issues.

Angola's agricultural resources are underutilised, and the country is vulnerable to climate change

Angola's agricultural resources are underutilised, despite the country's potential for agricultural development. Angola has an estimated 58 million hectares of land available for agricultural use, including 35 million hectares of arable land. However, only about 15% of this arable land is currently cultivated, leaving much of the land untapped. This underutilisation has resulted from various factors, including the civil war during the 1990s, which disrupted agricultural exports and collapsed commercial agricultural production.

The country's agricultural sector primarily consists of subsistence farming, with crops such as cassava, corn, beans, potatoes, sweet potatoes, soy, bananas, coffee, rice, vegetables, and fruits. However, domestic agricultural production falls short of meeting local demand, leading to a significant amount of food imports. To address this issue, the Angolan government has implemented initiatives to diversify the economy and develop the agricultural sector. These initiatives include the National Development Plan for 2018-2022, which focuses on agricultural development to reduce dependence on imported food.

Additionally, Angola is vulnerable to the impacts of climate change, particularly water-related risks. The country experiences distinct rainy and dry seasons, with the rainy season lasting longer in the north than in the south. However, the Atlantic Ocean's Benguela Current reduces precipitation along the coast, making the region relatively arid. Angola's vulnerability to climate change has been exacerbated by population pressures, deforestation, and inadequate water supply. The country is currently facing its worst drought in 40 years, impacting the food security of 1.58 million people in the southern provinces.

To build resilience and adapt to climate change, the Angolan government has partnered with organisations like the World Bank and the French Agency for Development. These partnerships have resulted in projects such as the Angola Commercial Agriculture Project (PDAC) and the Smallholder Agricultural Transformation Project (PROTAF), which aim to increase agricultural productivity, market access, and climate resilience. The World Bank has also approved the Climate Resilience and Water Security Project (RECLIMA) to improve water supply and management in Angola.

54% of Angolans experience multidimensional poverty, with disparities between urban and rural areas

Angola has a population of approximately 31 million people. According to the Angola Multidimensional Poverty Index (A-MPI), 54% of Angolans experience multidimensional poverty, with stark disparities between urban and rural areas.

The A-MPI assesses the proportion of people living in poverty and the intensity of that poverty, taking into account various factors beyond income, such as access to safe water, nutrition, and education. The index is designed to help policymakers monitor and address poverty in the country effectively.

In urban areas, approximately one in three people (35%) experience multidimensional poverty, while in rural areas, this number rises to nine out of ten people (88%). Luanda, the capital city, has a multidimensional poverty rate of 23.7%, while in several provinces, including Bié, Cunene, and Huambo, the rate affects at least 70% of the population.

The disparities between urban and rural areas are evident in the specific deprivations faced by the communities. For example, in Moxico, a rural province, the main deprivations are related to the quality of life, such as lack of access to water, electricity, and fuel for cooking. In contrast, in Luanda, the primary deprivations are lack of civil registration, nutrition, and years of schooling.

Children under the age of 10 are the most vulnerable to multidimensional poverty, emphasizing the urgency of addressing this issue through targeted policies and interventions.

The disparities in multidimensional poverty between urban and rural areas in Angola can be attributed to various factors, including differences in economic opportunities, infrastructure, and access to social services. Rural areas often lag behind in terms of education, healthcare, and employment opportunities, contributing to higher rates of poverty. Additionally, social safety nets and social mobility may be more limited in rural settings, exacerbating the challenges faced by those living in poverty.

To address these disparities and reduce overall poverty, Angola has taken several initiatives. The development of the Municipal Multidimensional Poverty Index (M-MPI) by the National Institute of Statistics (INE) is a significant step forward, providing a detailed understanding of poverty at the municipal level. This index considers four dimensions: health, education, quality of housing, and employment, with 11 indicators selected through public consultations.

The M-MPI aims to identify the level of poverty in each municipality and group them into classifications to inform public budget distributions and policy development. By recognizing the unique challenges faced by different regions, Angola can work towards reducing disparities and improving the well-being of its citizens, both in urban and rural areas.

Angola's oil sector accounts for one-third of GDP, but the country faces high food inflation

Angola's oil sector is a key part of its economy, contributing to around 75% of the country's revenues. The country is the second-largest oil producer in Sub-Saharan Africa, with an estimated 9 billion barrels of proven crude oil reserves. However, despite its abundant oil resources, Angola faces significant economic challenges, including high poverty rates and food inflation.

In recent years, Angola has implemented a series of reforms to boost its oil sector, including transferring concessionaires' rights from the national oil company Sonangol to the National Agency for Petroleum, Gas and Biofuels (ANPG). These reforms aim to stimulate investment and improve the business environment. However, the oil sector continues to face barriers, including high operating costs, difficulties in securing financing, and a challenging business culture that relies heavily on connections and recommendations.

While the oil sector is a major contributor to Angola's economy, it is not enough to lift the country out of poverty. An estimated 33% of Angolans live below $2.15 a day, and the country faces issues such as scarcity of clean water, inadequate infrastructure, and lack of access to education and healthcare.

Food inflation is a significant issue in Angola, with rising food prices contributing to the projected poverty rate of 12.4 million in 2024. The country's dependence on oil exports leaves it vulnerable to global price shocks, and the capital-intensive nature of the oil industry has limited the creation of formal sector jobs. As a result, many Angolans continue to work in rural areas, relying on subsistence farming for their livelihood.

To reduce poverty and improve economic growth, Angola needs to diversify its economy beyond the oil sector. This includes improving infrastructure, education, and healthcare, as well as promoting inclusive growth that benefits all sectors of society. Additionally, addressing food inflation and improving food security are crucial for reducing poverty and ensuring the well-being of Angola's population.

Angola's drought has had severe impacts on vulnerable populations, eroding livelihoods and agricultural production

Angola is facing its most severe drought in 40 years, which has had a devastating impact on vulnerable populations, particularly in the southern provinces of the country. The drought has resulted in a severe food crisis, with crops and livestock being affected, and subsequently, livelihoods and agricultural production being eroded.

The drought has been exacerbated by below-average rainfall since 2018, with the 2020-2021 rainy season contributing to the worst drought in the country since 1981. This has had a detrimental effect on agriculture, which is a vital sector for Angola's economy. The southern provinces of Cunene, Huila, and Namibe have been the worst affected, with the drought impacting the food security of 1.58 million people in these regions.

The impact of the drought on agriculture and livelihoods has been significant. Smallholders in the south have struggled to plant their crops due to a lack of rain and the need to preserve seed stocks. As a result, yields are expected to be lower, leading to reduced income-generating opportunities during the harvest season. The drought has also disrupted the livestock sector, with transhumance, the migration of shepherds with cattle in search of water and pastures, becoming a common occurrence. The number of cattle deaths due to the drought has surpassed 26,000, further impacting the livelihoods of families who rely on livestock as their main source of wealth.

The drought has also disrupted education, with students missing school to help their families fetch water or tend to livestock. In the province of Cunene, 614 out of 887 primary schools have been affected by the drought, causing disruptions for 70% of the province's students. The lack of water and the resulting focus on survival have led to a decline in children's performance and energy levels, with some schools canceling physical education classes to avoid thirst.

The government of Angola has recognized the severity of the drought and its impact on vulnerable populations. In April 2024, the government announced a $200 million investment in hydraulic engineering works, including the construction of dams and water channels. Additionally, the government is working with the World Bank and other development partners to implement projects that address water security, agricultural productivity, and climate resilience.

The drought in Angola has severely impacted vulnerable populations, eroding their livelihoods and disrupting agricultural production. The government and international organizations are working to address the crisis and build resilience against future climate shocks. However, the recovery of the agricultural sector and the improvement of food security remain key challenges.

Frequently asked questions