Foreign Aid In Angola: Who's Helping?

Angola has received foreign aid from various countries and organisations, including the United States, China, Japan, and non-governmental organisations such as People in Need. The country's economy is dependent on foreign aid, particularly from the US, which has provided large-scale humanitarian and emergency assistance since 1989. In 2010, US aid to Angola totalled over $87 million, with a focus on health initiatives, such as malaria and HIV/AIDS prevention and control, as well as municipal development and agriculture. China has also offered significant investment, with a $9 billion loan provided in 2006 for infrastructure improvements in exchange for petroleum. Angola has faced significant challenges due to its history of civil war, resulting in damaged infrastructure and high levels of poverty, which foreign aid aims to address.

US foreign aid to Angola

Angola's economy is dependent on US foreign aid. The US has provided large-scale humanitarian aid and emergency assistance to Angola since 1989. In 1992, the United States Agency for International Development (USAID) began a relief and assistance program for Angola, hoping to prevent the region from falling back into civil conflict. However, the fighting continued, and aid was suspended until 1995 when the US resumed assistance with millions of dollars allocated for the rehabilitation of the agricultural sector and support for displaced children and orphans.

Since 1995, the US has provided over $1 billion in relief and development assistance to Angola through USAID. In 2006, the nature of programming shifted from humanitarian assistance to a full development agenda, focusing on agriculture, education, economic growth, health, democracy, and governance. USAID has supported sustainable economic development, improved food security, strengthened democratic governance, and addressed maternal and child health.

The US-Angola partnership has deepened in recent years, with increasing cooperation on shared objectives. The US has engaged in high-level engagements with Angola, including visits by senior officials such as Secretary of Defense Lloyd Austin and Secretary of State Antony Blinken. The US has also partnered with Angola on strategic economic corridors, such as the Lobito Corridor, to benefit local populations and integrate them into the global economy.

The US has supported Angola's efforts to reduce its debt vulnerabilities, improve its economy, and implement economic reforms. Additionally, the US has facilitated private sector deals worth billions of dollars and provided financing for critical infrastructure projects, such as the Sun Africa solar energy project and the Acrow Bridge prefabricated bridges project.

In the health sector, the US has provided significant support to Angola through decades of investment. The President's Emergency Plan for AIDS Relief (PEPFAR) has strengthened public health and laboratory systems, provided technical assistance, and tested and treated Angolans for HIV. The President's Malaria Initiative (PMI) has distributed bed nets and trained health workers to diagnose and treat malaria, contributing to a decrease in deaths in PMI-focused provinces. The US has also provided COVID-19 vaccine donations, enabling the vaccination of millions of Angolans.

Angola's relations with the Eastern Bloc

From 1975 to 1989, Angola was aligned with the Eastern Bloc, particularly the Soviet Union, Libya, and Cuba. During this period, Angola's relations with the Eastern Bloc were largely defined by the Cold War and the Angolan Civil War.

Angolan Civil War

The Angolan Civil War was a conflict between two former anti-colonial guerrilla movements: the communist People's Movement for the Liberation of Angola (MPLA) and the anti-communist National Union for the Total Independence of Angola (UNITA). The MPLA was supported by the Soviet Union and other Eastern Bloc countries, while the UNITA was backed by the US, South Africa, and China.

The Soviet Union provided significant military and financial support to the MPLA during the Civil War. Cuba was also a crucial ally, sending a large number of combat and support personnel to Angola. In addition, other Eastern Bloc countries like East Germany and Yugoslavia provided military aid and training to the MPLA.

Cold War Context

The Angolan Civil War was closely intertwined with the Cold War dynamics between the US and the Soviet Union, with both superpowers supporting opposing factions. The conflict in Angola was seen as a proxy war between the two powers, with Cuba and South Africa also heavily involved.

The Eastern Bloc's support for the MPLA was complicated by the close personal relationship between Cuban leader Fidel Castro and Angolan President Agostinho Neto. This relationship influenced the dynamics within the Eastern Bloc and may have contributed to tensions between Cuba and the Soviet Union during this period.

Post-Cold War Relations

After the end of the Cold War, Angola's relations with the Eastern Bloc underwent significant changes. In 1990, the Angolan government renounced Marxist-Leninism and adopted a pro-Western foreign policy. As a result, Angola's close ties with the Soviet Union and other Eastern Bloc countries diminished, and the country shifted its focus towards improving relations with Western nations.

In summary, Angola's relations with the Eastern Bloc were complex and evolved over time. During the Cold War, Angola's alignment with the Eastern Bloc was a key aspect of its foreign policy, shaped by the Civil War and Cold War dynamics. However, with the end of the Cold War and Angola's ideological shift, the country's relations with the Eastern Bloc countries underwent a transformation, leading to a focus on improving ties with Western nations.

The impact of Angola's civil war on foreign aid

The Angolan Civil War, which lasted from 1975 to 2002, had a significant impact on the country's foreign aid landscape. The conflict, which was a power struggle between two former anti-colonial guerrilla movements, the communist People's Movement for the Liberation of Angola (MPLA) and the anti-communist National Union for the Total Independence of Angola (UNITA), resulted in a high level of foreign military and political involvement.

During the Cold War, the Soviet Union and the United States backed opposing factions in Angola, with the Soviets supporting the MPLA and the Americans initially supporting the National Front for the Liberation of Angola (FNLA) and later the UNITA. This dynamic shaped the foreign aid landscape in Angola, as both superpowers sought to exert influence and advance their strategic interests.

The United States, which had been the primary source of military support for the UNITA during the civil war, found itself in a challenging position when the conflict ended in 2002. With the death of UNITA leader Jonas Savimbi and the dissolution of the rebel movement, the US lost a key ally in the region. As a result, there was a shift in US foreign aid priorities, with a focus on fostering democratic governance and post-war development in Angola.

In the immediate aftermath of the civil war, the US provided humanitarian aid and emergency assistance to Angola, addressing the country's pressing needs. This included support for agricultural rehabilitation, assistance to displaced children and orphans, and specific health interventions such as immunization campaigns and emergency feeding programs. The US Agency for International Development (USAID) played a crucial role in coordinating and delivering this aid.

However, the US-Angola relationship underwent a significant transformation in the following years. Recognizing the importance of Angola's vast natural resources, particularly oil, the US sought to strengthen economic ties and promote sustainable economic development in the country. This shift in focus can be seen in USAID's programming from 2006 onwards, which moved away from humanitarian assistance and towards a full development agenda, with a strong emphasis on agriculture, education, economic growth, health, and democracy.

In addition to the US, other foreign powers also played a role in Angola's post-civil war recovery. China, for example, offered a $9 billion loan for infrastructure improvements in exchange for petroleum resources. Japan contributed to demining efforts following the conflict, and Sweden provided humanitarian assistance to the MPLA in the mid-1970s.

Overall, the Angolan Civil War had a significant and lasting impact on the country's foreign aid landscape. The conflict attracted a high level of foreign involvement, and the subsequent peace process presented opportunities for foreign powers to engage in reconstruction and development efforts, shaping Angola's relationships with the international community for years to come.

The role of non-governmental organisations in Angola

Non-governmental organisations (NGOs) are critical players in modern society, often filling gaps that government bodies and private sectors cannot address effectively. They serve a wide range of functions, from advocating for social change to providing humanitarian assistance and promoting community development. In Angola, NGOs have played a significant role in the country's development and progress.

One of the key roles of NGOs in Angola is to provide humanitarian assistance. After the country's civil war ended in 2002, NGOs were among the first responders to offer aid and support to those affected by the conflict. They provided essential services such as food, shelter, and medical care to displaced individuals and communities striving to rebuild their lives. Additionally, NGOs have been instrumental in addressing specific issues and meeting basic needs. For example, the Angola Hunger Relief Project aims to address chronic hunger by establishing a pig farm to feed 300 people. Similarly, RISE International focuses on providing access to education for children in rural Angola by building primary schools.

NGOs in Angola also work towards empowering communities and fostering sustainable development. They achieve this by implementing projects that improve healthcare facilities, enhance employment opportunities, and promote economic growth. For instance, organisations like Homeless International work to provide housing for the homeless population in Angola. Furthermore, NGOs contribute to capacity building and education, which are essential for long-term community development. By offering educational opportunities to both children and adults, NGOs help reduce illiteracy rates and empower individuals with the skills necessary for societal participation.

Another crucial aspect of NGOs in Angola is their role in advocating for social change and influencing policies. They raise awareness about critical issues such as human rights, gender equality, and environmental protection. This advocacy work aligns with the United Nations' Sustainable Development Goals (SDGs), which aim to address global challenges like poverty, inequality, and climate change. By tailoring their projects to align with these goals, Angolan NGOs contribute to a global effort towards a more sustainable future.

The presence of NGOs in Angola is not limited to local organisations. There are approximately 194 UK-based NGOs working in the country, contributing to a total expenditure of £572.2 million across the 197 countries in which they operate. Additionally, the United States, through the U.S. Agency for International Development (USAID), has provided significant foreign aid to Angola, with a focus on democracy and governance, economic opportunity, and health. In 2010, U.S. Government assistance to Angola totalled more than $87 million, with initiatives like the Presidential Malaria Initiative (PMI) and the President's Emergency Program for AIDS Relief (PEPFAR) comprising a significant portion of the funding.

Angola's foreign aid as a recipient of Chinese investment

Angola has a history of receiving foreign aid, and in recent years, China has emerged as one of the country's key providers of investment and development assistance. This relationship has evolved over time, with China offering a range of economic and material support to Angola.

Historical Context

Angola's foreign relations have shifted since its independence. Initially aligned with the Eastern Bloc, including the Soviet Union, Libya, and Cuba, Angola's focus shifted towards improving ties with Western countries, particularly the United States, after the end of the Cold War. This realignment set the stage for the development of relations with China, which had supported nationalist movements during Angola's war of independence against Portugal.

Current Landscape of Chinese Investment

China has become a significant economic partner for Angola, with the latter being China's third-largest trading partner in Africa as of 2021. The relationship is based on an emerging trade dynamic, with Angola relying on Chinese investment and loans to support its economy, particularly in the oil sector. Angola is a key oil producer for China, and in 2006, it even briefly became China's top supplier of oil.

Chinese investment in Angola takes various forms, including infrastructure development, loans, and aid packages. In 2006, Chinese Prime Minister Wen Jiabao offered a $9 billion loan for infrastructure improvements in exchange for petroleum resources. This exchange of infrastructure for resources has been a hallmark of the relationship, with China investing in roads and hospitals while securing reduced-price oil from Angola.

In addition to infrastructure development, China has also provided financial support to Angola in the form of loans. Between 2000 and 2014, China loaned Angola $21.2 billion, mostly through resource-backed loans. These loans have been used for various development projects, including the rehabilitation of the Luanda railway and the construction of electricity distribution lines.

The COVID-19 pandemic provided another opportunity for Chinese investment in Angola. During this period, Chinese creditors provided a three-year moratorium on loan payments, and in 2024, the state-owned China Development Bank agreed to release $1.5 billion in loan collateral back to Angola to support its loan payments.

Impact and Implications

The influx of Chinese investment in Angola has had both positive and negative impacts. On the one hand, it has helped rebuild infrastructure and contributed to the country's economic development, particularly in the oil sector. On the other hand, there have been concerns about the quality of some Chinese-built infrastructure, with a hospital in Luanda being abandoned due to fears of collapse.

The nature of the relationship between Angola and China has also raised questions about potential neo-colonialism and the creation of a "debt trap." Angola owes a significant amount of its public foreign debt to China, and servicing this debt consumes a large portion of its annual budget. This dynamic has the potential to influence Angola's foreign policy decisions and its relationships with other countries, particularly the United States.

Future Prospects

The election of President João Lourenço in Angola has introduced a new dynamic to the relationship. Lourenço has expressed a desire to diversify the country's economy and reduce its dependence on China. However, Angola's continued reliance on foreign investment and the presence of Chinese companies operating in the country indicate that the relationship will remain significant in the coming years.

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