ORSB – ANGOLA COUNTRY STRATEGY PAPER 2011 - 2015
5.
The country has profound social and infrastructure handicaps that hinder
social development and economic growth. Despite steady progress in improving
social conditions since 2002, Angola still faces massive challenges to reduce poverty
and inequality. Generations were affected by decades of deprivation of access to basic
services such as education and health, as well as infrastructure vital for social
development and economic growth.
6.
The broad economic and development strategy pursued by the Government aims
to promote and accelerate growth and competitiveness through economic
diversification and poverty reduction. The recent financial crisis demonstrated that
despite the extensive financial resources to support this program, the main challenges
lie in the creation of a robust non-oil private sector that can yield the necessary fiscal
revenue for a sustainable fiscal balance, generate employment and increase population
wellbeing. In turn, the efficient use of these non-renewable resources demands
enhanced government capacity for effective public sector management and
accountability.
7.
The Bank’s previous strategy had limited success. The strategy targeted the
reduction of rural poverty, and the creation of an enabling environment for private
sector development. Even if these strategic pillars were pertinent, the absence of
national ownership, the lack of a coherent program to support the strategy, and the
overall weak portfolio performance resulted in an unsatisfactory outcome. Lack of
ownership was pinpointed as the major constraint. The design of this CSP placed a
strong emphasis on ownership, making full use of available country strategic
programs and project pipelines for its intervention. In the absence of aid coordination
mechanisms, the Bank seeks effective coordination with major development partners, in
particular the UNDP and the WB, which face similar difficulties in engaging the country.
8.
The CSP aligns the Bank Group’s corporate strategy with the
Government’s strategy that aims to achieve economic diversification through non-oil
private sector led growth which creates employment and promotes poverty reduction.
To this end, the CSP articulates the Bank’s engagement across two pillars: (i) Stimulus
to the competitiveness of the economy; and (ii) Support to Economic
Infrastructure Development.
9.
Specifically, the CSP program will seek in Pillar 1 to (i) Foster
entrepreneurship and develop SMEs, (ii) Support the GoA in planning and managing
the Public Investment Program (PIP), and (iii) Assist the government in strengthening its
capacity to develop, launch and manage public-private-partnership (PPP); In Pillar 2,
the CSP will (iv) Finance Infrastructure Development; and (v) Support Infrastructure
Maintenance.
10.
The strategy focuses on the use of ADB resources in Angola considered
now as an MIC country. The design of operations will accommodate a flexible use of
available financing instruments: (i) the ADB resources with a greater use of the private
sector window including public-private financing mix; (ii) the ADF-12 envelop for the
transition period; and (iii) the access to MIC grants and Trust Funds. Due to the recent
credit upgrade, the program will be revisited in 2013.
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