UN Office for the Coordination of Humanitarian Affairs

ANGOLA: Economic, political and social recovery is key, Annan

JOHANNESBURG, 11 February 2003 (IRIN) - Angola is firmly on a path to political, social and economic recovery following the end of one of the longest-running armed conflicts in Africa, UN Secretary-General Kofi Annan said in a new report to the Security Council.

The report on Monday, which covered the activities of the UN Mission in Angola (UNMA), highlighted important developments and provided recommendations for the future role of the UN in Angola.

Annan noted that "Angolans can live without fear of recurrent and devastating war" for the first time since independence from Portugal in 1975.

"As the country moves to fulfil its aspirations of nation-building, it is my sincere hope that the government will consolidate peace and national reconciliation in all parts of its national territory," Annan said.

The UN, with the support of the international community, had played a key role in the peace process and in providing much needed humanitarian assistance.

Angola's long civil war ended in April last year with the signing of a peace agreement shortly after the death of UNITA rebel leader Jonas Savimbi.

But decades of conflict have taken a toll on Angola's economy, infrastructure and the government's ability to provide for its people.

The UN 2003 Inter-Agency Consolidated Appeal for Angola noted that humanitarian agencies were still unable to reach 40 percent of the countryside due to damaged infrastructure, inadequate road networks and extensive landmine infestation.

Annan noted that, although UNMA had completed its political tasks, continued support for Angola was needed in human rights, mine action, the reintegration of ex-combatants, humanitarian assistance and economic recovery.

Meanwhile, the Angolan government has taken steps towards the country's economic recovery, announcing a series of measures on Monday including the reopening of foreign exchange bureaux and rules to make state financial transactions more transparent, news reports said.

Agence France-Presse (AFP) reported that Angola's bureaux de change closed down in the late 1990's partly because the government would not allow them to use unofficial rates of exchange.

They have now been authorised to use parallel market rates. The government also introduced rules on financial transactions by public bodies.

The new rules on public spending mean state bodies will now have to follow Central Bank procedures for all hard currency payments and foreign transfers and obtain authorisation from the finance ministry, AFP reported.

The government had earlier announced that it would give 15-year tax breaks to foreign and domestic private sector investors. A private investment bill says that capital investment of between US $50,000 and US $250,000 for the creation of small businesses, especially in areas of Angola that were hard-hit by the war, will be entirely exempt from customs duties, the web-based newsletter SouthScan reported.

In a bid to improve transportation links between Angola's different provinces, new vehicles to be used for transporting goods and passengers will benefit from a 100 percent import duty exemption, while duty for used vehicles earmarked for the same purpose will be cut by 50 percent.

According to SouthScan the cabinet also voted to set up an agency for private investment, attached to the president's office and in charge of studying applications by investors and encouraging private sector investment.

Angola is an oil and diamond rich country, and activists have long campaigned for more fiscal transparency.

Late last year the advocacy group Global Witness and the International Monetary Fund both alleged that nearly US $1 billion had gone missing from state coffers every year for the past five years. The figure represented about one-third of state income.

World Bank figures put the country's gross domestic product (GDP) at close to US $9 billion, yet Angola ranks a low 161 out of 173 countries on the Human Development Index of 2002.

There has been increasing pressure on the government to take greater responsibility for the welfare of its people. Also last year, a Refugees International report titled 'Poor People in a Rich Government's Country' questioned whether the international community cared more about Angolan people than the government.

Meanwhile, Annan said that reaching a national consensus on a date for the forthcoming general elections would be an important step towards moving Angola's peace process forward.

In an effort to continue UN support in Angola, Annan has requested that his Special Representative, Ibrahim Gambari, consult with the government and other national and international stakeholders to determine the UN's involvement.

Military

ANGOLA: Economic, political and social recovery is key, Annan