Tag Archives: oil wealth

Nigeria emerges as Africa’s largest economy


Earlier this month, Nigeria ‘recalibrated’ the way it calculates its gross domestic product to more effectively capture the real value of its economy.nigeria_flag_icon

It’s a step that many countries in sub-Saharan Africa are taking — including Ghana in 2010 and Kenya this year — as they refine the tools they use to measure GDP growth. Nigeria, for example, hadn’t recalculated its base since 1990. Perplexingly, e-commerce, telecommunications and the country’s growing film industry (‘Nollywood’) hadn’t previously been captured.

Not surprisingly, the recalibration caused Nigeria’s official GDP to leap by nearly 75% to around $510 billion, making it Africa’s largest economy. That shouldn’t come a surprise to anyone, in light of predictions that Nigeria would overtake South Africa sometime by the end of the decade. Nigeria is the epitome of the newly emerging Africa. Lagos, its sprawling port, is now Africa’s largest city, recently surpassing Cairo. Its population, already Africa’s largest at 173.6 million, could surpass the US population within the next three decades or so.

But Nigeria’s newfound status is more the beginning of a journey than its terminus, a journey that will become especially pertinent to global affairs throughout the 21st century as Nigeria’s impact begins to rival that of China’s or India’s.

But today, Nigeria’s GDP per capita, even after the rebasing, is just around $3,000. That’s less than one-half the level of GDP per capita in South Africa, which is around $6,600. Though the stakes of Nigeria’s relative success or failure will become increasingly important to the rest of sub-Saharan Africa and to global emerging markets in the years ahead, there’s no guarantee that Nigeria, 54 years after its independence, won’t succumb to state failure.

Nigeria spent its first decade stuck in a tripartite ethnic struggle that ended in a devastating civil war, followed by bouts of military rule from which it emerged imperfectly in 1999. Lingering security challenges, like those posed by Boko Haram, a Muslim insurgency from Nigeria’s northeast, continue to expose the country’s ethnic tensions and the religious and socioeconomic gap between the relatively prosperous Christian south and the relatively underdeveloped Muslim north. Incipient political institutions plagued by a culture of corruption for decades, with less than fully formed democratic norms, could easily erase the stability gains made since the 1999 return to democracy. Although oil wealth has since the 1960s given Nigeria a financial means to solve its lengthy list of developmental, educational, and environmental problems, the mismanagement of oil revenues have so far transformed the wealth into a classic resources curse.

Existential challenges

Ethnic Groups in Nigeria

Even before independence, British colonial rule divided what is today’s Nigeria into a Northern Protectorate and a Southern Protectorate, and the two parts of today’s Nigeria were governed, nearly until 1960, as discrete units. Continue reading Nigeria emerges as Africa’s largest economy

It’s election week in Angola (but don’t expect a real election)

So Angola goes to the polls this week, and José Eduardo dos Santos, Angola’s president since 1979 (pictured above), will overwhelmingly be reelected, notwithstanding the rumblings of dissent among the young, the poor and the unemployed.

The expectations are that Friday’s election will not be free and fair, as I’ve noted in the past.

But a semi-authoritarian regime with sham elections is a vast improvement on decades of civil war.  So Angola’s making progress, in that in the past decade, the country has pulled definitively out of a 30-year civil war, which began almost immediately after its independence in 1975.  A ceasefire declared in 2002 has held, and the country will have “elections” now for the second time since fighting ended.

An oil boom, too, has boosted the Angolan economy — the country recorded some of the world’s highest GDP growth rates in the past decade, including growth over 20% from 2005 to 2007, and it’s thought to be China’s largest oil supplier.  A drop in oil prices slowed Angola’s growth, but the country is expected to grow at around 10% in 2012 — oil production accounts for nearly 45% of the country’s GDP.

That’s where the good news ends.

Around 40% of the country’s 18.5 million citizens remains mired in poverty, and that fact, and the country’s stark rich-poor divide, has been the central issue in the campaigning leading up to the Angolan election.

Political parties in Angola still correspond to the two major groups that contested the civil war.

Dos Santos’s Movimento Popular de Libertação de Angola – Partido do Trabalho (MPLA or the People’s Movement for the Liberation of Angola – Labour Party) currently controls 191 of the 220 seats in Angola’s Assembleia Nacional.

The main opposition party is the União Nacional para a Independência Total de Angola (UNITA or the National Union for the Total Independence of Angola).  Although the MLPA is dominated by the northern Ambundu ethnic group and UNITA by the more southern Ovimbundu group, ethnicity does not play an especially huge role in Angolan politics, nor do standard measures of political ideology.

Isaias Samakuva, UNITA’s leader, has called for the election to be postponed in order to ensure a fairer process, and UNITA has accused dos Santos’s regime of widespread interference in the election process and rigging the vote through the use of state funds and through the control of the state media.  Continue reading It’s election week in Angola (but don’t expect a real election)

Dim hope for free and fair elections under dos Santos in oil-boom Angola


Angola is booming these days — and its capital Luanda, in particular (pictured, above), is booming, flush from the diamonds-and-oil wealth of a country that’s entering just its second decade of peace following independence in 1975 and a civil war that divided the lusophone southern African country of 18.5 million for the ensuing three decades.

For most Angolans, however, around 40% of whom still live in poverty, the benefits of one of the world’s best performing economies of the past decade have still not trickled down.  And that’s what should be the top issue when Angolans head to the polls on August 31 to elect members to the Assembleia Nacional.

Nonetheless, there’s no real indication that the elections will be any more than a show elections for the current regime:

The Angolan government is responsible for numerous incidents of political violence, intimidation of protesters, and crackdowns on peaceful demonstrations that might have a negative impact on the August 31, 2012 parliamentary elections, Human Rights said in a report released today. The government should end its crackdown on peaceful protests and the media with the start of the election campaign on August 1.

The 13-page report, “Angola’s Upcoming Elections: Attacks on the Media, Expression, and Assembly,” describes increasing incidents of political violence and intimidation. Human Rights Watch called on the government of Angola to promptly address these concerns, and urged the Southern African Development Community and the capital’s foreign diplomats to raise these issues with the government.

“The human rights environment in Angola is not conducive for free, fair, and peaceful elections,” said Leslie Lefkow, deputy Africa director at Human Rights Watch. “The Angolan government needs to stop trying to stifle peaceful protests, gag the independent press, or use the state media for partisan purposes if these elections are to be meaningful.”

 The president of Angola, at least nominally, since 1979, has been José Eduardo dos Santos, who is Africa’s second-longest serving leader.  Functionally, from 1979 until the end of Angola’s civil war in 2002, he was merely the leader of one side in a grueling civil war in a country used by both the United States and the Soviet Union as a deadly hot proxy for the Cold War through much of independent Angola’s early history — the civil war reached a less lethal phase only in 1991, with the end of the Cold War and the cessation of arms shipments to the combatants from the United States and from the Soviet Union.

Luanda, now one of the boomtowns of sub-Saharan Africa, is a city transformed.  As Felix Salmon noted last year, only 156 Angolan visas were issues to southbound Portuguese, but by 2010, that number was 23,787.  That may tell you something about the state of Portugal’s economy, but it also says something about Angola’s.  Despite significant slowdown (2010’s GDP growth rate was only 3.4%), Angola managed GDP growth of over 20% for each of 2005, 2006 and 2007, and hit nearly 14% in 2008 as well.  Angola’s oil production has increased so rapidly that it is thought to be China’s top oil supplier.

Angola’s Assembleia Nacional has 220 seats. In the last election, dos Santos’s Movimento Popular de Libertação de Angola – Partido do Trabalho (MPLA or the People’s Movement for the Liberation of Angola – Labour Party; yes, quite a mouthful) won fully 191 of those seats.  Since then, dos Santos has survived an assassination attempt and increasingly vocal protests against his rule.  Despite this unrest, and despite the passage of an anti-fraud electoral law in late 2011, no one believes dos Santos and the MPLA will wake up out of power after the August 31 election.

The country’s politics are still divided on lines that go back to its civil war — the main opposition is the União Nacional para a Independência Total de Angola (UNITA or the National Union for the Total Independence of Angola).  The one-time Soviet-backed MLPA is still dominated by the more northern Ambundu ethnic group (which represents around 25% of Angolans), while the US-backed UNITA is still dominated by the more southern Ovimbundu (37% of Angolans).  Even today, though, oil-rich Cabinda province, a sliver of Angola separated from the rest of the country by the Democratic Republic of the Congo, remains separatist-minded, despite the end of the civil war 10 years ago — it is dominated by Angola’s third-largest ethnic group, the Bakongo (about 13% of all Angolans — this group, too, had its own political entity in the Angolan civil war).

UNITA launched its campaign Wednesday, promising a more equal distribution of the gains from Angola’s economic boom, especially in the form of renewed investment in health, education, housing and employment.

While, it’s a platform that sounds fairly pedestrian and reasonable, but it’s still risible to think that UNITA would even have the opportunity to carry through with that agenda.

Angola may have mercifully put its civil war behind it, and a brighter economic future may well beckon, but it looks like the evolution of true democratic institutions will wait for a day beyond 2012.

Photo credit to Veziana Armandi via Flickr.