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Investing in the Future

At the end of another year in which the world economy is taking small steps towards a resumption of global economic growth, Angola looks to 2017 in the hope that it will be possible to emerge from the crisis.

Despite the country's economic difficulties, 2016 ends with Angola conquering the first place as the largest African oil producer, surpassing Nigeria, whose production is set at 1.468 million barrels.

Angola's production accounts for 90% of its exports, 50% of its Gross National Product (GNP) and 80% of its tax revenues 

In 2016, Angola’s Oil production reached 1,775 million barrels per day, with an increase in production of 8800 barrels per day, taking into account the figures released last June.

Proving this trend, in November, Angola was actually the third country, member of the Organization of Petroleum Exporting Countries (OPEC), to record an increase in production. This month, Angolan production stood at 24.4 thousand barrels per day, along with Kuwait with a further 25.9 thousand, but far from the increase in Iraqi production, with an increase of 247.5 thousand barrels per day.

However, the acceleration in internal oil production didn’t match a price increase in international markets, where the value of the oil barrel was averaged priced in USD 45.93, at the London futures market.

According to data presented by the Ministry of Finance, the exported barrel of Angolan oil  went from over USD100/average to only USD36 in less than 2 years.

Thus making the extraction operation more viable, Sonangol, in partnership with suppliers in the sector, managed to reduce the production costs.

According to official data, during 2016 the insufficiency in the production of refined products remained in line with the demand of the domestic market. National refined production accounted for close to 20% of total domestic consumption.

By 2017 it is expected that internal investments will be completed in such important areas as health, education andhousing, as well as infrastructure projects related to energy and water supply.

In addition to public investment, private investment also plays a key role in attracting investment from international partners who continue to believe that the Angolan economy has a great margin of progression.

Although Angola relies heavily on the international conjecture to emerge from the crisis, we are aware that domestic investment in industry and agriculture will greatly help that reliance is mitigated.

Political stability, which is expected to continue, is also an important factor in helping the economic growth. To this end, will contribute the general elections of 2017 and the nomination of the candidate João Lourenço.

Happy New Year