Angola is one of the 60 countries followed by AFD’s country-risk economists, whose assessments shed light on countries' economic trajectory and macroeconomic and financial situation.
Context
The fifth largest economy in sub-Saharan Africa, Angola is a strategic country for the AFD Group in Southern Africa. In a context of oil dependence and persistent socio-economic challenges, AFD is addressing the sustainable development priorities of its local partners, in particular by supporting improved access to water and electricity. The Group also supports Angola’s economic and financial transition by supporting macroeconomic reforms, the modernization of vocational training and higher education, and the strengthening of the entrepreneurial culture. It also promotes the development of a strong agricultural sector, generating more inclusive growth and less dependent on the vagaries of the oil sector.
Goal
Produced by AFD's team of country-risk economists, macroeconomic country assessments provide an analysis of development processes in countries in which AFD operates. They also characterize their growth trajectory, and detect economic, social, political and financial vulnerabilities associated with these trajectories. AFD Group is thus in a position to properly measure the challenges and monitor the risks associated with each of its investments.
Emphasis is placed on developing countries, particularly in Africa, for which macroeconomic analyses are rare or infrequent. AFD seeks to complement existing production on the global economic situation, more focused on advanced economies and major emerging countries.
Find out more: Macroeconomic Analyses at AFD
Method
Country-risk analysis is based on a close follow-up over a long period of time and rooted in a fine knowledge of local contexts. Cyclical trends, often highlighted in the news, are always examined in the light of structural trends and of the regional context in which they take place. The aim is to highlight country-specific macroeconomic issues while assessing risks against comparable time- and space-based trajectories.
Country-risk economists place the study of socio-political vulnerabilities, the growth model, the viability of public debt, external balances and the soundness of the financial system at the heart of their assessment, and give specific attention to countries' exposure to climate risks.
Lessons learned
Angola is the second largest oil producer in Africa and its macroeconomic performance is very directly correlated with changes in the price of oil. The oil sector represents, depending on the year, nearly 30 to 35% of GDP, 95% of exports and 50 to 60% of government revenues. The fall in oil prices from mid-2014 has led to significant macroeconomic imbalances resulting in five consecutive years of recession. Since 2021, the situation has improved thanks to the sharp rise in oil prices, but the economy remains vulnerable to exogenous shocks. The efforts undertaken by the authorities to diversify the economic model are encouraging but remain insufficient to develop strong growth drivers, while socio-economic and development challenges remain a priority.
Download our publications on the macroeconomic situation of Angola:
- “Angola: An extremely volatile oil economy”, in MacroDev Panorama n°42, September 2022
- “Angola: A vital but constrained transformation of the economic model in the run-up to the 2022 elections”, MacroDev n°41, August 2022 (also available in French and Portuguese)
Contact:
- Benoît Jonveaux, country-risk economist, AFD
Legal notice EU (project) Through which channels did the Covid-19 pandemic impact inequalities in Togo? What have been the effects of the “Novissi” cash transfer program implemented by the Togolese government on the mitigation of income inequality? The EU-AFD Research Facility on Inequalities will seek to answer these questions in collaboration with the University of Lomé.
Context
Research has already shown that some population groups have been harder hit by Covid-19 than others and that the pandemic exacerbated existing inequalities in many areas, including health, education, work, and gender.
In this context, inequality has become a central issue for governments willing to fight the effects of the pandemic and to better prepare for future shocks. In April 2020, the Togolese government set up a cash transfer program called "Novissi", with the financial contribution of AFD, to support any eligible Togolese citizen who lost his or her income due to the adoption of the response measures against Covid-19.
This project is part of the call for research proposals “Advancing the inequality agenda through collaborative research: identifying the priorities for a global Team Europe approach on inequalities”, launched by the Strategic Committee of the Research Facility on Inequalities. It is coordinated by AFD and co-financed by the European Commission, AECID and ENABEL.
Goal
Studies using updated data and capturing the potential effects of the Covid-19 pandemic on income inequality and poverty in Togo are relatively scarce.
This research project aims to fill the gap in academic literature by:
- Analyzing the impacts of Covid-19 on inequality in Togo;
- Evaluating the effects of the Togolese social policy « Novissi » on mitigating the impact of Covid-19 on inequality.
Method
Using rich microeconomic data from a survey conducted by Togo's Institut National de la Statistique et des Études Économiques et Démographiques (INSEED) aimed at analysing the impact of the Covid-19 pandemic, the research team will estimate an econometric model based on the model developed by Dang and Nguyen (2021).
Results
You will find below the different research papers related to this project:
In progress
Contact:
- Anda David, Research Officer, AFD