Republic of Angola- European Community Country Strategy Paper and National Indicative ...

146 Pages·2008·2.5 MB·English

Republic of Angola- European Community
Country Strategy Paper
and
National Indicative Programme
for the period 2008 - 2013
The Government of Republic of Angola and the European Commission hereby agree as
follows:
1. The Government of the Republic of Angola, represented by Her Excellency Ana
Alfonso Dias Lourens:o, Minister of Planning and National Authorising Officer, and
the European Commission, represented by Mr Joao Gabriel Ferreira, Head of
Delegation to Angola, hereinafter referred to as "the Parties", held discussions in
Luanda from February 2006 to January 2008 in order to establish the general
guidelines for cooperation in 2008-2013.
During these discussions, the Country Strategy Paper and an Indicative Programme of
Community aid for Angola were drawn up in accordance with Articles 2 and 4 of
Annex IV to the ACP-EC Partnership Agreement, signed in Cotonou on 23 June 2000,
as revised in Luxemburg on 25 June 2005. These discussions completed the
programming for Angola.
The Country Strategy Paper and the N at iona! Indicative Programme are annexed to
this document.
2. Of the indicative programmable financial resources which the Community plans to
make available to Angola for the period 2008-2013, there is 2€ 14 million for the
allocation referred to in Article 3(2)(a) of Annex IV to the ACP-EC Partnership
Agreement (A allocation) and €13.9 million for the allocation referred to in Article
3(2)(b) (B allocation). These allocations are not entitlements and may be revised by
the Community in the light of the conclusions of the mid-term and end-of-term
reviews, in accordance with Article 5(7) of Annex IV to the ACP-EC Partnership
Agreement.
3. The A allocation covers macroeconomic support, sectoral policies, and programmes
and projects in the focal or non-focal areas of Community aid. The National Indicative
Programme (Part 2) draws on the resources of the A allocation. It also takes into
account financing which Angola receives or may receive from other Community
resources, which does not pre-empt the decisions taken by the Commission.
4. The B allocation covers unforeseen needs, such as emergency assistance, where such
support cannot be financed from the EU budget, contributions to internationally
agreed debt relief initiatives and support to mitigate the adverse effects of instability in
export earnings. The B allocation is triggered by specific mechanisms and procedures
and therefore not part of the Indicative Programme as such.
5. Resources may be committed under this Country Strategy Paper and Indicative
Programme on the entry into force of the I Oth EDF multiannual financial framework
for the period 2008-2013 under the revised ACP-EC Partnership, but not before
1 January 2008. Financing decisions for projects and programmes may be taken by the
Commission at the request of the Government of Angola within the limits of the A and
B allocations referred to in this document. Financing decisions can also be taken on
the basis of Article 15(4) in conjunction with Article 4(1)(d)) of Annex IV to the
ACP-EC Partnership Agreement for support to non-State actors or on the basis of
Article 72(6) of the ACP-EC Partnership Agreement for humanitarian and emergency
assistance funded from the B allocation. Financial decisions shall be taken and
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implemented in accordance with the rules and procedures laid down in the Council
Regulations for the implementation of the 1Oth EDF, the Financial Regulation
applicable to the 1Oth EDF and Annex IV to the ACP-EC Partnership Agreement.
6. The European Investment Bank may contribute to the implementation of this Country
Strategy Paper by operations financed from the Investment Facility and/or from its
own resources, in accordance with Articles 2(c ) and 3 of Annex Ib of the ACP-EC
Partnership Agreement regarding the 1Oth EDF Multiannual Financial Framework for
the period 2008-2013.
7. In accordance with Article 5 of Annex IV to the ACP-EC Partnership Agreement, the
National Authorising Officer and the Head of Delegation shall annually undertake an
operational review of the Indicative Programme and undertake a mid-term review and
an end-of-term review of the Country Strategy Paper and the Indicative Progranune in
the light of needs and performance at the time.
The mid-term review shall be undertaken in 2010 and the end-of-term review in 2012.
Following the completion of the mid- and end-of-term reviews, the Community may
revise the resource allocation in the light of needs and performance at the time.
Without prejudice to Article 5(7) of Annex IV concerning reviews, the allocations
may be increased according to Article 3(5) of Annex IV in order to take account of
special needs or exceptional performance.
8. The agreement of the two parties on this Country Strategy Paper and the National
Indicative Programme, subject to the ratification and entry into force of the revised
ACP-EC Partnership Agreement and the lOth EDF Multiannual Financial Framework
for the period 2008-2013, will be regarded as definitive within eight weeks of the date
of the signing, unless either party communicates the contrary before the end of this
period.
Done at Luanda on 20 November 2008
For the Government of For the European Commission
the Re ;;t,lic of Angola
--
~-----~--------'
Ana Afonso Dias Joiio Gabriel Ferreira
Louren~o
~J \\.:;National Authorising Officer Head of Delegation of the
\ Minister of Planning European Commission to Angola
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SUMMARY
Since the end of the war in 2002 and the arrival of peace, Angola has advanced at great speed
in all sectors, and the political and economic situation has improved considerably. The
country is in full reconstruction after the destruction of much economic and social
infrastructure in the long conflict. Considering this, social indicators have improved and
should show positive results in the coming years and bring about a real reduction of poverty
throughout the country.
The country is going through a period of political stabilisation. The process of demobilisation
and reintegration should finish in 2007 with the reintegration of former UNITA fighters and
their dependents. Progress in the democratic process can be noted. The electoral package was
adopted in August 2005. The electoral register started up in November 2006 and should reach
a total of 7.5 million registered voters by the end of 2007. A political commitment was
adopted at the end of 2006 to hold parliamentary elections during the first half of 2008 and
presidential elections during the first half of2009.
Progress in the economic sector is impressive, with the highest rate of GDP growth in Africa
in 2006 (around 20%), and a firm grip on inflation (down to approximately 12.2% in 2006).
Oil income is a driving force of the economy, also making it possible to increase public
spending, which in turn contributes to the accelerating pace of reconstruction. Oil revenues
also have a positive effect on the development of the non-oil sectors. The external public debt
has been reduced considerably and monetary reserves are high. The government is, however,
conscious of the need to promote the diversification of the economy, especially in the
agricultural sector, where Angola shows great potential, and in sectors capable of generating
employment. In the social sector much progress is needed given the size of vulnerable groups
(displaced people and refugees in the process of social reintegration, sections of the
population living in precarious conditions, and the young).
Social indicators are weak, especially in the health sector (mortality rate for children under 5
years of age is 25%, maternal mortality is 14 per 1000). The epidemiological situation is
alarming, especially the cholera epidemic. In this context, access to drinking water becomes
an indisputable priority.
In the education sector, despite the efforts by the authorities to build school infrastructure and
train and contract teachers, quality continues to be a challenge.
The problem of capacity building and human resources is the main constraint on the country's
sustainable development and directly affects the public sector. The State has difficulties with
planning and managing public affairs because of a shortage of sufficiently qualified staff. This
analysis is shared by national authorities and international development partners alike.
In 2004, the Government adopted a strategy of "Combate a Pobreza" which identifies the
priority sectors for development as reconstruction and rehabilitation of social infrastructure,
improvement of the social situation and health and education, and capacity-building for the
improvement of public-service delivery.
The total amount of the National Indicative Programme for Angola 2008-2013 is
EUR 214 million (A Envelope) and EUR 13.9 million (B envelope). The proposed response
strategy takes the needs and priorities established by the country into account.
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The focal areas are:
I. governance and support to economic and institutional reform (20% of the financial
package);
2. human and social development (32% of the financial package);
3. rural development, agriculture and food security (32% of the financial package).
The non-focal sectors will account for 16% of the financial package, which will provide
support for regional integration, the private sector, non-state actors and biodiversity.
The main objective is to contribute to the sustainable development of the country, through
institutional support and capacity building, supporting the government's strategy to combat
poverty and to achieve the Millennium Development Goals.
The preferred approach will be projects and programmes, bearing in mind that this approach
can be reviewed at mid term.
This strategy has been drawn up in association with the Member States of the European
Union, and non-state actors have been consulted in order to ensure consistency. It will be
implemented in coordination and in complementarity with all actors involved, especially the
Member States (EU Road Map).
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List of Abbreviations and Acronyms
ACP African, Caribbean and Pacific
Countries
ADRP Programme of reintegration of ex
combatants in rural areas, mainly
in agricultural activities
APRM Africa Peer Review Mechanism
BDA Angolan Development Bank
BNA National Bank of Angola
CDA Center for the Development of
Agriculture
CDE Center for the Development of
Enterprise
CEEAC Economic Community of Central
African States
CNE National Electoral Commission
CNIDAH Intersectoral National
Commission for
Demining and Humanitarian
Assistance
COMIFAC Central African Forest
Commission
CPLP Community of Portuguese
Speaking Countries
CSOs Civil Society Organisations
CSP Country Strategy Paper
DDR Disarmament, Demobilisation and
Reintegration
DRC Democratic Republic of Congo
EBA Everything But Arms
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ECOFAC Programme for Conservation and
Rational Utilisation ofFo rest
Ecosystems in Central Africa
EDF European Development Fund
EIA Environmental Impact
Assessment
EIB European Investment Bank
EIDHR European Initiative to support
Democracy and Human Rights
EMS Environmental Management
Systems
EPAL Luanda Water Utility
PAS Social Support Fund
GDP Gross Domestic Product
GoA Government of Angola
ICT Information and Communication
Technologies
IDP Internally Displaced People
IMP International Monetary Fund
INE National Institute of Statistics
INAP National Institute of Public
Administration
LDC Least Developed Country
LRRD Link between Emergency Relief,
Rehabilitation and Development
MDGs Millennium Development Goals
MINADER Ministry of Agriculture and Rural
Development
MINARS Ministry of Assistance and Social
Reinsertion
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MINED Ministry of Education
MIN SA Ministry of Health
MINUA Ministry of Urbanism and
Environment
MS Member States
MTR Mid Term Review
NEPAD New Partnership for Africa's
Development
N!Es Newly Industrialised Economies
NIP National Indicative Programme
NSAs Non State Actors
OPEC Organisation of Petroleum
Exporting Countries
PALOP African Countries with
Portuguese as Official Language
PAPEFSA Programme of Livestock in the
South of Angola
PAR Programme of Support to
Reconstruction
PEAPP Emergency Programme in
Support of theP eace Process
PEMFAR Public Expenditure Management
and Financial Accountability
Review
PERDRP Programme of Emergency for the
Resettlement of Displaced and
Refugee Populations
PFM Public Financial Management
PGE Programme to Create
Employment
PMFP Public Finance Modernisation
Programme
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PMR Programme of Micro Projects
PRSA Programme of Re-launching Food
Security
PRSP Poverty Reduction Strategy Paper
QUIBB Welfare Survey
RIP Regional Indicative Programme
RISDP Regional Indicative Strategic
Development Plan
RSP Regional Strategy Paper
SACU Southern Africa Customs Union
SADC Southern African Development
Community
SIGFE Integrated Financial Management
Information System
SMPs Staff Monitored Programs
TCF Technical Cooperation Facility
UA African Union
UNCTAD United Nations Conference on
Trade and Development
UNITA The National Union for the Total
Independence of Angola
UNFPA United Nations Population Fund
WFP World Food Programme
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TABLE OF CONTENTS
SUMMARY
4
LIST OF ABBREVIATIONS AND ACRONYMS
6
PARTl:COUNTRYSTRATEGYPAPER
12
CHAPTER I: FRAMEWORK OF RELATIONS BETWEEN THE EC AND ANGOLA 12
1.1. General Objectives of the EC's External Policy .................................................................................. 12
1.2. Strategic Objectives of Cooperation with Angola .............................................................................. 12
1.3. Main Bilateral Agreements ................................................................................................................... 14
CHAPTER II: COUNTRY DIAGNOSIS 14
II. I. Analysis of the Political, Economic, Social and Environmental Situation. ...................................... 14
11.2. Poverty Reduction Analysis ................................................................................................................. 22
11.3. Angola's Development Agenda ........................................................................................................... 23
11.4 Assessment of the Viability of Current Policies and Medium-Term Challenges ............................. 25
CHAPTER III: OVERVIEW OF PAST AND PRESENT EC COOPERATION 26
III. I. Overview of Past and Present EC Cooperation (Lessons learnt) ................................................... 26
III.2. Information on the Programmes of Member States and other Donors ......................................... 34
III.3. Other EC Policies ................................................................................................................................ 35
III.4. Political Dialogue with Angola ........................................................................................................... 35
III.S. Partnership with Angola and Progress Towards Harmonisation .................................................. 36
CHAPTERIV:RESPONSESTRATEGY 36
IV. I. Governance and Support for Economic and Institutional Reforms ............................................... 38
IV.2. Human and Social Development ........................................................................................................ 40
IV.3. Rural Development, Agriculture and Food Security ....................................................................... 41
CHAPTER V: OTHER PROGRAMMES (non-focal sectors) 43
V.I. Water ..................................................................................................................................................... 43
V.2. Support to the private sector ............................................................................................................... 44
V.3. Non-state actors (NSAs) ....................................................................................................................... 44
V.4. Regional Integration, Trade and EPA Support ................................................................................. 45
V.S. Biodiversity management... ................................................................................................................. 45
V.6. EC-PALOP Cooperation ..................................................................................................................... 46
PART 2: NATIONAL INDICATIVE PROGRAMME
47
!.INTRODUCTION 47
2. FINANCIAL INSTRUMENTS 47
2.1 lOth EDF --A ENVELOPE: € 214 million ........................................................................................... 47
2.2 lOth EDF --B Envelope: € 13.9 Million ................................................................................................ 47
2.3 Investment Facility ................................................................................................................................. 48
2.4 lOth EDF Regional Indicative Programme ......................................................................................... 48
2.5 Other Financial Instruments ................................................................................................................. 48
2.6 Monitoring and evaluation .................................................................................................................... 48
3. FOCAL THEMES 48
3.1 Governance and Support for Economic and Institutional Reforms ................................................. 48
3.2 Human and Social Development .......................................................................................................... 52
3.3 Rural Development-Agriculture and Food Security ........................................................................ 53
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