The Abu Dhabi Ports group has recently announced its plans to work with Angola, a country located in southwestern Africa. This partnership aims to boost trade and investment between the two nations and promote economic growth in the region.
The group is a renowned port operator and logistics provider with a global presence. It operates several ports and industrial zones in the United Arab Emirates (UAE) including the flagship deepwater Khalifa Port. The company has an exemplary track record of delivering world-class port infrastructure and advanced technology services. Abu Dhabi Ports promotes the maritime industry in the UAE and enhances the flow of imports and exports, making it an ideal partner for Angola.
Angola and Its Natural Resources
Angola is a country with a long coastline and vast natural resources. The country “is the second largest oil producer in sub-Saharan Africa.” It has an output of 1.55 million barrels of oil a day. Unfortunately, the volatile nature of the oil market has resulted in high levels of poverty and inequality in Angola. In 2018, Angola’s poverty levels were just under 50%. In contrast, the country ranks 6th in the world for diamond production. Furthermore, Angola is also rich in certain minerals including iron, phosphates, copper and gold. With demand for these minerals rising in the near future due to the global energy transition from fossil-based systems to renewable energy sources, mineral extraction could eventually comprise a significant portion of Angola’s GDP.
Economic Instability and Underdevelopment
Despite the abundance of natural resources, Angola as a country has struggled with economic instability and underdevelopment. In 2022, Angola had an urban unemployment rate of approximately 38%. Angola’s government, however, has recently launched a series of reforms to attract foreign investment and promote economic diversification. These reforms have resulted in this partnership between Abu Dhabi Ports and Angola’s Ministry of Transport.
The two parties have entered an agreement to begin the development of maritime services and infrastructure across Angola. Abu Dhabi Ports will also work with Angola’s state-owned transportation company, UNICARGAS, which controls Angola’s most thriving port, the Port of Luanda. The Port of Luanda navigates more than 70% of Angola’s imports and 80% of its non-oil exports.
Developing and Modernizing Infrastructure
According to reports, the strategic partnership between the Angolan government and Abu Dhabi Ports will focus on developing and modernizing Angola’s logistics infrastructure. The agreement also includes a Maritime Academy in Angola. The construction and operation of new logistics facilities and ports in Angola could help improve the country’s connectivity and competition with global trade, thereby resulting in economic growth.
The partnership between Abu Dhabi Ports and Angola holds great promise for economic growth and development in the region. By leveraging Abu Dhabi Ports’ expertise in port operations and logistics, Angola can enhance its maritime industry and improve trade connectivity. The planned development of infrastructure and logistics facilities, along with the establishment of a Maritime Academy, could contribute to Angola’s economic diversification and attract foreign investment. This partnership marks a positive step towards fostering stronger trade relations and driving sustainable growth in Angola.
– Aemal Nafis