Controversy trails Angola’s hefty spend on military

Angola poverty

Angola poverty

from PEDRO AGOSTO in Luanda, Angola
LUANDA, (CAJ News) FOR a country that has been at peace for 16 years since the end of the civil war, struggling to

Angola military

Angola military

service its debts as well as addressing rampant poverty, it is ironic that Angola is on the top of Africa’s list for spending on military expenditure.

Adding controversy to this apparent misplaced priority is the

Angola Air Force

Angola Air Force

participation of some controversial international companies in bids to strengthen the country’s navy.

A storm has been

Angola-Kiluange

Angola-Kiluange

swirling around the Middle East-based Privinvest, which in 2016 announced a shipbuilding and maritime economy programme with Angola, a scheme that would culminate in Privinvest providing a range of vessels for the Angolan Navy.

It is among companies fingered in the debt scandal that left Mozambique’s economy on its knees having accrued a debt of over US$2 billion.

Privinvest had signed contracts to supply ships to Mozambique but the vessels were never delivered.

The company has recently been snubbed in Nigeria where it lured government with a $2 billion investment proposal to assume control over a derelict shipyard from the Nigerian navy and refurbish it.

President Joao Lourenco, was defense minister when the agreement with Privinvest was signed.

“His (Lourenco’s) plans to expand the military budget should sound some alarm bells,” analyst Miguel Sanz said.

He rejected government’s position that the expansive budget on military was to fight piracy as Angola looks to expand its offshore oil production operations.

“This is despite Angola suffering hardly any such attacks in its waters over the past few years,” Sanz said.

The Southern African country was the third highest spender in 2017, behind Algeria and South Africa, according to the Stockholm International Peace Research Institute (SIPRI).

Angola spent over $3 billion.

Spending rose almost four times since the end of the 27-year conflict in 2002. The conflict ended following the death of opposition leader, Jonas Savimbi, during a clash with government forces.

Angola was the largest military spender in sub-Saharan Africa in 2014.

Defence Web, the think-tank, has previously projected the spending on the military to increase to $13 billion by 2019, registering a compound annual growth rate (CAGR) of about 12 percent over the forecast period.

The organisation stated the troop expansion, as well as a revision in
troop wage structure would drive the expenditure.

The budget for military is projected to exceed the combined total allocated for health and education.

There is concern Angola’s emphasis on defense spending leaves it with insufficient cash available to alleviate poverty in a country with the world’s highest child mortality rate.

In addition, Angola owes China an estimated $23 billion.

“Spending lavishly on defense at the expense of a majority searing under poverty reflects misplaced priorities by the government,” said socio-economic commentator, Dominique Jordao.

Government and the military have justified the spending, arguing it was driven by Angola’s new commitment to United Nations peacekeeping operations across Africa.

– CAJ News

Short URL: http://cajnewsafrica.com/?p=29444

Posted by on Jan 25 2019. Filed under Africa & World, Exclusive, Featured, Finance, Finance & Banking, Investing, Investing, News, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Connect to CAJ News on Facebook

Subscribe to our Newsletter

Photo Gallery

Log in
All material © CAJ News Africa. Material may not be published or reproduced in any form without prior written permission.