The cellular telephone has proven to be a boon for less devel-oped economies, permitting people to own a telephone with-out having to install expensive landlines. Angola's Unitel has beenexpanding rapidly since it started operations in 2001, taking ad-vantage of the end of the civil war to extend the benefits of wire-less communications to millions of people.

The company has gained almost a million new clients in thepast year, moving from 3.3 million at the end of 2007 to about4.25 million at the end of 2008, representing a market share ofabout 66%.

Unitel is also well on its way to meet-ing its goal of rolling its network out toall 146 of Angola’s cities and towns. Itadded the town of Samba Caju, in theprovince of Kwanza Norte, to the net-work at the beginning of December,bringing the total number of munici-palities covered to 94 and almost dou-bling the number of covered towns atthe end of 2006.

Angola has a population of about12.5 million, giving Unitel plenty ofroom to grow in coming years. Thecompany is already preparing for thatgrowth with a plan to invest heavily inhuman resources. Unitel is recruiting students and young grad-uates and training them to ensure staff requirements can be met.The success of the recruitment program can be seen in the ageratio of its staff: 72% of employees are under 30 years old, 23%are between 30 and 40 years old and 5% are older than 40.

Investors who would like to buy a piece of Unitel’s growth po-tential will have to be patient, however. The company, which is25% owned by Portugal Telecom SA, with the rest evenly di-vided between Sonangol, Mercury and Geni, isn’t consideringa public share sale any time soon, General Manager Amilcar Safe-ca said at the beginning of December.

The African country of Angola, after the end of morethan three decades of civil war that halted all at-tempts at economic and social progress, is nowfirmly on the path to becoming one of the conti-nent's great success stories.

The peace agreements signed in 2002 with rebelgroup UNITA, and in 2006 with separatists in theexclave of Cabinda, brought peace and stability tothe entire country for the first time since before gain-ing independence from Portugal in 1975.

Angola’s government, led by President Jose Ed-uardo dos Santos, hasn’t wasted a moment in start-ing to rebuild the country. Revenue from oil anddiamonds has been channeled into projects to buildschools, hospitals, roads and other infrastructurearound the country.

Dos Santos and his cabinet are working to diversifythe economy and reduce the country’s dependence

on mineral wealth. Part of this includes attractinginvestors to take advantage of the country's fantasticpotential. “We are creating the environment so thatit is profitable to develop business in Angola, andso that the private sector can play a greater role, es-pecially in the non-oil economy,” says AguinaldoJaime, head of the National Agency for Private In-vestment. “The mineral economy is capital inten-sive and doesn't create much employment. Wewant to move away from the capital intensive econ-omy to the labor intensive economy.”

Angola can count on many allies around theworld to help its development. The U.S. has beena close friend during the administration of Ge-orge W. Bush, and President-elect Barack Oba-ma will continue maintaining warm ties withAngola after his inauguration, Ambassador DanMozena said in November.

As one of the biggest diamond mines in the world, Catoca has generated significant resultsfor the country, which has enhanced the population’s quality of life. We develop programs inthe following areas: nutrition, health, sports, culture, education and professional training, thuspromoting sustainable development for the community. Catoca’s main goal is to invest in thecountry, believing in the Angolans’ capacity and strength.

Good for Angola. Better for the Community.

Investing inthe wealth

of the countrymeans investing

in the Community.

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NATURAL RESOURCES Page 02

A HEADCOUNT OF NATURAL

RESOURCE RESERVES

INDUSTRIES Page 07

CABINDA, MORETHAN JUST AN OIL

POWERHOUSE

OIL Page 03

INDUSTRIESFUELLING SOCIAL

DEVELOPMENT

ECONOMY AND INFRASTRUCTURE Page 06

CREATINGPROSPERITY FROMPEACE IN CABINDA

Tuesday, January 20, 2009

UNITEL

Telecoms advanceprogress agendaCell phone provider Unitel has increased its subscriberbase by one milllion over the past year

AGUINALDO JAIMEHead of the National Agency forPrivate Investment

TAAG-Linhas Aereas de An-gola is one of Africa’s biggestairlines, with flights to majorcities all over the continent andother parts of the world. Theairline is now undergoing a re-organization that promises toturn it into a world-class com-pany able to compete with theindustry’s big boys.

TAAG has one of the most

modern air fleets inAfrica, having tak-en delivery of brandnew Boeing 737sand 777s in the pasttwo years. The fleetmakes stops at citiesincluding the capi-tals of Congo-Braz-zaville, theD e m o c r a t i cRepublic of Congo,Zimbabwe, Zam-bia, Namibia anddestinations in South Africa.

The Angolan airline is 100%state-owned, and is benefitingfrom an ambitious governmentprogram to improve the coun-try’s airports. About $400 mil-lion has been invested over thepast two years by the AngolaNational Company of Explo-ration of Airports and Air Nav-

igation, or ENANA,on this plan.

TAAG itself hasalso gained from amodernization pro-gram that has led tothe computeriza-tion of many tasksthat had previouslybeen carried outmanually, as well asimprovements tocustomer service.

The governmentrecently approved the com-plete overhaul of TAAG's man-agement to enable the airlineto better meet internationalaviation standards. TAAG has-n’t had permission to fly toEuropean airports since 2007,and the government wasn’t sat-isfied with efforts by the com-pany’s previous management

to make the changes necessaryto return to Europe.

The country needs TAAG tobe “prepared to cope with theeconomic development thatAngola is currently experienc-ing,” says Transport MinisterAugusto Tomas.

To achieve that goal the gov-ernment might seek an inter-national partner for TAAG.Other changes, approved by the

government in November 2008,include a new executive board,personnel changes throughoutthe rest of the company, a newfinancial and business strategy,and a more modern image.

Once all the ambitious im-

provement planshave been success-fully carried out,TAAG will be wellpositioned to con-

tinue the expansion of its fleetwith newer, better planes andextend its route map to moredestinations, all in a bid to of-fer Angolans and visitors toAngola a vastly improved trav-el experience.

Catching up is new TAAG lineThe national airline is one of Africa’s largest. Now it is being overhauled from top to bottom in a bid to become world class

PRESIDENT JOSE EDUARDO DOS SANTOS has led Angola through its reconstruction

Rebuildingthe countryfrom the insideout, Angolacontinues tomake solidprogress ineconomicdevelopment

HENRIQUES DA SILVA Director of InternationalInvestment Partnerships & Institutions

AUGUSTO TOMASTransport Minister

Building new bridges: Angolareconstructs at home and abroad

A more extensive version of this report is

available at www.unitedworld-usa.com

AA UUNNIITTEEDD WWOORRLLDDSSUUPPPPLLEEMMEENNTT PPRROODDUUCCEEDD

IINN AANNGGOOLLAA BBYY::Aida Velon andFabrice Ducarme

TAAG is modernizing to meet internationalaviation standards

ANGOLAThis supplement to USA TODAY was produced by United World LTD.: 4410 Massachusetts Ave NW, Washington - DC 20016 Tel: 1-202.347.9022 - Fax: 1-202.347.9025 - www.unitedworld-usa.com

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Distributed by USA TODAYTuesday, January 20, 200922 ANGOLA

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People have long known aboutAngola's vast mineral wealth,but the civil war that plaguedthe country from independencein 1975 until the 2002 peaceagreement prevented potentialprospectors from going out toidentify promising sites and ex-ploiting them.

During the war years, thegovernment concentrated itsresources on maintaining pro-duction of diamonds from sitesthat were already functioning.Now that peace has returnedto the country, Angola’s Min-istry of Geology and Mines isnow working to better catalogthe country’s potential and ex-pand output to include otherresources such as iron, man-ganese, gold, copper, lead, zincand others.

Part of the ministry’s job isto get the word out to investorsthat Angola is now a peacefulcountry with huge possibili-ties. Geology Minister Mank-enda Ambroise has traveledfar and wide to attract part-

ners in mining companies tothe country.

“We try to get the messageacross that Angola is not a war-struck country anymore, andmy role as member of the gov-ernment is to show the possi-bilities there are in the miningsector,” he says. “Angola doesnot only have diamonds, it hasmany mineral resources and apotential that still needs to beexplored.”

Much of the country’s min-eral wealth could be used tohelp rebuild Angola after thelong war, and that is indeed apriority at the ministry. Iron,manganese and other metalscan form the basis of a steel in-dustry that could contributematerials for bridges and oth-er vital infrastructure, for ex-ample.

One aspect of the emphasison helping Angolans and re-building the county is an effortby the ministry to promote theextraction of phosphates andother minerals that can be used

as fertilizers to help boost agri-cultural production.

Another priority of the min-istry is to ensure that regularAngolans also profit from theextraction of the country’swealth. One way to ensure thatis to use the materials to buildhousing as well as roads, andanother is to make sure that thecommunities where mines arelocated gain employment andother benefits.

The ministry will “take ac-tion so that companies that in-vest in the mining sectorconsider local communities,”Ambroise says. “We say yes toextracting mineral resources,but thinking also of the com-munities around those re-sources.”

Of course mining alreadyprovides thousands of jobs inAngola, and every year moreemployment is created. Ango-la is currently the world’s fourth-biggest producer of diamonds,and is set to rise to number threeby 2010.

The country’s mines pro-duced 7 million carats of di-amonds in 2006, and thatfigure is likely to increase to17 million in 2010, accordingto Endiama, Angola’s state-owned diamond company.The country has hundreds ofkimberlitic pipes, geologicalformations where diamondsare frequently found, and on-ly a handful are currently be-ing mined, so there are many

opportunities to increaseoutput.

The ministry has takenmany steps to increase pro-duction and benefit from An-gola’s mineral wealth, but moreneeds to be done. The gov-ernment is looking for invest-ment partners to help seek outand catalog mineral deposits,and then decide which ones

can most readily and profitablybe extracted.

“The country is potentiallyrich, but its potential still needsto be defined, which is why it isimportant to work with the pri-vate sector,” Ambroise says. “Weneed to conduct more studiesto find resources that are not be-ing exploited yet and that canincrease our potential.”

How rich are they? Angola readiesfor an official study of its reservesThe Ministry of Geology and Mines is leading the drive tocatalog new mineral reserves and widen the country’s mining offer. It is counting on private sector partners to aid in the cause

The Ministry of Geology and Mines aims to expand Angola’s mineral output to include other resources such as iron, manganese, gold, copper, lead and zinc

MANKENDA AMBROISEMinister of Geology and Mines

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Shoulder to the wheel

Angola’s government is deter-mined to diversify investmentsin mineral extraction to lessenthe country’s dependence onoil and diamonds. It will beyears, though, before the im-portance of the Catoca dia-mond mine is eclipsed byproduction from other mines.

Catoca, located in the Lun-da Sul province, produced 71%of Angola’s diamonds last year,and has an annual productioncapacity of about 8 millioncarats. In 2007 the companyoperating the mine had rev-enue of $451.4 million, andcontributed about $100 mil-lion to government coffers.

The Catoca kimberlitic pipeis one of the world’s largest di-amond deposits, with reservesestimated at 271 million tonsof diamondiferous ore. Thedeposit is expected to yieldapproximately 189 millioncarats of diamonds over thenext 40 years, an amount val-ued at $11 billion.

The company, which isowned by Endiama, Angola’sstate-owned diamond com-pany, the Alrosa Group, Rus-sia’s biggest diamond company,and Daumonty Financing Co.of Israel, has a social invest-ment policy that has led it tofund the construction ofschools, hospitals and otherprojects to help improve thelives of the mine’s workers andtheir families.

CATOCA

The sourceof 71% ofAngola’sdiamonds

JOSE MANUEL AUGUSTO GANGAJUNIOR, CEO of CATOCA

Antonio Mosquito, founderof the company that bears hisname, is a man with a gigan-tic ambition – he wants to usethe economic power generat-ed by Grupo Antonio Mos-quito’s many business activitiesto improve the education,health and transportation sys-tems throughout Angola, all tobring a better standard of liv-ing to his countrymen.

“To sustain the growth ofthe country, it will be neces-sary to build new roads onwhich people and goods canbe transported and that willcreate a link with the interiorof the country,” he says.

Mosquito understands aswell as anyone the vital linkbetween education and eco-nomic growth. He came froma humble background in An-gola’s Huamba province,where he started out workingin family businesses beforeeventually starting up his own,eponymous company in 1980.

In the decades since then,Grupo Mosquito has grownand successfully moved intovarious sectors of Angola’seconomy, including agricul-tural equipment and fishing,

general commerce, educationand training and, most im-portantly, oil.

Grupo Mosquito is the own-er of Falcon Oil, the only whol-ly privately-owned oilcompany in Africa. Falcon hassuccessfully worked with someof the biggest oil companiesin Africa and the world, in-cluding Sonangol of Angola,Exxon Mobil Corp. of the U.S.,Italy’s Eni, Total of France andPetrobras.

Falcon owns parts of sever-al blocks that are either alreadyproducing or in the process ofbeing developed for produc-

tion. The company has workedwith Exxon on Angola’s Block33 for years and in recent yearshas formed part of the groupsthat will exploit Blocks 6, 15,17 and 18. Falcon is also look-ing to expand outside Ango-la, according to Mosquito.

While oil is one of GrupoMosquito’s biggest sources ofrevenue, the company’s oth-er activities in areas includingconstruction are also impor-tant. Grupo Mosquito helpsbuild roads, schools and hos-pitals around the country aspart of its goal to invest inprojects that improve peo-ple’s lives.

The group has participatedin projects that include theconstruction of roads in Mos-quito’s native Huamboprovince, as well as develop-ing real estate projects in Luan-da and other parts of thecountry.

The group is involved in var-ious types of trading of prod-ucts from within the countryand from other parts of theworld. As part of that trading,Mosquito is the exclusive im-porter of Audi and Volkswa-gen cars into Angola.

Grupo Antonio Mosquito, one of the country’s largest private groups, is rolling upits sleeves as it looks to participate in building the foundations of a new Angola

ANTONIO MOSQUITOPresident of Grupo Mosquito

Grupo Antonio Mosquito owns busi-nesses that operate in several differentsectors of the economy. Owner Anto-nio Mosquito is also careful to returnsome of what the group makes from An-gola to the country’s residents, to helpthem improve their lives, especiallythrough investments in education andhealth care.

“It is important to bring educationto every corner of the country, be-cause the people of a country are al-ways its main resource,” he says. “Weneed to rebuild our infrastructure,create technical schools and improveour health system. Everything will

come with education, because an ed-ucated man is capable of doing every-thing he needs to do.”

Grupo Antonio Mosquito workswith several different charities tohelp Angola’s less fortunate, and con-centrates especially on aiding thoseleast able to fend for themselves, thecountry’s children.

The group makes donations togroups including the Catholic Mis-sions in Angola, and the FundaçaoEduardo dos Santos , or FESA ,which is the charitable organiza-tion founded by Angola’s Presi-dent that distr ibutes food andclothing, gives medical assistanceand works to improve educationand provide jobs.

The Crianca Futuro project, or Fu-ture Child, is another program theMosquito group works with, tryingto help orphans and other childrenaffected by Angola’s recent civil war.All the programs concentrate onhealth and education, and Mosqui-to has an ambition to join both areaswith one charitable act.

“The first thing I want to do, and notonly when I retire, is to build a univer-sity hospital,” Mosquito says. “The on-ly thing that would actually touch mysoul is if people remembered me for mywork in education and health, which aretwo of the foundations of the earth.”

In its social contributions, Grupo Mosquito places these two “foundations” of society at the top of its list

The Crianca Futuro project works to improve the lives ofAngola’s orphans and other children affected by the war

Grupo Mosquito’s Falcon Oil wants to expand in both the upstream and downstreamsectors in the country’s oil industry

CORPORATE SOCIAL RESPONSIBILITY

Education and healthcare are focus for Group

Grupo Mosquito operatesin many sectors of the econ-omy, but education remainsthe area closest to its founder’sheart. Mosquito understandsthe importance of educationand is working to improvelearning opportunities for his

own employees and other An-golans all around the country.

“In order to achieve all ofour goals in the industrial sec-tor, mining sector and oil sec-tor, we need qualified peoplebecause we are very few,”Mosquito says.

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Distributed by USA TODAYTuesday, January 20, 20096 CABINDA

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TThhee ffoouunnddaattiioonnss for a positive future based ondialogue rather than confrontation for the small butsignificantly oil-rich Angolan territory of Cabindahave allowed it to reveal its full potential

Angola's province of Cabindais moving into a new era of po-litical stability and economicdevelopment. This small Con-go Delta exclave was held backby civil war and underinvest-ment, but the signing of apeace accord and the end ofthe local separatist movementhave allowed its people torapidly begin recovering. Oilwealth has made Cabinda oneof Angola’s richest provincesand its chief export earner.Now, the province is harness-ing its resources to diversifyits economy, and building so-cial and economic infrastruc-ture that goes far beyond oil.

With the end of the localseparatist movement, Cabin-da’s people are coming backto their homes and farms, andbeginning the process of re-construction. After decadesof conflict, peace has returnedto the province after an accordsigned by the Cabinda Forumfor Dialogue, representing theseparatists, and the govern-ment on August 1, 2006.

As outlined in the Me-morandum of Understand-ing, the central governmentis helping the demobilizedsoldiers of the Front for theLiberation of the Exclave ofCabinda return to civilianlife, and assisting refugees insurrounding countries to re-turn to the province. Cabin-dan ministers haveguaranteed seats in the pres-ident’s cabinet.

However, the real fruit ofpeace isn’t politics, but pros-perity and dignity for Cabin-da’s people. Cabinda nowkeeps a percentage of the roy-alties collected on its oil, andis directing the revenue tohealth, education, and infra-structure projects. Refugeesand demobilized soldiers needwork, so the province is di-versifying its economy intoagriculture, forestry, fisheries,and industrial projects to pro-vide jobs.

Aldina Matilde da Lombadirects the provincial agency

that is helping reintegrateformer fighters into theprovince’s civil society, and isupbeat about the transition.“This is an irreversibleprocess that removes all neg-ative factors from the past, tobuild a nation united in thevalues of democracy, socialjustice and respect for hu-man rights,” she says.

Now that hostilities areover, the government can re-focus its energies on nation-al integration, democracy,and economic growth. Aspart of the agreement, someof the guerilla soldiers havebeen integrated into the An-golan Armed Forces, andCabindan families have beenregistered on the nationalidentification list.

On September 5, 2008, vot-ers in Cabinda and across An-gola turned out in largenumbers for an election thatwas judged to be free and fairby international observers. InCabinda, as in the rest of An-gola, the peaceful poll result-ed in a majority for the rulingMPLA of President Jose Ed-uardo dos Santos.

Cabinda Forum for Dia-logue head Bento Bembe haspraised President dos Santosfor maintaining the nationalgovernment’s focus on thereconciliation effort. “Thoseof us involved with theprocess have always believedthat the government wouldhonor its commitments withthe FDC,” he says.

Bembe, currently a minis-ter in the national govern-ment, explains that the sharednational and provincial goalof reconstruction and devel-opment remains paramount.“Our greatest wish is to seeCabinda as a great destina-tion for investment. Peace isthe essential factor to attractforeign investments that helpreduce unemployment. We'reworking together with thegovernment, and these con-cerns are our priority.”

Bolstered by Cabinda’s ris-ing oil revenues, increasedgovernment services and in-frastructure have alreadycome online to meet theprovince’s needs. Additionalpolice personnel and eightnew police stations have beenintroduced in a successful ef-fort to enhance security andcut crime. A $2.55 billionbridge and roadway projectwill connect the Cabinda ex-clave to Angola’s growingtransport network by 2012.

Jose Anibal Lopes Rocha,the provincial governor, out-lines how the new revenuesare opening up new possibil-ities for economic develop-ment. “Before we had anannual budget of $72 million,and today we have a budgetof $250 million. We’re goingto build a deepwater port, andthe new bridge will tie Cabin-da more closely to the rest ofthe country.”

Governor Lopes Rocha isparticularly proud of the so-cial projects that Cabinda hasbeen able to accomplish. “Theprovince has good qualityschools, with no students out-side the system, which meansthat we have schools in everytown. We're still investing a lotin housing projects. We havea good health system, andCabinda stands out regard-ing the low level of infantmortality – it's the lowest inthe country.”

Improved and moderninfrastructure is giving wayto faster economic growthfor the exclave of Cabindaby lowering costs,decreasing travel timesand helping businessefficiency

Over the next few years thepeople of Cabinda will enjoythe benefits of new road, tran-sit, ferry, port, drinking wa-ter, and sanitation facilities.These government infra-structure investments willmake daily life easier for res-idents of the region, andboost business by reducingtransport times and costs.

The province is alreadyhalfway through a $190 mil-lion project to improve 170miles of roads that connectthe provincial capital, Cabin-da City, to the rest of the

province and the border withthe Democratic Republic ofthe Congo. Passenger travelon the new roads will befaster and easier, thanks to afleet of 152 new buses.

An even more ambitioushighway project will give theCabinda exclave a high-qual-ity land link with the rest ofAngola. The new road willcross the strip of DRC terri-tory between Cabinda andthe city of Soya in northernAngola, and include a 12-milebridge over the Zaire River.This $2.55-billion undertak-ing “will bring the benefits ofdevelopment, not just for theprovince of Cabinda, but al-so for the region of Soyo andthe DRC,” says Cabinda gov-ernor Jose Anibal LopesRocha.

In the meantime, a new fastferry has started operation to

give Cabinda a quick andmodern link with the rest ofthe country. The 42-knotmaximum speed of the Eboferryboat has already cut thethree-hour trip betweenCabinda City and Soyo downto just one hour, and the pre-vious 15-hour journey to

Luanda now takes only sixhours. Two classes of traveloffer budget and deluxe ac-commodations on the Ital-ian-built vessel, which cancarry 370 people in additionto cargo.

Cabinda now boasts An-gola’s second-largest airport,

after renovations carried outin 2007 upgraded its termi-nal buildings and installedan 8,000-foot runway.Modern baggage handling,security, and control towerequipment have enhancedsafety and increased the air-port’s capacity. Internation-al Civil AviationOrganization officials re-cently gave the airport a thor-ough inspection, and issueda positive opinion on the newimprovements. Plans are al-ready underway for a newcargo terminal.

The seaport of Cabindacame under new manage-ment in 2004, and is set onoverhauling its physical in-frastructure and its opera-tions. When complete, theport’s five new cranes will beable to unload five 12,000-ton ships at the same time.

The $100-million expansionplan is opening up the portto bigger vessels by dredgingout a 30-foot maneuveringbasin and a 260-foot accesschannel. On shore, new si-los, power networks, andstorage facilities will also im-prove the port’s cargo-han-dling speed.

Revenues and cargo move-ment are both up signifi-cantly as a result of theimprovements that have al-ready been carried out. In-vesting in people is alsopaying off for the Port ofCabinda, which has taken onnew employees and taughtthem the skills needed to usethe new equipment. The porttakes an active interest in in-creasing the education of itsworkers, and is training itsliterate workers to help illit-erate workers learn to read.

INFRASTRUCTURE

New projects to expand Cabinda’s infrastructure

Peace laid the groundwork fordevelopment in Cabinda, andrevenues from the oil boom areallowing the province to build on thatfoundation. Now, international andlocal agencies are pursuing projectslarge and small to help Cabinda’speace and prosperity take root. TheUnited States Agency for InternationalDevelopment (USAID) is playing a keyrole, along with oil giant Chevron andthe governments of Cabinda andAngola.

USAID participates in the

Municipal Development Program,which provides over $8 million toimprove local administrators’ abilityto create and manage localdevelopment programs. USAID issupporting infrastructuredevelopment in the voluntary sectorby increasing its funding to a non-governmental organization calledSearch for Common Ground. For thenext two years, the agency willprovide $600,000 to support theorganization’s efforts, whichcombine peaceful conflict resolution

with road and water infrastructure.Creating stable agricultural work is

another high priority for USAID, whichis collaborating with the oil companiesto create an agricultural fund. Thefund will set up warehousing anddistribution infrastructure, trainfarmers to increase their productivity,and help create 5,000 new jobs on1,000 farms.

Chevron plans to use some of thefood produced by the project at itsMalongo onshore terminal, and is alsosupporting some more unusualagricultural projects. A Chevron-funded program is bringing in expertbeekeepers to train Cabindans andbuild up a local honey-producingindustry.

Cabinda’s growing economy needsbasic supplies, and the provincial andnational governments are workingtogether to generate jobs byproducing those supplies in Cabinda.The $37 million Futila industrialpark, under construction north ofCabinda City, has been planned as aprime location for producers ofwood, brick, tile, and cement. Localofficials are confident that the park’sinfrastructure will make it a choicelocation to do business, withCabinda’s construction industry in fullswing and Chevron seeking out localsuppliers for its humming operationsat nearby Malongo.

Since the peace accord, Cabinda is now a safer place with greater liberty to grow

Projects are underway to promote agriculture as a stable alternative to oil

New roads are decreasing travel times around Cabinda and to the mainland

STRONG AND STABLE

End of war means beginning of growth

� LOCATION:An exclave of Angola, separatedfrom the rest of the country by theDemocratic Republic of the Congo

� POPULATION:approximately 300,000

� CAPITAL: Cabinda City

� CURRENCY: Kwanza (AOA)

� EXCHANGE RATE:75.2 kwanza per U.S. dollar(2008)

� AGRICULTURE:Cassava, bananas, coffee

� MINERALS:Crude oil, manganese, gold,uranium, quartz, phosphates

� INDUSTRY:Oil extraction, oil refinery,construction materials, foodproduce, wines, tobacco, timber andfurniture

JOSE ANIBAL LOPES ROCHA, Governor Province of Cabinda

CABINDAPeace agreement opens a new era for Cabinda province

ANGOLA+CABINDA usat 11x21.qxd 08.01.2009 19:13 Página 6

Angola is Africa’s third-biggestoil producer, and Cabinda is thecountry’s most oil-richprovince. With national pro-duction rising to about 2 mil-lion barrels per day this year,Cabinda’s petroleum resourcesare fuelling Angola’s prosperi-ty and generating jobs. The oilindustry is reaping the benefitsof peace and stability by in-vesting in projects to reduceenvironmental impact and byhelping Cabinda’s people im-prove their standard of living.

Chevron’s Cabinda Gulf Oil

Company (CABGOC) sub-sidiary is the country’s biggestforeign oil industry employerand pumps out 171,000 barrelsper day. 2,700 Angolans makeup 87% of the company’s work-force in Angola, accounting forfully 75% of its supervisory andprofessional staff.

Chevron’s Malongo termi-nal stores and exports oil fromCABGOC and other pro-ducers. Already located closeto Block Zero and Block 14production areas, new dis-coveries and a proposed new

crude pipeline will direct evenmore oil to the Malongo fa-cility. The Cabinda Southblock, including the mam-moth 170-million-barrel Mas-sambala-1 oilfield, lies within30 miles of the terminal.

As impressive as these num-bers are, Cabinda’s oil industryis about to get much bigger. Themassive Tombua Landana pro-ject is coming online in Block14 in 2009, and will produce anaverage of 100,000 barrels perday by 2010. To reach the de-posits beneath the seafloor, the

project commissioned theTombua Landana CompliantPiled Tower, one of the world’stallest man-made structures.

Rising from its base anchoredto the seabed to a productionplatform above the ocean sur-face, the 1,554-foot tower istaller than the Sears Tower orthe Empire State Building.Chevron has a 31% stake in theproject, which is being devel-oped with Angolan national oilproducer Sonangol and Italy’sENI SpA.

The $3 billion project will in-clude over $250 million of lo-cal content, maximizing theuse of Angolan engineering,procurement, construction,and installation capabilities. ButTombua Landana isn’t just an

effort to develop natural re-sources – it’s about cultivatinghuman resources as well.Chevron is sending Angolantrainees to its deepwater train-ing center in Louisiana, and giv-ing some work experience onrigs in the Gulf of Mexico. Otherlocal workers are studying forinternationally recognized mar-

itime credentials, so that theycan gain skilled jobs dockingtankers at Angola’s offshoreplatforms and onshore ports.

Chevron is part of a cooper-ative human-development ef-fort called the AngolaPartnership, which set up a mi-cro lending bank calledNovoBanco in 2004. NovoBan-co has made more than $27 mil-lion of loans to more than 5,500micro and small enterprises.Another part of the initiative

has provided seeds, tools, andfood to approximately two mil-lion people spread across sixprovinces.

Burning flares used to be acommon sight atop oil wells, asproducers disposed of naturalgas by-products in the cheap-est way possible. In Angola, pro-ducers are giving theenvironment a break, and thecountry a whole new resource,by eliminating the practice. In-stead of wastefully flaring gas in-to the atmosphere, Chevronand its partners in Cabinda’sBlock Zero have built the Taku-la Gas Processing Plant toprocess, store, and transport it.

In addition to these direct in-vestments in Cabinda’s well-be-ing, oil producers support thegovernment’s development ef-forts by contributing to the taxbase. Cabinda's governmentkeeps 10% of the income fromlocal production for its ownprojects, which include pro-grams to improve the healthand education of the province'spopulation.

Distributed by USA TODAY Tuesday, January 20, 2009 7

Revenues from oil arebeing used to diversify theeconomy, mainly intoagriculture and timber.One of the results of thisincreased productivity is agrowing middle class anda stronger financial sector

Oil is the best-known com-ponent of Cabinda’s econo-my, but the province’s wealthdoesn’t stop there. New pro-jects that take advantage ofits rich timber resources,teeming fisheries, and fertilesoil are helping diversify theeconomy, using the oil in-dustry to fuel developmentin other sectors. With Cabin-da in the lead of a surging An-golan economy, the country’sbanks have found fertileground in the province andare opening new branches.Cabinda is turning out to bea great place to grow.

To cultivate local resources,the provincial and nationalgovernments are workingfrom the ground up and part-nering with small producers.A pioneering micro creditscheme has helped 1,078Cabindan farmers form co-operatives to buy farmingequipment and seeds, and itssuccess is being replicatedacross Angola. Four new gov-ernment Agrarian Develop-ment Stations offer farmersadvice on how to increase pro-duction and improve the qual-ity of crops. Other governmentinitiatives are building green-houses to ensure a consistentflow of quality produce, in-troducing Congolese cattlethat thrive in the region’s hotclimate, and building a plantto refine and bottle palm oil.

Encouraging farmers togrow staple crops has alreadyenabled Cabinda to be self-sufficient in peanuts, bananas,and mandioca, which form thecornerstones of the local diet.“Our ambition is for our fam-ily agricultural sector to in-crease its production levels,”says Alector Araujo, directorof the regional government'sDepartment of Agricultureand Rural Development.“We're entering a phase inwhich we want farmers to in-

crease production by usingnew technologies.”

Productivity in resourceindustries is getting a boostboth on land and off theCabindan shore. Govern-ment-supplied powerboats,engines, and nets are en-abling fishing cooperativesto travel beyond the oil pro-ducing areas of the coastline,

and haul in a larger catchfrom farther out in the sea.

Back on terra firma, the for-est sector – Cabinda’s second-largest industry – is gearingup to meet the timber needsgenerated by the Angolan con-struction boom. The state-owned BDA (Banco deDesenvolvimento de Angola)is making loans to help

sawmills and wood-productsproducers increase their out-put. Where the BDA has ledthe way, commercial bankshave followed, finding oppor-tunities for profit in Cabinda’shistorically undercapitalizedtimber industry.

It’s a story that is being writ-ten across Angola and Cabin-da, as oil revenues andinfrastructure developmentspur prosperity in other sec-tors. Peace and growth are fi-nally allowing Angolans to findgood jobs and save their mon-ey, which creates enormousopportunities for the coun-try’s banking sector.

This potential hasn’t goneunnoticed – a recent BNETBusiness Network report putthree Angolan banks in thetop 10 of its Top 25 AfricanBanks list. With ten bankbranches now operating inthe province, and two morein the planning stages, Cabin-da is proving a natural placeto expand for Angola’s thriv-ing financial sector.

NEW OPPORTUNITIES

Cabinda is planting stronger, morediversified economic roots

Proven reserves in Angola have tripled in recent years, having some of the world’s biggest oilfields

Rich timber resources are being tapped by a growing construction sector

The education and health systems inCabinda have come a long way sincethe peace accords, helped along bytax revenue from the oil industry.Further educational improvements willbe necessary to secure Angola’s futureand its economy, according toprovincial Education Director Dr. JoaoChissina Mabiala. “We want toguarantee an adequate education thatwill give all citizens the chance to helpdevelop the country,” he explains.Already, better health care programsand facilities are improving the livesof Cabindans of all ages.

The work starts at theelementary level, where 89,000 ofCabinda’s 130,000 primary schoolstudents are receiving special aid inthe form of milk, nutritious cookies,school uniforms, and schoolsupplies. Hundreds of newclassrooms have been built since2002, allowing the government toextend primary education up to thesixth grade. Teacher salaries havetripled in the same time period,while the total number of

instructors has risen from 3,600 to4,200.

Technical, adult and universityeducation is also expanding. Arecently opened technical school,focused on the chemistry skills neededby the oil industry, was created withvaluable guidance from national oilcompany Sonangol. A 90-hectareuniversity campus is underconstruction south of Cabinda City,including ten colleges, residence halls,and a new library.

While children have been thebeneficiaries of successful vaccinationand anti-parasite campaigns, newclinics and hospitals are opening uparound Cabinda to improve themedical facilities available to allcitizens. A new $6 million hospitalopened last year, an older hospitalwas overhauled with new equipment,and a third is under construction. Toreach rural areas, the government isinvesting in mobile clinics that will rollfrom school to school.

The upcoming CANsoccer tournament willbe a chance forCabinda to showcase itsmarvelous tourism offer

Cabinda’s human and eco-logical wealth is helpingAngola to play a larger rolein Africa and the world. Theupcoming 2010 CANAfrican Nations Champi-onship soccer tournamentwill be a chance for Cabin-da to show off its new sta-dium, which will beinaugurated on the an-niversary of Angola’s inde-pendence next November11th, to a continent ofsports fans. Beaches,forests, and cultural attrac-tions are the foundation ofa growing tourism sectorthat employed 1,000 peo-ple and racked up 29 millionkwanzas ( $386,000) in salesin 2006.

Cabinda’s biggest touristattraction is the Mayombeforest preserve. One of theworld’s largest plant and an-imal reserves, it is home tomany rare trees, as well asan animal population thatincludes gorillas , chim-panzees, and elephants.Cabinda governor Jose Ani-bal Lopes Rocha explainsthat the forest will welcomevisitors while maintainingits ecological integrity.“We're even building atourist center in the heartof the forest that will in-

clude a mini-hydroelectricplant.”

Oil isn’t Cabinda’s onlyunderwater resource. TheCongo River flows out fromCabinda and cuts a mile-deep canyon into the oceanfloor, attracting an aston-ishing variety of marine life.Researchers have found thatrare and common dolphinsfrolic together in Cabinda’sseas, while a range of whalespecies make them theirbreeding grounds. Mean-while, on the beaches, gov-ernment scientists haveteamed up with Chevron’snature experts and localfishermen to protect a pop-ulation of rare Olive Ridleysea turtles.

The cultural heritage ofCabinda is profound, butnot widely known beyondAngola’s borders. Fascinat-ing traditional performerscalled Bakamas are reveredas representations of spir-its that intercede betweenthe living, the dead, and thegods. While they dance inpublic to mark importantevents, the rituals and trueidentities of the Bakamasare a closely guarded secret.Representing a whole hostof spirit characters – proudMabobolo, angry MakaiaMakonde-Konde, all-see-ing Duengie Meso – theBakamas reflect a fascinat-ing and nuanced tradition-al Cabindan view of natureand human psychology.

Bakamas are traditional dancers that represent spirits

OIL OUTPUT ISINCREASINGRAPIDLY AND THEINFRASTRUCTUREMUST KEEP UP

SOCIAL INITIATIVES

Oil revenues are improving quality of life

CABINDA

Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

Students from primary through university are enjoying better conditions

TOURISM

An opportunityto show off tothe world

Angola is Africa’s second largest oil exporter, thanks to Cabinda

Chevron, Sonangol andENI SpA are investingheavily in Cabinda’s oilinfrastructure,preparing it for greatincreases in productionover the next severalyears

PETROLEUM

The Angolan oil giant continues to growCabinda has been and will remain essential to Angola’s economic future, as oil revenues from the province represent a large part of the national budget and will spur development

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