Understanding Post-War Foreign Direct Investment in Angola: South–South Led or the West Still Rules?

Members of the political elite of Angola often explain the post-war economic recovery through south–south co-operation, with particular reference to the emerging economies – that is, Brazil, Russia, India, China and South Africa (BRICS). Mainstream argument suggests that although foreign direct investment (FDI) from new sources, such as the BRICS, is necessary for natural resource-rich developing countries, the effects of this investment are likely to replicate western practices, making it difficult for these countries to move away from natural-resource dependency. Countries in sub-Saharan Africa are particular likely to experience these challenges. However, by looking at the historical relations between Angola and the BRICS, then examining the patterns of the FDI registered with the Angolan National Private Investment Agency (ANIP) (from 2003 until 2013), this study indicates that BRICS FDI has been concentrated in the non-mineral sector, particularly in construction and manufacturing. Evidence further highlights the point that despite inadequate transparency and poor accountability, western-based FDI still rules in Angola.