Angola’s Performance on the Resource Governance Index
Angola received a “weak” overall score of 42, ranking 41st out of 58 countries. Higher marks for Institutional and Legal Setting and Safeguards and Quality Controls were countered by a very low Enabling Environment score.
(out of 58)
(out of 100)
|33||Institutional & Legal Setting||58|
|33||Safeguards & Quality Controls||52|
Institutional & Legal Setting Rank: 33rd/58, Score: 58/100 learn more
Angola received a “partial” score of 58; while comprehensive laws cover the oil industry, Angola has no freedom of information legislation and does not participate in the Extractive Industries Transparency Initiative.
The state-owned oil company, Sonangol, maintains central control over the sector, despite the Petroleum Ministry’s nominal regulatory powers. Sonangol determines and collects the petroleum profits due to the government, while the Finance Ministry collects income taxes from companies. Sonangol’s finances are not specifically included in the public sector balance, and Angola has not adopted any rules requiring disclosure of information in the extractive sector. Environmental impact assessments are required by law but not published.
Reporting Practices Rank: 36th/58, Score: 43/100 learn more
Reporting on the oil sector is “weak,” with little information available on contract terms and incomplete data on revenue streams and production.
Sonangol published detailed information on bidding for the last major licensing round in 2007–2008. A model production sharing contract serves as the basis for all oil licenses, but the government does not publish specific negotiated terms for exploration, production or contracts with companies.
The Finance Ministry has published pre-2007 data on production volumes, revenues from petroleum taxes, and bonuses. It also publishes monthly values of resource exports and production data by block. The Petroleum Ministry publishes regular reports of production and export figures by block, the government’s share in production sharing contracts, and companies operating in the country. It has published information up to 2007 on reserves, prices, investments in exploration and development, production costs, subsidies, and special taxes. The central bank also publishes information on prices and the value of resource exports.
Safeguards & Quality Controls Rank: 33rd/58, Score: 52/100 learn more
Angola’s “partial” score of 52 reflects several positive steps toward improved transparency, including comprehensive conflict-of-interest disclosure requirements and significant checks on the licensing process, along with inadequate oversight of the budgetary process and the natural resource fund.
Sonangol oversees the licensing process, which is intended to be open and competitive, but direct negotiation is allowed and it is unclear whether licensing appeals procedures are followed in practice. While national auditors have the authority to audit petroleum revenues, they face considerable capacity constraints and there is little legislative oversight of the petroleum sector.
Enabling Environment Rank: 48th/58 Score: 15/100 learn more
This “failing” score of 15 is Angola’s lowest among all RGI components. Angola is near the bottom of global rankings for corruption and rule of law.
State-Owned Companies Rank: 13th/45, Score: 70/100 learn more
Sonangol is entirely owned by the government. In addition to overseeing the oil sector, the company distributes subsidized fuel and undertakes other quasi-fiscal activities. Sonangol’s 2010 report included for the first time details on reserves, production volumes, production costs, resource export values by block, estimates of investments in research and development, the names of companies operating in the country, production data by block, quasi-fiscal activities, the government’s share in production sharing contracts, special taxes, bonuses, dividends, license fees, and acreage fees. Sonangol’s financial statements are independently audited and include consolidated accounts that cover all of its subsidiaries.
Natural Resource Funds Rank: 16th/23, Score: 25/100 learn more
In 2004, Angola established a Reserve Fund managed by the central bank to conserve windfall profits during times of high oil prices. There is no information on the fund’s assets, transactions or investments. In 2011, the National Assembly passed a law requiring certain petroleum tax revenues be deposited in the fund; with presidential approval these revenues can be used to cover national budgetary expenditures.
Subnational Transfers Rank: 24th/30, Score: 33/100 learn more
The government transfers a percentage of petroleum tax revenues to producing regions. Rules for these transfers are published for some provinces, but their amounts are not reported by the central government.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billions)||5.3||34.7||104.3|
|GDP per capita, PPP (constant 2005 international $)||2,476||3,355||5,227|
|Oil and gas revenue (% total government revenue)||80||79|
|Extractive exports (% total exports)||..||..||..|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2005 data from 2006.|