New Report – January 2007

Map of Angola

The Angolan Navy (AN) (Marinha Di Guerra) currently has a small force of patrol boats and craft that were built in the early 1990s. However, these vessels are largely non-operational due to funding shortages over the past decade. Although the AN was a much larger and more powerful navy up through the 1980s, it will more than likely remain a patrol force for the indefinite future. In the 1970s and 1980s, the sea service consisted of several classes of fast attack craft (FAC), patrol vessels, mine countermeasures vessels (MCMVs) and amphibious vessels; all of which were decommissioned more than a decade ago.

The immediate priority for the AN would be to return the force to an operational status in order to monitor its coastline and territorial seas. The longer-term priority would be to replace the existing fleet with new patrol vessels sometime in the next decade (2011-2020).

Funding for the Angolan Armed Forces (AAF) has averaged around US$1B annually since 2000. However, with increased oil production and oil revenues (50% of GDP and 90% of exports) over the past several years, the AAF may have an opportunity to fund some of its most pressing hardware requirements. For the AN, a window of opportunity exists to return its current seven-ship patrol force to operational service and possibly lay the groundwork for replacement units in the next decade.

Geographical Information:

Coastline: 1600 km (987 miles)

Maritime Claims :

Territorial Sea: 12nm

Contiguous Zone: 24nm

Exclusive Economic Zone (EEZ) : 200nm

National Capital and Defense Headquarters: Luanda

Language: Portuguese (official), Bantu and other African languages

Population: 12,127,000

Country’s legal name: Republic of Angola

Type of Government: Republic; multi-party presidential regime

Branches of Government:

Executive Branch: Chief of State and Head of Government: President Jose Eduardo Dos Santos (since 21 May 1979). Prime Minister: Fernando de Piedade Dias Dos Santos (appointed 06 December 2002). Cabinet: Council of Ministers appointed by the President.

Legislative Branch: Unicameral National Assembly (Assembleia Nacional) (220 seats; members elected by proportional vote to serve four-year terms).

Judicial Branch: Supreme Court and separate provincial courts (judges are appointed by the President).

Currency: Angolan Kwanza (AOA)

Gross Domestic Product Per Capita: US$3,800

Economic Overview: Angola’s high growth rate is driven by its oil sector, with record oil prices and rising petroleum production. Oil production and its supporting activities contribue to about 50% of the nation’s Gross Domestic Product (GDP) and 90% of its exports. Increased oil production supported 12% growth in 2004, 19% in 2005 and 20% in 2006. Continued high oil prices and increased production are expected to sustain high GDP growth for the foreseeable future.

Growth also continues in other areas such as manufacturing, construction and agriculture since the nation began rebuilding itself following the 27-year civil war that ended in 2002. Much of the country’s infrastructure was damaged or undeveloped during the war and is now making considerable headway in repairing itself. The government is utilizing a US$2B line of credit from China in order to rebuild some of the nation’s public infrastructure.

Other positive signs for the Angolan economy are the stabilization of the currency since 2003 as well as the reduction of inflation from 325% in 2000 to 20% in 2006. In addition, the government has made significant progress on reforms as recommended by the International Monetary Fund (IMF) promoting greater transparency in government spending.

On the downside, Angola has a considerable way to go in restoring the infrastructure damaged by civil war and has yet to realize or implement a plan to take advantage of the nation’s other abundant natural resources such as its large deposits of gold, diamonds and fisheries.

Since its independence from Portugal in 1975, Angola’s official foreign policy was to focus on African affairs. However, since its early days of independence, Angola was embroiled in civil war that lasted until 2002. Since the war has ended and the nation now enjoys political stability, it is beginning to reengage in foreign affairs, which again will focus on African issues as well as participating in organizations such as the United Nations (UN) and the Non-Aligned Movement (NAM).

Angola’s foreign policy is based on the following fundamental principles:

Angola’s international position and foreign policy are determined by its geographical location; and its fundamental belief in African unity, the peaceful settlement of disputes, and nonalignment. Since the civil war ended in 2002, Angola has enjoyed good relations with its immediate neighbors.

Although Angola does not possess a formal defense policy, the AAF is an important national institution that is responsible for the nation’s defense, and has the following roles:

The President is the Commander of the Armed Forces. The armed forces are subordinate to the President through an appointed Minister of Defense. Responsibility for the national security is vested in the Defense Ministry. Authority over Angola’s three services (Army, Navy, and Air Force/Air Defense Force) rests with the Chief of General Staff of the Angolan Armed Forces. Subordinate to the Chief of General Staff are the Chief of the Army, Chief of the Air Force and the Admiral of the Navy.

* Please be advised that the Key Defense Organization Personalities may have changed since this report was published.

Mr. Kundi Paihama

Defense Minister

Ministry of Defense

Rua 17 de Setembro

Luanda, Angola

Tel: + 244 2 334 912; + 244 2 339 857

General Francisco Pereira Furtado

Chief of General Staff of the Angolan Armed Forces

Ministry of Defense

Rua 17 de Setembro

Luanda, Angola

Tel: + 244 2 334 912; + 244 2 339 857

Admiral Feliciano Antonio dos Santos

Admiral of the Navy

Ministry of Defense

Rua 17 de Setembro

Luanda, Angola

Tel: + 244 2 334 912; + 244 2 339 857

The Angolan Armed Forces (AAF) consists of approximately 107,000 active duty personnel, including:

Approximately 10,000 paramilitary personnel support the active duty force.).

The Angolan fleet consists of seven patrol vessels and four naval aircraft. All of the naval units operate from bases in Luanda, Cabinda, Lobito, Namibe and Soro. The naval aircraft operate from Luanda.

The Angolan Navy (AN) currently consists of seven patrol vessels:

Currency conversions based on exchange rates for corresponding year. Currency exchange rates for 2007 based on 14 December 2006 exchange rate of 80.5764AOA=1US$. Currency rates for 2008 and 2009 based on exchange rate of 80.6000AOA=1US$.

Fiscal Year: Calendar Year

For companies wishing to do business in Angola, it must be advised that all military procurements could possibly require some type of offset arrangement. Angola is in the midst of rebuilding its infrastructure after 25 years of civil war and will probably target most offsets toward the civilian sector.

The AN is primarily composed of European-built patrol vessels that were delivered to Angola in the 1990s. The patrol vessel force is what remains of the naval force that existed during the 1970s and 1980s (FAC, patrol vessels, MCMVs and amphibious vessels). Today’s fleet is based on the nation’s ability to monitor its coastline and territorial seas vice combat operations.

With virtually no shipbuilding capability and a limited budget, Angola will continue to rely on foreign suppliers for the entirety of its future naval requirements. With its historical ties to Europe, it is more than likely that the AN will continue to utilize suppliers from that continent. Although Angola does not have the ability to build naval vessels, it is able to perform limited overhauls at the nation’s civilian yards.

Angola enjoys generally good relations with its immediate neighbors. As such, it will be responsible for patrolling and defending its territorial seas, economic exclusion zone (EEZ), and coastline as well as performing search and rescue (SAR), port security, smuggling prevention, anti-piracy, environmental protection, and law enforcement operations.

The missions of the Angolan Navy include:

- Maintaining control of the 1600 km (987 miles) of coastline.

- Maintaining control of the territorial seas.

- Fisheries protection.

- Smuggling prevention.

- Piracy prevention.

The AN currently has seven patrol vessels in inventory. These vessels were procured in the 1990s and are in a state of disrepair. The top priority of the AN is to return the force to an operational status in order to monitor its coastline and territorial seas. The longer-term priority would be to replace the existing fleet with new patrol vessels sometime in the next decade (2011-2020).

After 2011, AMI expects that the AN would begin a new patrol boat (over 100 tons) and patrol craft (under 100 ton) programs in order to replace the Mandume and Patrulheiro classes that are currently in service. The AN could choose two avenues for the replacement programs, either new construction or used vessels from the international market. New construction programs would require an extremely beneficial financial package as well as improvements in training of fleet personnel and a support structure to maintain the new vessels.

* FOC RfP is the First of Class Request for Proposal