PositionEnd of decades of civil war in 2002 was followed by a surge in demand for goods - Brief Article

Decades of civil war left Angola fragmented in every sense of the word. The almost total breakdown of formal distribution and retail channels is making it difficult for the nation to establish a viable private sector consumer base outside the capital city of Luanda.

As the war came to an end in 2002, demand for goods skyrocketed and created an atmosphere of runaway inflation. As exports shot up as much as 70 percent year-on-year, the nation's main ports became clogged with ships and containers. Suppliers of goods should expect considerable delays in delivery and possible payment complications as the nation's financial sector struggles to keep pace with the rapidly rising number of commercial transactions.

Angola poses a consumer market paradox. GDP expansion of 10.5 percent in 2002 and an estimated 7 percent in 2003 ranks it among the world's fastest growing economies. Nevertheless Angola's purchasing power parity per capita of US$1,300 places it squarely among the ranks of the world's poorest nations...

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