Country Report Angola March 2011

Outlook for 2011-15: International relations

The key foreign-policy aims over the forecast period will be to diversify Angola's access to international finance, to manage successfully the revived relationship with the IMF and to expand the country's international role, notably as an unofficial mediator in the political stand-off in Côte d'Ivoire. The IMF stand-by financing arrangement will bring government macroeconomic management under close scrutiny, which will generate periodic tensions with the Fund, although it seems to be more flexible than in the past. Angola's relations with South Africa should improve, given the warm relationship between the South African president, Jacob Zuma, and Mr dos Santos, who made his first official visit to the country in December. However, relations with Angola's northern neighbour, the Democratic Republic of Congo, will remain tense owing to the expulsion of illegal immigrants by both countries and negotiations to delineate the maritime border in oil-rich waters. Angola's relationship with China, which is based on oil-backed Chinese loans and credit lines, continues to deepen despite concerns over the quality of some Chinese contractors' work. Warm relations with Brazil and Portugal are set to continue, underpinned by credit lines. The government is also implementing new credit lines from members of the Paris Club of international creditors.

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