Development a 'top priority'

2008-10-06 07:55

Luanda - Angolan President Jose Eduardo dos Santos has pledged named development as a top priority for the oil-rich nation alongside double-digit growth and lowering inflation, state media reported on Saturday.

Dos Santos called on a newly established ministry of economy to create conditions for inflation to drop to 13 percent by the end of the year and to move below 10% in the future, the ANGOP news agency said.

"Macro-economic stability and the establishment of conditions for the economy to grow by two-digits in relation to GDP should be the ambition that moves the government, particularly the economy team," he told his 35 member cabinet.

Dos Santos was speaking on Friday at the swearing-in of the new cabinet after the country's historic post-war legislative elections last month, the first in 16 years, in which his ruling MPLA won more than 81% of votes.

"Three years ago we began to implement a huge rehabilitation and construction programme and development of infrastructure. Now we need to evaluate those activities and plan for subsequent interventions," he said.

Angola is Africa's fastest growing economy with real GDP growth expected to average 15.1% and inflation at 12.5% in 2008.

Its capital Luanda is one of the most expensive cities in the world, dependent on imports for 90% of all goods sold, and the country's business environment is hindered by red tape, corruption and expense.

Fighting poverty and food self-sufficiency would also be a top priority, he said, vowing to keep his electoral promise to build a million houses in four years.

Dos Santos said Angola was in a "moment of great political and historical significance".

"Weeks ago the world was surprised by Angolans, the massive, orderly, responsible way they went to the polls and voted freely," he said.

- AFP