“Angola’s growth prospects are set to rise as the country continues to make strides towards a more positive economic course,” says Wayne Troughton of specialist hospitality and real estate consultancy firm, HTI Consulting. “Higher oil prices and sounder policies under President Joao Lourenco should bring greater stability to Africa’s second largest crude exporter, strengthening the country’s institutions and attracting foreign investment that will spur economic growth and contribute to the diversification of the econ omy, including sectors such as tourism and hospitality.” “The breakneck economic growth that Angola enjoyed following the end to decades of civil conflict in 2002 came to a sudden stop when the price of oil crashed in 2014,” says Troughton. “The subsequent vulnerability of the country’s economy due to its reliance on oil was strongly evident over recent years, with decreasing oil prices seeing negative GDP growth in 2016 of -0.7%,” he explains. “In 2016, hotel room occupancy in Angola fell to just 25%, although the rate in the capital Luanda was higher at 60%. The weakened economic environment, combined with a slow down in the oil sector (a primary driver of hotel room nights), negatively impacted the market, notably in Luanda. A number of new hotel projects, many expected to enter the market in 2015, were put on hold as developers chose to wait out the challenging market conditions,” he says.”More recently, however, the new go vernment’s Macroeconomic Stabilization Program, along with a resurgence in the oil price currently trading above USD 70 a barrel, has brought a renewed energy to Angola,” he states. Recent findings by the The International Monetary Fund have also commended the government’s efforts to improve the investment climate and revised growth forecasts for 2018 have been moved upwards from 1.6 to 2.2 percent. Comments Troughton, “Whilst the projections are moderate, it is nevertheless an indication the economy is undergoing a
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