[LINK] "How Angolans get by in expensive Luanda"

[rfmcdonald]

Writing for This is Africa, Lula Ahrens describes how in Luanda, capital of an Angola experiencing huge economic growth and rampant inflation, the poor get by. (The answer? Badly.)

Since the end of Angola’s civil war [1975-2002], Chinese oil-backed credit lines – Angola is China’s No. 1 oil supplier – have fueled an impressive building and infrastructure boom. Angola’s 8% growth rate this year is lower than usual, but the country is expecting to return to double-digit growth rates in the foreseeable future while European markets decline. On top of that, Angola has a huge demand for skilled labor.

The large majority of Angolans, however, have not profited from Angola’s growth. According to economist Manual Rocha, around 2.5% of Angolans are (extremely) rich, and around 10% can be considered middle class. The rest struggle to make ends meet.

Single mother of four Maria Jose Fransisco (30) sells fruit and vegetables every day together with her female colleagues outside one of Luanda’s cheaper supermarkets, Martal. “Sometimes we earn something, sometimes we don’t,” Maria told This is Africa. “There are days when we make 10 or 15 dollars.” They sleep on a mattress, on the floor. “I pay $100 USD rent per month for one room.” “We buy our products far from here, in Viana,” Lucinda Domingo (23) adds. “Taking them and us here by candungeiro [minivan taxi] costs 10 dollars per person.”

A little further down the road, Victor Vieiras Alfonso Jose (28) and his friend sell cheap clothes outside, at the edge of a slum. He studies Engineering at a private university, paid by his parents. “I usually don’t work here,” he said. “I’m a candungueiro driver. Per month, I earn $100 USD.” Victor works from 5:30 till 18:00 and studies at night. There are very few jobs for people his age, his says. He rents a room in a slum for $80 USD per month, including water and electricity. “Per day, I spend more than $10 USD on food alone. Life is very difficult,” he said.

Angola ranks 148 out of 187 countries on the UN Development Index. More than a quarter of the population is officially unemployed. The official minimum wage, around $120 USD, is comparatively speaking extremely low. Especially given the fact that although inflation is decreasing rapidly, it still stands at 10%. Around 87% of urban Angolans live in shanty towns. In Luanda, “only” 1 in 12 live below the poverty line of around $47 USD per month (in rural areas, poverty reaches 58%). The question is what this poverty line means in a country where prices are up to 4 times as high as in Western Europe, and how on earth Luanda’s poor manage to get by.

A brief look at costs and incomes may provide a clue. According to UNICEF, Luanda’s poor earn a monthly income of between $17 USD and $328 USD. The average Angolan, of course, does not shop at Casa dos Frescos. Around 87% of Angolans reportedly buy their groceries in the informal sector, but prices at local markets are also significantly higher than those in other sub-Saharan capital cities.

In Europe and the US, people spend between 10 and 15% of their income on food. In Angola’s urban areas, people have to spend a staggering 50% of their income on food, 12% on rent and 9% on water, electricity and gas. Four percent is spent on health and 5% on transport. Only 1% is spent on alcoholic drinks, tobacco and education. (Note: beer at $1 USD a can and cigarettes at $1.50 USD a packet are among the cheapest items you can get in Angola).

At Most ordinary people buy their food from the informal sector. Typical prices: Eggplant: $1 USD; four onions: $2; five or six small tomatoes: $; head of lettuce: $4 USD. Lunch in a cheap musseque eatery costs about $4.00 USD.