Abstract
M.Phil.
Prior to independence from Portugal in 1975, Angola had a highoutput
economy with a rapidly increasing manufacturing sector, near
selfsuffiency in agriculture, and crop surpluses for export. The
country still has abundant natural wealth, but decades of civil
war, disastrous economic policies and foreign meddling has
impoverished Angola and beggared her people.
Mozambique was never really developed economically since the
Portuguese saw it principally as a transport route between the
coast and its landlocked neighbours. Mozambique nevertheless
possesses considerable development potential. Major rivers offer
the possibility of crop irrigation and hydro-electric power, whilst
mineral reserves include iron ore and tantalite. However, the
civil war, which ended in 1992, and Marxist-Leninist policies
severely damaged all sectors of the economy and the bulk of the
countries resources remain under-exploited. When businessmen consider possible foreign locations, Angola and
Mozambique are, therefore, less likely to spring to mind. The aim
of this study is, firstly, to develop a system of political risk
analysis which is particularly applicable to the less developed or
Third World countries, and secondly, to show that Angola and
Mozambique do have investment potential. The object patently, is
not as ambitious as to suggest answers to the problems of these two
countries.