ASSESSMENTS

Angola, South Africa: Reluctant Cooperation in the Diamond Sector?

Feb 14, 2011 | 20:10 GMT

ALEXANDER JOE/AFP/Getty Images

Summary

Angola is promoting investment in its diamond-mining sector, an area in which South Africa has a great deal of interest. At the same time, the South African-owned Development Bank of Southern Africa has approved a loan for the construction of new road infrastructure in western Zambia that could be intended to link to Angola's diamond-producing regions. Angola and South Africa both have an interest in developing the Angolan diamond-mining sector, but lingering suspicions of South Africa's intentions will lead Luanda to approach any deal with caution.

Angola is inviting foreign investment into its diamond sector but is concerned that South Africa could undermine Angola's interests. (With STRATFOR maps)...

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