Cabinda Province - Economy

Economy

Consisting largely of tropical forest, Cabinda produces hardwoods, coffee, cocoa, crude rubber and palm oil. The product for which it is best known, however, is its oil. Conservative estimates are that Cabinda accounts for close to 60% of Angola’s oil production, estimated at approximately 900,000 barrels per day (140,000 m3/d), and it is estimated that oil exports from the province are worth the equivalent of US$100,000 per annum for every Cabindan. Yet, it remains one of the poorest provinces in Angola. An agreement in 1996 between the national and provincial governments stipulated that 10% of Cabinda’s taxes on oil revenues should be given back to the province, but Cabindans often feel that these revenues are not benefiting the population as a whole, largely because of corruption. The private sector, particularly the oil industry, has both affected and been affected by the secessionist conflict. During the early days of Cabinda's struggle, the oil companies were perceived to be sympathetic to, if not supportive of, Cabinda’s self-determination cause. The strategy used by the separatists to gain international attention, was most evident in 1999 and 2000. During 1999, FLEC-R kidnapped four foreign workers (two Portuguese and two French citizens), but released them after several months, having failed to attract the attention of the international community. FLEC-FAC also increased its activities during 2000 with the more widely publicized kidnapping of three Portuguese workers employed by a construction company, while FLEC-R kidnapped another five Portuguese civilians. These hostages were not freed until June 2001, following the diplomatic intervention of the governments of Gabon and Congo Brazzaville.