Africa Works

Ryan Shen-Hoover, of the newsletter Investing in Africa writes to remind me that a microlender in Angola, Novobank, is reportedly compiling a good record of making small loans to poor Angolans. I’m glad to hear this. My skepticism partly comes from my knowledge of the Angolan government’s practice of stealing billions of dollars of oil revenues each year. The government, essentially run by a small clique of aging independence leaders (who with the help of Cuban mercenaries over some 25 years consolidated control over the capital of this country), refuses to publicly account for the vast and growing revenues received from oil companies, including some British and American ones. The standard set by the government of Angola is so low that it is hard to imagine a well-functioning financial organization in the country, especially one devoted to the poor. But precisely because the scenario is impossible to imagine, it is most likely true. Africa is full of paradoxes and one of the best ways of thinking about African reality is to juxtapose an image of “islands of success” alongside “islands of failure.” These two distinct islands co-evolve in most African countries, which explains why it is so hard to assess the overall state of these countries. Is the glass half full or half empty? In Angola, no matter what Novobank achieves as a micro-lender, its success will always be limited by the venal clique that rules this oil-rich country. And — news flash — there is no regime change in the offing either.