Angola's ruling party plans stable succession

Subject

Outlook for the presidential succession.

Significance

The departure of President Jose Eduardo dos Santos, in power since 1979, is now all but certain after a leaked letter indicated that his People's Movement for the Liberation of Angola (MPLA) party has named Defence Minister Joao Lourenco to head its lists of candidates for the 2017 general election. The decision puts an end to speculation that Dos Santos would be succeeded by his daughter or son.

Impacts

• Economic stagnation will likely continue as the oil price remains low.
• Long-awaited moves to economic diversification may not emerge as investors wait out the transition period.
• Renewed dialogue with the IMF is unlikely to produce any concrete results before a new government takes office.