The Competitiveness and WellFair: An approach of Angola Competitiveness Fail

Nerhum Sandambi

No jyr94_v1, SocArXiv from Center for Open Science

Abstract: Competitiveness can, in particular, be a powerful means of improving efficiency and the high quality of products on offer, which significantly drive the market and naturally ensure the greatest possible diversity of products available. On the other hand, some countries, such as Angola, and other developing countries, naturally exhibit a significant lack of a competitive environment; this is further evidenced, for example, by the weak business environment that exists. The weakness of the private sector further helps to explain this situation; for example, in Angola, the two most significant companies are state-owned enterprises, which naturally ensure high and significant sustainability for the Angolan economy as a whole. On the other hand, the strong presence of the informal economy contributes to the creation of a poor competitive environment. Certain fundamental conditions are naturally identified as other key factors contributing to this economic inefficiency, chiefly the lack of adequate economic infrastructure. In many key industries, there is naturally a high degree of concentration; for example, in the telecommunications sector, where Unitel holds the majority share of the market. This concentration, in particular, typically leads to a high level of inefficiency in the services provided. Other services, such as water supply and electricity distribution, naturally exhibit high levels of concentration within the economy; these concentrations are, in particular, reinforced by the nature of the companies involved, the majority of which are public enterprises. Thus, in general, the analysis shows that high levels of industry concentration reduce the diversity of key products on offer and contribute significantly to negative impacts on overall welfare. In Angola in particular, this evidence is strongly consistent with the lack of local production, as the majority of basic needs are met through imported goods. According to the evidence, the absence of a strong competitive environment leads the market towards the emergence of negative externalities.

Date: 2026-08-25
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:jyr94_v1

DOI: 10.31235/osf.io/jyr94_v1

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