Since 1980 foreign assistance grants have increased because of Angola's agricultural crisis and the drop in oil export earnings. In 1984 gross official development assistance from multilateral institutions rose to US$33 million, nearly double the figure for 1979 (see table 7, Appendix A). Foreign aid was likely to increase in the late 1980s as a result of Angola's accession to the Lomé Convention (see Glossary) in April 1985, making the country eligible for funding under the Lomé III Agreement, which was to remain in effect until 1990.

Because of the mid-1980s crisis in local agricultural production, food imports were essential to feed the population, and Angola had to appeal for more than US$100 million in food aid. Nevertheless, such aid did not meet food requirements, and in 1986 the country experienced a cereal shortfall of more than 100,000 tons. In addition, Angola also appealed for US$21 million in nonfood aid in 1987, most of which was earmarked for relief and survival items.

Most direct aid was provided by Western organizations, and Angola was trying to improve its relations with several individual Western countries to negotiate for further assistance. In addition to assistance provided by the United Nations (UN) World Food Programme (WFP), in the late 1980s the EEC was providing assistance through the Lomé III Agreement as well as through the European Investment Bank. Furthermore, Angola regularly received aid from Sweden for various small-scale development projects, and France provided some assistance tied to the purchase of French equipment. Angola has improved relations with the Federal Republic of Germany (West Germany) and succeeded in reaching an agreement in 1987 with that country for 3,600 tons of food aid. Likewise, Portugal agreed in 1987 to provide US$140 million in credits toward the recovery of Angolan companies hurt by the exodus of Portuguese settlers after independence and to cooperate in some joint economic ventures with the Angolan government.

Angola also received significant assistance from the Soviet Union and East European nations. In 1977 Angola and the Soviet Union established an intergovernmental commission for technical, scientific, and trade cooperation. Projects addressed by this commission have included the design of a hydroelectric station, rural electrification, assistance in the petroleum and fishing industries, the supply of industrial equipment and physicians, and the training of Angolan technicians. The commission agreement was to run to the year 2000 and included plans for Soviet technical assistance in the petroleum industry, in light industry, and in livestock production. Angola has similar technical assistance agreements with Hungary (for the pharmaceutical and automobile industries), with Yugoslavia (for the petroleum industry and for agriculture), and with Bulgaria (for urban planning). Yugoslavia also built a large department store in Luanda to market Yugoslav-made goods, and trade between the countries has increased. And in Oct 299ober 198986, the government signed a cooperation agreement with the Council for Mutual Economic Assistance (Comecon or CMEA), the common market for the Soviet Union, its Eastern Europe allies, and a few other countries. Under Comecon a joint commission on cooperation was to be established to determine future forms of cooperation and assistance between the nations.

Data as of February 1989