Angola has entered a new political cycle with the deepening of the democratic process and the its openness to the outside with a new vision on the role and importance of the national private sector and closer dialogue and collaboration with the international international financial institutions. The new legislation on foreign investment and on competition (Investment Law (Law No 9/18 of 26 June), the Competition Law) and the New Foreign Exchange Policy (Instruction No 13/2018 of 19 September) significantly reduce the barriers to investment and ensure greater protection foreign investors. On the other hand, migratory measures were taken with the new type entry visas for investors who will be treated differently in terms of entry and exit.
The Government of Angola is implementing, with the technical support of the International Monetary Macroeconomic Stabilization Program that has allowed to reduce the rate of inflation and the difference between the official exchange rate and the informal rate, as well as to stabilize the interest rates of treasury and national reserves. These measures have led to increased confidence companies operating in the country.
Angola is open to investing in the short and long term in virtually all sectors of national life, some of them being medicine, agriculture, livestock, fisheries, finance, energy and water, construction, transport, communications, manufacturing, trade, hotels, tourism. The Executive prepares a package of public companies to be privatized in whole or in part, which includes companies in the oil, banking and insurance sector, large agricultural farms and industries important.
A new Oil Industry Legislation has been drafted that will allow greater openness to the increase of the revenues of the producing companies as well as to encourage more investments in the prospecting and exploration of diamonds and their lapping industry. Reforms in the judicial and investigative system for combating corruption are ongoing. efficiency, speeding up the resolution of disputes and ensuring the effectiveness of Laws in defense rights and guarantees of all citizens and economic agents. We look forward to the next few years as we increase our cooperation at all levels. This is the new Angola with a new investment-friendly business environment!
The country is home to Africa’s third largest proven oil reserves – 13.5 billion barrels according to the BP Statistical Review of World Energy – and approximately 1% of the world’s total.
Assuming no further significant finds which in itself is unlikely – the country’s oil reserves will last well into the 2030s.
Current production averages 1.6 million barrels a day, with the government aiming to see production rise to 1.8 million barrels a day in 2012 and 2 million barrels a day in 2014.
Blessed with such reserves, oil contributes close to 50% of GDP, while also generating around 80% of government revenue and around 90% of export earnings.
The Angolan government is actively encouraging foreign investment in the country’s mining industry, with the aim of exploiting and diversifying the country’s extensive mineral resources, these include manganese, copper, gold, phosphates, granite, marble, uranium, quartz, lead, zinc, wolfram, tin, fluorite, sulfur, feldspar, kaolin, mica, asphalt, gypsum, and talc.
Tax incentives exist for investments in:
- Urban public transportation (heavy)
- Inter-provincial and inter-municipal passenger transportation (heavy)
- Medium and long haul transportation of goods (intermediate and heavy)
- The implementation of incentives for investment in a personalized taxi system is being studied.
State ownership and operation, through the CFL, CFB and CFM (rail companies) Marked degradation of infrastructure and rolling stock constitute a priority for the Angolan Government.
Areas open to private investment in the concession process, arranging of funds, technical assistance and repairs, and supply of rolling stock, communications, etc. The government has approved a preliminary study, titled “ANGO FERRO”, to refurbish, upgrade, construct and extend the whole of Angola’s rail network, the implementation of which will be put in place in 4 phases:
- Regeneration of current network
- Upgrading of network, bringing it into line with SADC and international standards
- Interconnection of the different railways in Angola
- Construction of new line, extension and link to neighboring States.
Malange, Lobito and Namibe;
It is the government’s view that the 3 corridors warrant the same degree of priority and constitute an open area in which both public and private investment can operate, since they act as a support for the development of the national economy, access to the sea for land-locked countries, and stimulate regional development;
Port system: Luanda, Lobito, Namibe, Cabinda, Soyo and Porto Amboim;
Independent commercial companies;
Leasing port: – Luanda;
Operating port: – Lobito, Namibe, Cabinda, Soyo and Porto Amboim;
Angola has the natural resources to become one of, Africa’s, leading agricultural countries, as its diverse and fertile ecology is suited to a variety of crops. However, the country only cultivates approximately 10% of 35 million hectares of Angola arable land. The major agricultural commodities produced include —cassava, bananas, potatoes, maize, sweet potatoes, citrus, and pineapples.
Agriculture accounts for 12% of Angola’s USD 96.2 billion GDP, in 2016, and provides employment, for more than two-thirds of Angolans. Angola currently imports more than half of its food, with some estimates as high as 90%. Angola is the United States’ third largest market in Africa, for all agricultural export.
One of the major crop of Angolan agriculture is coffee. Angola used to be one of the world’s biggest coffee producers before the civil war broke out. Rehabilitation of the plantations has been ongoing since 2000. The Angola Ministry of Agriculture has made strategic policies to make Angolan coffee competitive again.
Angola is not a self-sufficient country in terms of food production, so it imports most agricultural commodities from the international market, for domestic consumption. The import quantity of rice has recorded a CAGR of -62.89% over the period 2012 to 2015, due to the sharp decline in import budget of Angola, because of drop in oil prices.