World Report

Boosting small-scale investments and prioritising key areas, Angola is favouring the creation of a fresh entrepreneurial base

The government hopes to attract foreign companies to invest in reconstructing basic infrastructure.

ngola offers both ample opportunities for investors and a progressively favourable investment climate. A new Investment Law was established in 2003, followed shortly by a law on Tax and Customs Incentives for Private Capital. Under the new laws, waiting periods for investment approval has been significantly reduced: for investments of less than £2.7 million, approval can be granted in less than 15 days. For larger investments that require the approval of the Cabinet of Ministers, waiting time is no longer than 30 days. The new laws make no distinction between domestic and foreign investors, and include a range of incentives and tax exemptions. They give special attention to small investments of between £27,000 and £137,000 aimed at developing small and micro-companies, and identify priority sectors, including telecommunications, transport, power, water and construction.

Carlos Maria da Silva Feijó Economic and Legal Advisor to the President

“The collaboration between the public and private sectors is key”

Ari Carvalho Manager of ANIP

“The government has divided investment opportunities into priority sectors”

John Thompson Ambassador of the UK

“Angola needs the support of its friends and partners”

Carlos Feijó, Special Economic and Legal Advisor to the President and a legal scholar who greatly contributed to the creation of the new laws, says that the laws form part of the government’s vision to make the private sector the engine of economic diversification and reflect the important role of private investment in Angola’s reconstruction. The government has stated that economic development will entail a combination of both public and private investment, and as such has committed to providing investors with a safe and solid investment regime. Mr Feijó remarks, “The state by itself is not able to tackle the development challenges facing the country, so in order to make up for the public shortfall we need private investment, both domestic and foreign.” He concludes, “The key to success resides in the collaboration between the public and private sectors.”

As part of these efforts, the government has set up its one-stop investment centre, ANIP, where investors can find assistance in project start-up, as well as information on the opportunities, and incentives, available in Angola. Manager of ANIP Ari Carvalho says that the government has not only divided investment opportunities into priority sectors but also into priority regions where investment is most badly needed and tax cuts for investors are greater. According to Mr Carvalho, the government is also holding up its side of the funding bargain. It will divert revenues from the country’s more prosperous sectors, mainly its non-renewable resources, to jumpstart other activities. Chairman of ANIP Carlos António Fernandes explains, “Firstly, we create a development fund that receives petroleum revenue that will then be invested in priority sectors. Secondly, the government will appeal to oil and diamond companies to use the services of local businesses so that logistics needs are met locally.”

John Thompson, Ambassador of the UK in Angola and a strong proponent of increased British-Angolan cooperation, has been working to raise the level of investment and commerce from British companies. A number of high-profile UK companies are already in the country including Vodacom (a Vodafone subsidiary), BP, British Compass Group, and Hull Blyth. British Airways operates a London-Luanda flight while De la Rue produces all of Angola’s passports. The list is substantial, but Ambassador Thompson thinks that it could, and should, be much greater considering the level of opportunity in the country. He says that the British government is working to increase awareness of the Angolan market; the Department of Trade has organised trade seminars and the embassy produces up-to-date reports for investors. Apart from the benefits that increased trade will bring for British companies, Mr Thompson stresses that private investment, along with the continuing support of the British government, will be a significant aid in Angola’s reconstruction. He comments, “We are absolutely convinced that Angola should not be expected to face these challenges by itself. Angola needs the help and support of its friends and partners, of whom the UK is one.”