﻿Luanda, Angola The decision to invest in a
new market by a foreign investor is often framed by the pursuit of a predictable legal framework,
which among other things respects the sanctity of contracts and facilitates a level playing field.
Regardless of the industry, careful planning is the rule of thumb for those who wish to invest.
After achieving independence, in 1975, Angola was ravaged by a civil war that lasted
nearly 30 years, resulting in the massive destruction of its basic infrastructures,
with deep negative consequences for its economic and social development.
Upon the end of the war, in 2002, the country regained peace and stability. It took on the
great challenge of national reconstruction, which entailed rebuilding its physical infrastructures,
completely destroyed by the war, and developing integrated social projects of paramount
importance, in order to restore the social and human fabric that was irreparably damaged as
a result of the armed conflict. Therefore, the country’s current political and economic
stability is a key factor for attracting direct investment in the various sectors,
with a view to increasing internal production and contributing to diversifying its economy.
Luanda is the capital of Angola. It is on the Angola's Atlantic coast. It is one of
the best cities in Africa to invest in for various reasons but the most simple and logical reason is
because it is growing meaning in the near future there will be huge returns on your investment.
Its current renaissance is a truly inspiring success story.
In recent history, the center of decades of conflict,
the start of the 21st century has seen a massive boom in construction in Luanda, where peace and
stability have attracted numerous foreign companies to invest in offices in the city.
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Angola is a potentially rich country, characterised by abundant reserves of natural
resources such as oil, natural gas, diamonds and other minerals, a vast hydrographic network,
vast expanses of arable land and a tropical climate that is very favourable for agriculture,
livestock, fishing, hunting and rural tourism. Despite the current difficult environment,
brought about by the economic and financial crisis affecting countries and markets
all around the world, Angola’s prospects for growth and development are rather encouraging.
Its economic growth rate is one of the highest in the entire
African continent. However, even with the drop in crude oil prices in the international market,
Angola’s GDP continues to grow at a more or less stable rate of 6.8% (2013) and 3.9% (2014).
Angola is the second largest producer of crude oil in Sub-Saharan Africa after Nigeria.
Crude oil exports are the country’s main source of revenue, accounting for 97.35% of annual exports
and making up about 46.8% of GDP (2014). The drop in oil prices, and the consequent decrease
in revenue, is posing great challenges for the internal market, which calls for the necessary
and inevitable readjustment of governmental projects and programmes across the board. However,
such challenges can be turned into opportunities for innovation and for the redirecting of the
available resources, which can go towards investment projects that contribute to increasing
non-oil GDP, thereby progressively reducing the country’s dependence on one single export.
The process of national reconstruction and diversification of the economy opens a wide
range of business opportunities across the various sectors.
Private investors have access to all sectors of the Angolan economy, including construction
and infrastructure development, with the exception of sectors classified as ‘sensitive’,
namely national security and defence, which are under the exclusive responsibility of the State.
The economic and social sectors currently offering the highest number of investment opportunities
are: Agriculture, Livestock Production and Forestry, Construction and Housing Support.
With the aim of improving the business environment and making the Angolan market
more attractive for private investment, as well as for direct foreign investment,
the Government passed the new Private Investment Act (Law no. 14/15 of 11/8/2015),
which lays down the general framework for private investment in Angola. The new law sets out the
principles and rules for access to benefits and other facilities provided by the State,
most notably, tax, customs and foreign exchange incentives, which favour the establishment of
partnerships for the implementation of development projects, mainly related to
construction, expansion and rehabilitation of infrastructures across the various sectors.
Such benefits include exemption from industrial tax over specific periods of time and rebates
on customs duties paid on imports of raw materials, equipment and capital goods.
Angola is a country with a growing population of more than 31 million,
divided into 18 provinces, with its capital, Luanda, home to 2.5 million people.
Well known for being the second-largest oil producer of the African continent,
Angola also has potential to develop other unrelated industries such as mining, agriculture,
construction, power generation, fisheries and tourism. Luanda is Angola's primary port,
and its major industrial, cultural and urban centre. Luanda and its metropolitan area is
the most populous Portuguese-speaking capital city in the world. Lauda has many sectors in
which an aspiring investor can invest knowing in the long run their investment will be a success.
Construction of infrastructure
Luanda's population increased greatly from refugees fleeing the war,
but its infrastructure was inadequate to handle the increase. This also caused the exacerbation
of slums, or musseques, around Luanda. The city is undergoing a major reconstruction, with many large
developments taking place that will alter its cityscape significantly. We see great opportunity
in construction and there is a good chance if you were to invest in the city's construction projects
you won't regret it, you will be helping Angolans live comfortable while making money from it.
Natural resources Angola has Africa’s second-largest
oil reserves as well as other precious natural resources which are already being exploited by
the government but can be further exploited to maximum capacity to produce more revenue.
The government of Angola, getting rich off revenue from oil, diamond, and other natural resources,
is also investing heavily in and around Luanda, including large social housing highrises to
replace slums and existing dilapidated (and often bullet-ridden) highrises; extensive repaving;
the construction of several six-lane highways leading out of the city; the reconstruction of
railroad lines leading out of the city; and a large new airport currently being constructed
outside of town. Hence if you invest in Luanda's industrial sector you won't regret it.
Water Suply
Luanda has historically had difficulties with maintaining a clean and accessible
water supply, and decades of war and insecurity exacerbated the situation.
The influx of new residents completely overwhelmed the capacity of the city’s public services,
such as sewage treatment and trash collection. Even in the years following the civil war,
Luanda was still vulnerable to frequent outbreaks of cholera and other diseases stemming from a lack
of potable water. There is a saying that goes thus " if you want to make money solve your community's
problems and the money will flow in". Health is wealth and with a good water supply it will reduce
the heth risk in Lsunda and improve productivity, so an investment here won't be such a bad idea.
Real estate
Lauda, the capital city in Angola! The growing demand of both residential and
commercial units in Luanda have not been met despite government efforts to construct
new properties across the capital. The prices of office space per square meter
are reportedly one of the highest in the world at a jaw dropping $150/m2 per month!
Therefore, investing in Luanda, Angola guarantees you a high return on investment.
Industries
The industries present in the city include the processing of agricultural products,
beverage production, plastic products, textile, cement, newly car assembly plants, construction
materials, plastics, metallurgy, cigarettes and shoes. The city is also notable as an economic
centre for oil, and a refinery is located in the city. Petroleum is refined in the city, although
this facility was repeatedly damaged during the Angolan Civil War. Luanda has an excellent
natural harbour; the chief exports are coffee, cotton, sugar, diamonds, iron, and salt.
Luanda has been considered one of the most expensive cities in the world for expatriates.
Around one-third of Angolans live in Luanda, 53% of whom live in poverty. Living conditions
in Luanda are poor for most of the people, with essential services such as safe drinking water
and electricity still in short supply, and severe shortcomings in traffic conditions.
On the other hand, luxury constructions for the benefit of the wealthy minority are booming.
The city also has a thriving building industry, an effect of the nationwide economic boom experienced
since 2002, when political stability returned with the end of the civil war. Economic growth
is largely supported by oil extraction activities, although great diversification is taking place.
Large investment (domestic and international), along with strong economic growth,
has dramatically increased construction of all economic sectors in the city of Luanda.
The country offers unique business opportunities to local, regional and international companies in
sectors as natural resources, energy, agriculture exports, consumer goods,
financial services, tourism, real estate and large infrastructure projects.
All this makes Luanda a great city to invest in.
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