During my trip to Angola this past July, I noticed a number of changes in Luanda since my previous visit in December 2006.  I mention them because they demonstrate how quickly things are changing and evolving, especially in Luanda and its environs. Some of the changes I noticed include:

The large office and apartment building on the Marginal for BP, Esso and Sonangol built by American Worldwide Inc. with Portuguese construction companies is in its final stage of completion, and is a great addition to the Marginal's landscape.  Sonangol is also building its new headquarters at the Baixa (downtown Luanda), designed by EDI Architects, to be completed by the end of the year.  Another project on the Marginal is called "Luanda Waterfront", a construction renovation project aimed at widening the Marginal, but from what I could see, the project appears to be at a stand still. Odebrecth is widening roads and installing a drainage system to stop Luanda from flooding every time it rains. The Chinese population has noticeably grown in Luanda. In December 2006, I could count how many Chinese workers I would see in a day.  On this visit I lost count by midday, even though most Chinese work outside of Luanda. 

Luanda Sul, a developing suburb located twenty-minutes south of Luanda, is growing by leaps and bounds.  This unique subdivision has become a prime location for the wealthy and many in the expatriate community.  I had the opportunity to visit a condominium in Luanda Sul where the smallest unit was on sale for US $1.2 million.  Right next door, residents can shop, eat, and watch a movie at Belas Shopping, the first shopping mall of its kind in Angola; although prices there are like the surrounding real estate - expensive! I saw the condominium on the third day it was advertised.  By the fifth day all the units were sold.  This is a reoccurring situation in Luanda Sul’s real estate market.

Angola's economy is booming!  New businesses are being set up every day, fostered by the environment of peace and stability in the country and the new private investment law, which has created more incentives for investors. Although, the intervention of most US companies remains primarily focused on the extractive industries, especially the oil and gas sector, other sectors are seeing a boost of participation from US companies. Coca Cola operations continue to expand; Barloworld markets Caterpillar machinery; The Boeing Company completed a major sale of aircrafts to TAAG, the national airline; Menshen represents Microsoft; American Worldwide Inc. and EDI Architects are involved in a number of architecture and construction projects; other US products and services can be found in the Angolan marketplace. But one gets the sense that more opportunities can be exploited by US companies.

The growing question becomes, "Why aren't more US companies outside the oil sector looking for and finding success in Angola?".  I spoke to a number of Angolan business owners and members of the government about this subject during my visit. One of the main issues is US companies entering the Angolan market do not always have a sound understanding of the country’s business and cultural realities. This lack of understanding provides a limited grasp of the risks and opportunities in doing business in Angola.

It is important for any company interested in operating in Angola to understand the country's economic and social landscape and its corporate culture. This knowledge will assist in identifying the best opportunities and managing risks associated with doing business in the country. One thing to keep in mind is yes, TIA- This Is Africa but it is important to think TIA- This Is Angola!  The model a US company may use to operate in Nigeria, Ghana, South Africa or other African countries may not always apply in Angola. In this context, the advisable strategy for a company entering the Angolan market is to partner with a credible local company that understands how to do business in the country, and has developed and nurtured relationships in the public and private sectors. 

US companies should also try to have a better understanding of the Angolan culture by building relationships based on trust and openness. Angolans like to get to know their business partner on a personal level first.  If an Angolan partner does not know much about you except your name, position and the company you work for, then it is unlikely you will do business together or, at least, not for very long.  The interpersonal relationship is very important.  You simply cannot do business in Angola effectively by email, fax, or telephone. Direct personal contact and representation are critical.

US investors can provide what very few companies are offering: technical know-how and full service packaging. Business opportunities are needed from the simplest to the most complex programs.  One Angolan businessman stated that if his copier is broken, he has to either purchase another one from South Africa or wait until his nephew can come from Paris to fix it. Only too often, he purchased another copier.  In fact, in one year, he purchased 4 copiers. This example could be replicated many times in other areas of business activity in Angola.

In sum, I came away realizing more then ever before that Angola is a country in transition. In this rapidly changing environment, it is important for companies to work closely with business organizations to understand the current landscape and identify reliable prospective partners to be successful. Now is the time for US companies to find ways of benefiting from business opportunities emerging in the Angolan market.

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