Why Invest in Angola

Since signing the latest peace agreement in early 2002, Angola has experienced 6 years of sustained stability and growth that has been critical to its development and growth. In the past three years, the country has embarked on an ambitions reconstruction program. Luanda, the capital of Angola, has characteristics of a city with a great development potential. The Government of Angola (GoA) views civil construction as the country's top priority within this new socio-economic context. Several buildings are being built in various points of the capital. Many of the provinces outside of Luanda are also developing through expanding necessary infrastructure to better connect the country. The Kwanza, Angolan's currency, has recently been gaining strength increasing an appetite for goods and services within the country. Political and economic stability has opened new and excellent opportunities for investment. In brief, all social, economic and political aspects are favorable to progress. This progress is illustrated by the country's upcoming parliamentary elections occurring September 5, 2008.

Investment Opportunities

Angola is experiencing an unprecedented economic boom. In May 2008, the Organization of Petroleum Exporting countries (OPEC) confirmed Angola's oil production at 1.9 million barrels per day. The growth in this industry has had substantial spillover effects, spurring investment in the financial services, construction, and agriculture sectors. According to the International Monetary Fund (IMF), Angola's GDP grew by over 20% in 2007 making it Africa's fastest growing economy and the fourth fastest in the world. New businesses are registering everyday, fostered by an environment of peace and stability in the country and a new private investment law, that has expanded incentives for investors. Although a majority of U.S. companies remain focused on the oil and gas sector, non-oil sectors have also seen an increased presence of U.S. companies. Coca-Cola operations continue to expand throughout the country; Barloworld markets Caterpillar machinery; the Boeing company completed a major sale of aircrafts to TAAG, the national airline; Microsoft is represented and many; other U.S. products and services are now found in Angola. As the fourth fastest growing economy in the world, without a doubt, the time to invest in Angola is now!

Picture: Coca-Cola plant in Huambo - Angola

Facts

Angola is one of the fasted growing economies in the world. It has estimated reserves of 10 billion barrels of oil, and is the fourth largest producer of diamonds in the world; has million hectares of arable land; many valuable minerals and one of Africa's largest water reserves. This country was once the world's fourth largest coffee producer, a major iron ore producer and an exporter off high-quality marble , food and sisal. Now, following the advent of peace, the GoA plans to restore Angola to its former position in the global economy. Inflation has been extremely stable in recent years, and continues it's downward trend while the exchange rate has stabilized.

Oil is the country's major product and source of foreign currency.
Angola is a source of top quality gemstones.
The Lundas region is one of the most important diamond-producing areas in the world.
The country's subsoil contains 35 of the 45 most important minerals in the world trade.
Angola's fishing industry is in the process of being re-established.
Ministry of Hotel and Tourism plans to build 40-50 new hotels in Angola before 2010 when Angola hosts the African Soccer tournament.

Thanks to its extensive river systems and varied environment, Angola has enormous potential for production of tropical and subtropical crops. Angola has great hydro electrical potential for the production of tropical and subtropical crops. Angola has great hydro electrical potential with its large fast-flowing rivers. Certain regions of Angola have ideal climatic conditions for productions of high quality coffee. The unexploited forests cover 43% of Angolan territory, with particular valuable timber species in Cabinda. The extensive river system facilities transport.

Picture: Serra da Leba in Huila - Angola

Development Zones

With record oil prices and production, the GoA has rightfully seized this opportunity to diversify the country's economy and promote private investment. the GoA has attempted to accomplish this challenge through policy reforms, particularly, the establishment of development zones. There are early indications that these reforms have had some success in improving the business climate and increasing investor confidence in the country. To this point, Angola has received lines of credit from China, Brazil, Portugal, Germany, Spain, France and the E.U. GoA is offering incentive packages based on development zones.

GoA has identifies these development zones as eligible for financial incentives:

Zone A- Province of Luanda, the capital-municipalities of the Provinces of Benguela, Huila, Cabinda and the Municipality of Lobito
Zone B- Remaining municipalities of the provinces of Benguela, Cabinda and Huila and the Provinces of Kwanza norte, Bengo, Uige, Kwanza Sul, Lunda Norte and Lunda Sul
Zone C- Provinces of Huambo, Bie, Moxico, Cuando Cubango, Cunene, Namibe, Malanje and Zaire

Development zones offer opportunities for wide range investments. Targeted industry sectors are selected based on the abundant natural and human resources available in each zone. Government incentives vary in accordance with the province in which the investment is made.

Industrial Tax Exemption Regime

15 years exemption - Investors will be free from paying tax on the capital invested, for a period of 15 years, when they invest in the provinces of Huambo, Bie, Moxico, Kuando Kubango, Cunene, Namibe, Malanje and Zaire.
12 years exemption- Investors will be free from paying tax on the capital invested, for a period of 12 years, when they invest in the provinces of Kwanza Norte, Kwanza Sul, Bengo, Uige, Lundas and inland municipalities of Benguela, Cabinda and Huila.
8 years exemption- Investors will be free from paying tax on the capital invested, for period of eight years, when they invest in the provinces of Benguela, Cabinda and Huila, and in the muncipality of Lobito.

Picture: Kapanda Dam in Malange - Angola

Source: Government of Angola, National Agency for Private Investment (ANIP)