Angola's Investment Climate: An Overview

Angola is a country nestled in the coastal region of Sub-Saharan Africa and is the third-largest market in the region. The country is rich in critical minerals, diamonds and wildlife, however, the economy is traditionally driven almost exclusively by crude oil exports. 

The Angolan government has been on a mission to diversify their economy and promoting FDI is the road they have chosen for the same. Currently, the country has been opening up to investors, bringing traders from across the world, to invest in sectors such as agriculture, fisheries, Navy, infrastructure, education and energy among others. 

The country is on its path towards branding itself as a power to reckon with from the African continent. Simplification of bureaucratic and legislative processes through laws such as the Private Investment Law and strong anti-corruption policies has added to the country’s charm.

Investments in Angola

According to Jornal de Angola, UAE leads at the forefront with FDI followed by the UK and China. Over the years, other Gulf countries have also set foot in the market. FDI data indicates that projects worth around 53 billion dollars have been set in motion in the country by companies based out of the Gulf. 

Countries such as the Netherlands, France, Brazil and Portugal also invest in the country with their prime focus on the petroleum sector.

The Gulf Interest

An ambitious project by the UAE in Angola is Dubai Investment Park (DIP), an eco-industrial project that aims to create a tourist and industrial hub to encourage investments. The vision behind the project is to bring sustainability with progress and innovation. 

The project which spans an area of 2000 hectares will be well connected and easily accessible. It would bring the retail, industrial, economic and housing sectors under one large umbrella, promising to transform the very face of Angola.

Another key player that has recently shown interest in Angola is Abu Dhabi. The signing of a cooperation agreement and MOU between the Abu Dhabi Chamber of Commerce and Industry and the Angola- UAE Chamber of Commerce and Industry, would further strengthen Angola’s trade and give a wider platform for traders from both countries on a local and international level fostering investment opportunities for both countries. Presently, the Angolan Navy is currently the biggest export client of the Abu Dhabi Ship Building company.

China’s Role

The Chinese are another major player in the Angolan market investing close to 12 billion in the past ten years since Angola joined China’s Belt and Road Initiative in 2014. Being their oldest trading partner, China and Chinese companies play a crucial role in the economy directly and indirectly, a prime example being the appointment of China Harbor Engineering Company as the main contractor for DIP.

The European Factor

The EU and Angola have joined hands and Angola is steadily striding towards its vision of Angola 2050 which aligns with Europe’s Global Gateway Strategy, an initiative to connect the world through investments and partnerships. Angola is also the first country to sign a Sustainable Investment Facilitation Agreement with the EU to attract and expand investments while integrating environment and labour rights commitments.

The Way Forward

Angola is on a mission to metamorphose itself. The country’s rich natural resources combined with the expertise of UAE, EU and China can bring about this change by transforming sectors such as agriculture and manufacturing leading to more job opportunities, better trade and a boosted economy.