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Angola needs a much more vibrant and competitive private sector to diversify the economy and promote employment. With its diverse natural resources, climatic variability, and strategic location in Africa, Angola has massive potential to develop a diverse economy based on production and export of agricultural goods, manufactures, and services. 99 Percent of Angola’s exports comprise oil and diamonds. At the same time, the country imports a significant proportion of its food requirements, and nearly all its capital and consumer goods. The government is starting to recognize the importance of attracting private investment, and is taking steps to improve the investment climate. The government has started to recognize that private sector investment, expertise, and drive are essential to create jobs, deliver services, and diversify the economy from its dependence on the volatile oil and diamond sectors. To reduce the cost of doing business, the government is investing heavily in infrastructure, including roads, railways, and electricity generation and transmission. It is managing its macro-economy reasonably well, although an overvalued exchange rate threatens the competitiveness of local producers of non-oil products. The government has simplified, streamlined, and speeded up its customs services. This has reduced the time required to process customs paperwork to an average of 5 days/ from 25 days in 2000. The government has adopted a new legislation aimed at streamlining the regulatory framework and clarifying land rights. It has also taken steps to improve access to financial services, including microfinance, by allowing new entrants into the market. Please find below a short describition per sector to find out what the opportunities are. These sectors are: the Oil , Banking and Insurance, Economy growth is almost entirely driven by rising oil production which surpassed 1.9 million barrels per day in late-2007 and which is 2 million barrels per day. 99 Percent of Angola’s exports comprise oil and diamonds. Control of the oil industry is consolidated in Angola Crude-Oil Production and Projects per breakdown: Current (2007-08) Angola oil production (total by operator, numbers are approximate) Chevron 620,000 BOPD Total 550,000 BOPD ExxonMobil (Esso) 520,000 BOPD Sonangol 110,000 BOPD BP 100,000 BOPD Total Production 1,900,000 BOPD Angola – world records setting projects 14.0 billion barrels oil discovered in the past 11 years in the deepwater (proven + potential); Total- operated Girassol FPSO (200,000 BOPD) was world´s Largest FPSO; Esso-operated Kizomba FPSO (250,000 BOPD) is currently world´s largest FPSO; Chevron-operated Sanha (Block 0) is world´s first LPG FPSO. Angola – world class projects Sonangol estimates expenditures of $40-$50 bln in next 10 years, equivalent to $4-$5 billion per year; Chevron’s Benguela-Belize Compliant-Piled Tower (CPT) in Block 14 installed in 400 meters water is the 5th largest free standing structure in the world and the tallest man-made structure in Africa; Highly productive deep water wells, e.g. a BP Block 18 well with >28,000 BOPD estimated maximum production capacity (reference Universo Issue #11). Angola LNG Project $4 billion project being constructed near town of Soyo, northern Angola; Purpose is to commercialize gas currently being flared; Partners are Sonangol, Chevron, BP, Total and ENI; Will be on-stream in 2012 producing 5 million tons per year LNG for world markets. Please refer to our newsletter for the latest developments in this sector.
The financial system is only in its infancy. Barely 5 percent of the population has a bank account. The market, which is still not sufficiently oriented towards the costumer, has everything to give. Only recently, a plan was adopted that foresees the payment of salaries to civil servants to go via bank accounts, or a scheme to issue and accept credit cards, initially Visa. The financial system is daring a frontier moment, producing at the same time a strong growth in the deposit basis and on the other hand an increased competition with the entry of new players that are making banks more aggressive and segmented. In general, the Angolan banking sector is living a renaissance. New banking groups are to start up activities during the next months and more than ten have already signalled their interest to seek necessary authorisations to be able to operate on the national market. The National Bank of Angola (BNA) will hand out new licences by the dropper to cash in its political triumph. Hence, Africa's biggest bank by assets, Standard Bank, plans to invest about USD 25 million in Angola to set up a commercial and investment bank and offer retail banking services. Standard Bank, which has applied to the Angolan government to convert its current representative office into a bank, met Angolan President José Eduardo dos Santos in Luanda. According to Standard Bank's chief executive, the bank was looking at developing a universal bank in Angola. In December 2007, Millennium BCP and Sonangol reached a preliminary agreement whereby Sonangol and a private Angolan bank would take a 49.99 percent stake in Millennium's banking operation in Angola. Consequently, in May 2008 Millennium BCP Bank (Banco Comercial Português), sold 49.9 percent of its Angolan operations to state-owned oil group Sonangol and Banco Privado Atlantico (BPA). Banking in Angola requires a good knowledge about the country's financial system. Angola is home to many banks, including many privately owned, often international banks, and several governmental banks. These banks cover most banking needs. Banks in Angola can be used by (Dutch) companies, but there are special issues that you need to address when you deal with them. The main banks in Angola are as follows: BFA (Banco de Fomento Angola), BPC (Banco de Poupança e Crédito) BAI (Banco Angolano de Investimento), Banco Totta, BCA (Banco Comercial Angolano), BIC (Banco Internacional de Crédito), BCI (Banco de Comercio e Industria), Banco Atlântico, BANC (Banco Angolano de Negocio e Comercio), BNI (Banco de Negócios Internacionais) and BDA (Banco de Desenvolvimento de Angola). Please refer to our newsletter for the latest developments in this sector. Angola is a source of top quality gemstones, and the Lundas region is one of the most important diamond-producing areas in the world. It is estimated that the subsoil contains 35 of the 45 most important minerals in the world trade. The country’s diamonds production in 2007 reached 9.7 million carats, estimated at USD 1.3 million. Angola’s State-owned National Company of Diamonds (Endiama E.P.) expects to increase its annual production from 9 million to 10 million carats of diamond this year. Therefore in March 2008, the Angolan Government formalised the joint-venture contract involving the state-owned Endiama and the private Angolan firms Genius Mineira, Minara, Nahela and MJIT, for the prospecting of diamonds in the Cafulo region, south-eastern Kuando Kubango province. Besides, Angolan authorities expressed intentions to revive iron ore exploration and plans to attract investment to iron ore production in order to reduce the country's dependence on oil and diamonds. Hence, more than 10 companies, have expressed interest in a USD 3 billion Angolan project to revive iron ore production and produce steel. The project would revive iron ore mining at the Cassinga mine in southern Angola that was abandoned during Angola's 27-year civil war. The Cassinga iron ore mine in the Huila province produced 40 million tonnes of high-grade iron ore between 1957 and 1975, when it was shut. Cassinga, which lies 650 km inland, has remaining reserves estimated at 34.2 million tonnes of ore containing 44% iron and 1 billion tonnes at 30% iron. Please refer to our newsletter for the latest developments in this sector. The Angolan territory contains natural resources in agriculture and forestry. However, due to irregular rains, lack of enhanced facilities and infrastructure for agricultural activities as well as the lack of industries, the agricultural sector is very weak. But, thanks to its extensive river system and varied environment, as well as arable lands, Angola has enormous potential for the production of tropical and subtropical crops. Certain regions of Angola have ideal climatic conditions for the production of high quality coffee. The Angolan farmers are eager to making partnership with Dutch farmers in Angola. Many project proposals for joint-ventures in agricultural projects have been submitted to both local and international investors, banks and the diplomatic representation. Local banks like BDA (Banco de Desenvolvimento Angolano) and BIC (Banco International de Crédito) are the main promoters and major partners for investors willing to invest in agricultural activities. Agriculture is one of the non-oil sectors that the government wants to rehabilitate, improve and boost. However, it lacks capital, technology and know-how. Recently the government approved a credit line on 350 million dollars, intended to finance small and medium producers, associations and agro- livestock cooperatives. This credit is to finance campaign expenditure, current spending and investment, and included the purchase of equipment and is an important measure to revitalize a sector that does not have the size desired, as it can play an important role in reducing the occurrence of extreme poverty. Meanwhile, the project to produce about 4 hectares of suga cane ( called Biocom) should be implemented very soon. This project results from a partnership between Brazilian company Odebrecht, the oil state company Sonangol and another local partner and aims to achieve from 2012, an annual production of 250 million hectares sugar, 30 thousand cubic meter of ethanol and 160 thousand MW resulting from the burning of waste production. The Government also included agreement with the Lonrho Agriculture company (a conglomerate with an investment portfolio in Africa) on the development of 25 thousand ha of agricultural projects in the provinces of Uige, Zaire and Bengo Please refer to our newsletter for the latest developments in this sector. Due to lack of industries, Angola depends very much on imports of foodstuff. The country imports a significant proportion of its food requirements, and nearly all its capital and consumer goods. Major imports partners of the country are Portugal, the U.S., South Africa, Japan, France, Brazil, UK and China. Nevertheless, the government plans to boost the agriculture sector to diminish dependency on food imports, although, investments in supermarkets and food supply are still needed. The Angolan Government will invest over USD 300 million in the construction of 31 supermarkets of the "Nosso Super" Commercial Network (Presild), in the 18 provinces of the country.The supermarket chain NossoSuper (www.nossosuper.co.ao) is a "joint venture" between Angola Government and a Brazilian company called Construtora Odebrecht. The construction of the Unicer beer plant should move ahead during the year of 2009 and should initially reach a production capacity of 120 million liters and provide direct jobs for about 150 workers. We recall that Unicer is a portuguese company and has a prominet position in Angola, being the second largest with a market share estimated at 20%. Also worth mentioning in the industrial sector is the start up of a mineral water bottling plant in the Cambambe Industrial Park. This factory has an initial investment of 6.5 million USD, and should initially employ about 48 workers directly. Please refer to our newsletter for the latest developments in this sector. Building and Infrastructure Sector The whole country is to rebuilt. Angola's government has embarked on a massive reconstruction of roads, railways, bridges, airports, schools and hospitals and residential housing since the end of a devastating 27-year civil war in 2002. In 2008, approximately 5,000 kilometres of roads was repaired as part of the special governmental programme for restoring national roads. The government approved the construction of several cold storages houses, at twelve of the seventeen provinces of Angola. These warehouses are cold infrastructures to support artisanal, semi-industrial and industrial fishing, with equipment for cooling, freezing and iso-thermal panel. In addiction to targeting the revival of the fisheries sector, these structures are also fundamental in designing commercial fishing circuits and making them more flexible, allowing the needs of the population to be better served. Meanwhile, the PRESILD (Program for Reconstruction the System of Logistics and Distribution of Essencial Products to the population) is being speedly implemented. Under this program, the first Distribution Center of “Nosso Super”supermaket chain has now more then 26 stores in operation.
Please refer to our newsletter for the latest developments in this sector. Hundreds of hotels need to be restored or constructed. Beach, river and mountain tourism offering all types of fishing; basic hunting reserves and natural parks available. However, the promotion of tourism in Angola is mainly hampered by the lack of infrastructures. Nevertheless efforts are being carried out by the government to improve the situation by constructing new hotels and rehabilitating some existing touring locations all over the country. Hence, five new hotels were opened in 2007 and 12 are still under construction. Besides, due to 2010 CAN (African Football Cup) to be hosted by Angola, the country is even busy on improving facilities such as new football stadiums, new airports, hotels, restaurants and camping areas. The Ministry of Hotels and Tourism or just MINHTUR, is struggling to attract national and foreign investors to boost the Hotels and Tourism sector. Therefore MINHTUR has created the Angola Institute for Tourism which has the responsibility to execute the general policy of the Angolan tourism. The Angolan Institute for Tourism is also responsible for the approval of all tourism project proposals and for the emission of concessions regarding the exploration, rehabilitation and construction of tourism infrastructures. Please refer to our newsletter for the latest developments in this sector. Angola has great hydro electrical potential thanks to its network of large fast-flowing rivers. However, both water and energy distribution is not effective. EPAL, ENE and EDEL companies, are very far from providing quality service to the population countrywide. This is a sector that an investor needs to leap-in. In March 2007 the Minister of Energy and Water, said in Hamburg that the Angolan Government intended to invest about USD 2 billions in the national water and energy sector. Angola has concluded infra-structure deals with China, including a recently completed 500 megawatt hydroelectric power plant. In February 2008, the Dutch One of the priorities of government is to approve the Master Plan of Sanitation Facilities of Luanda, as the sewerage system is not suited to the needs of this metropolitan area, given its strong recent growth and the old age of the network . As part of improving traffic circulation, beyond the urgent need to rehabilitate and build new infrastructures, the construction of new car parks is projected (near the Port of Luanda, Jornal de Angola, Ministry of Petroleum and Defense) and the establishment of pay parking. Another example of the dynamism of the sector is the recent approval of contracts for rehabilition of the airports of Catumbela (Benguela) and Lubango (Huila) and the repairing of the electricity network in the cities of Malange, Cacuso, Dundas and Saurimo. The current regional economic growth, estimated at 6.0 per cent per annum over the next ten years, and environmental concerns are the major drivers for the changes and transformation in the electricity industries in these countries. The Angolan electricity industries have been under a process of reformation aimed at re-shaping them to address the current reality. The Angolan electricity industry seems to be at a similar stage of its development, with tremendous potential for growth. Despite the global financial meltdown, the current growth demand for electricity is estimated at 12.0 per cent per annum. The national reconstruction programme is expected to remain a significant driving factor behind this continued surge. The commencement of the Capanda dam operation in 2004, which almost doubled the country's electricity capacity, began a new era for the Angolan electricity industry. Strong economic growth has led to the awakening in the country´s electricity industry. Angola is endowed with tremendous hydro potential, which is currently underdeveloped. This has put additional pressure on the Angolan government to help rebuild the industry through its reconstruction programme. As a result, the Angolan government is expected to channel $8.4 billion towards the industry. Angola is seeking to boost power output as demand continues to grow in the Southern African region. Also needS to meet growing domestic demand. Several potential projects have already been identified and are expected to increase in the country's total generation capacity. The current electricity industry reformation is expected to significantly reduce investment barriers. Angola’s investment laws give foreign and domestic investors equal access to investment incentives and enable the participation of private investor in public infrastructure projects such as electricity supply. Environmental regulations are however becoming tighter, potentially increasing investment risk and adding to the requirements for investing in Angola existing new power plants.
Please refer to our newsletter for the latest developments in this sector. Trade and Investment Opportunities
Trade and Investment Opportunities
Angola needs a much more vibrant and competitive private sector to diversify the economy and promote employment. With its diverse natural resources, climatic variability, and strategic location in Africa, Angola has massive potential to develop a diverse economy based on production and export of agricultural goods, manufactures, and services. 99 Percent of Angola’s exports comprise oil and diamonds. At the same time, the country imports a significant proportion of its food requirements, and nearly all its capital and consumer goods. The government is starting to recognize the importance of attracting private investment, and is taking steps to improve the investment climate. The government has started to recognize that private sector investment, expertise, and drive are essential to create jobs, deliver services, and diversify the economy from its dependence on the volatile oil and diamond sectors. To reduce the cost of doing business, the government is investing heavily in infrastructure, including roads, railways, and electricity generation and transmission. It is managing its macro-economy reasonably well, although an overvalued exchange rate threatens the competitiveness of local producers of non-oil products. The government has simplified, streamlined, and speeded up its customs services. This has reduced the time required to process customs paperwork to an average of 5 days/ from 25 days in 2000. The government has adopted a new legislation aimed at streamlining the regulatory framework and clarifying land rights. It has also taken steps to improve access to financial services, including microfinance, by allowing new entrants into the market. Please find below a short describition per sector to find out what the opportunities are. These sectors are: the Oil , Banking and Insurance, Economy growth is almost entirely driven by rising oil production which surpassed 1.9 million barrels per day in late-2007 and which is 2 million barrels per day. 99 Percent of Angola’s exports comprise oil and diamonds. Control of the oil industry is consolidated in Angola Crude-Oil Production and Projects per breakdown: Current (2007-08) Angola oil production (total by operator, numbers are approximate) Chevron 620,000 BOPD Total 550,000 BOPD ExxonMobil (Esso) 520,000 BOPD Sonangol 110,000 BOPD BP 100,000 BOPD Total Production 1,900,000 BOPD Angola – world records setting projects 14.0 billion barrels oil discovered in the past 11 years in the deepwater (proven + potential); Total- operated Girassol FPSO (200,000 BOPD) was world´s Largest FPSO; Esso-operated Kizomba FPSO (250,000 BOPD) is currently world´s largest FPSO; Chevron-operated Sanha (Block 0) is world´s first LPG FPSO. Angola – world class projects Sonangol estimates expenditures of $40-$50 bln in next 10 years, equivalent to $4-$5 billion per year; Chevron’s Benguela-Belize Compliant-Piled Tower (CPT) in Block 14 installed in 400 meters water is the 5th largest free standing structure in the world and the tallest man-made structure in Africa; Highly productive deep water wells, e.g. a BP Block 18 well with >28,000 BOPD estimated maximum production capacity (reference Universo Issue #11). Angola LNG Project $4 billion project being constructed near town of Soyo, northern Angola; Purpose is to commercialize gas currently being flared; Partners are Sonangol, Chevron, BP, Total and ENI; Will be on-stream in 2012 producing 5 million tons per year LNG for world markets. Please refer to our newsletter for the latest developments in this sector.
The financial system is only in its infancy. Barely 5 percent of the population has a bank account. The market, which is still not sufficiently oriented towards the costumer, has everything to give. Only recently, a plan was adopted that foresees the payment of salaries to civil servants to go via bank accounts, or a scheme to issue and accept credit cards, initially Visa. The financial system is daring a frontier moment, producing at the same time a strong growth in the deposit basis and on the other hand an increased competition with the entry of new players that are making banks more aggressive and segmented. In general, the Angolan banking sector is living a renaissance. New banking groups are to start up activities during the next months and more than ten have already signalled their interest to seek necessary authorisations to be able to operate on the national market. The National Bank of Angola (BNA) will hand out new licences by the dropper to cash in its political triumph. Hence, Africa's biggest bank by assets, Standard Bank, plans to invest about USD 25 million in Angola to set up a commercial and investment bank and offer retail banking services. Standard Bank, which has applied to the Angolan government to convert its current representative office into a bank, met Angolan President José Eduardo dos Santos in Luanda. According to Standard Bank's chief executive, the bank was looking at developing a universal bank in Angola. In December 2007, Millennium BCP and Sonangol reached a preliminary agreement whereby Sonangol and a private Angolan bank would take a 49.99 percent stake in Millennium's banking operation in Angola. Consequently, in May 2008 Millennium BCP Bank (Banco Comercial Português), sold 49.9 percent of its Angolan operations to state-owned oil group Sonangol and Banco Privado Atlantico (BPA). Banking in Angola requires a good knowledge about the country's financial system. Angola is home to many banks, including many privately owned, often international banks, and several governmental banks. These banks cover most banking needs. Banks in Angola can be used by (Dutch) companies, but there are special issues that you need to address when you deal with them. The main banks in Angola are as follows: BFA (Banco de Fomento Angola), BPC (Banco de Poupança e Crédito) BAI (Banco Angolano de Investimento), Banco Totta, BCA (Banco Comercial Angolano), BIC (Banco Internacional de Crédito), BCI (Banco de Comercio e Industria), Banco Atlântico, BANC (Banco Angolano de Negocio e Comercio), BNI (Banco de Negócios Internacionais) and BDA (Banco de Desenvolvimento de Angola). Please refer to our newsletter for the latest developments in this sector. Angola is a source of top quality gemstones, and the Lundas region is one of the most important diamond-producing areas in the world. It is estimated that the subsoil contains 35 of the 45 most important minerals in the world trade. The country’s diamonds production in 2007 reached 9.7 million carats, estimated at USD 1.3 million. Angola’s State-owned National Company of Diamonds (Endiama E.P.) expects to increase its annual production from 9 million to 10 million carats of diamond this year. Therefore in March 2008, the Angolan Government formalised the joint-venture contract involving the state-owned Endiama and the private Angolan firms Genius Mineira, Minara, Nahela and MJIT, for the prospecting of diamonds in the Cafulo region, south-eastern Kuando Kubango province. Besides, Angolan authorities expressed intentions to revive iron ore exploration and plans to attract investment to iron ore production in order to reduce the country's dependence on oil and diamonds. Hence, more than 10 companies, have expressed interest in a USD 3 billion Angolan project to revive iron ore production and produce steel. The project would revive iron ore mining at the Cassinga mine in southern Angola that was abandoned during Angola's 27-year civil war. The Cassinga iron ore mine in the Huila province produced 40 million tonnes of high-grade iron ore between 1957 and 1975, when it was shut. Cassinga, which lies 650 km inland, has remaining reserves estimated at 34.2 million tonnes of ore containing 44% iron and 1 billion tonnes at 30% iron. Please refer to our newsletter for the latest developments in this sector. The Angolan territory contains natural resources in agriculture and forestry. However, due to irregular rains, lack of enhanced facilities and infrastructure for agricultural activities as well as the lack of industries, the agricultural sector is very weak. But, thanks to its extensive river system and varied environment, as well as arable lands, Angola has enormous potential for the production of tropical and subtropical crops. Certain regions of Angola have ideal climatic conditions for the production of high quality coffee. The Angolan farmers are eager to making partnership with Dutch farmers in Angola. Many project proposals for joint-ventures in agricultural projects have been submitted to both local and international investors, banks and the diplomatic representation. Local banks like BDA (Banco de Desenvolvimento Angolano) and BIC (Banco International de Crédito) are the main promoters and major partners for investors willing to invest in agricultural activities. Agriculture is one of the non-oil sectors that the government wants to rehabilitate, improve and boost. However, it lacks capital, technology and know-how. Recently the government approved a credit line on 350 million dollars, intended to finance small and medium producers, associations and agro- livestock cooperatives. This credit is to finance campaign expenditure, current spending and investment, and included the purchase of equipment and is an important measure to revitalize a sector that does not have the size desired, as it can play an important role in reducing the occurrence of extreme poverty. Meanwhile, the project to produce about 4 hectares of suga cane ( called Biocom) should be implemented very soon. This project results from a partnership between Brazilian company Odebrecht, the oil state company Sonangol and another local partner and aims to achieve from 2012, an annual production of 250 million hectares sugar, 30 thousand cubic meter of ethanol and 160 thousand MW resulting from the burning of waste production. The Government also included agreement with the Lonrho Agriculture company (a conglomerate with an investment portfolio in Africa) on the development of 25 thousand ha of agricultural projects in the provinces of Uige, Zaire and Bengo Please refer to our newsletter for the latest developments in this sector. Due to lack of industries, Angola depends very much on imports of foodstuff. The country imports a significant proportion of its food requirements, and nearly all its capital and consumer goods. Major imports partners of the country are Portugal, the U.S., South Africa, Japan, France, Brazil, UK and China. Nevertheless, the government plans to boost the agriculture sector to diminish dependency on food imports, although, investments in supermarkets and food supply are still needed. The Angolan Government will invest over USD 300 million in the construction of 31 supermarkets of the "Nosso Super" Commercial Network (Presild), in the 18 provinces of the country.The supermarket chain NossoSuper (www.nossosuper.co.ao) is a "joint venture" between Angola Government and a Brazilian company called Construtora Odebrecht. The construction of the Unicer beer plant should move ahead during the year of 2009 and should initially reach a production capacity of 120 million liters and provide direct jobs for about 150 workers. We recall that Unicer is a portuguese company and has a prominet position in Angola, being the second largest with a market share estimated at 20%. Also worth mentioning in the industrial sector is the start up of a mineral water bottling plant in the Cambambe Industrial Park. This factory has an initial investment of 6.5 million USD, and should initially employ about 48 workers directly. Please refer to our newsletter for the latest developments in this sector. Building and Infrastructure Sector The whole country is to rebuilt. Angola's government has embarked on a massive reconstruction of roads, railways, bridges, airports, schools and hospitals and residential housing since the end of a devastating 27-year civil war in 2002. In 2008, approximately 5,000 kilometres of roads was repaired as part of the special governmental programme for restoring national roads. The government approved the construction of several cold storages houses, at twelve of the seventeen provinces of Angola. These warehouses are cold infrastructures to support artisanal, semi-industrial and industrial fishing, with equipment for cooling, freezing and iso-thermal panel. In addiction to targeting the revival of the fisheries sector, these structures are also fundamental in designing commercial fishing circuits and making them more flexible, allowing the needs of the population to be better served. Meanwhile, the PRESILD (Program for Reconstruction the System of Logistics and Distribution of Essencial Products to the population) is being speedly implemented. Under this program, the first Distribution Center of “Nosso Super”supermaket chain has now more then 26 stores in operation.
Please refer to our newsletter for the latest developments in this sector. Hundreds of hotels need to be restored or constructed. Beach, river and mountain tourism offering all types of fishing; basic hunting reserves and natural parks available. However, the promotion of tourism in Angola is mainly hampered by the lack of infrastructures. Nevertheless efforts are being carried out by the government to improve the situation by constructing new hotels and rehabilitating some existing touring locations all over the country. Hence, five new hotels were opened in 2007 and 12 are still under construction. Besides, due to 2010 CAN (African Football Cup) to be hosted by Angola, the country is even busy on improving facilities such as new football stadiums, new airports, hotels, restaurants and camping areas. The Ministry of Hotels and Tourism or just MINHTUR, is struggling to attract national and foreign investors to boost the Hotels and Tourism sector. Therefore MINHTUR has created the Angola Institute for Tourism which has the responsibility to execute the general policy of the Angolan tourism. The Angolan Institute for Tourism is also responsible for the approval of all tourism project proposals and for the emission of concessions regarding the exploration, rehabilitation and construction of tourism infrastructures. Please refer to our newsletter for the latest developments in this sector. Angola has great hydro electrical potential thanks to its network of large fast-flowing rivers. However, both water and energy distribution is not effective. EPAL, ENE and EDEL companies, are very far from providing quality service to the population countrywide. This is a sector that an investor needs to leap-in. In March 2007 the Minister of Energy and Water, said in Hamburg that the Angolan Government intended to invest about USD 2 billions in the national water and energy sector. Angola has concluded infra-structure deals with China, including a recently completed 500 megawatt hydroelectric power plant. In February 2008, the Dutch One of the priorities of government is to approve the Master Plan of Sanitation Facilities of Luanda, as the sewerage system is not suited to the needs of this metropolitan area, given its strong recent growth and the old age of the network . As part of improving traffic circulation, beyond the urgent need to rehabilitate and build new infrastructures, the construction of new car parks is projected (near the Port of Luanda, Jornal de Angola, Ministry of Petroleum and Defense) and the establishment of pay parking. Another example of the dynamism of the sector is the recent approval of contracts for rehabilition of the airports of Catumbela (Benguela) and Lubango (Huila) and the repairing of the electricity network in the cities of Malange, Cacuso, Dundas and Saurimo. The current regional economic growth, estimated at 6.0 per cent per annum over the next ten years, and environmental concerns are the major drivers for the changes and transformation in the electricity industries in these countries. The Angolan electricity industries have been under a process of reformation aimed at re-shaping them to address the current reality. The Angolan electricity industry seems to be at a similar stage of its development, with tremendous potential for growth. Despite the global financial meltdown, the current growth demand for electricity is estimated at 12.0 per cent per annum. The national reconstruction programme is expected to remain a significant driving factor behind this continued surge. The commencement of the Capanda dam operation in 2004, which almost doubled the country's electricity capacity, began a new era for the Angolan electricity industry. Strong economic growth has led to the awakening in the country´s electricity industry. Angola is endowed with tremendous hydro potential, which is currently underdeveloped. This has put additional pressure on the Angolan government to help rebuild the industry through its reconstruction programme. As a result, the Angolan government is expected to channel $8.4 billion towards the industry. Angola is seeking to boost power output as demand continues to grow in the Southern African region. Also needS to meet growing domestic demand. Several potential projects have already been identified and are expected to increase in the country's total generation capacity. The current electricity industry reformation is expected to significantly reduce investment barriers. Angola’s investment laws give foreign and domestic investors equal access to investment incentives and enable the participation of private investor in public infrastructure projects such as electricity supply. Environmental regulations are however becoming tighter, potentially increasing investment risk and adding to the requirements for investing in Angola existing new power plants.
Please refer to our newsletter for the latest developments in this sector. |
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Mining
