+27 71 448 3496
leon@whyafrica.co.za

Angola continues to attract foreign investment

Share Article
An aerial view of the Special Economic Zone of Luanda-Bengo (ZEE). The ZEE continues to attract more FDI and investors to Angola as it has a very competitive offering, such as the lowest operational costs in Southern Africa with a reliable electricity supply, potable water, and world-class infrastructure. Image credit: ZEE

Angola continues to attract foreign investment

Angola’s much touted privatisation drive has gone a long way to lure foreign investors to the once closed economy.

By Leon Louw owner of WhyAfrica and editor of the WhyAfrica magazine

Angola offers numerous attractive business incentives and investment laws that support Foreign Direct Investment (FDI). One of President João Lourenço’s priorities, since his first inauguration in 2017, was to diversify the country’s economy and to attract more FDI, which is why some new reforms were implemented.

Manuel Francisco Pedro, Chairman of the Board of Directors of the Special Economic Zone of Luanda-Bengo (ZEE) of Angola, tells WhyAfrica in an exclusive interview that the new Private Investment Law (2018) made it easier for foreigners to invest in Angola.

“The new Private Investment Law (2018) gave foreign investors the same rights to access tax incentives and investment aid as locals. The issue of capital repatriation is now protected by law, ensuring that foreign investors have the right to transfer and repatriate dividends or other income from a direct investment,” says Pedro.

Petro adds that the new Private Investment Law also offers tax incentives, with tax reductions in the range of 20% to 50%, for periods of up to two years, regarding industrial tax, capital investment tax, and tax applicable to the acquisition of property intended for investment.

“Under this law, the government established the contractual investment regime. It means investors can negotiate certain incentives and tax benefits directly with the government if their project meets certain legal requirements and has a structural impact on Angola’s economic development,” he says.

ZEE attracts more investors (Angola continues to attract foreign investment)   

Since 2020, the inflow of capital from foreign investors who wish to invest is exempt from licensing by the Angolan central bank (BNA). The Special Economic Zone of Luanda-Bengo (ZEE) is also playing its part to attract more FDI and investors to Angola as it has a very competitive offering, such as the lowest operational costs in Southern Africa with a reliable electricity supply, potable water, and world-class infrastructure.

The ZEE is also transitioning from a Special Economic Zone to a Free Trade Zone to offer better and bigger incentives to investors—like its own tax regime, as well as customs, exchange, labour, and migration incentives that will be even more investment-friendly.

Diversifying the economy (Angola continues to attract foreign investment)   

Angola has historically relied on its oil and diamond reserves to drive the economy. Although these sectors still play a significant role, there has been renewed attempts to diversify the economy with a strong focus on the mining, energy and agricultural sectors.

According to Pedro, agribusiness is the government’s big bet for the next five years, and financing lines have been secured from the Development Bank of Angola. There are close to 58 million hectares of fertile, arable land – with the potential for two harvests a year.

Planagrão (National Plan for Grain Production) has already been approved with abound USD500-million per year and an equivalent amount for infrastructure and access to production areas. Planagrão will enhance the development of wheat, rice, soya, and maize crops and from 2027 should produce six million tons of these grains per year. In 2021, Angola produced about 3.14 million tonnes of grain a year.

Initially, Planagrão will be developed in the provinces of Moxico, Lunda Norte, Lunda Sul and Cuando Cubango, over an area of more than two million hectares.

There is also Planapescas (National Plan for the Promotion of Fisheries), for which the government will channel USD300-million dollars and another USD300-million over the next three years to support animal production and derivatives.

In total, more than USD3-billion, including public infrastructure, will be used to position Angola among the main African agricultural producers.

The full interview with Pedro and more tips on how to do business in Angola will be published in the July issue of the WhyAfrica magazine. To subscribe to WhyAfrica’s newsletters and magazines click here: https://www.whyafrica.co.za/subscribe/

WhyAfrica will be travelling through the Moxico Province of Angola as part of our WhyAfrica Road Trip in August. WhyAfrica members, sponsors and partners will get regular updates about the trip and an in-depth report about on the ground conditions in Angola after the trip. To become a WhyAfrica member click here:  https://www.whyafrica.co.za/product/membership/

ADVERTISEMENT

Angola continues to attract foreign investment

WhyAfrica provides on the ground information and business intelligence about the sustainable utilisation and extraction of natural resources in Africa, and can assist your company through:  

  1. Membership:
  • WhyAfrica’s membership offers great business insights to you, your company, and clients.
  • Amongst many other benefits, we will publish editorial content about you or your company on the WhyAfrica online platform and on all WhyAfrica’s social media pages – the annual fee is R5,500 and you can find out more or subscribe here: https://www.whyafrica.co.za/product/membership/ 
  1. Sponsorship:
  • WhyAfrica’s annual 45-day African Road Trip takes place in July and August. We will visit more than 30 project sites and this year we plan to visit Angola, Zambia and Malawi. Sponsoring the Road Trip, or to be a WhyAfrica member, gives you unparalleled insight into the business environment of the countries that we travel to and the project sites we visit.
  • To be a member or sponsor allows you access to invaluable, on the ground, business intelligence and a great marketing opportunity for all companies doing business in Africa.
  • The main aim of our Road Trips is to promote Africa as an investment destination and to showcase Africa’s greatest companies, and projects to our large global audience, which includes a list of potential investors, venture capitalists and serial entrepreneurs.
  • To view the photos of last year’s Southern Africa Road Trip click on the gallery link or follow our Instagram account at why.africa https://www.whyafrica.co.za/road-trips/whyafrica-road-trips/. 
  1. Advertising:
  • We publish daily online articles on our WhyAfrica platform and post them on social media every day. Our combined online reach is more than 45,000. In-article banner ads are highly successful advertising tools as is advertising space on our website.
  • In addition to our bi-weekly newsletters, we publish two printed- and two interactive digital magazines per year. The printed magazines are distributed at major events and conferences throughout the year, and also on our WhyAfrica Road trips.
  • Digital magazines are e-mailed to all our subscribers and shared on our social media platforms. A copy of the latest edition is automatically attached to all our outgoing e-mails.
  • WhyAfrica magazines provide great marketing opportunities. There are also in-article and on-line advertising opportunities at exceptional rates. Contact me for more information on leon@whyafrica.co.za or give me a call.
  • To subscribe to WhyAfrica’s free newsletters and magazines click on the link and register: https://www.whyafrica.co.za/subscribe/  
  1. 4. Partnerships
  • Maximise your African exposure and link with our large business network through becoming one of only 10 WhyAfrica partners. We have only five prime partnership positions left for 2023, so contact me at leon@whyafrica.co.za before the end of March to get the best deal.

Angola continues to attract foreign investment

 

 

 

       

 

Share Article

Sectors

AgricultureEnvironmental Management & Climate ChangeEnergyESGInfrastructureMiningPolitical EconomyTourism and ConservationWater Management