Angola Overcomes Civil War to Attract Foreign Investors

 Business Conference                                                

    By our Managing Editor

The Republic of Angola in a continuous process to forget its war past and to rehabilitate infrastructures destroyed during that trial period has provided tremendous business opportunities for the Hungarian executives willing to grab the chance in a liberal economy that enjoys peace and political stability with “different nationalities welcomed”.

This was disclosed at a conference jointly organised by the Angolan Embassy in Budapest and the Angolan-Hungarian Economic Chamber which took place on Thursday 23rd September at Hotel Le Meridien in down town Budapest.

Addressing about 70 Hungarian CEO’s, Mr. Aguinaldo Jaime of ANIP (Angola Private Investment Agency) whose office all investors are to “knock” first highlighted the guidelines to follow. He advised prospective investors to partner with the local companies whom he described as having the knowledge of the market, people and the rules and procedures. Jaime added that doing so is a signal that such investor is not there for only short term profit but to contribute to the development of Angola as well.

Tagged Angolan Business Opportunities Hungary 2010, the conference discussed about huge potential market waiting to be explored in different industrial sectors like electricity and water, agriculture, infrastructure development and management, civil construction and related service, processing industries, mining, tourism and hotels and many more.

Although the government will be a majority or senior partner in postal service and infrastructure projects related to the telecommunications system, its vision of transition to a sustainable market economy that lifts living standard for all citizens through ANIP “actively promotes” investment by Angolan and foreign nationals in many other sectors, reads the data compiled and made available to the participants.

While there are development zones eligible for financial incentives, foreign direct investors are subject to minimum and maximum capital of 100, 000 and 5 million US dollars respectively. Although ANIP and council of ministers approve projects valued over 5 million US dollars, this is subject only to Contractual Regime.

The conference heard that, although the country is the second-largest petroleum and diamond producer in sub-Saharan Africa, it does not depend on such mineral resources. Instead “We came to the conclusion that we cannot rely on oil and diamond,” Jaime said, adding that the country started diversity of economy six years ago to develop other sectors known as non-mineral economy.

He attributed such vision as part of the reasons why Angola did not suffer the global crisis as other countries but admitted that the growth rate slowed down a bit – 2% in 2009. Even with this, Angola is still “considered as country that attracts investors in Africa”. Adjudged to be one of the fastest economies in the world, Angola is also said to be listed as one of the five countries in Africa that has over 3 billion dollars non-oil economy.

 

Answering the question about any disease that may prevent investors from going to Angola, Jaime emphasised that such reports are being exaggerated saying, “Propaganda is a negative thing on countries”. Using anecdote, he maintained that government continuous efforts have gradually reduced the health risk factor. Meanwhile, he said that the energy sector is not yet well developed which offers great opportunity for investors, adding that the problem of language barrier is out of question as there are well-qualified official translators.

He explained further that Angola was the scene of an intense civil war from 1975 to 2002 but that the country has overcome its troubles to turn things around due to what was described as good leadership; right strategy and right people; ability to learn from other’s experience, success and mistake; and most especially true reconciliation. “We didn’t find a way out when foreigners broker the peace,” Jaime lamented. “But we found solution only when Angolans decided to come together”.

Some participants who talked to African News Hungary described the conference as useful and timely. “It is useful because there’s the need for good relationship between the two countries,” said Lászlo Kovesdy, Bank Information Officer. In his own view, Peter Morenth, Honorary Consul of the Kingdom of Lesotho and ITD Hungary representative in Africa described it as timely and important, especially when it involved high level delegation. 

In his closing remarks, the Angolan ambassador to Hungary Joao Miguel Vahekeni urged the participants to grab the opportunity. “Let us resume former relations between Hungary and Angola,” he said. “Take the opportunity and grab it”.