Angola is the 22nd biggest country in the world, the 4th biggest economy in Africa, and the 2nd biggest Oil producer in Africa, with an average GDP growth rate of 11.1% in the first decade of the century. Angola is also the third major financial market in Africa South of the Sahara, with active stocks of USD 70 billion, only second to Nigeria and South Africa.
Angola was under colonial rule until November 11, 1975, date on which it became an independent nation. It has a population of 22.14 million (Source: The World Bank, 2014), with the nation’s capital, Luanda alone, a home to over 5million inhabitants.
The country is strategically located on the Atlantic coast of West Africa. It extends over an area of 1,246,700 Km2, an Atlantic Ocean coastline of 1,650 Km long, with a total of 4,837 Km long borderline. The country is bordered with Congo-Brazzaville at the Northern Province of Cabinda, the Democratic Republic of Congo (former Zaïre) to the North and East, Zambia to the East, and Namibia to the South. The country’s major ports include Luanda, Lobito, and Namibe. Its highest peak is Mount Moco, 2,620 m high, located in Huambo province. With a privileged continental hydrographic system, Angola’s main rivers are Kwanza, Záire, Cunene, and Cubango.
The Republic of Angola also has 18 provinces, 3 main harbours, and 1 international airport, Kwanza as its currency and Portuguese as the official language.
The location of Angola makes it an open gateway to Southern and Central Africa by way of road and railroad networks. Forming approximately 12% of Africa’s hydrographic network, the country boasts very rich WATER RESOURCES, with good arable land and a vast potential in mineral resources, including diamonds, iron, gold, phosphates, manganese, copper, lead, zinc and uranium. As Africa’s second biggest oil producer the economy grew by 5.1% in 2013. Angola’s extra gross domestic product (GDP) came mostly from the non-oil energy, agriculture, fisheries, and manufacturing and construction sectors. Growth for 2015 is projected to reach 8.8% as major public infrastructure investment kicks in. (Source: African Economic Outlook (AEO) 2014)
The Republic of Angola has already been in the process of making major investments in several areas over the past decade, and has succeeded in reducing poverty by almost half, besides recovering and building new infrastructure. Although it had been dependent on oil, it is now actively engaged in diversifying into all other sectors of the economy with a view to sustainable development and growth.
The Angolan Government, working through the National Private Investment Agency-ANIP, the Government agency responsible for implementing the national policy on private investment, its promotion and Coordination (national and FDI), is thoroughly committed to protecting every private investor wishing to invest in Angola. In the last year alone ANIP signed in Luanda 21 contracts with Angolan and foreign companies estimated at Akz 5.1 billion (Usd 50 million).
To encourage the participation of the private investors in its economic development drive, financial sector policies are being modernised with the introduction of a new foreign exchange currency law for the oil sector and a mining law. The government also offer other benefits including tax incentives and investor protection schemes, such as, access to courts and the right to defence, monetary restitution in event of expropriation and Government guarantee for all investor rights.
The ruling MPLA government current goals forecast GDP growth rate of 8%, Oil & Gas growth rate of 9.7%, and non-Oil & gas growth rate to reach 4.5%, with an annual inflation of 7 and 9%.
The Angolan leadership believes that it can benefit more by accelerating economic diversification and reduce its dependence on oil which accounts for about 46% of GDP, 80% of government revenues and 95% of Angola’s exports. The government has used the Petroleum Activity Law and local content decrees to advance national interests in the oil sector. This legal framework also serves to promote the creation of local skills through the “Angolanization” of human resources and boost the participation of local companies.
Among other things, the government has also made initial assessment of an application for the construction of the stage of industrial development hubs Viana, Soyo, Negage, Saurimo and Caála and a feasibility study for the implementation of the national network of centres of industrial development. The government is also in the process of working to implement a National Development Plan on the Youth for the 2014/17 period, with an aim to educate, train, and develop responsible and organized youth. Who are encouraged to actively participate in the country’s socio-economic and political affairs.