Investing in Angola

WELCOME TO ANGOLA

By Serrai Invest Capital Ltd ( Media Team) 10/10/2015

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Angola has more than 24 million inhabitants, the GDP is above 132 billion dollars, the exports reached more than 71 billion dollars and the foreign exchange reserves are above 30 billion dollars. With such a positive macroeconomical environment it is not a surprise that the stock of FDI in Angola has already reached more than 17 billion dollars, mainly oriented for oil and gas exploration, as Angola, an important member of OPEC since 2008, is the second producer in sub-Saharian Africa.

Nowadays it is important to emphasise the attraction of foreign direct investment to new opportunities that the diversification brings, specially in the expansion and modernization of major cities, specially in the capital, Luanda, that is booming with more than 7 million inhabitants. It is important to mentione that investors already active in Angola consider this country as an attractive destination for further investments in housing, infrastructures, shopping malls, office buildings. but it is necessary to recognize that there are many investors still far less enthusiastic, in spite of clear improvements in Angola

The XXI century is showing a quick change in the traditional balance of power all over the world. The effects of the financial crisis initiated in 2008 in the United States spread through the world but it is now clear that it is Europe that is facing a decline and enormous difficulty in recovery. On the other hand, in the rest of the world more and more less developed countries are emerging as new economic and political powers, as Brazil, Russia, India, China and South Africa, the so-called BRICS, essentially because of their natural resources and their growing population. And many other countries, as Mexico, Turkey and Indonesia, are also having more economical importance and recognition.

It seems apropriate to call the attention of more investors about the prospects of Africa, that nowadays is becoming more and more important, as the perception of the investors in terms of risks and opportunities of investing in the potential of Africa is changing dramatically, as all major indicators show that large benefits are expected from investing in Africa now. The move of China towards Africa in the beginning of the XXI century has surprised many people, but nowadays every large country, large multinational or corporation, large bank or large investor is following the same direction. The recent summit in Washington between the United States and a large majority of Heads of African States clearly show that America has finally recognized that it is necessary to recover the delay. But also Germany, France, Russia, Great Britain, Japan, Turkey and many other countries are trying to show their recent interest to invest in Africa and to search for partnerships with African entrepreneurs.

However, the perception of new opportunities arising in non-traditional sectors in Africa is increasing very fast because of the diversification strategies and among the major reasons is necessary to consider the strong demographic factor and a better macroeconomic growth, leading to an improving business environment, with substantial implications in the development of infrastructures (energy, transportation), the amelioration of the agriculture and fisheries, the urbanization of more population, the need for housing, better education and health care, the growth of the consumer class, etc.

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Statistics of FDI in Africa show that has reached more than 52 billion dollars in 2013, with a growth rate of 5,7 % in 2013, with an average of 70 million dollars per project. This means that in the last five years Africa has risen to become the second most attractive investment destination in the world, tied with Asia. But it is not possible to consider the Continent as a whole, as FDI is being concentrated in few countries with a better perception, as South Africa, Ghana, Kenya, Angola, Mozambique and Zambia. But it is also important to note a shift from the tradional sectors of the FDI, as the exploration of natural resources, mainly oil, gas and mining, to new sectors as infrastructures, telecommunications, technologies, retail and consumer prooducts, financial services and urbanization.

Your Partner is particularly interested in following the development trends of those countries in Africa that show a better economical performance in a stable political and social environment, calling the attention of dinamic investors from other areas of the world to the huge potential of growth in the more attractive countries in Africa. Among those we have decided to have a quick look at Angola, that has became one of the more acctrative destination of FDI in Africa.

 

 

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