Financial Services

An Expert's View about Banking, Finance and Insurance in Angola

Posted on: 25 Aug 2012

Massive investment in infrastructure and redevelopment will require private funding if the government is to live up to its commitments to continue to modernise both the country and its fiscal policies

Financial Services Sector in Angola One of the world’s fastest growing economies, averaging growth of over 16% in the last five years, Angola is beginning to enter the international political and commercial arenas, seeing itself as a key regional player. Market overview Angola is a nation emerging from the effects of more than three decades of civil war that completely destroyed the country. Lack of infrastructure, lack of capacity and most importantly lack of human resources, combine to present formidable challenges for the government. However they also constitute staggering opportunities for new and existing investors. The country is rich in terms of natural resources, which allows the government to finance huge projects. There are significant opportunities for British companies, as the UK’s expertise is held in high regard. The Angolan government is keen to diversify the economy and is offering attractive incentives to encourage private investment in the non oil & gas sector, which is now growing at twice the rate of oil and gas. The scale of the opportunities here is such that there is room for everyone in most sectors. And in some, such as financial services, the UK has a competitive edge because our expertise is particularly valued. The value of the UK’s bilateral trade in goods with Angola has increased year on year and in 2011 stood at over £700 million. Massive investment in infrastructure and redevelopment will require private funding if the government is to live up to its commitments to continue to modernise both the country and its fiscal policies. Increased diversification of the economy opens up additional opportunities. But this looks all the more attractive when set against a backdrop of a fuel-driven economy, a stable government and increasing international engagement. Key opportunities ξ Retail Banking ξ Corporate financing ξ Insurance ξ Microfinance ξ PPP/PFI ξ Stock Exchange ξ Currency trading ξ Brokerage ξ Mortgages ξ Personal loans ξ Pensions Latest export opportunities – Financial & Professional Services Latest export opportunities - Angola Getting into the market Doing business in Angola is not straightforward. The complexity and bureaucratic nature of the business environment requires careful guidance for first time business visitors and companies wishing to do business here. We suggest the following tips: ξ Perform due diligence using a reputable local law firm specialised in doing business in Angola ξ Visit regularly and develop face to face relationships with local contacts ξ Forming a Joint Venture with a local company can facilitate the process of establishing in Angola ξ Finding a local partner who is well known and well connected ξ Be prepared that market entry can take longer and cost more than in other countries ξ Businesses which can provide additional services such as training in conjunction with their products often have an advantage in the market. Market entry and start up Considerations ξ The registration and licensing process is bureaucratic and time consuming ξ The 2011 Private Investment Law requires a minimum investment of $1 million in order to benefit from incentives ξ The government must approve any project involving oil and gas. ξ Companies must submit an Environmental Impact Study for approval prior to consideration of any project that could impact the environment. ξ The government and its organisations, such as Sonangol are not considered easy to deal with ξ Local content requirements demand that companies purchase most of their services from companies that are wholly or partially Angolan owned ξ The government is in the process of ‘Angolanising’ the workforce, requiring companies to hire Angolan nationals, unless there are no qualified nationals available. More about doing business in Angola Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Jose Paulo British Embassy Luanda. Tel: +244 222 397 681 or Contact your local international trade team Major Events None at present. UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Financial & Professional Services Latest events – Angola Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

See more from Banking, Finance and Insurance in Angola

Expert Views    
Professional/Financial Service Opptys   By UK Trade & Investment
Financial Services   By UK Trade & Investment Africa Business & Industry   By Afribiz Division, Conceptualee, Inc.