S06 ATR Oct 2018 Profile_ATR - New Master Template 2016 28/09/2018 07:36 Page 22
PROFILE | ABO CAPITAL
Angola: moving beyond oil Zandre Campos, CEO of ABO Capital, sees bright things ahead for Angola with the passing of a new private investment law. Here, he tells African Review why the country is moving in the right direction. he future is bright for Angola’s economy. Just recently, government leaders unanimously passed revisions to the country’s Private Investment Law, which supports Angola’s diversification efforts in job opportunities and trade. This is helpful when there are price fluctuations in oil, metal, and other commodities ─ top sources of revenue. In the past, the Private Investment Law had required foreign investors to partner with Angolan citizens, public capital companies, or Angolan companies, and hold at least a 35 per cent stake in the share capital of the companies. The revision removes this requirement, and I’m hopeful that parliament’s new regulation will be more attractive for foreign investors, grow businesses, benefit trade and create more jobs.
Local content We are on the right track toward creating opportunities for Angolan residents. Under the revisions to Angola’s Private Investment Law, private investors must employ Angolan workers and provide them with favourable training, salaries, and social conditions, without discrimination. This is a great step in providing concrete opportunities for Angola residents and building upon other investment opportunities with high manufacturing intensity. The priority trade sectors are food and agriculture; forest resources; textile, clothing and footwear; hotel business, tourism and leisure; construction; public works; telecommunications and information technology infrastructure; energy and water; and education, training and investigation respectively. All of these elements can greatly contribute to the growth of businesses, research and trade, which is crucial for Angola, as it is one of the few African countries that has just two main exports. Agriculture is another industry that has great potential. It provides jobs for more than 60 per cent of Africa’s workforce and has the potential to grow. Technological advancements have contributed to this growth, but there is still more opportunity here. One venture in which I’ve invested through ABO Capital includes ETG, one of the fastest growing integrated agricultural supply chain groups that works to ensure the growth of procurement, processing and manufacturing finished goods, and product distribution.
22
AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | OCTOBER 2018
Image Credit: ABO Capital
T
Zandre Campos.
Oil & gas Oil still accounts for approximately 90 per cent of Angola’s budget and it will continue to be one of the most important sources of income for the country. President João Lourenço is proactively working to boost this sector, and part of his plan includes loans from the International Monetary Fund (IMF), which is a positive move that should help continue to strengthen the country’s economy as a whole. I also believe diversification is an important step towards economic growth, such as allocating resources toward sectors with high manufacturing intensity. President Lourenço’s efforts in solidifying a deal with the IMF would mean that the price of fuel and basic materials will eventually increase. It’s a measure that indicates the seriousness of President Lourenço, who is looking toward the future of our country. It is also a measure that would need to be done, if not now, then in a couple of years from now. Angola’s discoveries of offshore pre-salt basins
Oil accounts for 90 per cent of Angola’s budget and will continue to be one of the most important sources of income ” ZANDRE CAMPOS
presents evidence of a new reality of natural gas, which can be a game changer for infrastructure development and in attracting new investors.
International trade Trade has fostered healthy economic development in Angola, and the government has been committed to ensuring the growth in food and agriculture. Historically, coffee, maize, and other crops, such as sugar cane and cotton, had been top exports, and the country was at one point self-sufficient in all major food crops except wheat. Coffee was a leading export, and even considered the best in the world. Today, Angola relies on international trade for more than half of its food and other commodities, but agriculture has remained a top priority for the Angolan government. The country has more than 2,000 acres of land that can be used for farming and agriculture production. In the past few years, the government has focused on clearing land mines, commercial agriculture and the construction of irrigation projects. We will see continued positive relationships with trade partners as Angola continues to build its economy, but we’ll soon begin to see more developments and the positive impact of legislation, such as the revisions of Angola’s Private Investment Law that will contribute to the overall growth of our own agricultural sector.
Infrastructure development Infrastructure is another critical component to the continent’s development. Poor infrastructure, such as roads and electricity limits the flow of trade, capital, education and information. Some of the most notable re-building projects have included the Laúca Dam, which contributed to more than 8,000 jobs and cost-effective and reliable energy; the Luanda Airport, which helps accommodate international airlines and has repositioned Angola as a hub; and the launch of AngoSat 1, thought to provide better reception for mobile phone users and support telemedicine for those not near hospitals or medical professionals. All of these developments are critical to breaking through the challenges Angola faces with its infrastructure. ■ By Martin Clark
www.africanreview.com