Transcript Slide 1

• Key facts
(Worldbank 2011)
- Population – 18.5 million (estimated)
- Urban population % - 58
- GDP per capita - $5900
- Foreign reserves $28,3 billion (December 2011)
- Luanda most expensive city in the world 2011(Mercer)
- Labour force 8,24 million
- Economy depends on two main resources; oil and diamonds
- Strong focus on diversification at the present (Agriculture, Services, etc)
- Focus on Political Stability (Rule of law, freedom of speech and association)
- Focus on Macro Economic stability (Financial crisis of 2009/2010)
- Focus on Rehabilitation / Mobilisation of Basic Infrastructure
(access to water, sanitation, electricity)
- Focus on Sound Financial System
SWOT analysis
Strengths
- Mid-term political stability – not seen same level of insurgences North Africa
- Extensive natural resources, from oil to diamonds to other minerals and
agriculture
Weaknesses
- Weak institutional framework
- Low human development (continuous HR development/training is a
requirement)
Opportunities
- Very good geographical positioning (West Africa, on major sea routes)
- Large young and dynamic population (post war generation)
Challenges
- Creation of a non oil robust private sector
-Efficient use of non renewable resources
(African Dev Bank)
• Agriculture - Angola
-
Agriculture has tremendous potential
Potentially rich agricultural country, with fertile soils, a favourable
climate, and about 57.4 million ha of agricultural land
Before independence in 1975, Angola had a flourishing tradition of
family-based farming and was self-sufficient in all major food crops
except wheat
The country exported coffee and maize, as well as crops such
as sisal, bananas, tobacco and cassava
Expanding due to growth of foreign investment in the sector
• Business environment
- Difficult place to do business (language, business culture, bureaucracy)
- Language is Portuguese even though international presence exists
- Challenging Bureaucracy (scored 43,4 points EFI under business freedom)
- General lack of capacity (human resources, products, services, logistics)
- Highly ineffective Commercial Dispute resolution mechanism
- Expensive place to do business – residential rentals as high as $20000 pm
- Banking sector needs a lot of improvement – access to credit difficult
- Numerous opportunities with great returns however risks are very high
- Corruption is still a huge problem (Government drives anti graft policy)
- Logistics is a nightmare, road infrastructure, ports, railway
- Electricity is not always available, same with water
- Time (Tomorrow is certainly just another day)
- And yes it is still very much about who you know
• Angolanization
- Understand your market completely first (do thorough research)
- Familiarise yourself with business culture
- Dress properly (a suit means you have respect, you are successful, serious)
- Ensure you understand basic greetings etiquette
(learn a few Portuguese phrases)
- Use business consultants with experience to assess your particular industry
- Do not just fly into country unprepared, you will leave empty handed, poorer
- Find a local partner with correct skills and personality
- Provide continuous training and marketing support
- Abide by normal standard internationally accepted business rules (due
diligence etc)
(Group 5 and Super Group are examples of how it can go wrong)
- To fully become integrated in Angolan culture you need to persevere
Daniel Swanepoel
[email protected]
+27 82 325 3658 mobile
+27 21 403 6384 office