Transcript Diapositivo 1 - Caiado Guerreiro & Associados

Angola
The Business Opportunity You Never
Knew About
João Caiado Guerreiro
The present powerpoint presentation was drafted
considering, amongst others, the following
sources*:
CIA World Factbook;
U.S. Department of State;
Diário Económico;
Reuters News Corporation;
Africa Energy Intelligence;
Energy Information Administration – Official Energy Statistics of the U.S.
Government.
*Please note that due to the fact that Angola is a third world country the data
contained herewith varies from source to source.
THE WORLD
ECONOMIC AND
FINANCIAL CRISIS,
PERIOD OF RECESSION
ANGOLA
HIGH LEVELS OF GROWTH
INTERESTING FACTS:
ANGOLA IS 5
TIMES THE SIZE
OF THE UNITED
KINGDOM AND
OVER TWICE THE
SIZE OF FRANCE
•
•
•
•
•
•
•
Population – 17,500,000
Capital – Luanda
Area – 1,246,700 sq km
Language – Portuguese
Currency – Kwanza
GDP – 84 billion USD *
GDP per capita – 4,941
USD *
*U.S. Department of State
Angola has made remarkable
progress since its nearly 30-year
civil war came to an end with the
signing of a peace agreement in
April 2002.
BEFORE
2002
AFTER
2002
CIVIL WAR
FASTEST
GROWING
ECONOMY IN
AFRICA
FOURTH FASTEST GROWING ECONOMY IN
THE WORLD - an average GDP growth rate of 15% (2002-2008)
Year
GDP - real
growth rate
Rank
2003
9.00 %
10
2004
1.50 %
156
2005
11.70 %
8
2006
19.90 %
2
2007
15.00 %
4
2008
16.70 %
4
OIL PRODUCTION
1,889
2,948
UNITED ARAB
EMIRATES
ANGOLA
NIGERIA
2,100
Million barrels per day
WHY ANGOLA?
Angola is now a peaceful country;
strategic geographic location;
macroeconomic stability;
inflation in single digits;
growing international currency reserves;
per capita income is now approaching that of middle
income countries – 4,941 USD;
it used to be a marxist country, whereas now the
Government is promoting free enterprise, trade and
investment.
POLITICAL STABILITY
 FREE DEMOCRATIC ELECTIONS - 5th of September
of 2008 (MPLA won with 81,64%).
 EXPECTED PRESIDENTIAL ELECTIONS IN 2009 having the same President since 1979.
PORTUGAL IS THE PRIVILEGED PLATFORM
FOR ACCESS TO ANGOLA
historical and cultural proximity (Angola was a Portuguese
colony up until 1975);
Portuguese speaking country;
easy access from Lisbon which has 3/4 daily flights to
Luanda;
Angolan law is inspired by Portuguese law (same civil
code; corporate code, etc.).
42 CONVENTIONS AND TREATIES BETWEEN
PORTUGAL AND ANGOLA
Bilateral Investment Treaty
provides incentives, as well as additional
protection to investors from both countries.
Agreement on Enforcement of Court
Judgements
promotes the Judicial and Judiciary
Cooperation between Portugal and Angola.
Customs Cooperation Agreement
promotes the customs’ technical cooperation between
Portugal and Angola.
ANGOLAN LAW
Portuguese law as of 1975
 Same Civil Code;
 Similar Corporate Code;
 The only differences relate mainly to details,
except for Oil Law.
WHY INVEST IN ANGOLA?
Government is committed to progress and
investment:
political stability
•Democratic legislative
elections in September
2008
•Presidential elections
expected in 2009
establishment of a legal regime of incentives;
economic and political reforms;
free-market economy principles;
offers credible legal protection and stability to
investments.
Incentives
Eligibility criteria
The tax and customs incentives, exemptions or
reductions shall be granted in accordance with the
following criteria:
 Sector of activity
 Development zone
 Special economic area
Sectors of Activity
 agro-forestry/cattle;
 manufacturing;
 fishing;
 construction;
 health and education;
 roadway, railway, port, airport, telecommunications,
energy and water infrastructures.
Development Zones
Zone A - Province of Luanda, as well as
the main municipalities of the provinces
of Benguela, Huíla and Cabinda.
Zone B - Remaining municipalities of the
provinces of Benguela, Cabinda and
Huíla and provinces of Kwanza Sul,
Bengo, Uíge, Kwanza Norte, Lunda
Norte, Lunda Sul and Zaire.
Zone C - Provinces of Huambo, Bié,
Moxico, Kuando-Kubango, Cunene,
Namibe and Malange.
Special Economic Zones
These areas are defined by the government on a
project need basis.
Angola is one of the most difficult,
yet most rewarding countries to do
business in…
SPECIFIC OPPORTUNITIES IN 5 KEY
SECTORS:
1. Energy & Renewable Energy
2. Housing and Infra-Structures
3. Agriculture
4. Mining
5. Manufacturing
1. ENERGY
 OIL
 GAS
OIL
Angola’s economy growth is mostly
due to the increase of oil
production.
The control of the oil sector is secured by a
State-owned group - SONANGOL.
ANGOLA was in 2008 the biggest oil
producer in Africa.
OTHER INTERESTING FACTS REGARDING OIL
PRODUCTION IN ANGOLA:
 Proven oil reserves of 9.0 billion barrels as of January 2008;
 Oil production expected to reach 2,8 million bpd by 2012;
 In the oil sector Angola always hits its growth targets, because
it always respects its contracts;
 Sonangol works together with ExxonMobil, Chevron, Shell,
BP, Petrobrás, Galp, Total, etc.
Please note that according to recent news and following the oil prices’ reduction, Angola, as an OPEC member, will be forced to decrease its oil production to
1,55 million barrels per day.
NEW IMPORTANT PROJECTS:
SINOPEC
SONAREF
SINOPEC
 China’s state oil
company;
 Entered the market
offering two separate 1
billion USD signing
bonus offers on two
offshore blocks;
 Formed a partnership
with Sonangol.
SONAREF
 Refinery in the coastal
city of Lobito with capacity
for a production of 200,000
bbl/d;
 The project is worth 3.5
billion USD and is able to
process heavy crudes;
 Sonangol is proceeding
with the project and
refining is to start in 2012.
NATURAL GAS
Angola is a world-class hydrocarbon
region and its role is expected to
increase in the future.
Regarding natural gas, there are currently some
projects in Angola for its transport from the oil
reservoirs located offshore into the international
markets, starting as of 2012.
LIQUIFIED NATURAL GAS PROJECT
Angola LNG Project is a joint venture between the
following investors:
 Sonangol
 Chevron
 BP
 Total
 ENI
Having already invested US $ 4bn, in order to
produce 5.2 million tones a year.
ANGOLA’S LNG PROJECT MISSION
To develop a Liquefied Natural Gas plant
in Soyo, Zaire Province, Republic of
Angola, to export it to Atlantic Basin
markets and provide natural gas for use in
the Angolan domestic market.
THE DEVELOPMENT OF THE LNG PROJECT
INCLUDES:
the construction of an onshore liquefaction train with
storage capacity of 360,000 cm for LNG, LPG (liquified
petroleum gas) and condensate;
a loading jetty for LNG tankers;
the building of a pipeline to transport natural gas to
Angolan markets.
TOTAL INVESTMENT
Although the total project cost has
not been released, Angola LNG
Project has been considered as the
"largest single investment ever
made in Angola" by Angola’s
minister of petroleum.
Despite the aforementioned, it is
estimated that such investment shall
reach around 8 billion dollars.
ANGOLA IS SET TO EXEMPT COMPANIES
EXPLORING FOR NATURAL GAS FROM
PAYING TAXES
On the 24th of March 2009 the Angolan Parliament
voted as to allow the Government to implement a law
that exempts gas firms in Angola from any tax
burdens.
SONANGAS
(subsidiary of state-owned oil company
Sonangol)
10-YEAR GAS
EXPLORATION RIGHTS
Eni Angola Exploration BV, Gas Natural West
Africa SL, Galp Exploration Petrolifera SA and
Exem Energy BV
Opportunities for all types of companies in
the Oil & Gas sector
Involved are already the big players (ExxonMobil,
Shell, BP, Eni, etc.) and their usual suppliers
(Technip, Schlumberger, Halliburton, Bechtel).
Nonetheless, there remain abundant opportunities for
all types of suppliers, from Catering to Hotel and
Engineering services!
RENEWABLES

SOLAR POWER
 WIND POWER
 HYDROPOWER
The distribution of electricity in the country is
not uniform due to a destroyed network, so
Angola’s government decided to bet on
renewable energies.
FIRST FORCE – BIODIESEL PROJECT
First Force is a sound project in the field
of crude vegetable oils for international
biodiesel industry that is commited to
contribute to Angola’s development.
PROJECT FUNDAMENTALS
Off-take pre-ageements with leading biodiesel
players;
Investment of $200-$300 million;
Privileged access to the European markets;
Initial target production of 200,000 metric tons;
Life-span of 25 years.
First Force in numbers: Angola
670,000
tons
400,000
tons
$ 210 M
$ 171 M
299,000 ha
172,000
tons
Crushing
capacity
beans
Oilseed
Meal
CapEx
(cum. 3 years)
Sales
Total
arable
land
Oil Production
2. HOUSING AND INFRA-STRUCTURES
END OF DEVASTATING 27-YEAR CIVIL
WAR IN 2002:
Angola’s government
engaged in a considerable
reconstruction of roads,
railways, bridges, airports,
schools, hospitals and
residential housing.
In 2005 the Government began using a vast
amount of credit from China (around 7 billion
USD) to rebuild Angola’s public infrastructures,
as well as for the investment in several other
large-scale projects.
Meanwhile, other countries such as
Portugal (providing around 2 billion USD),
Brazil and Germany also started
financing Angola through huge credit
lines worth several billions of dollars, in
order to contribute to the country’s
overall development.
GOVERNMENT SUPPORT PROGRAMMES:
National construction programme
1 million houses by 2012
Ministry of Hotel and Tourism plans to build around
50 new hotels before 2010
when Angola hosts the
African Soccer
tournament.
ONE MILLION HOUSES BY 2012
Public-private partnerships for purposes of housing
construction are being created.
HOW WILL THE COMPANIES BE SELECTED?
Via tendering procedure where the most
advantageous tender will be chosen.
In this context, some contracts have already
been awarded to local companies for the
building of approximately 200.000 houses.
Consequently, there is an opportunity in what
regards supplying some of these companies.
ROADWAYS:
TOTAL ROADWAYS: 76,626 km
 Paved – 19,156 km
 Unpaved – 57,470 km
2009 - approximately 4,835 kilometres of
roads have been asphalted and repaired.
PORTS AND AIRPORTS
In what regards this matter there is still a
lot to be done…
Building
Repair
Maintenance
PORTS
Cabinda
Lobito
Luanda
Namibe
Malongo
Shipbuilding
and repair
industry
Trade
development
Job
creation
AIRPORTS
TOTAL – 211
With Paved Runways – 30
With Unpaved Runways -
181
FOREIGN WORKERS IN ANGOLA
Any foreign worker in Angola needs to hold a
working visa. To obtain this visa, the worker has
to comply with the following requirements:
 hold a passport valid for more than 6 months;
 have an adequate visa;
 have at least USD 200 for each day in Angola,
and accommodation;
 have an international vaccination certificate;
 and not being prohibited from entering the
country.
3. AGRICULTURE
Angola has launched an
ambitious plan to exploit
both its fertile soils and
high global food prices to
attract investments in
agriculture over the next
four years.
Of its 57.4 million ha of
arable land, only 5 - 8
million ha are being used.
Extensive river system
Varied environment
Arable lands
Huge water reserves
Potential for
production
of tropical
and
subtropical
crops
ANGOLA’S MAIN AGRICULTURAL PRODUCTS:
Coffee
Sugarcane
Cotton
Sisal
Corn
Manioc
Tobacco
Bananas
GOVERNMENT SUPPORT PROGRAMMES:
Medium-Term Development Programme for 2009-2013 of the
Ministry of Agriculture and Rural Development (Minader)
More than 400 million USD.
Financing of small and medium producers, as well as associations
and cooperatives who operate in this sector
Credit line of 350 million USD.
High-quality coffee production
Credit line of 280 million USD
Creation of 14 agro-forestry research
centers
Credit line of 7, 3 million USD
DEVELOPMENT PLAN FOR AGRICULTURE
 Public funds in the amount of 1.000 million USD;
 Creation of 78,000 work posts;
 Increase on the cereal production which shall reach
385 thousand tons within the next three years;
 Construction of 55,000 houses in the rural areas
together with 127 new schools, 127 medical centers,
71 rural markets, as well as 130 convenience stores.
4. MINING
Angola is a resource of top quality gemstones
and Luanda’s region is one of the most important
and prosperous diamond producing areas in the
world.
According to recent studies it is estimated
that the Angolan subsoil contains 35 of
the 45 most important minerals traded in
the world. The country’s diamond
production in 2007 reached approximately
9.7 million carats.
5. MANUFACTURING
The Angolan Government is set to relaunch
the manufacturing industry in the country
during the period of 2009/2012.
REQUIREMENTS:
 increase of value of
natural resources;
 rehabilitation of the
industrial park;
 promotion of
complementarity of
the industrial
structure.
MODERN
INDUSTRIAL
SEGMENT
UPDATED
TECHNOLOGY
INTERNATIONAL
COMPETITIVENESS
EXPECTED DEVELOPMENT IN THE
MANUFACTURING SECTOR (albeit from a very low
base)
GROWTH
 31,9%
 35,0%
 36,9%
2010
2011
2012
MAIN INDUSTRIES TO BE DEVELOPED IN THE
MANUFACTURING SECTOR:
Machines and equipment, tools and accessories;
Textile and footwear;
Timber;
Cellulose and paper pulp;
Building materials;
Petrochemical;
Ships construction, repair and maintenance.
HOW TO INCORPORATE A COMPANY (main
steps) :
Define corporate name / activity
Articles of Association by public deed
Commercial Corporation Registry
Declaration of start of activity
Social Security
Commercial License
ANGOLA,
The opportunity you will not want to lose and
which Franco Caiado Guerreiro & Associados
will help you explore…
Contact Us
Franco Caiado Guerreiro & Associados
Rua Castilho, n.º 39 – 15º
1250-068 Lisboa
Tel.: 213717000 / Fax: 213717001
www.fcguerreiro.com
João Caiado Guerreiro [email protected]
Sara Galvão Soares
[email protected]