For capital owners throughout the world, deciding the next place for allocating new investments is always both a challenging and an exciting experience. And when searching for new markets in new landscapes, there is a region often forgotten by traditionalists that still offers investors with outstanding margins of revenue: Africa, most specifically, the ever-thriving Angola.

Amongst the key elements to look at when researching any possible opportunity, one thing that immediately comes to mind is that of a stable regulatory legal framework that is able to guarantee the security of all money entering the country. On top of that, having a robust group of judicial and financial institutions ready to enforce contracts, agreements and payments, is also a key characteristic to look for.

Whether your intention in Angola has to do with the metal industry, the food sector, or just local investments, you can rest assured that this country has developed a well-formed set of institutions that will be activated permanently for the safeguard of both public and private capital.

Angola’s Current Situation: a Rising Nation in a Post-COVID World

Angola’s economic performance during the last year and a half didn’t behave abnormally when compared to most countries. Its national debt rose, its productivity declined and oil, one of its most exported goods, also presented historic lows. 

The political system has responded to these trends with a set of macroeconomic adjustments that include a more favorable foreign exchange rate, a conservative monetary approach and fiscal solidification. 

Meanwhile, the country’s legal system has also been strengthened in the search for international capital to feel safe when trusting Angola for new opportunities. This includes a large-scale privatization initiative of many of the state assets (Oil, Mining and Telecommunications, for the most part) through an attempt to construct an Angolan capital market by a stock acquisition methodology. 

In the midst of this governmental aim to create better conditions for investment, the executive has also stated its intention to solidify the country’s infrastructure through large public-private partnerships. These financial units are also becoming one of the most popular methods to participate in the Angolan investment wave. 

The requalification of a major port, the rebuilding of a large oil refinery, to name a few, are some of the projects being financed by several capital owners, and that proves the viability of such a method. Even more, the Angolan national oil company is currently searching for a private partner to help finance the development of an oil storage unit in the north of Luanda. 

Key Considerations when Investing in Angola 

Every expert currently working in Angola will tell any investor the same thing: the most important thing to succeed in this market is proper financial planning topped with thorough knowledge of the country’s legal framework. And at Mundo, we surely agree with them!

One limiting condition that needs to be taken into account is that of regulatory measures related to foreign currency access. In order the retrieve income generated within Angolan territory, the investor is asked to own a private investment registered at the AIPEX, which is the local agency in charge of foreign investment regulations. 

This issue, however, has a silver lining, and that is the fact that all the capital allocated in Angola will be protected by the Private Investment Law, which grants the possibility for the investor to recover the income once said private project is terminated. 

There are high expectations regarding the government’s continuity in its pursuit of a more investor-friendly environment within Angola, which accounts for the possibility to implement a contractual legal regime that would allow capital owners to include themselves in large projects that are exempted from certain types of tax. Moreover, the country’s financial authorities have already announced their desire to include Angola in bilateral agreements with important markets like the Japanese and the Chinese. 

The inclusion of Angola in these bilateral investment treaties will grant investors with unseen benefits and protection mechanisms, as for example, clauses for equal treatment and forbiddance of expropriation will be on the table. 

All of these measures are coherent with the executives’ crusade of making Angola one of the greatest financial markets in Africa, aiming to transition the country’s economy from a state-guarded one to a more market-oriented approach. 

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Opportunities in the Angolan Property Sector 

The outstanding performance of the Angolan property sector was amongst the most remarkable ones in the whole African continent, as it saw impressive growth rates for at least a decade and a half. That was, at least, until the COVID-19 pandemic entered the room.

However, the incredible development of this particular field of Angolan economy marks an important element when forecasting the country’s future in this regard. It is safe to say that once the pandemic ends, local properties will recover and outperform the current market value.

According to Francisco da Cruz, executive director of the U.S.-Angola Chamber of Commerce in Angola, pursuing a loan to finance a property in Angola is as easy as in most Western countries. Of course, after undergoing due diligence processes, investors can finance these investments locally with little to low trouble.

Furthermore, one needs to reach out to the Angola National Private Investment Agency, establish the partnership acquiring the assets (either a multi-owner partnership, an association with a local company, among other options) and begin operating the market. As a recommendation, we always say that having a local partner will always facilitate all bureaucracy-related limitations to these kinds of governmental environments. 

It is important to highlight how Angola, especially Luanda, is known for being one of the most expensive African cities. This fame is to do the high demand of properties by oil companies when settling their operations in the country and their ability to offer big money for these kinds of assets. This means that even when the Angolan property market might appear to be an unexciting field, its recovery is virtually done after local industry gets reactivated fully. 

At Mundo, we know first-handedly how Angola represents a tremendous investment opportunity for foreign investors throughout the world. Why? Thanks to our partners, one of the greatest financial consulting agencies currently working in Africa and offering capital holders fantastic opportunities. 

Our team of professionals has the single largest investment portfolio in the region, focusing on presenting clients across the globe with impressive business options regardless of the business sector at hand. Among such options, we can highlight:

-Consulting partnerships

-Transaction services & funds

-Infrastructure projects

-Commodity trading

-Energy-related business

-Lobbying & Conferences

At MUNDO, together with our partners, we are creating an enhanced investment environment for clients to plan their strategic operations in countries often discarded due to ignorance or prejudice. 

Luckily for you, all the information on this thriving nation is at hand, and you are ready to begin a new chapter of financial success if you trust our services.

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