angola: do you recognize this nation?

S p e c i a l A d v e r t i s i n g S u p p l e m e n t

Do you recognize this nation?

Emergingcounterweight

Within the SouthernAfrica DevelopmentCommunity to the

main regionalpower, South Africa

May/June 2009www.peninsula-press.com

ANGOLA

Economic cloutBrings political stability, as demonstrated bythe parliamentary elections of September2008 with resounding victory of the rulingparty MPLA (Popular Movement for theLiberation of Angola)

High-flying optimism Angolan investors are nowlooking farther afield.Today’s Angola is an emergingpower whose own firms arebeginning to make movesoverseas

The war is long over. Spurred by spectacular economic growth and on the heels of landmark elections, Africa’s new powerhouse is safe, stable, and abuzz with investment as it rebuilds for prosperity based on more than oil alone.

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ANGOLA — 32 — ANGOLA

S p e c i a l A d v e r t i s i n g S u p p l e m e n t S p e c i a l A d v e r t i s i n g S u p p l e m e n t

DO YOURECOGNIZETHIS NATION?Five new investment proposals daily. Double-digiteconomic growth. Globally lauded legislativeelections. Ascension to the top rank of oil-exporting countries. A triumphal visit fromthe pope. And an emerging tourist destinationwhere, next year, the elite of African soccer willgather to compete for continental glory.

Do you recognize this nation?

This is Angola, today.

With economic clout has come politicalstability, as demonstrated by the parliamen-tary elections of September 2008. Under thewatchful eyes of numerous foreign obser-vers, the ruling MPLA (Popular Movementfor the Liberation of Angola) earned a re-sounding victory in a field of 14 parties andcoalitions.

World leaders haven’t waited to welcomeAngola back into the fold. Diplomatic tieswith all the major powers are strong, andhigh-level visits are frequent. Pope BenedictXVI’s March 2009 visit to Angola carried special symbolic force—in an overwhelmingly Catholic country where the church, in the past, had frequentlycritici zed the MPLA.

On the African continent, Angola’s riseprovides a counterbalance to South Africa’s

regional hegemony. It has played a key rolein stabilizing the political situation in theDemocratic Republic of the Congo, andAngolan funds and companies have agrow ing presence in the so-called PALOPs,or Portuguese-speaking African countries.

A strong symbol of Angola’s progresswill come next January, when it hosts oneof the continent’s largest parties—theAfrican Cup of Nations, a prelude to soccer’s World Cup, to be held a fewmonths later in South Africa.

Clearly, these are Angola’s best days sinceindependence in 1975. But there is still a longway to go. The business environment remainsladen with bureaucratic hurdles, and—a legacy of the civil war—there is a shortageof highly skilled labor and administrative capacity. Transparency International, which

monitors global corruption, ranks Angola158th out of 180 nations. The capital, Luanda, is bursting at the seams with people,the traffic is unbearable, and external signs of wealth mix with pockets of poverty.Energy and water distribution need to be improved, and the cost of housing is veryhigh.

Yet, corruption and the shortages ofphysical and human capital are only part ofthe picture, as Angola puts behind it the horrors of war and surges toward prosper -ity. “Angola has invariably been seen as acountry of war, of disasters, and of corrup-tion, which is not true today,” says MárioCirilo de Sá, who runs Angola’s Center forStrategic Studies. “But that’s the image people see, and so we must work very hardto change that.”

Introduction

Angola’s story of success is in the num-bers. In the last two years, its real grossdomestic product (GDP) grew by about21 percent and 15 percent, respectively,according to recent government and IMFestimates. Even in 2009, with oil priceslower and a global slowdown in effect,the economy is expected to grow in thehigh single digits.

Oil discoveries continue apace. Lastyear, Angola passed Nigeria to becomeAfrica’s largest oil producer, with crude-oilexports reaching 2 million barrels per day.

This Angola is radically different from theAngola of 2002, when the civil war ended.Then, the economy was paralyzed: Therewere no cash reserves, inflation had soaredto 300 percent, and debt to the Paris Club stood at US$2.3 billion. Rebel

UNITA fighters still occupied some zones ofthe country, and oil production—despitebeing relatively protected offshore—stood at barely one-third of current levels.

Now, fast-forward to Angola today. Inflation has been tamed, at around 10 percent. Cash reserves are an estimated US$20 billion. You can freely and safelytravel the length and breadth of thecountry. Infrastructure is being restored ona massive scale. The Paris Club accountshave been settled; banking and commerceare flourishing.

And all this in just over six years. Angolatoday is in the throes of intense change. Withforeign investment booming, the country—its roads and services once ravaged by war—has become a huge and busy constructionsite. Redevelopment is the top priority for

the government of President José Eduardodos Santos, and to achieve this goal, it has welcomed companies from China, Portugal, Brazil, the United States, and elsewhere. Every day, the investmentpromotion agency ANIP receives new invest-ment proposals.

Today’s Angola is an emerging powerwhose own firms are beginning to makemoves overseas. The national oil giant So-nangol has acquired a 10 percent share inMillennium Bcp Bank. Sonangol also has a45 percent stake in Amorim Energia, whichin turn controls 33.4 percent of Galp Ener-gia. Angolan firm Santoro Holding has taken a stake in Banco BPI. These invest-ments have been centered in Portugal, the former colonial power. But Angolan investors are now looking farther afield.



Foreign Policy

But now, seven years after the definitive endof civil war in 2002, a re-emerging Angola—flush with oil resources and politically stable, as demonstrated by last year’s peacefuland widely praised parliamentary elections—is taking its place on the world stage guidedby the simplest, most effective principle ofall: pragmatism.

Angola’s needs are pressing and intense. Itswar-ravaged infrastructure is grossly insuffi-cient to handle its immense resource potentialand to serve its young and growing popula-tion: 60 percent of Angolans are under age20, and the population is projected to triplefrom 15 million to 45 million by 2050. Repudiating the Marxist leanings of the nation’s early days, Angola has chosen thefree market—and now needs the physical andsocial investments that will let the economyflourish and deliver prosperity for all.

Angola’s assumption of the OPEC pre-sidency, two years after joining the group,caps its rapid ascendancy among oil produ-cers. But the recent volatility of oil pricesunderscores the fragility of relying on oneprimary resource. Angola’s 2009 budget assumes a price of oil of US$55 per barrel,which seemed conservative at the time. Butnow it requires downward revision, and thegaudy growth figures of the last few yearswill be tempered, at least for now.

The need to diversify the economy whilecarefully managing the oil sector has spurreda foreign policy that welcomes virtually anypartnership that will help Angola achievethese goals. The most vivid example is Ango-la’s partnership with China, under which An-

golan oil exports finance a Chinese line ofcredit that has resulted in massive infrastruc-ture and housing works in the country.

But Angola’s relations with Portugal, theformer colonial power and a major tradingpartner, are just as strong—as demonstra-ted by the March 2009 visit to Lisbon byAngola’s president, José Eduardo dos San-tos, and the establishment of a US$1 billionAngola-Portugal investment bank. Angolais reaching out to other EU nations as well;France’s president, Nicolas Sarkozy, visitedLuanda last year. Russia, India, Israel, andothers have all expanded trade and politi-cal ties with Angola in the last few years.

Against this backdrop, the United Statesis lagging. The tenor of U.S.-Angola rela-tions is good, but they remain shallow com-pared with Angola’s European and Chineseties, and to the longtime role of U.S. com-panies in the country such as Chevron. Beyond safeguarding oil supplies—Angolais the United States’ sixth-largest crude-oilsupplier—Angola never assumed a highpriority under the Bush administration.

Shifting geopoliticsYet in the shifting geopolitics of southernAfrica, Angola’s political stability, free-mar-ket orientation, and highly professional mi-litary all make it a potentially strong assetfor U.S. foreign policy in Obama’s adminis-tration. Angola is the emerging counter-weight within the Southern Africa Develop-ment Community (SADC) to the main regional power, South Africa, which is ente-ring a political transition with ANC leader

Jacob Zuma set tobecome president.And with the situa-

tion in Zimbabwe still a tinderbox, Ango-la—which tamed hyperinflation earlier thisdecade, and which has successfully integra-ted the ex-rebel UNITA into the politicalarena—serves as a model of peaceful poli-tical development. It is also a potential mi-litary bulwark; Angolan support has helpedbuttress the government of its troubledneighbor, the Democratic Republic of theCongo.

In the United States, expert observerslike the Council on Foreign Relations(CFR) and the Center for Strategic and In-ternational Studies (CSIS) have advocatedraising Angola’s profile in U.S. diplomacy tomatch the role Angola is assuming in the re-gion. But an outdated image of Angola asa Cold War adversary turned one-dimen -

sional oil producer appears to linger amongpolicy-makers.

With other partners taking a role in de-veloping Angola’s onshore economy—fromthe billions of dollars of Chinese infrastruc-ture projects to Portugal’s estimated 10,000businesses operating in the country—andAngolan interests led by the highly regardednational oil company Sonangol beginningto make overseas investments of their own,the United States has reasons to step up po-litical and economic ties.

Agribusiness, information and communi-cation technologies, and the tourism and hos-pitality sector are all ripe areas for investment.Inflation is contained, and although Angola isexposed to fluctuating oil prices, it has seen lit-tle impact from the ongoing financial crisis,having only a thin domestic capital market.

Angola’s government has made clearthat far from being monopolized by its ties

with China, it welcomes closer relationswith the United States and other partners.It has taken steps to align itself with Wes-tern standards on economic managementand governance, inviting IMF review of go-vernment finances even though it does nothave an IMF program in place and movingto open the books on oil revenue flows.

The success of the September 2008 elec-tion—the first since 1992—confirms thatAngola’s multiparty democracy has achievedlegitimacy. Indeed, Angola’s new votingsystem, computerized using biometric data,is now one of the world’s most advancedand fraud-resistant.

Though observers praised the conduct ofthe election, they have cautioned that the power of incumbency added to the MPLA’sedge, a factor likely to come into play in theupcoming presidential election, due laterthis year, and subsequent municipal and

regional polls. Yet the ruling party’s overallpopularity is not in doubt.

Nor are the challenges that this emer-ging giant faces on the way to fulfilling thepotential of its immense natural resourcesand delivering broad-based growth to a po-pulation recovering from a generation of ci-vil war. Initiatives that will help Angola solve its infrastructure shortfall and help develop skills in the local labor force are especially needed.

But month after month, Angola is showing that it has the elements in place tofulfill its role as an engine of economicgrowth and regional stability in southernAfrica. Already, as the government reiteratesits message of openness and pragmatism, it isclear that the world is listening.

ALL ROADS LEAD TO ANGOLASince independence, Angola’s political course has been driven by intensegeopolitical forces, with the stakes little short of survival. First the Cold War, and then the fight against apartheid, threw the country into conflict injecting itspolitics with ideology. Then, once peace came to the region, the 1992 electionbackfired when the rebel movement UNITA, dissatisfied with the results, reigniteda civil war that would last another decade.

Siddhartha Mitter is a New York—based international journalistwith experience in African affairs and the energy industry.

6 — ANGOLA ANGOLA — 7

Q&A

Q&A

H.E. Dan MozenaU.S. Ambassador to Angola

H.E. Francisco Ribeiro TellesPortugal’s Ambassador to Angola

Gen. Mário Cirilo de Sá “Ita” PresidentCenter for Strategic Studies

A REGIONAL POWER FOR PEACE

A longtime member of the ruling Popu-lar Movement for the Liberation of Angola(MPLA), Paihama is from Kipungo, a regionbetween Huambo and Huíla provinces, andwas elected to parliament last September.“We are building a free Angola for all” with“equality of opportunities,” he says, namingthe government’s top three priorities as com-bating poverty while improving educationand health care. “The Angolan people, evenduring very difficult times, never lost hopethat better days would come.”

To achieve these goals, the country needs tools and friends, as well as pro-grams that can help reduce poverty and,above all, hunger. The path toward deve-lopment is irreversible—and includes inter-national cooperation. “We will not wasteour energy on issues that do not benefitour people. We will be flexible and acceptthe dynamics of change. And as for globa-lization, we will accept what others sayand do,” the minister confirms. “The keyis to cooperate appropriately, fairly, andconstructively,” he concludes.

“We have a great sense of responsibilityand of state,” says Paihama. “Some mightsay we are ‘reliable Africans,’ ” he adds,with a touch of humor.

Defense is a sensitive portfolio in mostcountries, and perhaps even more so for An-gola, given the region’s recent past. But today,Angola has a new outlook. “Our concept ofwar is not an offensive one but a defensiveone. That’s why we have to be prepared tomeet any challenges or threats,” says Paiha-ma. However, he emphasizes that “the mi-litary only does what the politicians say.”

Various aspects of Angolan diplomacypass through Paihama’s hands, particularlyregarding the rest of Africa. In that respect,he says, even South Africa, Tanzania, Zim-babwe, and Zambia are helped by Angola.“In effect, I don't think any danger surroundsour country, not even in Africa itself. Wehave to eradicate wars to avoid conflicts andto put an end to contradictions,” the minis-ter says, acknowledging that his country isnow a regional power and, as such, must beprepared to assume that role.

Kundi Paihama Minister of Defense

Minister of Defense Kundi Paihamadescribes how relations with the UnitedStates are improving as Angola seeksinternational cooperation to help boostdevelopment. He says the government’spriority is to create “equality ofopportunities” and has no qualms aboutdescribing Angola as a regional power.

We will be flexible and accept the dynamics of change.And as for globalization, we will accept what others sayand do. The key is to cooperate appropriately, fairly,and constructively.

“

to the world, to speed up development andimprove living conditions for the people.

“During the Cold War, we had a ratherdistant relationship with the United States;we did not share a strong commonground” says Minister of Defense KundiPaihama, who also handles some aspects ofAngola’s diplomacy. “But life is made up ofchange,” Paihama continues. “At that time,when we were young, to speak of Ameri-cans was synonymous with imperialists.Today, the Americans see us as strategicpartners as far as the African continent isconcerned, and we thank them for that un-derstanding. They understand our aimsperfectly,” he notes.

This closeness between the two coun-tries has already broadened into the area ofdefense. “We now cooperate to a certainextent in the military arena, although it’sstill in its early stages. Now we want to sta-bilize that. We have technical task forces toidentify areas of cooperation, and then weanalyze them. There is no distrust. Rela-tions are good,” he explains.

ANGOLA INSIDEOUT

How are relations between the United Statesand Angola? We have a very dynamic relationship. We areproviding US$6 million to train Angolanpersonnel to clear land mines in the country.And we have invested US$18 million in aprogram to combat malaria, which is themain cause of infant mortality.

But aren’t investments concentrated in theoil sector? Well, not just there. For instance, an Americancompany is developing a natural-gas plantthat will enable Angola to export energy tothe United States through Mississippi. AndChiquita sealed a deal to buy 7.7 million tonsof bananas annually. This project will create11,000 direct and indirect jobs. Angola is acountry of the future.

What are the main challenges facing thosewanting to invest in Angola? The business climate is improving. I sent amessage to the president, José Eduardo dosSantos, stating that the United States has avision of an Angola that is peaceful, secure,democratic, and prosperous. He repliedsaying that he shares this vision, and that Ishould start working with this government totransform that perception into a reality. Andthat is what we are going to do.

How is Angola perceived?Angola has invariably been seen as acountry at war, of disasters andcorruption, but that’s no longer true.It’s not an easy job to change thisperception, but Angola’s own policieswill eventually change that picture.

What role does the Center for StrategicStudies play? The center is a think tank with theobjective to help Angola find the rightpath for sustainable economic

development and the consolidation ofour democracy. Our work aims to makeAngola a prosperous nation.

What political influence does thecountry exert? Angola is gradually playing a greaterrole in central and southern Africa. It helped Zimbabwe’s independence,contributed substantially to the end of apartheid in South Africa, and helped to bring about change in theDemocratic Republic of the Congo.

Will the “New Era” finally bring long-lasting political stability? We believe that Angola will remainpolitically stable because the root causes ofour civil war have disappeared. Now, giventhe success of our political process and thewidely accepted majority of the rulingparty, we expect further consolidation ofpolitical stability in Angola.

What are the priorities in Angola’s “NewEra” from an economic point of view?Revamping the country’s infrastructure,

destroyed after long years of war, is key toour development. Besides, we must focuson improving the quality of life of theAngolan people, particularly in health care.

What sectors represent the future ofAngola’s economy?Energy and mining are our areas ofexpertise. Also, agribusiness is a sector thatoffers many opportunities. We need to buildnew factories to manufacture value-addedproducts that can be distributed and soldnationwide.

How would you define the situation ofAngola today? Angola is moving to consolidate itsdemocracy, and it will become a benchmarkfor stability in the southern African region.The Angolan government has laid thegroundwork for that.

Is stability here to stay? There were elections in September. We shallbe having presidential elections next yearand local ones possibly in 2011. Theinternational community has taken note ofthese elections. Angola wants to be seen asa calm country, one that is on the way torebuilding its democracy. That goal ties inwith the role Angola seeks to play in thefuture as a major regional influence.

How are trade relations between Portugaland Angola? Angola is Portugal’s principal marketoutside of the European zone, and our fifthlargest trading partner overall. It hasovertaken the United States. At the sametime, Portugal will be the bridgehead forAngola’s future investments in Europe.Angola will be very competitiveinternationally.

Q&AJosé Leitão da Costae SilvaPresident and Chairman Gema Group

Q&A

After years of strained relations, Angola andthe United States are now cooperating in de-velopment and defense programs. For An-gola, it’s part of a new policy of reaching out



8 — ANGOLA


FashionNayma, the daughter of poet and politician Rui Mingas, wasthe first Angolan to become a firmly established fashionmodel. Today, Moda Luanda is one of the most “in” eventsin the country’s capital. The last, held in February on LuandaIsland, brought together 300 VIP guests and more than 700people in a 1,500-square-meter marquee. Angolandesigners showed their collections, demonstrating thecountry’s increasing interest in fashion and glamour.

MEASURINGSUCCESS

Angola’s success cannot simply be measured in terms of oil production.The country is preparing to host theAfrican Cup of Nations soccer tournament in 2010 and is home to Kuduro, a dance music genre that is very popular in Europe. After the

war ended, animal life returned to its traditional habitats, wideningthe country’s tourist offerings. Forthose who like to know a country by itsliterature, it is highly recommended to explore the work of Pepetela. Angola is being reborn.

PepetelaToday, he is Angola’s top writer and author ofbooks such as Mayombe, Generação da Utopia,and The Glorious Family. He invented thecharacter of detective Jaime Bunda, in whosenovels he forcefully criticizes Angolan society.Pepetela, the pen name of Artur Carlos MaurícioPestana dos Santos, was born in 1941 in BenguelaProvince and holds a degree in sociology. Hebrings great legitimacy to his work, having beena militant member of the Popular Movement forthe Liberation of Angola (MPLA) since 1963 andhaving fought Portuguese colonialism.

Mussulo Island Lying on the coast south of Luanda, Mussulo is in fact a giantsandbank surrounded by a series of small islands. It’s aparadise frequented by the capital’s elite on weekends. Whentaking a swim, visitors can choose between the continentalside or the ocean side, where the sea is rougher. A boat trip is highly recommended. The island boasts several touristcomplexes, as well as places to buy artifacts and typicalAngolan clothing.

KuduroKuduro began as a dance rhythm but has now become a musical genre in its own right. It sprang up in Angola in the 1990s and later made its way to Portugal, Brazil, and even the United Kingdom. Specialists say the style wascreated by musician Tony Amado when he lived with raggaDJs in the United States. The rhythm is similar to Afro-zouk,but with an intermediate beat. The name kuduro comesfrom the Portuguese word cú-duro, literally “hard ass,”derived from the peculiar style of the dance, in which the hips are held firm.

Paradise of Love That is what they call Luanda Island, with its 10 kilometers of alluringbeaches. It’s also a place of great historical significance, having welcomedthe first Europeans who conquered the territory from the ancient Kingdomof Kongo. At night, the “paradise of love” has dozens of places to dine or dance overlooking the ocean. Visitors try to catch a glimpse of Kyanda,the goddess of the sea, known for supporting families in times of crisis.

CAN 2010Angola will be living it up in January 2010, hostingsoccer matches for the African Cup of Nations, orCAN. Games will be played in the cities of Luanda,Benguela, Cabinda, and Lubango. This is the mostimportant sports event to be held in Angola forseveral years, and great care is being taken with allthe preparations. Soccer is the country’s favoritesport, so Angolans have high hopes for theirnational team. Last year, when the team managed,for the first time, to play in a World Championship(Switzerland/Austria), the country came to a halt to watch the games.

The LebaMountains These comprise one ofAngola’s most iconicimages. A highwaycoiling through theLeba Mountains, alsoknown as the ChelaMountain Range, joinsthe cities of Lubangoand Namibe. Thespectacular 100-kilometer trip is trulyunforgettable, andtravelers must stop atthe Bimbi Belvedereand the HumpataZoological Stationwaterfalls.

The Giant Black Sable Antelope (or Black Palanca)This unique animal subspecies is found only inAngola’s Malange Province. The giant black sableantelope (also known as the black palanca) hasbecome a national symbol and appears onbanknotes. Nature lovers can see them in IonaNational Park in Namibe Province, where they canalso watch antelopes, zebras, lions, elephants,impalas, and ostriches. Meanwhile, KissamaNational Park, in Bengo Province, has excellentfacilities for ecotourism.

Insight

ANGOLA — 9


10 — ANGOLA


Investment

EVERY DAY,WE RECEIVE FIVEINVESTMENT PROJECTS

Aguinaldo Jaime, President of ANIP

Aguinaldo Jaime, president of the federalNational Private Investment Agency(ANIP), says that Angola continues to beextremely attractive to foreign investors,and that a small number of countries aregetting a head start by continuing toinvest in the country despite theinternational economic crisis. He alsobelieves that U.S. President BarackObama will usher in a new era of worldstability.

Why should an investor bet on Angola? “Iwould say we are a country that has beenblessed by nature. We have vast resources,and not just petroleum and diamonds. Wehave gold, copper, granite, marble, and rich

Many need to be rethought or to have otherimprovements made. But this shows thatthe flow of investors is huge, and themajor i ty of them are foreign,” he says.

Despite these positive figures, Jaime un-derstands criticism from businesspeoplewho argue that the government’s slownessis a major obstacle to investment. He citesthree main problems: “the excess of bu-reaucracy, the way proposals and invest-ments are dealt with, and the difficulties inobtaining visas.” Nevertheless, Jaime sayshe has been working to introduce “morepractical procedures” in these areas andthus reduce the number of complaints.

However, he makes it plain that inves-tors can help smooth their path byestablish ing partnerships with Angolan

businesses. “Although the law doesn’t makethis compulsory, a partnership makes for arelation ship of trust and helps the investorsee his investment as a long-term commit-ment. A local partner increases the trust andthe sense of involvement,” explains Jaime.

The fact that Angola continues to growand enjoy political stability, strengthenedafter the September 2008 legislative elec-tions, means that the future can be viewedwith even greater optimism. “Naturally, theelections gave investors an increased senseof confidence; they began to see Angola asan even safer market in which to invest theirsavings. From the economic point of view,when the leadership is strengthened politi-cally, it has a greater capacity to implementthe necessary structural reforms,” the ANIPpresident notes.

In this respect, the Angolan governmentis concentrating its efforts in three funda-mental areas: cleaning up public finances,diversifying the economy, and increasingjobs. The latter implies development in sec-tors that are labor intensive, such as arableand livestock farming, civil construction,manufacturing, and, above all, food. Other

areas, such as fishing and biofuels, are alsorelevant.

“Public investment is important for theprocess of rebuilding and modernizing ourbasic infrastructure, and private investmenthas to complement what the public sectorcan do,” notes Jaime. Encouraging jointventures between private Angolan and foreign businesses will help stimulate pri v -a te-sector investments. ANIP believes in making the conditions right for these part-nerships to flourish. Jaime defines the typeof investment that would receive preferen-tial treatment in his agency: “We shall try toimplement a policy of incentives to attractinvestment that creates jobs, helps Angolafight poverty, increases our exports, andbrings modern technology to our economy.”

The new U.S. president is another sub-ject that is receiving special attention in An-gola, where American companies Chevronand Esso play a major role in developing thepetroleum sector. Jaime, who has held va-rious high-level positions in the Angolangovernment, hopes that Barack Obama“will help the world overcome the seriouseconomic and financial crisis it currently fa-

ces.” Even so, the ANIP executive pointsout that during the Bush administration,Angola maintained “very positive and on-going” bilateral relations with the UnitedStates. It was during this period that thecountry was accepted under the terms of theAfrican Growth and Opportunity Act(AGOA), a U.S. program that gives specificcountries in sub-Saharan Africa preferentialaccess to the North American market.

Now, Jaime sees a different kind of lea-dership. “I think this administration willgive priority to a multilateral approach insolving international problems, which aremany and complex. This view could helpthe world enjoy an era of greater stabilityand less tension, which in turn could havemany positive impacts on economic rela-tionships and international policies,” heconcludes.

There is no law requiringthat foreign investorsmake partnerships withAngolan companies, butANIP will encouragethis.

“ Profile

Aguinaldo Jaime is one of Angola’s mostexperienced politicians, and one of its best-known faces when it comes to representing thecountry abroad. Born in 1954 and current headof ANIP (the National Private InvestmentAgency), he served in the last government asdeputy prime minister. With a law degree and amaster’s in economic law, Jaime was minister offinance between June 1990 and April 1992, andfounder and chairman of the African InvestmentBank (AIB). He was also chairman of theNational Bank of Angola (NBA), and an adviserto the chairman of the African DevelopmentBank (ADB).

”“

agricultural land. In the past, we were great exporters of sugar and coffee. And wehave great hydroelectric potential,” ex-plains Jaime.

ANIP is the gateway for all investmentprojects in Angola, be they domestic or fo-reign, with the exception of investments inthe petroleum and financial sectors. Thismakes ANIP an effective barometer of theinternational business community’s interestin the country. ANIP directly handles invest-ment proposals up to US$5 million, whilethe Council of Ministers approves thoseabove that level. So far, Jaime—who haspresided over ANIP since the beginning ofthis year—still has his hands very full, eval -uating an average of five investment projectsper day. “Obviously, not all are approved.

ANGOLA — 11



The Gallium Group’s CEO believes that Angola, nowpresident of the Organization of PetroleumExporting Countries (OPEC), must appeal to theinternational community to invest in the country.“We have to create a balance and show the worldthat we are a part of this cartel,” says de Carvalho.

How does OPEC membership impact the ac-tivities of Sonangol?What we have to do is to look for a ba -lanced price that allows us to make a pro-fit. The cuts that OPEC has made are notpermanent. Angola cut production byaround 400,000 barrels, but this won’t beforever. Certainly, when the market varia-bles improve, this reduction won’t be re-quired. As members of OPEC, we will continue to play our part so that the orga-nization’s policy is effective.

What are plans to move up the value chainand increase refining capacity?As the national company, we plan on ha-ving the capacity to refine 500,000 barrelsa day internally by 2015. Presently, with theLuanda refinery, we have installed capacityfor around 65,000 barrels. There is an expansion and modernization plan for thisrefinery to reach 100,000 barrels, and weare about to construct a refinery in Lobitowith a 200,000-barrel capacity. Also, thestate will promote an investment in Soyofor another refinery, this one completelyprivate, with capacity for 200,000 barrels.

Where does the Angola-U.S. energy part-nership stand as of today?Angola is a strategic partner for the UnitedStates in terms of energy, and we will continue to export to that country. Looking closely at the business mosaic of

Angola’s petroleum industry, we see that a large part of the operating companies areAmerican, for example Chevron and Esso.Our own Sonangol has an association withan American company to build a natural-gasterminal in the state of Mississippi. Our partnership with the United States is goodand will continue to grow. Also, as the national oil company, we are about to investdirectly in the U.S.

With oil prices at these low levels, shouldn’tAngolans be concerned about how currentreconstruction projects will be financedand when they will be completed?It is important to note that Angola will notuse direct resources to fund national re-construction efforts. Most of these plans arepossible thanks to external financing. Angola has secured financing from Chinaand recently from Germany. There is also

Sonangol President Manuel Vicenteargues that cooperation with the UnitedStates can grow in sectors such as naturalgas, petrochemicals, and refining. Hesays that Angolan petroleum will last forat least another 30 years but neverthelesssupports renewable energy.

support from Portugal in this regard. Imust admit that the challenge is great, butI believe that there is nothing to worryabout. We will have to set clear priorities,but the reconstruction program will notbe halted.

How do you explain that Angola is Africa’stop producer but it continues to be one ofthe poorest countries? As you know, we faced long years of civilwar. Sonangol was instrumental for themilitary success and the achievement ofpeace. There is still poverty and manychallenges to be overcome, but the government continues to work hard toimplement new policies and improve the

situation. To destroy something is easy,and everything was destroyed after 30 years of war. Therefore, the world cannotexpect us to rebuild the country again inonly six years. It is easy to criticize our situation. In fact, some of our critics areprecisely those who promoted our civilwar.

What is your vision of a post-oil era in Angola? I believe that in the next 30 years, we willstill have oil to produce. But in my opi-nion, this doesn’t mean that we shouldnot be encouraging renewable energies,because it will contribute to a better glo-bal environment and will make energy usemore efficient. Nevertheless, despite allthe innovations, fossil fuels will continueto play an important part in the worldenergy matrix.

How can the new U.S. president change relations with Angola? Without being chauvinistic, he is Afro-American. I rejoice in this, and I see part ofmyself in him. I hope he can contributeto America making a larger contributionto Africa’s development.

Interview

Peninsula Press talks with Manuel Vicente, President of Sonangol by Stella Klauhs

What are the Gallium Group’s core businesses?We’re businessmen, we’re oil people, and our rootsstem from oil-related businesses. Initially, westarted supplying services. Right from the start, wewere aware that we didn't have the technicalcapacity to develop a series of services, and that wewould have to establish partnerships with the best.We decided that our partners had to be strongones. We are better equipped to work withcommunities in Angola than Chevron, Exxon, orother big oil companies because we understand ourcultural reality. We act as a vehicle between largemultinational corporations and local companies. We speak both the language of multinationalcompanies and that of our communities.

Will there be changes in Angola’s oil industrymodel? The current model of partnerships with the state isbecoming obsolete. We will start to see changes.Partnerships will be created with private companieslike ours. That’s the model of the future.

Who are potential partners, and in what sectors?We want to start talking now about instream, thatarea of the oil industry that includes petrochemicalsand refining. Also, we want to be involved inindustrial projects. We’re on the lookout, doingsome research, but those are the businesssegments we would like to be getting involved in.

How important is the North American market?The American market is interesting to anycompany. We have a presence in the UnitedStates, which began in 2008. We have a longway ahead of us.

Eye on GalliumMário de Carvalho

CEO

Gallium Group

ANGOLA HAS OIL RESERVES FOR THE NEXT 30 YEARS”“ Critical Mass – Angola

· OPEC’s president in 2009

· Africa’s no. 1 oil producer

· Global leader in oil-supply growth · 15 major projects to come online in the next five years

· Africa’s fourth largest liquidsproducer

AUTO INDUSTRY & FINANCE

FOUR-WHEELDEAL

The financial sector is growing at a dizzying speed, while car dealers simplycan’t keep pace with demand. In 2007,counting the 18 banks operating in thecountry, the total credit available in theeconomy grew 85 percent, while the totalportfolio of deposits grew 43 percent. Theproportion of deposits lent out againrose from 46 percent in 2006 to 75 percent in 2007. These figures look good,but a huge amount of growth is still possible given that only 6.7 percent of thegeneral population currently uses banks,according to a KPMG study.

The growth of the banking sector hasalso been driving vehicle retailing. Manycar sales are now made using long-termbank loans, similar to more mature economies. This looks to be an ongoingtrend given that sales are predicted to

grow by around 40 percent this year.Two factors are causing this phenomenon.First, the companies that set up operations in Angola, especially in thearea of civil construction, need cars fortheir businesses. In particular, this means pickups and heavier trucks. Second, the middle class is becoming more andmore consumer-oriented, and privatetransportation is synonymous with professional success—even more so in acountry where public transportation is inefficient. Demand is so strong that the importers’ only complaint is not having enough vehicles to satisfy theircustomers immediately. As for the fu - t ure, optimism reigns supreme; transpor-tation is vital to national development,which is an unstoppable reality for Angola.

The same phenomena can be seen inthe banking sector, where business is alsogrowing quickly. The main driver here isinvestment, both public and private, running at many billions of dollars—pro-portionally, well above the world average.This goes far beyond just automobile credit. Real estate is a blossoming sector,and home ownership has become a priority for Angolans. Other areas, suchas manufacturing and agriculture, areexpanding as well.

Foreign investment is also part of theequation because this ensures an injectionof liquidity into a financial system that al-ready offers sophisticated products like“e-banking.” All this means that Ango-lans are beginning to have a growing in-fluence in the sector. The two most recentexamples of this are Millennium Angola

and BFA (Banco Fomento Angola), twoinstitutions formerly 100 percent owned by Portuguese interests. Sonangolbought 49.9 percent of the former, whiletelecommunications company Unitel acquired an identical stake in the latter.With this bet on banking, Angolans hopeto ensure access to the financial resourcesessential to their economic growth.

Insurance is another area that is expanding rapidly. The market comprisesseven insurance companies, six brokers,and three pension-fund managers, all licensed by the Institute for Insurance

Supervision (Instituto Supervisão de Segu-ros). Just between 2001 and 2006—the latest year for which figures are avai-lable—the volume of premiums rose fromUS$86.7 million to US$404.5 million, a 366 percent increase. This year, the government decided to make automobileinsurance compulsory for personal liability, which should further boost thesector.

The business mood in Angola is one ofeuphoria, and the word “crisis” is still justa distant echo. Hotels in Luanda are always full of businesspeople, and flights to

the capital are invariably packed. Moreover,many Angolans with professional trainingare returning to their country thanks to theguarantee of political stability, which helpspromote greater competition.

“The levels of profitability and growththat we have seen in all areas are impressive. Return on investment can be achieved in five years, whereas in othermarkets it can take 15 or 20 years,” saysFernando Duarte, administrator of BICAngola. “The opportunities are here,and whoever gets in first will dominatethe market.”

In the United States and Europe, banksare going under, nationalization seemsto be following close behind, andshareholders are living throughdesperate times. Car manufacturers arealso facing difficulties: Cuts inproduction and huge layoffs dominatethe daily headlines, forcinggovernments to resort to financialbailouts as they try to avoid a socialcatastrophe of massive proportions.The situation in Angola, however, isthe opposite.



How is Toyota doing in Angola? Is it growing? We sold 3,500 vehicles in 2005, with that figure reaching 5,300 in 2008. This year, weplan on selling around 7,000 vehicles. In other words, we will have doubled ourbusiness in four years. Currently, our revenue is around US$30 million to US$35 milliona month.

What is Toyota’s position in the Angolan car market?Right now, we’re leaders—the largest company in this sector. We have copied theEuropeans a lot in terms of lifestyle, and now we’re about to do the same with respectto the Americans, owning large cars. This will help Toyota be successful because wehave a quality product, and it retains a far higher market value after three years than acar of another make. Today, we are the group’s biggest company in Africa. We’reselling 700 vehicles per month while Kenya, which used to hold first place, is sellingjust 280. We have excellent logistics, and we’re importing 20 containers of parts permonth.

How do you see the automobile market developing? Many billions of dollars of investments are under way in Angola, and obviously thatdrives the automobile market, which is also growing very, very fast. The outlook forthis year is that 26,000 new vehicles will be sold, and this figure will double through2012-13. There is another very important aspect, which is that the financial system isbetter organized. Today, for instance, bank loans finance 25 percent of our sales. Thishas been a great help in developing the market. Apart from that, Toyota plans todiversify in Angola with projects related to oil, gas, and, eventually, cement. That maystart to happen next year.

What image does Angola have abroad? Angola is viewed somewhat badly internationally because of the corruption, butpeople who come here and work with us take back a different message. The countryhas many issues to resolve, but it also has many positive qualities. What we need ishelp in developing the country’s good things in order to correct the bad things.

How would you describe the current situation in Angola? I notice from our conversations with Ford directors, and even with other businessleaders, that the way they see Angola’s potential is changing a great deal, and for thebetter. As for the United States, I detect a certain lack of knowledge in relation toAngola. The bottom line is that progress in this country is now unstoppable, given thepath it has chosen. Angola is going to grow a lot—in fact, I think the country will benefitfrom the international crisis.

What is the outlook for the automobile sector here? Growth should certainly exceed 40 percent per year. The automobile sector is areflection of the country’s economy in general. If construction companies are to grow,they need transportation resources. An entrepreneur who decides to open a store needscars because we don’t have a public transportation system. The automobile ends upbeing virtually a basic necessity. Without it, there can be no development.

What model sells best? The 4x4 pickup, which is for a very specific type of customer—construction companies.Currently, our sales are not as good as they could be, simply because we don’t havemore vehicles to sell. We can’t meet demand. We weren’t expecting such huge and fastgrowth. Nevertheless, we are trying to solve that problem by opening an assembly linein South Africa to manufacture exclusively for the Angolan market. That will help us.

What is Hudson’s background?It started off as a South African company that had nothing to do with automobiles. Now,we are owned 100 percent by Portianga, a company within the Portuguese SalvadorCaetano Group.

How is your relationship with Ford?I would say excellent—long-standing and strong, not just because we’re selling morevehicles, but also because of the investments we’re about to make in other Angolanprovinces, outside Luanda.

Is Angola enjoying a new era?The country is clearly on the right path, and the investment we are pouring intoAngola is extremely rewarding, be that on a financial, industrial, or commercial level.What we learn from our customers is that everyone thinks Angola is “the place tobe,” and that it is one of the few markets whose pace and growth rates are clearlyabove the world average.

Is this a good time to invest in the country?From the point of view of business opportunities, that’s been the case for five years. Angola is an enormous market with enormous potential, and it is still under-exploited. That said, there are major obstacles. The country inherited a heftyraft of red tape from its colonial past. Only now, with the coming of peace, can thisbe sorted out.

Emídio PinheiroChairmanBFA

“The Angolan financial system has been engaged in addressing the enormous challenge of its growth.”

Fernando DuarteAdministratorBIC Bank

“In terms of investment, Angola is still operating well below its real capacity.”

BANKERS’ VERDICT

CAR DEALERS’ VERDICT

Nuno Borges da SilvaExecutive President TOYOTA

“Toyota is best known for its automobiles. However,the company is also thinking about oil, gas, andcement.”

Ricardo SousaGeneral ManagerRobert Hudson Ltd.

“At Robert Hudson, we have a robust and long-standingrelationship with Ford. This is growing even stronger as oursales increase.”

WHAT CRISIS?

INDUSTRY DIALOGUE

How do you define Angola’s financial system? The market is fundamentally characterized by having to work with very strong growth—which is a positive phenomenon—in a country with very weak infrastructure.

How is BFA contributing to Angola’s reconstruction plan? By channeling funds to the country’s reconstruction projects. Our portfolio of governmentbonds is US$700 million. Our banking business supports the companies carrying out theseprojects. Finally, the bank’s growth is reflected in employment, as well as in the qualificationsand training of people.

Which sectors are most appealing to investors? Those connected with construction, services—where there’s a great deal to do—and someindustrial areas more geared to the domestic market.





Infrastructure

This year, the Angolan government willinvest US$40 billion in reconstructionprojects to realize President Eduardo dosSantos’ dream of turning his country into“one vast building site.” China is still theleading foreign investor, but countries suchas Germany, Portugal, and Spain are alsoproviding credit lines.

MAKE IT BETTER

works, the majority of which are anchoredby foreign finance.

In 2009, the Angolan government hasan investment plan that pours some US$40billion into reconstruction projects. Chinawill add another US$2 billion to finance na-tional reconstruction projects. This willcompensate for the drop in revenues thatthe country will likely suffer due to the fallin oil prices.

With this new support, provided throughEximbank, China’s total commitment to An-gola since 2004 will stand at US$6.5 billion.This is paid for with petroleum exports.Another US$2.9 billion has been madeavail able through the China InternationalFund, making that country the largest finan-cer of reconstruction projects in Angola.

Other countries that have supported An-gola include Germany, Spain, and Portugal.In March, German Chancellor Angela Mer-kel announced the creation of a US$1.7 billion credit line to finance German invest-

ments in Angola in areas such as energy, wa-ter, mining, health, civil construction, andprofessional training. Spain also madeUS$600 million available for reconstructionprojects. As for Portugal, the Caixa Geral deDepositos (CGD)—a government-ownedbank—provided a credit line of US$500 million that will finance public infrastructureprojects in which Portuguese companiesparticipate.

Investment is the order of the day throughout Angola. In agriculture, forexample, public credit lines have been cre -ated for a sugarcane program and for thedevelopment of 25,000 hectares in theprovin ces of Uíge, Zaire, and Bengo. Theseprojects are being carried out by Odebrecht and Sonangol. In industry, thePortuguese company Unicer will open amin eral-water bottling plant in Luanda. TheMinistry of Public Works is moving forwardwith the Luanda Sanitation Master Plan andthe construction of highways and parking

facilities in the capital. The Luanda airportis also due to undergo repair and upgrading.In the commercial sector, plans are underway to build cold-store distribution centersin 12 of the country’s 18 provinces. The Pro-gram for Restructuring the Logistics andDistribution System of Products Essential tothe Population (Presild) is also advancing,with a focus on constructing a chain of su-permarkets called “Nosso Super.”

Infrastructure construction and repair isexpanding fast throughout the country. Thebridge over the Kuanza River in Malanje willbe finished in November, while the Lomaumand Biopio dams in Benguela will be re - paired this year, as will the power lines in Lun-da North and South provinces. Examples arenever-ending, but it’s also worth mentioningcotton production in Kuanza South Prov inceand the repair of the Benguela railroad,which runs for a total of 1,037 kilometersacross Angola between Lobito and Luau.This project, budgeted at US$1.8 billion, isvital not just for Angola’s economy but forneighboring countries as well, specif icallyZambia and the Democratic Republic of theCongo. Also this year, the country will con-centrate efforts on constructing stadiums inLuanda, Benguela, Huíla, and Cabinda tohost the African Cup of Nations soccer tour-

nament in January 2010. The event is stim -ulating the construction of roads and hotelsto meet the expected increase in tourist de-mand.

At the same time, the government has re-cently introduced the concept of Special Eco-nomic Zones to ensure that foreign invest-ment benefits all the provinces. This programoffers tax reductions to investors who set upoperations in zones in more remote regionsand assures them, as an enticement, that theywill be provided with the basic infrastructurethey need. One of the first will be in Catum-bela, Benguela, some 600 kilometers fromLuanda.

Angola’s high-flying optimism, however,is brought back down to earth a little by in-ternational organizations. The World Bankcontinues to warn that the country needs toreduce poverty and improve access to basicservices while creating an environment fa -vorable to domestic and foreign investment.International consulting company KPMGargues that Angola must reform its legal andregulatory system, creating a transparenteconomy that is open to private invest-ment. The Angolan government says it’saware of the problems and promises to al-ter laws, reduce bureaucracy, and facilitateforeign investment.

What business is the Solida Corporationcurrently engaged in? Currently, we are working on 12 differentprojects: medium-sized residentialdevelopments of 50 to 80 houses, includingproducts for the lower and middle classes, plusresidential complexes and commercial projects.

Are any of these projects open to partnerships?We have been working on some initiativesinviting Brazilians and Americans into otherareas, but we focus on local partnerships for thisspecific business. However, for two years now,we have had very strong partnerships with theChinese for financing and construction.

What is your most ambitious project?The Solida Ocean Drive project is a 1.5-million-square-meter project with its own marina,which will be a landmark project for Luanda.

Tomasz DowborGeneral DirectorSolida Corporation

Why is Angola so interested in Chinese groups? The main reason is that the Chinese government is verydiligent about developing good relations with Angola.

How did you come to be in Angola?This year, the Angolan government decided to privatizeMovicel, and ZTE, to which I belong, was invited to beMovicel’s strategic partner. During a later phase, we planto get financing to acquire shares. Subsequently, we willinvite another strategic partner—an operator such asMobile China or China Unicom—to manage Movicel. Weenvision Angola Telecom having a holding of 20 percent,with Angolan investors holding 49 percent.

What were the chief hurdles you encountered?This government is very difficult. It’s not like in other

African countries. To develop something, you have tomake contacts with the government and understandits interests. In the [Democratic Republic of the]Congo, in Kinshasa, it’s very different. People don'tbother about the government. They simply dobusiness, and there is no regulatory authority. Here,it’s different.

What are Movicel’s business goals?With two operators, our target is to have a 50 percentmarket share. If three exist, it will start at 40 percent. Ourmarket share has dropped because we use CDMAtechnology, but that will change when we start using GSM.

When will that be? If the privatization process can be completed in April

2009, we will be able to provide that service tocustomers by the end of the year.

How many customers do you have currently?2.5 million, and we are Internet providers, too.

What will underpin your strategy to attract customers? Currently, the Movicel network covers only major cities.We have made a commitment to the government tostart covering 70 percent to 80 percent of the territory.

Are you optimistic? I believe we can achieve that objective. This is a keysector, needed so that African governments can be onthe same footing as other countries. The number of cell-phone users has already increased immensely in Africa.

Eye on MovicelWang Xiangguo

CEO

Movicel

Q&A

In Angola, unlike in some other African countries, the government defends its own interests.

Today, the president’s dream is movingahead at full speed. From the highway net-work to railroads, from agriculture tocommerce, the country is experiencing arush of private investment and public



SPOTLIGHTSPOTLIGHT: RIDGE SOLUTIONS

Angola seems to be one continuousconstruction site, from Cunene to Cabinda.Business opportunities abound in everysector, from transportation to housing.Although the capital, Luanda, is thebarometer of these changes, every provinceshows great development potential.

AN ANCHOR SECURINGINVESTMENTS

Ridge Solutions has moved strategically totake advantage of Angola’s business andinvestment opportunities and now is oneof the country’s major companies, with as-sets of some US$4 billion. This allows it toact as an anchor for foreign investors inareas such as real estate, the financial sec-tor, and natural resources. “Our mission isto create the best investment solutions andhave the best business practices and pro-ducts with a multiple market value, geared

José RamosExecutive PresidentRidge Solutions

to the total satisfaction of our investors,shareholders, and the community,” ex-plains CEO José Ramos. The company ex-pects revenue of US$15billion in the nextfive years.

One of Ridge Solutions’ business show-cases is the Jardins do Eden residentialcomplex, south of Luanda. Set in an areaof 3 million square meters, the develop-ment already has 2,000 houses. In addition, the company plans to build 100four-story buildings, 48 with four floors/apartments, and an equal number ofhigh-end villas. Adding to the com-plex’s attractiveness is its location nearLuanda’s soon-to-be-constructed interna-tional airport, a soccer stadium that willhost the 2010 African Cup of Nations, anda public university. “We analyzed the per-formance of the banking sector in provi-

ding home mortgages so as to adapt oursupply to products destined for the lower,middle, and upper classes,” notes Ramos.

Ridge Solutions also has plans for seve-ral other projects. It will build a shoppingmall in Luanda and Talatona, a zone in thecapital. The Blue Diamonds Towers projectwill feature eight eight-story towers and afive-star hotel with 200 rooms. To thesewill be added the Platinium and Marimbabuildings, with 19 and 11 floors, respectively.The company is also creating projects aimed at the lower and middle classes, in-cluding developments in such provinces asHuambo, Lobito, Benguela, and Lubango.

Ramos believes that one of the keys tohis company’s success involves combiningthe best of the African world with what theWest has to offer. To that end, Ridge has called on professionals from the United States, Portugal, Brazil, South Africa, andthe United Kingdom to apply cutting-edgetechnology to its Angolan projects. At thesame time, it has provided training for itsmanagers, who act independently in rela-tion to government institutions. It is in thisway that Ridge Solutions acts as a bridgebetween Angola and the rest of the world,adds the CEO.

Great opportunities also exist in trans-portation. Before independence in 1975,the country had 73,000 kilometers ofhighway. Today, that number has dimi-nished substantially, and Ridge Solutionshas already done its homework to attractinvestors. Using GPS technology, it con-ducted a survey of Angola’s topography tophotograph every region of the country ac-curately. It now has a database that puts itin a privileged position to identify needsand investment opportunities.

Open to InvestorsRidge Solutions plans to open up 40 percentof its capital to foreign investors, guaran-teeing that future shareholders will have access to benefits generated by the com-pany’s current short-and medium-term pro-jects. In addition to real estate, hospitality, mi-ning, and transportation, Ridge will investUS$80 million in an aquaculture project thatwill produce 5,000 tons of tiger shrimp each

year. This project will target European,Asian, and North American markets, where shrimp consumption has been gro-wing. In Japan, for example, consumption isestimated at 300,000 metric tons per year—making it one of the largest shrimp consu-mers in the world. Another important deve-lopment is the investment in manufacturingbuilding materials, with the production ofblocks and roof tiles. In light of numerous

projects and ambitious expansion plans, Ridge created in 2008 RS Capital (a mana-ging society of investment funds), which isdedicated to creating and managing thegroup’s real estate investment funds, third-party real estate investments, and consultingservices. “Our focus is to capitalize the in-vestment of our clients,” says Ramos who foresees a wealth of future progress in manydifferent sectors of the economy.

Agribusiness

BREATHINGNEW LIFEOne of the major goals of thenew Angola is to realize theimmense promise of agri-industry in a country that has8 million hectares of arableland and some 20 percent ofAfrica’s water reserves.

The fertile Waco Kungo Valley in the heartland of KuanzaSouth is a spectacular sight, with growing groups of family farms. The initial project offered 600 families—formerUNITA and MPLA military per-sonnel—the chance to re-ceive a house on a 3-hectarefarmstead, allowing the familiesto become micro-producers.

The family farms are grouped around a central cooperative. This acts as a logistical hub with four agri-industrial units, including ananimal-feed plant and a dairyunit to collect produce from thefami lies, process it industrially,and handle the marketing.

The initial project has ex-ceeded every expectation, somuch so that the “New Village”model will be extended through-out the entire country.

“The strategy behind thisproject is to kick-start the agri-cultural economy in ways thatrespect the social aim of creatingjobs while reducing food im-ports,” says Cerqueira. “Its suc-cess demonstrates that familyfarming doesn’t have to be sub-sistence farming. However, theproject also highlights the fact

that the business sector needs to invest in farming, andin infrastructure related toenergy and water. A country likethe United States, for instance,can make investments here inlong-term projects, for examplein the area of energy and dams.”

Crops like maize, cereals,sunflower, rice, and soybeans, aswell as agribusiness activitiessuch as livestock, will receive theheaviest investments in the com -ing decade. “The governmentshould also look closely at sugar-cane, because our experiencetells us it can play a role in ener-gizing the rural economy, just ascoffee did after the SecondWorld War,” Cerqueira explains.

Additionally, he notes, “Ex-periments are being conductedfor another important goal: theproduction of biodiesel.”

José CerqueiraGeneral Director Aldeia Nova

Editor-in-Chief Stella KlauhsProject Director José PowellResearch Director Emanuele Giusto

Writers Rui Paulo Silva, Siddhartha MitterDesign Nuno Teixeira, Marta Conceição

Photography Emanuele Giusto, Miguel Baltazar, SXC, iStockphotoIllustrator Henrique Monteiro

USA Office 1050 Connecticut Avenue, NW, 10th floor, Suite 1000 Washington, DC 20036 - USA www.peninsula-press.com

Spain OfficePaseo de la Castellana, 95. 15 Planta 28046 Madrid - Spain Tel +34 91 418 50 32 [email protected]

the Southern African DevelopmentCommunity (SADC) of investing inprojects that are key to development.

A great example can be seen inKuanza South Province. That’swhere Project Manager José Cer-queira, formerly chief economistfor Angola’s Economic and Fi-nancial Recovery Program, is hea-ding the ambitious “New Village”(Aldeia Nova) projects, which canhelp turn his country into an agri-industrial power.

To this end, the government is in-creasing funding for farming, inparticular livestock. This is in keeping with the goals outlined by

24 — ANGOLA


angola: do you recognize this nation?

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