key facts ( worldbank 2011) - population – 18.5 million (estimated) - urban population % - 58
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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 - PowerPoint PPT PresentationTRANSCRIPT
• 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
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)
SWOT analysis
• 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