With a climate of political and social stability, and the continent’s highest economic growth, Angola looks to 2010 as the perfect opportunity to show the world its achievements.

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ich in oil, diamonds, and many other natural resources, Angola’s increasing appeal among global investors is due to political and economic stability

following a long civil war that ended in 2002. The country now boasts the continent’s fastest growing economy on the back of export-led double-digit growth, and is one of the world’s largest suppliers of oil to China. Other key industries are minerals, coffee, fish, and timber.

Economic growth is expected to surge 28% in 2008. It jumped 19% in 2007; 26% in 2006; and 18% in 2005. Such impressive figures are driven by rising oil production of around two million barrels a day. Angola became a member of OPEC

in late 2006. The country’s high inflation rate has been slashed from more than 200% during the conflict to just 12% in recent years. Growth in the construction industry soared 30% year-over-year in 2006, and by 38% year-over-year in the telecommunications sector.

Angola is led by President José Eduardo dos Santos, whose Popular Movement for the Liberation of Angola

(MPLA) party overwhelmingly won parliamentary elections held in September 2008. Bordered by Namibia, Zambia, and the Democratic Republic of Congo, the country has a population of 17 million people. The exclave of Cabinda lies to the north and has a population of 300,000. Angola has 18 provinces (including Cabinda), its main language is Portuguese, and in 2007, according to the World Bank, it recorded a Gross National Income per capita of U.S.$2,560.

With a motto of “Virtus Unita Fortior”—Latin for “virtue is stronger when united”—the country is welcoming investors with open arms as it rebuilds its shattered infrastructure and

economy. Roads, schools, hospitals, bridges, hotels, office blocks, industrial parks, and other new buildings are being built at record rates, not just in the capital, Luanda, but also in rural areas. They include the Luanda Sul residential and commercial development on the outskirts of the capital—a self-sustaining urban development project comprising thousands of apartments and houses, as well as hundreds of shops, restaurants, and leisure facilities.

Other major construction projects include four new purpose-built soccer stadiums that will be used for dozens of CAN matches in early 2010; the event will be broadcast to a global audience of more than one billion people. Angola’s legal system has undergone a major overhaul during the past few years and is now regarded as one of the best in sub-Saharan Africa. Major changes to investment regulations mean assets of private investors can no longer be nationalized.

But after nearly three decades of troubles, the country is, understandably, not without its problems. A lack of a well-educated and highly-skilled workforce is one such example, as is a high rate of poverty. Senior government officials and business executives are, however, predicting a bright future, with major international companies, such as soft-drink maker Coca-Cola, investing heavily in several plants.

Angola is the world’s fifth largest producer of diamonds; it mined 10 million carats valued at U.S.$1.2 billion in 2007,

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Angobetumes’ new terminal, Lobito, Angola.

A serious business prospect As Angola prepares to host soccer’s 2010 Cup of African Nations, it is rebuilding its infrastructure and reviving its reputation as a land of investment opportunities.

Ministry of Science and Technology Av Lenine 106/108, Ingombota, Luanda, Angola • Tel: +244 22 233 1082 • Fax: +244 22 233 1082

A scientifically proven sound investmentHaving placed science, technology and innovation at the heart of its development goals, the Angolan government is seeking investments in the following priority sectors… ICT, nuclear power, mining, petroleum, fishing, agriculture and health.

Afonso CardosoBrazilian Ambassador

and is one of the key partners in the “Kimberley Process”—an industry agreement preventing the sale of illegal “blood diamonds”. In November 2009, Luanda will host the prestigious World Diamond Summit, an event focusing on standards, technical conditions, and human resources, for the prospecting, processing, trading, and polishing of diamonds worldwide.

Mankenda Ambroise, Angola’s Minister of Geology and Mining, says great efforts are being made to stop the illegal mining of diamonds, and a national geology plan is being designed to locate, identify, and quantify natural mineral resources. “We want to diversify mineral production so we are not only promoting diamonds, but all mineral resources,” he explains. “We recommend that anyone willing to invest in Angola should think of minerals other than diamonds. There are many opportunities in sectors such as iron ore, manganese, copper, gold, quartz, and phosphate.”

Investment laws reformedAngola’s updated private investment laws protect both intellectual property rights and licenses, and guarantee non-interference in the management of private companies. It is a member of the World Intellectual Property Organization, which aims to protect patents and trademarks. In recent years, the country has strengthened its trade ties with foreign governments by signing bilateral investment treaties with countries including Portugal, South Africa, Germany, Italy, and the U.K.

Leading law firm AVM Advogados, with offices in Luanda and Cabinda, has an impressive reputation among foreign investors for its range of legal counseling, advice, and litigation services. Founded by António Vicente Marques, the company employs 15 lawyers, a number that is set to grow to 20 with the opening of a new office in the southern city of Lubango. With an emphasis on aiding businesses operating in the mining and financial sectors, AVM Advogados offers clients a complete range of litigation solutions.

“Considering the country’s past, the legal and judicial system here works far better than in many other African countries,” says Marques, a well-known author and university professor, who is also CEO of Financial Partners. “Once you make an investment, you automatically obtain legal rights that means if something was to occur—as in the case of expropriation—you would be paid a fair market price. Angola is making a huge

effort to send a message to the world that the rule of law is in place and investments are secure. Investors should look at us with an open mind, not just read statistics or reports, but come visit and look at the business opportunities.”

With interests in many different industries, leading holdings company Grupo António Mosquito (GAM) is well known in Angola. The group owns Falcon Oil, which has rights to four blocks in Angola. Taking its name from its 62-year-old founder, GAM is now run by his son, Horacio Mosquito, from its headquarters in Luanda. He intends to diversify into sectors such as transport, construction, real estate, oil and gas, technology, and banking.

Some of those projects will be joint ventures, including a development of luxury condominiums being built in conjunction with leading construction company Odebrecht. GAM CEO, Horacio Mosquito, provides details: “We are doing everything we can towards helping Angola’s reconstruction, not only the infrastructure, but also the spirit of society through our corporate social responsibility programs. In real estate, we will partner with other companies, but in ways different to the current one. In the future, we will supply the land, the companies will build the structures, and the administration of the building will be a joint operation—a joint venture with shared profits. Our business strategy is focused on strengthening the mode of management. With our new formula,

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Rua Comandante N’zaji Nº 140, Luanda, Angola Tel:+244 222 322 590 / 328 079 Fax:+244 222 326 218

Bringing people closer

ANGOBETUMES has a strong involvement in the reconstruction of Angolan roads. In a country like Angola, communication and transport links are vital. Angobetumes’ asphalt will surely have a decisive impact in the country’s development over the next years.

Horacio MosquitoCEO, Grupo António Mosquito

Ernesto Baiardi President Odebrecht Angola

Mankenda Ambroise Minister of Geology & Mining

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we will make partnerships for specific areas of business. We will no longer get government contracts and give them to somebody else to do, but our own companies will do the work.”

Brazilian connections Brazil shares more than just a common language with Angola, as it exports U.S.$12 billion worth of goods to its African trading partner each year, while importing a substantial amount of Angolan oil.

The Association of Brazilian Entrepreneurs in Angola (AEBRAN) represents the existing and future interests of Brazilian businesses in the 481,000 square mile country. It is putting pressure on the government to allow a Brazilian bank into Angola to cater to all the Brazilian citizens living and working there, exploring further investment opportunities, and building closer cultural, business, and education links. AEBRAN president, Alberto Esper, comments: “Housing, roads, hospitals, schools, and water and utility networks are being built by Brazilian construction companies. We are also involved in the food, health, and bio-fuel sectors.

“In addition, we have interests in the agricultural and livestock industries, and there are Brazilian companies that support the development of the country’s education system through a partnership with the Angolan Ministry of Education.”

Brazilian construction giant Odebrecht employs more than

23,000 people in Angola— 96% of them local. It entered Angola in 1984 after winning the tender for the Capanda hydro-electric plant on the Kwanza River. Its success with that project has resulted in several other major government contracts, including a three-year urban development project of the nation’s capital involving the building of new main roads, utility networks, and communication systems.

Odebrecht is a partner in two huge mining projects in Angola and plans to diversify into the ethanol production in a move that will create at least 2,000 jobs in the province of Malange, where its hydro-electric plant is based. “We have always believed in this country,” says Ernesto Baiardi, president of Odebrecht Angola. “Our challenges here are continuous, especially in the implementation of social infrastructure. We are working on some great projects here in Angola, such as Luanda Sul. Planning major new urban areas is a great challenge, but such award-winning projects will transform the city.

“Our biofuel enterprise will be good for both Brazil and Angola, as it will reinforce the geo-political position of Africa, disseminate ethanol worldwide as a biofuel, and open a market for services and technology for the Brazilian agro-business.”

Such a policy fits in well with the government’s plans for public and private spending in science and technology innovations, particularly in the sectors of ICT, nuclear power, mining, and gas.

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Former Science and Technology Minister, João Baptista Ngandajina, admits such investment is badly needed, but that the government lacks the funds to invest in the industry. “We have a program to introduce the Internet in schools and have signed an ageement with Microsoft and received equipment and support from them. In order to have scientific development, we need agreements with foreign institutions to bring new technology here to help us recover socially and economically.”

Construction company Queiroz Galvão has been in Angola since 2005 working on infrastructure projects such as hospitals. It now plans to prospect for oil, develop social projects, and promote educational initiatives in Brazil for Angolan students.

Country director, José Diniz da Silva Filho, says: “Logistics is still the greatest challenge to our operations as there isn’t an industrial park here yet. We have to search for alternative sources of materials ourselves. We can’t rebuild the country in a minute, but by reconstructing the entire infrastructure, we are providing conditions for other economic activities.”

Another Brazilian company with large operations in Angola is Prado Valladares. The company is involved in three areas: consultancy and planning, urban planning, and cooperation projects—the latter being mainly funded by foreign governments. Current developments include a new passenger terminal at Luanda’s international airport and a hi-tech, one-stop shop for citizens to be issued with vital documents such

as new driving licenses and identity cards. Planning director, José Abelardo Freitas, believes Angola will

become a “leader” for this part of Africa having woken from a “coma” following the end of the 27-year conflict.

Brazil’s ambassador to Angola, Afonso Cardoso, says he is “thrilled” his country is playing such an important role in the reconstruction of Angola’s infrastructure and economy. Bilateral trade between the countries jumped by U.S.$1 billion last year—a figure he expects to rise sharply again this year as the relationship continues to advance.

Meanwhile, Spanish construction group Somague has invested up to U.S.$150 million in Angola since its arrival in 2004. It is building schools, hospitals, clinics, and university campuses. “This country is full of opportunities,” says general director, Luis Gonçalves. “We are trying to guarantee minimum conditions to enable it to grow. Angola will need companies to work in sectors such as the environment and transport, which are areas we already have experience in.”

“Our biofuel enterprise will be good for Brazil and Angola.”

Ernesto Baiardi, Odebrecht Angola

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ast-growing Ridge Solutions is one of Angola’s largest real estate companies with operations in several core sectors. Initially focused on residential projects, it is

now involved in other construction sectors, among them hotels and shopping centers.

Based in Luanda, the group is also involved in real estate-related investment funds and natural resources. It has ambitious plans to become a major investment bank, offering clients a range of investment solutions.

Executive president, José Ramos, who owns 89% of the company, recently oversaw the purchase of more than two million square meters of land that is now earmarked for a series of industrial parks. “Ridge Solutions was created in 2004 and is 100% Angolan incorporated,” he says. “At that time we understood that the sub-Saharan market needed companies able to channel investments, and to offer complete investment solutions—abiding by international best practices—for local and foreign investors. Since then, we have tried to keep our DNA intact while continuing on the road.”

Ridge Solutions owns 1,000 hectares of farmland and related investment. Extensive feasibility studies into opportunities in the prawn farming industry have been carried out, and commercial deals have been signed with companies from the U.S., Europe, and Japan. “Becoming investment bankers is part of a logical sequence, one on which Ridge Solutions embarked a long time ago,” continues Ramos. “Since our incorporation, we have sought to develop a strong investment portfolio with two main characteristics: a strong capitalization and a high level of liquidity, both short and medium term.

“This way of selecting our assets allowed us to generate

high-return portfolios. We started concentrating our investments on real estate, mainly residential developments, but have diversified and now have five hotels and several other projects under development, like shopping centers.”

Such residential developments include eye-catching new luxury housing projects like Jardins do Eden (Gardens of Eden) and Torres Diamante Azul (Blue Diamond Towers), while its commercial developments range from malls to industrial parks.

Ramos adds: “We are aware of the high demand for investment in emerging markets. This is why we are fully prepared to offer both local and foreign investors a considerable return on their investments. We are seeking to become a market maker, not only within Angola, but also the region. We can offer a full platform for investments and a comprehensive portfolio of investment funds.

“Within the next two years, Ridge Solutions will not only become an investment bank, but also one of the strongest and most innovative institutions in all of sub-Sahara Africa.”

Port of Cabinda, Angola’s third largest port, is rapidly expanding both its size and presence as it looks to take advantage of new transport infrastructure and its advantageous geographical position.

This vitally important trade hub expects to handle more than one million tons of cargo by 2010. In five years, it has increased its footprint from 9,000 square meters, to 52,000 square meters. That figure will jump in 2012 with the expected completion of a new U.S.$2.6 billion bridge between the port

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“We have sought to develop a strong investment portfolio.”

José Ramos, Ridge Solutions

A country transformsStadiums, hotels, industrial parks, and malls being built at unprecedented rates, while transport projects also take off.

Construtora Queiroz Galvão S.A.Sucursal Angola, Rua Comandante Gika, 261 D-B Alvalade, Luanda, Angola

Tel: +244 226 49 90 31/ 32/ 33/ 34/ 35 Fax: +244 226 49 90 36

Committed to Development

www.queirozgalvao.com

15 YEARS PARTNERSHIP WITH ANGOLAS DEVELOPMENT

Eng. José Abelardo Freitas - joseabelardo.freitas@pradovalladares.com

Urban development. Architecture. Construction.Coordination in public services development. Consolidation of Angola s real state market.

José RamosExecutive President Ridge Solutions

Gentil VianaCEO DRAGO Group

Osvaldo Lobo do Nascimento GD, Port of Cabinda

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and the northern Angolan town of Soyo. The 20-kilometer bridge will stretch over the River Congo and parts of the Democratic Republic of Congo. Officials say the bridge will help open up mineral-rich northern Angola to new investors as access is improved and delivery times reduced.

“We are the gateway to Africa’s largest hinterland and have a privileged geographical location that is better than Pointe Noire in Congo,” says Port of Cabinda general director, Osvaldo Lobo do Nascimento. “We still have plenty of room for development when compared to other regional ports that are clearly saturated. With 12 million people living within a 400

square kilometer radius of us, there are plenty of opportunities to serve them. If the average consumption of cargo per person is one ton a year, then that is around 12 million tons per year of potential consumption. That is almost a dozen times the estimated volume for 2010, so there is plenty of room for expansion in our capacity.

“We will also become a key player in the transport of oil from the Gulf of Guinea,” he adds. “These important points will enhance the appeal of the Port of Cabinda in the eyes of foreign investors, while the country’s strategic development plan will increase Angola’s importance as a main player in Africa.”

Transport Minister Augusto da Silva Tomás is the man charged with overseeing the multi-billion-dollar rebuilding program of Angola’s roads, ports, railways, and airports. State-owned flag carrier TAAG is a major beneficiary of such substantial investment as it receives a complete overhaul of its fleet, management structure, and operational activities.

“Our national transport plan will result in a far stronger air, rail, maritime, and road transport system, open to foreign investment, and will be used as an example of how to do things,” says Tomás.

Formed by Sonangol and Trafigura, bitumen producer Angobetumes is a key figure behind such road rebuilding, with operations in asphalt, petroleum terminals, and distribution.

It has invested U.S.$70 million in Angola; its facilities include five large terminals and 370 heating containers, plus a fleet of 60 trucks provided through a local partnership.

As the company is struggling to meet the soaring demand for bitumen, it plans to build new production plants and storage tank facililties across the country, including sites in Luanda, Malange, Huambo and Namibe.

Director general, Fernando Martins explains: “Angobetumes was born out of the necessity to supply asphalt on a national scale. The original plan was to revamp 7,500 kilometers of

roads by 2010, but new developments, both commercial and residential, mean more asphalt will be needed after that.

“We are building new facilities in the port city of Lobito to help meet the demand of our clients. We have also invested heavily in cranes, trucks, and containers. We originally employed three people in Angola but now have 60.”

He sees the agricultural industry as one of the nation’s most successful sectors. “In three to five years, Angola will be self-sufficient and will certainly have a large market in terms of agro-industrial equipment.”

Angobetumes board member, Denis Constanty, believes Angola’s two main ports could become major refuelling points for the large cargo ships that journey up and down the west coast of Africa.

“As far as heavy fuel is concerned, there is no refuelling possible between Cameroon and South Africa, so Angola could become a very interesting zone for those boats,” he explains.

When soccer’s CAN kicks off in early 2010, it will mark the culmination of a major construction program that includes the building of four new stadiums and up to a dozen new hotels. Angola’s Football Federation’s president, Justino Fernandes, looks at what’s ahead: “Our main challenge is the construction

“We will become a key player in the transport of oil from the Gulf of Guinea.”

Osvaldo Lobo do Nascimento, Port of Cabinda

Augusto da Silva Tomás Minister of Transport

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of the new stadiums. We are building one in Luanda with a capacity of 50,000 people; one in Bengela for 35,000; one in Cabinda for 25,000; and one in Huila for 25,000. Stadiums are considered as development poles that will certainly change the cities in which they are built for the better, and so have a positive impact on the people who live there.

“The 2010 CAN will have a huge impact by portraying Angola as a great destination for foreign investment, and also will introduce its fabulous people to the rest of the world. The tournament will show just how much our country has advanced. We need to organize a perfect CAN. It will be a great opportunity for people to come and visit our nation and see all the opportunities it has to offer.”

Sports Minister, Marcos Barrica, says his government is delighted to be investing in the continent’s soccer showcase, an event he believes will help rebuild its national identity, unity, and self-esteem.

ANIP was created in 2003 to attract and sustain private investors for targeted sectors away from the oil and diamond industries. The one-stop shop has worked with up to 70% of foreign investors. Clients include civil construction companies, agricultural firms, and small manufacturers of various goods. It helps with legal procedures, identifies local partners, and promotes investment through overseas trade missions. “Angola is not yet the easiest place to do business,” says ANIP

administrator, Ari Carvalho, “ but it certainly enjoys one of the best returns on investment. We want investors that create jobs across the country. Our ideal investor is someone who brings in new technology, creates employment, benefits the surrounding communities, and expands their operations to other provinces.”

Taking its name from an affluent of the country’s largest river, Banco Keve is making the most of the recent flood of foreign investment flowing into Angola and trickling down the economy. Founded in 2003 with paid-up capital equivalent to U.S.$50 million, it manages assets and deposits valued at U.S.$148 million. It has 21 branches and nearly 200 employees. Executive director, João Fonseca, says that with the government set to open a stock market in the foreseeable future, he expects Banco Keve to move into investment banking in the next few years.

Based in Luanda, DRAGO Group is a leading player in the construction of metal factories and warehouses. “Our new Angolan factory at Cacuaco has improved our supply chain,” says CEO Gentil Viana. “Our main project now, ‘Angola Business Park’, is to establish in each of the 18 Angolan Provinces a network of logistic stations to cater for all investors in a high-standard environment with all services and facilities available. We will supply everything an investor needs to do business in the provinces. This will be complete in 2011. Angola Business Park will pride itself on providing international standards.” n

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