Guidance

Doing business in Angola: Angola trade and export guide

Updated 27 March 2015

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1. Angola export overview

Angola has a population of around 24 million. It has the third largest economy in sub-Saharan Africa.

Contact a Department for Business and Trade (DBT) Angola export adviser for a free consultation if you are interested in exporting to Angola.

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Angola.

Oil and Gas is the mainstay of the economy and Angola is the second largest oil producer in the region. If current trends continue, they are predicted to be number one in the next 5 years. The Government is increasingly looking to diversify.

A number of well-known companies operate in Angola, including BP, Diageo, G4S, Aggreko, GSK, BA Iberia, Standard Chartered Bank, Investec, Wood Group and GE Oil and Gas. There are also many small and medium sized British companies.

Incentives for British business exporting to Angola include:

• UK companies are respected and liked
• Angola is focusing on diversification, which opens up many opportunities
• Angola is one of only five countries in the High Level Prosperity Partnership with the UK
• time zone is GMT +1 and GMT during the UK summer

Strengths of the Angolan market include:

• the economy has had an average double-digit growth since 1990
• a growing middle class
• a young population (50% under 21) who are eager to learn
• abundant natural resources

2. Challenges to doing business in Angola

While there are many opportunities for companies looking to do business in Angola, there are challenges to be aware of. These include:

• poor power supply nationwide
• weak infrastructures across most sectors
• government bureaucracy when awarding and paying for contracts
• corruption
• high unemployment
• lack of skills amongst the populace

You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.

3. Growth potential

3.1 Economic Growth

The 2013 Gross Domestic Product (GDP) was worth USD 121.7 billion, this was a 7.4% increase from 2012.

The International Monetary Fund (IMF) has predicted a 3.9% GDP growth in 2015, slightly down on previous years. This fall is largely linked to the dramatic recent slide in world oil process, on which Angola is heavily dependent.

The fastest growing sectors in Angola are:

• oil and gas
• construction and infrastructure
• agriculture

3.2 Free Trade Agreements

There is currently no free trade agreement between Angola and the UK. However, Angola does have some regional trade agreements.

4. UK and Angola trade

The latest available full year figures show that goods exports from UK in 2013 increased by 36.5%, going from £401 million to £548 million.

The UK is one of the largest investors in Angola. In 2013 the UK and Angola agreed on a High Level Prosperity Partnership, one of only five across Africa. This is beginning to develop a strong relationship in trade between the two countries.

The top 10 UK exports to Angola are:

• general industrial machinery
• electrical machinery
• iron and steel
• specialised machinery
• metal
• chemical materials and products
• rubber
• organic chemicals
• beverages
• dairy products

5. Opportunities for UK businesses in Angola

Department for Business and Trade (DBT) provides free international export sales leads from its worldwide network. Search for export opportunities.

Identify opportunities to supply products and services to the international aid agencies. Contact the Department for Business and Trade (DBT)’s Aid Funded Business Service for more information.

5.1 Infrastructure

Angola’s infrastructure spending has significantly increased over the past few years. However, the recent drop in oil price has inevitably led to some scaling back, with certain projects being delayed. As a result, the Angolan Government is looking for more inward investment along with Public Private Partnerships (PPP) mechanisms. Areas of infrastructure growth include:

• new housing
• improving public services
• developing the tourist sector
• improving transport links across the country
• ‘Luanda 2030’ – an ambitious plan to make Luanda a 21st-century capital
• new ports, dams, and airports etc

Opportunities for UK companies include:

• manpower development and training in the rail subsector
• linking to existing companies offering niche areas of work
• warehousing, haulage and logistics
• mass housing and road construction
• services for loading and off loading goods
• water treatment services

Contact the Department for Business and Trade (DBT) team in Angola for more information on the opportunities available in the infrastructure sector.

5.2 Agriculture

Angola has just under half its total land mass of dedicated to agricultural land. With most goods currently being imported, the growth potential of this sector is enormous. The Agriculture sector is seen by the Angolan Government as a top priority and there is a huge push to bring inward investment.

The many opportunities for UK companies within this sector include:

• equipment supply
• fertilisers
• training and education
• food processing and manufacture, including bread-making
• poultry and fish farming
• distribution, haulage, storage and waste recycling

Contact the Department for Business and Trade (DBT) team in Angola for more information on the opportunities available in the agriculture sector.

5.3 Education and training

With about 50% of the population 21 or under, the demand for education is exceeding supply. English training is in huge demand and training is required in virtually every discipline.

From 2016, The Ministry of Education is planning to make English compulsory at grades 5 and 6 in public schools.

Opportunities for UK companies include:

• corporate training
• setting up English schools
• supply of equipment and resources
• distance learning products
• collaboration with local universities
• behavioural and social training
• tourism

Contact the Department for Business and Trade (DBT) team in Angola for more information on the opportunities available in the education and training sector.

5.4 Power

Angola is looking to invest USD 16 billion on improving the sector, including in renewable energy. It has ambitious plans to build new power stations and generating units. Only 20-30% of the population has an electricity system and these are subject to frequent power cuts. There is a high dependency on oil run generators.

Opportunities for UK companies include:

• oil and gas supply chain
• generation infrastructure, mainly based on water resources and natural gas
• renewable energy technologies
• implementing energy metering and monitoring systems

Contact the Department for Business and Trade (DBT) team in Angola for more information on the opportunities available in the power sector.

6. Start-up considerations

All new businesses in Angola must register with the Angolan Private Investment Agency (ANIP). There are several ways a company can operate in Angola. The most common are:

• registering as a foreign company
• partnering with a local company
• establishing an Angolan subsidiary by registering as an Angolan company

Tips for starting up:

• the registration process is bureaucratic and time consuming so you should adopt a patient approach
• local content requirements demand that companies purchase most of their services from companies that are wholly or partially Angolan owned
• the government is in the process of ‘Angolanising’ the workforce, requiring companies to hire Angolan nationals wherever no qualified nationals are available
• the 2012 Private Investment Law requires a minimum investment of USD 1 Million in order to benefit from incentives

7. Legal considerations

The legal system in Angola is weak and fragmented. It is based on the Portuguese and Customary Law System. Understanding the system is difficult and laws do change on a regular basis.

It is critical to hire the service of a good English speaking lawyer at the outset.

Contact the Department for Business and Trade (DBT) team in Angola to help find tax and legal advisers before entering into agreements.

8. Tax and customs considerations

Getting goods to market can be difficult and complex. Companies should carry out market research in order to understand the distribution network and various taxes. The Angolan Government has recently introduced increased tariffs on most imported goods.

You can find more about import tariffs in the Market Access Database.

Documentation is required for every process and many procedures require the intervention of a number of government agencies.

Contact the Department for Business and Trade (DBT) team in Angola to help find tax and legal advisers before entering into agreements.

9. Entry requirements

You must hold a valid visa before entering Angola.

You should be well prepared for your visa application as the smallest of errors could delay the process. It takes, on average, 3 weeks to be issued. The Angolan Embassy in London can provide you with the latest visa information.

9.1 Travel advice

If you are travelling to Angola for business, please check the Foreign and Commonwealth Office (FCO) travel advice page beforehand.

10. Contacts

Contact the Department for Business and Trade (DBT) team in Angola for more information and advice on opportunities for doing business in Angola.