Crisis took 10 billion in foreign investment in Angola
Foreign direct investment in Angola fell by almost ten billion euros from 2014 to 2015, due to the crisis caused by the fall in oil revenues, according to a report from the central bank that Lusa has had access to. ~
According to the balance of payments report of the National Bank of Angola (BNA), now concluded, foreign direct investment "was a deficit" and stood at 8,235 million dollars (7,817 million euros) in 2015, against Surplus of US $ 2,331 million (2,212 million euros) in the same period of 2014.
This result, the difference between inflows and outflows of foreign investment, represented, overall, a "degradation" of 10,566 million dollars (9.9 billion euros).
The BNA concluded that foreign investment in Angola this year was related to the execution of projects mainly linked to the petroleum sector (97.9%), followed by diamond (1.4%), trade (0.6% ), And civil construction (0.1%). Since the end of 2014, Angola has experienced a deep financial, economic and foreign exchange crisis, due to the halving of revenues from oil exports. In order to foster investment, the Angolan Government advanced at the end of 2015 with the creation of the Technical Unit for Private Investment (UTIP), Norberto Garcia, and this body is operating under the direct authority of the Civil House of the President of the Republic.
Last November, UTIP director Norberto Garcia said that the Angolan state closed private investment contracts in Angola worth US $ 9 billion (8.5 billion euros) in the first year of activity, which Generate more than five thousand direct jobs.
The UTIP is responsible for conducting investment projects above 10 million euros, proposing to private investors, national and foreign, tax benefits under contracts with the State, which include the reduction or exemption of the payment of several taxes.
According to Norberto Garcia, these contracts cover investments in sectors such as Industry, Agriculture, Energy and Water, Transport or Tourism, among others, with the creation of at least 3,000 indirect jobs and an implementation period of 34 to 36 months .
According to Norberto Garcia, legislation on private investment in Angola that has been approved has shown itself to be an asset in attracting international investors and safeguards the repatriation of profits and dividends after the maturity of the project. "We have more and more investment intentions, that is, people believe and want to invest in Angola," he said. The obligation of foreign investors in some sectors to establish partnerships with Angolan partners has not been a "constraint", Norberto Garcia said. "The Angolan state understands that it makes sense that Angolans can be part of big business.
We understand that Angolan sovereignty also feels some economic independence, can not be only political, and we want to create national rich with projects, "said the director of the UTIP.
Luanda, 03. März 2017
Source: Living Money
14.02.2018 Angola makes second issue of Eurobonds in February
22.01.2018 Angola’s President guarantees legal security to foreign investors
10.01.2018 Angola president sacks Dos Santos son as head of sovereign wealth fund
14.12.2017 Angolan citizens offered a grace period to repatriate capital
11.12.2017 Angola’s 2018 state budget includes economic growth projection of 4.9%