4 IPRIS Policy Brief

JULY 2010

Portugal and : Ties that bind?

Pedro Seabra and Paulo Gorjão Portuguese Institute of International Relations and Security (IPRIS)

Introduction Over the last couple of years, has increasingly and cultural ties that link them to many African states. been setting its sights on Angola, recognizing the for- Today some of those African states are already the des- mer colony’s largely untapped economic potential and tination of increasing amounts of capital and technical the opportunities available for developing it, as well as expertise, most often channeled towards the extraction Angola’s geo-strategic relevance within Southern Africa. of the vast natural resources that Africa has to offer, but Confronted, to a certain extent, with a lack of capacity to also steadily focusing more on fulfilling the need for ba- grow and export within the European Union, Portuguese sic infrastructures and training of specialized manpower companies have seen in Angola – and also in and in those African nations. – an interesting economic alternative, or Bearing in mind this overall trend, Portugal’s renewed supplement, while politicians have envisaged a growing interest in Africa and in particular in the Portuguese diplomatic advantage in those bilateral relationships. Speaking African Countries (PALOP) is no exception. In- As far as one can predict, this trend will continue in the deed, coinciding with the VIII Heads of State and Govern- forthcoming years. According to the latest projections of ment Summit of the Community of Portuguese Speaking the African Development Bank, Africa in general is ex- Countries (CPLP) that will take place in on July pected to witness steady economic growth, 4.5% in 2010 23rd, 2010, Portuguese President Aníbal Cavaco Silva and and 5.2% in 2011.1 Thus, with the majority of advanced Prime Minister José Sócrates will visit Angola. This ar- economies still entangled in a tense international eco- ticle will attempt to summarize and analyze the current nomic environment, it is natural to look to the growing state of relations between the two countries. It therefore possibilities that the African markets have to offer. In this begins with an overview of the current relations between context, countries like , Portugal and the United Portugal and Angola, focusing on the existing political Kingdom are eager to capitalize on the existing historic cooperation between the governments at a bilateral and multilateral level. Then, the favorable economic climate, with several mutual investment projects already on the 1  “Africa’s Growth on the Rebound – African Economic Outlook 2010 Launched in Abidjan” (allAfrica.com, 24 May 2010). ground and others looming on the horizon, will be as- IPRIS Policy Brief Portugal and Angola: Ties that bind? | 2

sessed. Finally, the article outlines some policy recom- ties, and Luanda did not miss the chance. Con- mendations regarding specific short and medium-term sequently, increasing political and diplomatic exchanges issues that could – and should – be raised during the was the logical next step in order to seize the moment. visit of President Cavaco Silva and Prime Minister José Portugal felt that it could play a relevant role not only Sócrates. as an important Angolan political and diplomatic ally in Facing and solving the existing political and economic multilateral forums, but also in the reconstruction of the hurdles is a crucial step towards a more mature diplo- Angolan state, deeply deprived of basic infrastructures matic relationship. Only then will it be possible to take and specialized manpower. In order to support Angola’s the present economic, political and diplomatic bilateral efforts towards the reduction of poverty levels and to relationship to the next level. reach sustainable development, the Portuguese Institute for Development Assistance (IPAD), through various In- Political bilateral and dicative Cooperation Programs multilateral relations: In the last few (PIC), disbursed around 2200 A win-win situation? million in the past decade.2 In the last few years, Angola has years, Angola has On the other hand, Angola saw become a priority for Lisbon’s in Portugal a much-needed sup- diplomacy, as is apparent by become a priority for porter, a gatekeeper that could the consecutive visits made by Lisbon’s diplomacy, help open some international high-ranking Portuguese state doors still closed to the Angolan representatives to Luanda. Just as is apparent by the regime. Indeed, in the last few to give a few examples, former years, the quid pro quo has been Prime Minister José Manuel consecutive visits mutually beneficial, even though Durão Barroso went to Angola made by high-ranking the bilateral relationship could in October 2003, followed by for- be developed further. mer President Jorge Sampaio in Portuguese state Moreover, the diplomatic cooper- November 2005. Current Prime ation between both countries has Minister José Sócrates, dur- representatives to become more than just bilateral ing his first term, visited Angola Luanda. This intense relations. Since 1996, the two twice, first in April 2006 then in countries, together with Brazil, July 2008, accompanied each frequency of bilateral have become the main engines time by a vast delegation of cabi- behind the CPLP, an organization net members and businessmen. contacts follows which has evolved in the last few Angolan President José Eduardo Angola’s gradually years – after many uncertainties dos Santos reciprocated, pay- – into a more relevant forum of ing an official visit to Portugal increasing political, political consultation and diplo- in March 2009. The list of mu- matic coordination between the tual visits by the Portuguese and economic and social countries. In the last Angolan Foreign and Defense stability. two years, Portugal has held the Ministers is even more frequent. rotating presidency of the CPLP Here it suffices to note that the last time that Portuguese with the clear objective of strengthening ties between Foreign Minister Luís Amado was in Luanda was last all members and promoting the January, while his counterpart, Assunção dos Anjos, was around the world, an agenda that is likely to be followed in Lisbon in March 2009. Moreover, Portuguese Defense by Angola, the next member to hold the presidency of the Minister Augusto Santos Silva visited Luanda last May, CPLP starting next July. while his Angolan counterpart Cândido Van-Dúnem, ap- Indeed, Angola is progressively more interested in the pointed last January, has yet to visit Lisbon. opportunities that the CPLP has to offer. As Executive This intense frequency of bilateral contacts, when com- secretary to the CPLP Domingos Simões Pereira re- pared with the 1980s and the first half of the 1990s, fol- cently stated, the CPLP “is the ideal stage for Angola to lows Angola’s gradually increasing political, economic and social stability, which began to take root in the sec- 2  The ongoing 265 million program for the period between 2007 and 2010 is ond half of the 1990s and the early 2000s. As soon as mainly focused on three areas: strengthening Angola’s institution-building it was the ripe moment to create and explore mutually capacity (including good governance and the rule of law), sustainable develop- beneficial political, diplomatic and economic opportuni- ment and fight against poverty, as well as the development of a cooperation cluster. IPRIS Policy Brief Portugal and Angola: Ties that bind? | 3

affirm itself as a regional power” due to its growing de- der to safeguard their interests within the EU, as well as mographic and economic power, which “should now be the relevant political actor in seeking to establish bridges translated into a leadership strategy” that can not only between Angola and the EU and promoting widespread benefit Lusophone cooperation, but also tackle some of recognition of Angola’s growing power and importance in the obstacles in its way.3 Southern Africa by its European peers. Still, despite recent improvements regarding the CPLP, Likewise, and reversing this line of thought, the same the truth is that much remains to be done in order to can be applied to Portugal’s insertion within the vast- establish it as a growing multilateral diplomatic instru- er Southern African Development Community (SADC) ment. In fact, to a certain extent area, where Angola – and also it is difficult to understand the Mozambique – hold considerable reasons why the CPLP is taking Negotiations are influence, enough to (un)officially so long to be perceived by Por- currently underway establish some much needed po- tuguese-speaking countries as a litical channels for the Portuguese useful diplomatic instrument, i.e. to materialize a diplomatic corps, which is just now as an additional tool upon which starting to contemplate the rela- it is worthwhile to invest time and proposal made by the tively forgotten potential of South- resources in order to safeguard Swedish presidency ern Africa. their mutual interests’ vis-à-vis Within the UN as well, Portugal other multilateral and bilateral of the Council of the and Angola’s ties have also born political players. fruitful gains, namely in mutual The benefits of deepening bilater- EU in the second support for representation in the al relations between Portugal and half of 2009 – mostly institutional universe of UN bodies Angola are also evident in other and agencies, with particular focus international forums. Within the due to Portuguese on the Security Council. Working European Union (EU), Portugal has under a pre-combined CPLP con- always tried to take advantage of diplomatic backstage sensus, Portugal supported Ango- its historical background regard- work – regarding a la for a non-permanent seat in the ing Africa, and is not shy about 2003-2004 biennium, as well as for using its political credentials with Joint Way Forward membership on the Peace build- its former colonies when it comes ing Commission in 2006.5 More to enhancing the relationship be- between the EU and recently, Angola also counted on tween them and the European Angola – similar Portugal’s vote in its re-election Union and vice-versa. Moreover, for a three-year consecutive term it was not a coincidence that the to the one already as a member of the UN Human two previous EU-Africa summits, Rights Council. Angola has already the first in Cairo in April 2000, and agreed upon between pledged its vote for the Portuguese the second in Lisbon in May 2007, the EU and Nigeria. candidacy to a non-permanent were held during the Portuguese seat in the Security Council during presidencies of the Council of the the 2011-2012 biennium.6 EU. If doubts existed, as it was pointed out above, the last Negotiations are currently underway to materialize a few years have shown how beneficial the bilateral and proposal made by the Swedish presidency of the Council multilateral relationship between both countries could of the EU in the second half of 2009 – again, mostly due be from the political and diplomatic standpoints. But is to Portuguese diplomatic backstage work – regarding a the same true regarding economic affairs? Joint Way Forward (JWF) between the EU and Angola – similar to the one already agreed upon between the EU Economic relations: Still looking for equilibrium? and Nigeria.4 Indeed, the JWF is a further example of Unsurprisingly, the high-level bilateral political contacts how Portugal naturally assumes the role of preferred Eu- pointed out above are, to a considerable extent, propelled ropean interlocutor for Angola, i.e. the main player in or- by the current prosperous state of economic bilateral re-

3  “CPLP é ‘palco ideal para afirmação de Angola como potência regional’” 5  “Declaração de Brasília” (CPLP, IV Heads of State and Government Summit, (Lusa, 13 May 2010). 31 July 2002). 4  “Angola responde a proposta de Parceria Estratégica da UE nos próximos 6  See Paulo Gorjão, “Portugal and the Security Council: Is This Seat Taken?” tempos” (Angop, 18 June 2010). (IPRIS Policy Brief, No. 1, April 2010). IPRIS Policy Brief Portugal and Angola: Ties that bind? | 4

lations and the prospect of mutual investments ahead. the nation-wide reconstruction efforts, every major Por- Such bilateral growth is even more extraordinary if one tuguese civil construction company is already involved in takes into consideration some of the flaws in Angola’s local deals and actively competing in official open bids, economy: heavy dependence on commodity prices, ram- with Angola’s market comprising nearly 60% of their pant corruption, precarious infrastructures and a ques- respective external activities.8 Also worth mentioning is tionable legal framework, among others. Still, despite the 25% share Portuguese communications and multi- such stumbling blocks, the grow- media company Portugal Telecom ing weight of Angola in Portugal’s (PT) holds in its local counterpart trade balance is simply undeni- The high-level Unitel, understood as a possible able. Back in 2000, Angola held the bilateral political spearhead for further investments 10th position as a market for Portu- in the region.9 At the same time, guese exports, but in just 10 years, contacts are and accompanying such capital it climbed to the 4th place – corre- flows, a new immigration wave is sponding to a share of 7.23% and propelled by the taking place, with specialized Por- roughly 22 billion in trade – thus current prosperous tuguese workers relocating to Af- becoming Portugal’s biggest com- rica, especially to Angola, seeking mercial partner outside the EU, state of economic to reap the benefits of these new surpassed only by France, Ger- opportunities. Between 2006 and many and Spain and amounting bilateral relations 2008, it is estimated that around to 80% of all trade in the PALOP. and the prospect of 70,000 Portuguese citizens trav- Thus, despite the numbers for eled to Angola, filling in local job 2010’s first quarter – which fore- mutual investments demand. see a decline of exports to Angola, The same is true the other way essentially due to the spill-over ef- ahead. If doubts around. As was stated by the Por- fects of the global economic and existed, the last few tuguese Ambassador to Angola, financial crisis, the two countries’ Francisco Ribeiro Telles, “the busi- trade balance is likely to become years have shown ness relation between Portugal even more intertwined in the near and Angola is a two-way road”.10 future. how beneficial Against the common perception As proof of such a claim, one needs the bilateral that Angola would not be able to re- to look no further than Angola’s ciprocate the economic interest in foreign direct investment data. In and multilateral Portugal, in substantial amounts, 2003, Portugal had only invested the past couple of years have about 240 million on the ground, relationship between proven otherwise. In 2004, Angola holding the 15th position among both countries held the 128th position in the list of Angola’s main foreign investors. Portuguese imports with a modest In 2005 that number had already could be from the 21.8 million in sales. Since then risen to 2263 million, eventually – and mainly due to crude oil pur- reaching a record-breaking 2775 economic, political chases – Angola has climbed to the million in 2008, followed by a lower and diplomatic 23rd place, representing over 2400 2557 million in 2009, again due to million in 2008, symptomatic of its fallout from the international eco- standpoints. 13% GDP growth in the same year. nomic crisis. These figures reflect Furthermore, Angolan investments the growing interest in specific economic sectors, such – albeit, still modest within the general context – are also as Angola’s banking sector, in which every major Portu- finding their way into the Portuguese economy. If one guese player – Caixa Geral de Depósitos (CGD), Santand- takes into account that in 2005 the country’s money flows er Totta, Banco Português de Investimento (BPI), Ban- came down to little more than 26 million, it is striking co Espírito Santo (BES) and Millennium BCP – already that the number exponentially rose to almost 250 mil- possesses a minority or joint-venture operation on the 7 ground. Equally significant, and seeking to profit from 8  Inês Sequeira, “Angola quer fábricas portuguesas de materiais de con- strução” (Público, 18 May 2009). 9  Although Unitel recently lost its bid for Zambia’s public operator, Zamtel. 7  Cláudia Henriques, “Bancos portugueses com presença forte em Angola” 10  Cândido Bessa, “A relação entre Portugal e Angola é de dois sentidos” (Jor- (TSF, 11 March 2009). nal de Angola, 10 June 2010). IPRIS Policy Brief Portugal and Angola: Ties that bind? | 5

lion in 2008, and then to nearly 2114 million in 2009, an pressing and also the most delayed matter concerns the increase of 131% in just a year. debts owed by the Angolan state to Portuguese com- This sudden boom of Angolan interest can be properly panies, an issue constantly raised by every Portuguese understood by taking into account some recent business state authority that visits Luanda. Recent reports esti- deals. In 2007, Angola’s national oil company and main mate that Angola owes around 22.3 billion to the Portu- investment vehicle, Sonangol, bought a 10% stake in Por- guese private sector, 21.5 billion of which is owed to civil tugal’s biggest private bank, Millennium BCP. Similarly, construction companies, like Teixeira Duarte, Soares da in 2008, with a majority of Angolan capital, BIC Portu- Costa, Mota-Engil, Somague or Edifer.13 The short-term gal Bank began its operations. Later in 2008, Isabel dos solution to this deadlock will apparently be resorting to Santos – President José Eduardo dos Santos’s daughter an existing 2500 million credit line – arguably created and Angola’s leading busi- to finance public investments nesswoman – bought a 9.8% and infrastructure projects in stake in another Portuguese Portugal should actively Angola – agreed to by the two bank, this time BPI, followed back an eventual second governments in March 2009, by the purchase of 10% of during the visit of President multimedia company Zon Angolan candidacy to a Eduardo dos Santos to Por- in 2009. These stakes were non-permanent seat in tugal.14 Still, this is a problem then considered to be worth needing a structural solution around 22 billion in stock the UN Security Council. if both states want to avoid market values.11 Included in further serious political and this figure is also the joint By quickly doing so, the diplomatic obstacles. investment by Sonangol and Portuguese diplomacy Other relevant setbacks con- Isabel dos Santos of 45% in cern the Angolan legal re- Amorim Energia, which in would certainly quirement for any investment turn controls 33.34% of Por- to be associated with a local tuguese energy company, consolidate its role as partner – inevitably resulting Galp Energia. The business a reliable partner for in a restriction to greater for- relationship between the two eign presence in the Angolan utilities has recently gath- Angola, as well as for market – and the constant bu- ered sustained media focus, reaucracy surrounding visa is- as rumors concerning a pos- the African continent, suance. The later has already sible reinforcement of Ango- with the consequent strained relations between lan capital in Galp’s share- the two countries in the early holder structure – in order generation of regional 1990s and again in 2008, but to replace Italian ENI – have despite considerable official increased. At least officially, political good will, improvements in speed and both companies have long particularly among SADC costs – again, after the visit of expressed a desire to deepen President Eduardo dos Santos their cooperation. The fact members. to Portugal – the difficulties in that they already work close- obtaining a business visa are ly in and in Brazil still noticeable, curbing fur- seems to sustain the argument that “there are advantag- ther external ventures.15 es to all parts” in an eventual cooperation, as Angolan Oil On the other hand, Portuguese exports have also sud- Minister José Botelho de Vasconcelos has recently said.12 denly come to face international competition for the Yet, certain issues have held back the development of the economic relationship and tainted this carefully con- 13 “Construtores confrontam António Mendonça com terem de parar trabalhos structed image of an idyllic potential market. The most se Angola não pagar dívidas” (Lusa, 11 May 2010). 14 In fact, during this occasion, credit lines between both countries were signifi- cantly expanded. In 2004 to help funding national exportations, 2100 million 11 “Investimento angolano em Portugal já supera dois mil milhões” (i, 22 were made available, a number that rose to 2300 million in 2006, 2500 December 2009). million in 2008 – always coinciding with stately visits – and would eventually 12  Galp and Sonangol control their local Cape Verdean counterpart, Enacol. In be doubled to 21 million in 2009, as well as complemented by the aforemen- Brazil, together with Petrobrás, both companies run several oil fields and tioned extra credit line, both now fully at use by the interested parties. plan to invest in the market of biofuels. See “‘Há vantagens para todos’ no 15 Ana Cordeiro, “Presidentes de Angola e Portugal garantem que problema reforço da Sonangol na Galp” (Diário Económico, 7 June 2010). dos vistos será resolvido” (Público, 10 March 2009). IPRIS Policy Brief Portugal and Angola: Ties that bind? | 6

Angolan market in recent years, especially with China’s the leader of the majority party in parliamentary elec- growing economic and trade efforts. Fueled by a global tions, while the National Assembly – with its new Speak- search for natural resources – oil, in particular – China er, Paulo Kassoma, leaving his former position of Prime has quickly become a major player in the African conti- Minister which no longer exists – is relegated to mere nent, and Angola is no exception.16 Their US$25 billion in confirmation powers. bilateral commercial exchanges in 2008 alone, coupled The impact of these changes on Angola’s foreign policy is with constant investments by nationally-owned compa- basically non-existent, since the policy-making center of nies – such as the Export-Im- Angola’s diplomacy has not truly port Bank of China (Exim Bank), shifted, and in that sense neither China Construction Bank (CCB), Never before have the did its main priorities and goals. China National Petroleum Cor- political conditions Contributing to such continuity is poration (CNPC), China Na- the relative constancy in inter- tional Offshore Oil Corporation been more stable national oil demand, and conse- (CNOOC) and China Petroleum or the trading quent high price maintenance, & Chemical Corporation (Sino- which has undoubtedly favored pec) – currently constitute the opportunities more Angola’s external status quo in biggest challenge to a leading recent years and the stability of Portuguese presence in An- propitious between the its foreign policy. Continuity was gola’s economy in the short and two countries. While also guaranteed by the fact that medium-term. the Angolan Foreign Ministry had Still, neither tough competition remaining careful to only two ministers in the past de- nor practical restraints on the cade, including current Foreign ground are yet sufficiently un- avoid overly optimistic Minister Assunção dos Anjos, solvable to compromise planed expectations, as thus allowing the development Portuguese investments, al- of strong working relationships though they may significantly well as needing to with and by its interlocutors. delay them and trigger serious Still, in order to overcome and ad- political and diplomatic prob- overcome pitfalls, just to the recent modifications in lems between both countries. both countries should Angola’s political establishment They should be dealt with as on one hand, and to promote a soon as possible. rightly acknowledge stable and growing bilateral re- lationship on the other, Portugal Policy recommendations the benefits that should step up and propose com- After the general elections on each one will obtain mon achievable goals, with im- September 2008 renewed the mediate results regarding their Popular Movement for the Lib- if their relationship is diplomatic and economic daily eration of Angola’s (MPLA) grip affairs. Thus, in the upcoming on power and after the promul- deepened. meeting in Luanda between the gation of the new constitution in Portuguese and Angolan heads February 2010, Angola might have entered into a new po- of state and government, several issues should be raised. litical era, perhaps preparing the way for President José At a political and diplomatic level: Eduardo dos Santos’s political succession.17 The new 1. The natural increase of bilateral political cooperation. constitutional dispositions reinforce the powers of the • Given the current amount of bilateral political will in- President, virtually granting José Eduardo dos Santos vested in deepening relations, the lack of any formal and the sole executive power in government, while assigning regular mechanism devoted to advancing those same the newly-appointed Vice President, Fernando Piedade ties is rather noticeable. If Portugal maintains regular Dias dos Santos, and the remaining cabinet to an essen- high-level meetings with Cape Verde, for example, as tially auxiliary and advisory role. On the other hand, the demonstrated by the recent inaugural Summit between Angolan President is now elected by indirect suffrage, as the two countries, it is worth asking if the visible break- throughs in the relationship between both countries in 16 See Indira Campos and Alex Vines, “Angola and China: A Pragmatic Relation- the past couple of years do not deserve a similar formal ship” (Chatham House, March 2008). institutional umbrella. Not only would the setting up of 17 See André Monteiro, “Angola’s new Constitution: The old hegemony autho- official summits publicly symbolize the mutual recogni- rized” (IPRIS Lusophone Countries Bulletin, No. 5, March 2010): 1-2. IPRIS Policy Brief Portugal and Angola: Ties that bind? | 7

tion of the importance that both countries grant to their since “Lusophone Citizenship” is much more complex to ties, but it would also serve as an ideal – and most of agree upon, while “Free Circulation” amongst the mem- all, regular – opportunity to assess the existing bilateral ber states clearly holds more immediate economic and framework and to plan further common initiatives. trade benefits. • Actively backing an eventual second Angolan candidacy At an economic level: to a non-permanent seat in the UN Security Council, in • The issue of debt to Portuguese companies should be a medium term scenario, could also easily return diplo- definitely and permanently resolved, with the prompt matic dividends.18 Beyond the inherent international sta- payment of what is owed by the Angolan state and with- tus, it would also signal a further recognition of Angola’s out any further delays. Portuguese authorities have to efforts in the reconstruction and reconciliation process, make it clear to their counterparts that what is at stake and its growing assertion in the regional context. In fact, is the risk perception of investing in Angola. As long as by quickly supporting an Angolan candidacy, the Por- there are public and significant examples of the state’s tuguese diplomatic corps would certainly consolidate inability to fulfill its official commitments, any foreign its role as a reliable partner for Angola, as well as for investor – particularly Portuguese – will think twice be- the African continent, with the consequent generation fore risking its capital in any local endeavors, especially of regional political good will, particularly among SADC if taking into consideration the current international eco- members. nomic climate. 2. A mutual boost to CPLP. • Likewise, it is economically unreasonable to expect that • Given Brazil’s occasional hesitation towards the CPLP’s Portuguese companies will actively invest in local ven- institutional and practical development,19 Portugal has tures without some kind of assurance, given the known no other choice than relying on Angola as the remaining bureaucratic procedures that will constrain any foreign significant partner – and the “great promise of the Luso- project. One possible solution to overcome such adversi- phone world”, according to Cape Verde’s President Pedro ties and to promote further bilateral business would con- Pires – in order to effectively set forward a constructive sist in fast-tracking the long awaited and delayed bilater- and feasible agenda in the coming years.20 al agreement on double taxation and mutual investment • Building upon the work carried out by Portugal’s presi- protection, similar to the one in force with Brazil, that dency of the CPLP in promoting the Portuguese language would prevent interested companies – especially finan- in international organizations, Angola’s term should offi- cial institutions – from being overtaxed both in Angola cially aim to enhance and expand this enterprise. To that and in the country of origin, in this case Portugal. In turn, end, Portugal could work closely with Angolan authori- this would allow for greater capital availability for any ex- ties, while taking into consideration the experience of isting and potential actor, and further eliminate another previous efforts and the established network of contacts obstacle to greater bilateral economic ties between the spread around the globe, in order to obtain more tangible two countries. results for the entire Lusophone community. The com- • Portugal should also confirm its willingness and open- bined support and increased funding of the CPLP’s In- ness to receive Angolan investments in national eco- ternational Portuguese Language Institute, for example, nomic sectors, as long as they respect and uphold the could prove to be a significant step to that end. internationally accepted rules of transparency and ac- • Angola, during its presidency, is bound to propose an countability. Accordingly, the growing contacts between official initiative regarding the final establishment of the Galp, Sonangol and Petrobrás could prove to be the most CPLP’s Statute of Citizenship and Free Circulation, on immediate example that the present business relation- the organization’s agenda since 2002 but still not fully ship is not just a one-way street, and therefore should be implemented. Portugal, for one, should tread carefully further encouraged, while at the same time making sure with this topic, as the legal obstacles and doubts – ei- not to interfere with rules governing markets.21 However, ther constitutional or EU driven – have not been fully there is a growing concern in Portugal regarding Angolan surpassed, nor are they likely to be in a near-future sce- capital penetration around key Portuguese companies, nario. On the other hand, it should be worth dividing the mainly in the banking, energy, and telecommunications issue on two fronts with different paces of discussion, sectors. Thus, a diversification of Angola’s investments in Portugal is welcome, and Portuguese authorities should emphasize this. 18 See Paulo Gorjão, “Lusophone countries must devise a grand strategy towards the Security Council” (IPRIS Lusophone Countries Bulletin, No. 4, • The growing trade ties between the two countries February 2010): 6-7. 19 See Shiguenoli Miyamoto, “Brazil and the CPLP: Discourse and practice” (IPRIS Lusophone Countries Bulletin, No. 4, February 2010): 8-12. 21 Ana Gonçalves, “Petrobrás e Sonangol combinam mexidas no capital da Galp” 20 “Angola é a grande promessa da lusofonia” (Diário de Notícias, 26 May 2010). (Diário Económico, 7 April 2010). IPRIS Policy Brief Portugal and Angola: Ties that bind? | 8

should continue to be fostered by both governments. Al- the world, where we have interests and the possibility to though already significant, there is still much ground for extend our influence”.22 Moreover, bearing in mind the further growth. To that end, and if needed, the existing hazardous openness of the Portuguese economy to the credit lines should be reinforced, as they constitute the European context, diversifying exporting markets has be- best instruments available to support the financing of come an imperative for the Portuguese economy, which national exports. The visa issue should also be carefully now looks not only to Angola with a renewed interest, but addressed in a way that points out the business limita- also to the African continent in general. tions it imposes, with consequent negative effects on the For its part, Angola is steadily working towards increas- economic operations of both countries. Additionally, Por- ing regional power and international credibility. More- tugal should take this opportunity to promote Angola as over, Luanda is also seeking significant foreign invest- a door into the wider SADC region, where the exponential ments in return for its natural resources and market number of economic opportunities is only surpassed by a opportunities. In other words, Angola wants to expand its greater need of foreign investments. instruments of economic, political and diplomatic power. To that end, Portugal could be a useful partner within Conclusions this overall Angolan strategy. The current climate among the political and economic In light of this, both countries must understand that while elites in Portugal regarding the relationship between neither of them is the definite solution for each other’s Lisbon and Luanda is undoubtedly favorable to fast- problems and foreign policy agenda, much can still be paced growth and development in the near future. Never achieved within the framework of their bilateral rela- before have the political conditions been more stable or tionship. Providing a clear and normal political environ- the trading opportunities more propitious between the ment, encouraging a healthy bilateral business climate, two countries. While remaining careful to avoid overly overcoming the choking bureaucratic obstructions and optimistic expectations, as well as needing to overcome commonly agreeing on joint regional and international the pitfalls mentioned above, both countries should endeavors, undoubtedly constitute the right steps to take rightly acknowledge the benefits that each one will ob- on the road to a fruitful and prosperous partnership. tain if their relationship is deepened. Portugal is not a “giant in African diplomacy” but, unlike others, Portu- guese Foreign Minister Luís Amado has already recog- 22 “Luís Amado considera África Austral como a região mais importante para nized “Southern Africa as the most important region in Portugal” (Lusa, 3 February 2010).

Editor | Paulo Gorjão Portuguese Institute of International Relations and Security (IPRIS) Rua Vitorino Nemésio, 5 - 1750-306 Lisboa PORTUGAL http://www.ipris.org email: [email protected] IPRIS Policy Brief is a publication of IPRIS. The opinions expressed are solely those of the authors and do not necessarily reflect the views of IPRIS.