OrientalNews ANGOLA China’s long-term partner in Africa uAllies in times of both peace and war, in recent years the bonds between China and Angola have gone from strength to strength since Angola’s civil war ended, as the two sides work together to develop bilateral relations based on sincerity, amiability, equal- ity and mutual benefit

This year marks 10 years of peace, prog- forces behind the 14-year armed struggle ress and reconstruction in West Africa’s Re- against Portuguese colonial rule, along with public of Angola, after four decades of con- the FNLA (National Liberation Front of flicts and civil war left the former Portuguese Angola) and UNITA (National Union for the colony physically, socially and economically Total Independence of Angola). The MPLA torn apart. Boasting a wealth of natural re- officially declared Angola’s independence sources, including natural gas, oil, and dia- under the slogan “One People, One Nation” monds, and vast arable lands, the country is in the capital Luanda on November 11, 1975, potentially the richest in the region. It vies and the three liberation movements agreed with Nigeria for the title of Africa’s top oil pro- to form a joint transitional government, with ducer, and the current priority for Angola’s President Jose Eduardo dos Santos at the government is to develop of other sections helm. of the economy – particularly agriculture, One of the main principles of the alliance industry, fishing and mining – to convert the was to establish a program of economic and nation’s petrodollars and untapped potential social development that could take advantage into tangible socio-economic benefits for of the country’s natural resources to improve the people. It is a huge undertaking – one living conditions for the Angolan people. in which the international community is However, the new regime collapsed within increasingly taking part. months and the three movements simul- Led by Jose Eduardo dos Santos, the taneously declared three different Angolan ruling MPLA (Popular Movement for the Lib- republics. The country plunged into a bloody eration of Angola) party was one of the main 27-year civil war, dramatically stunting the na- tion’s socio-economic growth until the peace agreement was finally signed on April 4, 2002, that formally ended fighting between the military UNITA and the MPLA government. On achieving peace, the government sought international assistance to repair the war-ravaged nation’s infrastructure and industries, similar to the Marshall Plan (of- ficially the European Recovery Program), the large-scale financial aid program provided by the United States to help rebuild European economies after the end of World War II in order to combat the spread of Soviet com- munism. However, it found that many of the West- ern powers which had exploited Angola’s past internal struggles for their own interests turned their backs on Angola, refusing credit “In modern lines or imposing strict measures and limita- tions on the loans. According to the Ministry history, the of Foreign Relations, the IMF “urged the Angolan government to comply with the terms of a credit agreement that came with Angolan President Jose Eduardo dos Santos meets with Chinese President Hu Jintao at the Great Hall of the People in Beijing on December 17, 2008 Chinese a series of requisites and conditions. After careful analyses on our side, we refused ity and the MPLA very much appreciates improvements, and has invested in a num- in Africa after Equatorial Guinea’s Presi- government and the agreement. After two years of repeated China’s policy of non-interference in the ber of buildings and other projects. The dent Teodoro Obiang Nguema Mbasogo. insistence on their side, a delegation from internal affairs of the countries in which first financing package of US$2 billion was Elections are slated to be held by the end people have the IMF recognized that the agreement they they invest or to which they extend credit. agreed to in March 2004. Hospitals, schools, of 2012, the second since 2002. The MPLA ANGOLA IN were trying to impose on us was not justified. The first China-Angola trade agreement roads, railways and basic infrastructures for took 81% of the vote at the last poll in 2008, provided aid and Angola had gone through a long and hard was actually signed back in 1984, but the civil each province in Angola were part of the and is widely regarded as the overwhelming armed struggle to gain independence and war stalled the deeper development of the first loan beneficiaries. In 2006, the loan was favorite to win another term. FIGURES it was not going to give in to more external relationship. However, since 2004, energy doubled to $4 billion, turning China into a President dos Santos has often ex- help to Angola repression or accept a limited or monitored and resource-hungry China has been major major player in Angola. pressed the nation’s gratitude at the two-way independence.” As such, the government buyer of Angolan oil and raw materials to The excellent relationship the two relationship enjoyed by Angola and China over many differ- looked further afield for alternative invest- fuel its own growth. Its presence in Africa is countries enjoy can be traced back to the that goes from strength to strength. During ment partners. expanding and is always in the context of mu- ideological and political similarities and an official visit to China in 2008, President 11.1 Officially-rated as the ent time periods” China stood out as a partner willing to tual benefit. Of course the Chinese benefit cooperation between the MPLA and the Chi- dos Santos said: ““I would like to thank the world’s fastest- growing economy extend a helping hand, offering multi-billion- from their investment in African countries, nese Communist Party during the struggle Chinese side for aid and help. In modern 2001-2010 by the IMF, Angola’s dollar lines of oil-backed loans at favorable but China acts more like an investor and for independence and the civil war, when history the Chinese government and people Jose Eduardo dos Santos interest rates. It also came to the country’s aid bank to Angola, rather than an out-and-out Angola received military and humanitarian have provided aid and help to Angola. This GDP growth averaged 11.1% for with the arrival of many Chinese construction profiteering dealmaker. support from China. help has come over many different time the period President of the Republic companies and technical know-how. The China has provided credit to the coun- President Jose Eduardo dos Santos is periods.” of Angola Angola-China relationship is one of solidar- try for infrastructure (roads and bridges) currently the second longest-serving ruler 1,600 Angola has 1,600 km of coastline making it one of the preferred ports for ac- cessing West and Central Africa Credibility through accountability 85 Oil and diamonds are the country’s main exports, making up 85% and 5% respectively uThe Angolan Court of Auditors “It is not enough to get good results online auditing and finanancial man- For 2012, the Court has expansion has boosted the country’s image in the from the economic point of view in a agement system by which they can in mind with the planned construction eyes of the international community country or society,” comments the Judge. keep track of any public or private of a head office in Luanda, as well as six Despite being independent “If there is no institution to control the entity that falls under their jurisdiction. regional courts throughout the country 35 resources to do better and correct distri- The Court also uses online portals – in Cabinda, Huambo, Malanje, Lunda for over 35 years, Angola still uses Judge Juliao Antonio, President of the bution according to the control and the to keep interested citizens informed Sul, Huila and Benguela. Portuguese as its official language Angolan Court of Auditors, is very much a rules and principles of financial manage- about its activities, as well as changes The Court of Auditors will continue respected political figure in Angola, with ment, it will not help the achievement of in legislation and other procedures. with its policy of transparency, which a long career as a Member of Parliament, good economic results.” This technological advance has placed as Antonio says will keep the country 5.8 Real GDP is forecast to and involvement with the MPLA, the rul- Thus, in its first year of activity, in a Angola’s Court of Auditors on par with united: “When one takes an interna- expand by an average of 5.8% in ing party. He played an active role in ceremony held in South Korea, the An- others around the world. tional financial obligation, all of us as 2012-2013, driven by rising oil the struggle for independence, and was golan Audit Court joined the Interna- Antonio feels this has been a sig- citizens become engaged in this debt subsequently held captive in UNITA prison tional Organization of Supreme Audit nificant attribute, particularly for the process,” output and the start-up of major camps during the civil war. He recalls Institutions (INTOSAI), open to receiving people of Angola, as the country’s fi- Judge Antonio ends with a special gas projects that painful period of Angola’s history: guidance and cooperation from other nancial resources are guaranteed. And message directed at Angola’s Chinese “I don’t think there is anyone who has internationally experienced institutions. consequently, so are developments. friends: “I will conclude by saying that experienced that bitterness who would “Being a member of this community Moreover, it is an important move in life we have friends and people we want to go back and try it again.” definitely made my job easier, because he of transparency aimed at citizens. meet, and friends are those that are Oriental News Ltd. Counsel Juliao Antonio was elected who walks alone is more likely to make “To this end we inaugurated the present in times of joy and loss. by the National Assembly as the first mistakes than if he works on a cooperative portal of the integrated financial “ This refers to China, because being Berkeley Square House, President of the Audit Court, the institu- basis with other institutions from coun- management of the court where ev- a friend is being the one who opens his Berkeley Square, London tion of the Angolan legislative system tries that have already experienced similar erything is available to the citizen,” hands in the most difficult moments. W1J 6BD responsible for controlling all public and difficulties,” recalls Judge Juliao Antonio. adds the Judge. “We didn’t have anyone to open the 电话: +44 (0) 20 7887 6405 private entities that manage public funds. As well as being a member of INTO- “So in that way, today no country door, to leverage a task so great as we His role is fundamental to the process of SAI, the Angolan Audit Court also plays a can have doubts about the gover- had ahead such as national reconstruc- 传真: +44 (0) 20 7887 6001 increasing transparency, reducing corrup- particularly proactive role with the African nance transparency of the processes tion. It was China who did it, so China tion and facilitating business procedures. Organization of Supreme Audit Institu- in Angola.” is our good friend.” 经销: “Those who called us corrupt, will tions (AFROSAI), and has been key in pro- Saturnino Izquierdo, Ignatius today see a country that is quite different jecting an improved image of Angola to to other developing nations,” he says. “We the rest of the world. Roberts, Agustina Bellsola, transformed the country, from a precari- Antonio is confident that the Audit ous state to the economic and social suc- Court has proven its valuable contribution ¨”He who walks alone is more likely For information on career cess that we now enjoy.” to the development of Angola, especially opportunities with Oriental The Court was established through a to “guarantee the financial resources of to make mistakes than if he works on legislation passed in 1996, with the ob- the country, and in particular those funds News, please contact jective of creating an independent body from the credit lines of countries such a cooperative basis with other institu- [email protected] with the power to control and regulate as China.” the spending of public funds, and began Any contract signed within the frame- tions from countries that have already its activity in April 2001. work of a credit line is rigorously checked From independence in 1975 right by the Audit Court, which carries out through to 2001, no single organism in a preliminary preventive control of the experienced similar difficulties” Angola monitored or controlled the coun- contract and then careful auditing of its try’s accounts. So, the necessary steps execution. Judge Juliao Antonio, were taken to make the legislation rec- Additionally, the Audit Court relies ognized internationally. on the latest technology to manage an President of the Angolan Court of Auditors Oriental News ANGOLA Peacetime roles keep the military busy uAngola’s Ministry of National Defen- ding to Angola’s news agency Angop, the se has played a major part in the country’s materials were presented to the Ministry of transition from a land blighted by civil war National Defense by China’s Ambassador to to a peaceful, democratic nation Angola Zhang Bolun. Speaking to Angop, Salviano Sequeira said that the materials included tents, bunk beds, kitchen and re- The return of peace to Angola had the fectory kits, as well as blankets that will con- effect of changing the Ministry of National tribute to the improvement of the soldiers’ Defense’s role and day-to-day functions. living standards. Nowadays, the Ministry contributes to the se- At the handover ceremony, Angola’s De- curity of the country and helps to rebuild its puty Minister for Material Resources, Salvia- infrastructure, while also managing a social no de Jesus Sequeira, praised the relations security fund to help soldiers and war vete- between the two countries. China’s military rans return to civilian life. attache in Angola, Xu Xiao Song, also expres- “Our armed forces and national police sed China’s intent to continue increasing the forces exist for the people,” says the Minis- cooperation between the defense ministries ter of Former Combatants and War Veterans and armed forces of the two countries. of the Nation, General Kundi Paihama. “We have had a restructuring of the armed forces and now we are in the process of harmoni- Landmines zing their needs with the economic and fi- nancial possibilities of the country. The civil war left a deadly legacy of mi- “This period of peace is an opportuni- llions of landmines that remain scattered ty for us to show the world our real value across Angola. It is reportedly the third-most as people. The first president of Angola, Dr. mined country in the world, after Afghanis- Antonio Agostinho Neto, classified our peo- tan and Cambodia, though estimates vary ple as being generous. It means that we are considerably on the actual scale of the pro- not people prone to war or violence or re- blem. prehensible attitudes. Unfortunately we have The Angolan Armed Forces (Forças Ar- had to make war, to form a strong army that madas Angolanas, FAA) and several NGOs has gained much experience. However, at the have been busy removing the devices sin- moment, the army has a more defensive than ce the conflict ended. A highly dangerous, offensive position.” painstaking, and time-consuming operation, the difficulty of the task in Angola has been further exacerbated by the uncertainty as to Reconstruction the total number of buried mines and the lack of documentation regarding their loca- Since the end of the civil war in 2002, tion. the military services have been heavily in- It is also an expensive procedure. Accor- volved in Angola’s reconstruction process, ding to UNICEF, weapons that cost as little offering logistical support in the rebuilding as US$3 each to manufacture can cost up to of roads, bridges, energy infrastructure and US$1,000 to remove, and the organization water networks nationwide. It has participa- suggests Angola may be plagued by as many ted in schooling, training and education pro- as 10 million landmines. It also reports that Angola is currently undergoing a massive reconstruction program to create new infrastructure that will support its continued socio-economic development grams, and the reconstruction of essential although the devices can be spread at rates social infrastructure, such as health centers of over 1,000 per minute, it can take a skilled can Great Lakes area, and we now think that and clinics, essential for the country’s socio- expert an entire day to clear just 20-50 square things have improved thanks to the valuable economic development. meters of mine-contaminated land by hand. contribution we have provided. “Unfortunately, after the declaration of Once laid, a mine may remain active for “It is peace that has brought us a great independence in 1975, the country plunged up to 50 years, presenting a real challenge opportunity to create socio-economic and into civil war. Therefore, we never had the to the government’s drive to increase far- cultural progress for Angolans. It is in this World downturn fails political conditions for the implementation ming and agricultural activity. Almost half scenario that in addition to our internal ca- of an economic reform program,” says Dr. of Angola’s population live in extreme rural pacity to solve problems, we equally pursue Aguinaldo Jaime, President of the ANIP Ma- poverty surviving by subsistence farming, but the cooperation with countries who decided nagement Committee, a government agency arable land is often cut off by the mines. to help in this development.” created to encourage foreign and local inves- to halt Angolan growth tment in Angola. “Only in 2002 did Angola achieve peace, with which came the political Regional peacekeeper The road ahead stability necessary for the successful launch uThough still highly reliant upon oil of any reform program. And since then, the As well as contributing to the stability General Paihama believes that during revenues, Angola’s growing economy has country has experienced considerable gains. and internal security of Angola, the Ministry the war, in addition to “being a period of su- proved durable in the face of world reces- “In the macroeconomic arena, Angola of National Defense is also actively involved ffering, tears and death”, it was also a period sion, with no bank failures, no state-fun- has managed to stabilize the main indicators. in contributing towards conflict resolution of learning, and that the devastation brought ded bailouts – and praise from the IMF We have controlled inflation, stabilized pu- in neighboring countries, such as the De- about by the experience makes Angolans all for ‘prudent’ policies blic finances, and lowered the state deficit to mocratic Republic of Congo, using its own the more determined to ensure the country’s sustainable levels. We have also managed to experience for the benefit of other nations. era of peace will be a continued success. implement an ambitious program to recons- The Ministry is actively seeking to establish a It is an optimism shared by the head As Africa’s second-biggest oil pro- truct basic infrastructure that was destroyed more prominent military and security-based of ANIP. “Angola is a country of the future, ducer, after Nigeria, Angola’s economy is by war, such as roads, bridges, schools, hospi- role for Angola in the South African Develo- says Dr. Jaime. “Because of the war, we have highly dependent on its petroleum sector, tals, ports, airports, roads, power systems and pment Community (SADC). postponed our future and we now know to and production is set to rise. In February, the distribution of water and energy. All of In January, during a New Year greetings value peace, which in turn will allow for the Minister of Petroleum Jose Maria Botelho this had to be rehabilitated, and for the go- ceremony in Luanda, National Defence Mi- development of our nation. We are a frien- de Vasconcelos announced that crude oil vernment this is a great responsibility. Only nister Major General Candido Pereira dos dly and open people, and Chinese investors production is expected to increase from the with the rehabilitation of our basic infras- Santos Van-Dunem reiterated the enga- who want to come to work with us will help current 1.8 million barrels per day (bpd), tructure is it possible to attract investment. gement of the Republic of Angola in the us to combat poverty and illiteracy are most to 2 million bpd by 2014. “Some fields will Otherwise, the private sector and investment struggle for peace and security in Africa. He welcome. The Chinese experience is a great start activity this year and others are being cannot fulfill their roles of developing the stressed that Angola would continue to con- inspiration for us.” prepared for 2013 and 2014, which will economy. This was done mainly with public tribute to the positive settlement of problems General Paihama adds: “We have still contribute to a rise of our output levels,” resources or through credit lines that the sta- in the world, particularly those that affect the not resolved all the problems that afflict us, he added. The Minister also commented te has negotiated with international partners, continent. but it is true that we have the mechanisms in that Angolan production accounted for such as China.” “As we are part of Africa, we feel we place. It is an ongoing process. With our vete- between 2% and 3% of the world’s oil pro- In addition to financial aid, China’s sup- should participate in improving the con- ran reintegration program, we are not resting duction, and that as a result of political ten- port also extends to collaborations between ditions of the continent,” says General Pai- on our laurels; we think that what has been sion in the Middle East, in 2011 the price of the armed forces of the two nations, inclu- hama. “Since Africa still is unfortunately a done should set an example for the people to Angolan oil rose to an average of between ding the training of Angolan military staff in continent that suffers from conflicts and civil understand that we can go further. US$105 and US$110 per barrel. Chinese academies. The links are becoming wars, it is within this framework that we have “Also, patience is needed. As the sa- As oil revenues account for an esti- stronger each year, with the interchange of been lending our experience and capabilities ying goes, Rome was not built in a day. We mated 95% of Angola’s export income, the institutional delegations, training exercises, in view of peacekeeping, of good coexisten- are confident that with the growth that we government is going to great lengths to trade, and the supply of equipment to An- ce, of harmony and good relations between are having and with the cooperation of the diversify its sources of revenue after key gola. people. It has been said that Angola played international community, we will meet our sectors such as agriculture were decimated “We feel that the existing cooperation Last June, China donated various mi- an important role in the pacification of some challenges.” by the 27-year civil war that ended a decade litary logistics materials to Angola. Accor- countries in the region and around the Afri- ago. The legislative and regulatory ground- with China is increasingly growing, work has already been laid favoring private investment and the emergence of dynamic and we hope that in future we public-private partnerships. “Angola is a country of great oppor- can diversify the presence of Chinese tunities, in national reconstruction, where a lot of things still have to be done,” says Mr. Vasconcelos. “We feel that the existing entrepreneurs in Angola.” The one-stop shop for investors cooperation with China is increasingly growing, and we hope that in future we can Jose Maria Botelho de Vasconcelos, diversify the presence of Chinese entrepre- u ANIP has streamlined the inves- up an enviable resume for herself. During tions, there has been a noticeable in- neurs in Angola. We remain open, in a way Minister of Petroleum tment process by reducing red tape – whi- Ms. Abrantes’ long career she has wor- crease recently in interest on behalf of that we are able to create partnerships in le increasing incentives ked with a diverse range of governmen- Chinese private investors as well. which the compensations are mutually di- tal departments, including the ministries Historically Angola’s government has vided, in the win-win spirit.” market, with a banking system that suffe- According to the International Mo- of industry, energy, geology and mining. had an open approach to private inves- The government’s National Private red less compared to what has happened netary Fund (IMF), Angola maintained Angolan and international investors A member of the African Round Table in tment: most private enterprises were not Investment Agency (ANIP) was set up to in other countries. No financial institutions its GDP growth at 3.4% in 2011, the same are encouraged to contact the Ango- Washington DC, OIC International’s Busi- nationalized after independence in 1975, coordinate, guide and supervise both na- went bankrupt and the central bank did as was registered in 2010. The IMF said lan National Private Investment Agency ness Advisors Committee and Sub-Com- despite the ruling party’s Marxist ideology tional and foreign investment, highlighting not need to inject any capital into finan- Angola’s finances were helped by higher (ANIP) as a first step to investing in one of mittee for Women’s Development, she is at the time. On the rare occasions that the the opportunities available and providing cial entities. This means that the financial oil prices and its ability to contain the non- the countries with the highest growth po- also a correspondent for Africa Hoje ma- government did nationalize private pro- potential investors with a straightforward system, which is the lever of any develop- oil primary deficit at about 44% of non-oil tential in Africa. gazine. perty, compensation was awarded. first step into doing business in Angola. ment process, was kept stable, and this is a gross domestic product. Angola was one of Set up by the government to promote Ms. Abrantes says that one of the ANIP’s role is fundamentally to devi- “The image of the country has impro- guarantee that the process of the economic the few countries in the world to escape private investment in targeted economic most pressing priorities of her mandate se strategies to encourage private inves- ved significantly since the end of armed reforms will continue.” recession in 2009, registering positive GDP sectors, the agency is a one-stop shop that is the monitoring of projects, and she has tment by creating incentives and inviting conflict, including its macroeconomic ma- Economic policy in Angola has six growth of 2.4 while global GDP decreased provides free, comprehensive support to expressed the need for a follow-up pro- conditions. One of its most effective tools nagement,” says Dr. Aguinaldo Jaime, Pre- main objectives: to achieve and consolidate 0.7%. The Economist Intelligence Unit pre- help both national and foreign investors gram to monitor the level of compliance to do this is through fiscal incentives, such sident of the ANIP Management Commit- political stability; strengthen and maintain dicts the efforts under way to increase eco- make the most of the advantages Angola of investors with the execution of projects as a reduction or exemption from import tee. “We have a major strategic target: the the current macroeconomic stability; im- nomic diversity in Angola will help GDP to has to offer. In addition to providing tech- according to the proposals, deadlines, and duty or income tax. mineral sector was and still is the engine of prove productive and social infrastructu- rise to 9.9% in 2012 and 7.1% in 2013. nical and legal assistance, ANIP also con- use of Angolan workers. ANIP has divided the country into the economy. Within this sector, oil is still res; revive the production of national good Elsewhere in the macroeconomic ducts market studies for investors to help Although proud of the growth rates three zones – A B and C – according to the the main product, but we want to diversify and services; reform the administration of arena, the government has also reined in them identify investment opportunities Angola has been experiencing since the level of economic development of the pro- the economy so it is not so heavily reliant the State in the whole national territory; Angola’s inflation rate, which was soaring at and discover what sets the country apart. end of the war in 2002, ANIP’s president is vinces included in each zone. on one sector.” and improve health and education services. 325% in 2000. In January, the central bank Private investment in Angola is pro- intent on promoting the potential of the The least developed and industriali- The government has highlighted se- “We do not want investors to just re- – Banco Nacional de Angola, or BNA – con- tected by standard legislation introduced provinces, and their resources, to attract zed provinces are grouped into Zone C, veral priority areas where it is encoura- gard investments as mere profit earners, firmed that the government had met its tar- by the government, such as the 2003 Basic further investments in other regions. and are accorded the greatest incentives ging greater participation and investment but rather as contributions to the deve- get of reaching the end of 2011 with annual Law for Private Investment, which guaran- On the stability that has led to sus- and benefits to encourage higher private from the private sector: transportation lopment of the country,” says Dr. Jaime. inflation below 12%, helped by a “broadly tees equal treatment for all investors. The tainable growth, Ms. Abrantes feels that investment and promote socio-economic and infrastructure (road, rail, air and sea); “Besides the danger of having an economy stable” exchange rate, according to the law contains certain structural principles, the Angolan government has proved development. agriculture and cattle raising; telecommu- heavily dependent on one product, the mi- IMF. The BNA announced that December’s the first of which is the non-discriminatory itself to international interests through Private investment in Zone C – which nications; energy and water (including hy- neral sector is capital intensive and does month-on-month price increases came in treatment of investors, whether they are the successful realization of infrastructu- includes the provinces of Huambo, Bie, dropower generation); industry; and fishing not generate massive employment. We still at 11.38%, and compares with 15.31% at the national or foreign. re projects, such as ports, airports, tele- Moxico, Kuando Kubango, Cunene, Nami- and its by-products. have an unemployment rate of around 25%, end of 2010. The central bank reported that Among the legal rights and guaran- communications, roads, energy and water be, Malanje and Zaire – can benefit from “The recent global financial slowdown so we want to target sectors intensive in rising prices of food, non-alcoholic beve- tees are respect for property and the non- installations, which have shown that the up to 15 years of exemption from customs has deeply affected the petroleum sector manual labor to increase the labor supply, rages, clothing, hotel accommodation and state interference in the management of country can offer good returns for foreign duty and income tax. and the countries with more diversified thereby consolidating the national reconci- restaurant services contributed most to in- the projects. Investors’ duties include the investors. Zone B, comprising of slightly more economies are better enduring this crisis, liation process.” flation last year. training of Angolan staff and transferring ANIP believes that the massive credit developed provinces, namely Kwanza Nor- which is why the government wants to di- Between 2001 and 2010, Angola’s eco- This year, the government’s target is to technology and know-how to thereby gra- lines opened up by China to Angola fo- te, Kwanza Sul, Bengo, Uige, Lundas and versify its economy by decreasing its im- nomy expanded on average by 11.1% per bring down inflation further to 10% by the dually enable the replacement of expatria- llowing the end of the war have had an inland municipalities of Benguela, Cabin- ports and encouraging exports outside the annum, making it the world’s most dyna- end of December 2012. The IMF lauded te workers with Angolan employees. overwhelmingly positive effect on the na- da and Huíla, guarantees an exemption for oil industry,” says Dr. Jaime. “Let’s not for- mic economy of the decade, slightly ahead Angola’s macroeconomic policy in January, Well experienced in the business sec- tional effort to relaunch economic activity up to 12 years. get that Angola is a country rich in natural of second-placed China, which averaged commenting that its economy continues on tor and an international consultant, Ma- by rehabilitating and constructing new The wealthier and more industrialized resources. Plus we have some of the best 10.5% annual growth over the same period. the path of recovery from fiscal and balan- ria Luisa Abrantes, President of ANIP, has infrastructure. provinces in Benguela, Cabinda and Huila, hydropower potential in Africa and the soil “This performance could have been even ce-of-payments crises in 2009 and that the been actively involved in Angola’s econo- Although most of the investment and in the municipality of Lobito consti- is fertile. We regarded the financial crisis better if external price shocks and exchan- authorities’ policies had been “prudent” in mic arena for years, having participated in coming from China is channeled tute Zone A, and offer up to eight years of as an opportunity to convince investors ge rates cooled,” comments Minister of Fi- 2011. the country’s reforms, and she has built through Chinese state-owned corpora- such benefits. that Angola remains an attractive, diverse nance Carlos Alberto Lopes. Oriental News ANGOLA

uForeign countries are keeping a close eye on Angola’s fi- a sharp decrease in monetary reserves and a 6% rise in inflation. nance sector Today however, both the economy and oil prices have recove- red. The experience proved a valuable lesson, and highlighted the importance of Angola continuing to attract direct foreign inves- Peace following 27 years of civil war, the consolidation of a tment (FDI) and credit. democratic political system and macroeconomic stability have The situation let to an overhaul of monetary policy which was created a solid foundation for Angola’s sustainable set out in a new constitution approved in February 2010. As a Banking on economic growth, with increasingly solid inves- result, the central bank, Banco Nacional de Angola (BNA), now tment opportunities available in the financial shares responsibility for interest and exchange rate policies with and banking sectors. the Ministry of Finance and the Ministry of Planning. Expansion in Angola’s banking system BNA is undergoing major restructuring, with the creation of is ongoing, with banks doubling to 23 in a new department whose main objective is to moderate and sup- the past five years, according to Bloom- port how liquidity, exchange rates and operational risks are mana- berg, a figure expected to increase with ged within the banking sector. A new monetary policy committee more lenders – some of which are fo- (MPC) convenes monthly, under the supervision of the bank’s go- reign - awaiting operating licenses. vernor, Jose Massano, to establish the benchmark interest rate. future Angola’s Ministry of Finance is The initiative is expected to make Angolan monetary policy more responsible for the coordination of the transparent. Government’s monetary policies, from This, coupled with Angola’s rising economy – expected to ex- fiscal measures to controlling inflation. It pand 12% in 2012 - has excited the interest of foreign investors, played a fundamental role in the economic and nowhere is this more evident than in the booming banking recovery of Angola following the ceasefire in sector. Persistent rumours abound about plans to open a stock 2002, becoming responsible for implementing exchange, though such a course of action has yet to be formally strict macroeconomic measures. In a period of announced. just three years inflation was reduced dramatically, Foreign presence in Angola is primarily Portuguese, though Angolan from 325% in the year 2000 to under 12% in 2011. other players such as London-based Standard Chartered have The country is well on track to continued amelioration, also entered the arena. However, the first country to lay strong with the fall in its inflation rate expected to continue. The FDI foundations in Angola was China, which played a crucial role country’s objective is to rein it in to a single digit figure, 8.3% in Angola’s socio-economic development and post-war recons- by 2016. truction. China’s non-intrusive loan policy greatly contributed to Up to mid 2008, Angola was riding high on the strength of re- the government’s achievements in the areas of health and educa- cord oil prices – with important expenditures pumped into rebuil- tion, helping make Angola one of the few African countries well ding the country’s infrastructure - when in a matter of months the on the road to achieving its Millennium Development Goals. successes price fell from around US$140 a barrel to just over $30, causing Sincerely green

uBESA’s support for sustainable de- promoter of sustainable development. Accordingly, BESA has established world-class status by constantly going velopment and environmental awareness The campaign contemplates the pillars of a number of partnerships that enable beyond the extra mile to support sustai- has made the Angolan bank an interna- sustainability, namely, economic, environ- it to actively participate in initiatives of nable initiatives, by financing small in- tional standard of reference ment, social and cultural and how they sustainable development and mature novative initiatives as well as global-scale reflect all banking activities. methods of economic growth that respect projects. Since its foundation, BESA has been communities and improve their quality Alvaro Sobrinho has been leading, Banco Espiritu Santo Angola (BESA), highly regarded by prestigious interna- of life. These commitments have been in- proudly yet discreetly, BESA’s financial is one of the most successful privately- tional institutions for its financial perfor- ternationally recognized year after year, and strategic social initiatives with the in- owned commercial banking institutions mance as well as its role in green promo- making BESA the recipient of numerous tention of permeating the concept of sus- in the country. Established in 2001, it is tion. In 2011, the bank was deserving of awards. tainable development throughout BESA, part of the Portuguese Espirito Santo the “Best Bank in Angola” and “Best Trade From the sidelines one could regard Angola and the rest of the world. Group (which has a 75,94% interest) and Finance Bank in Angola” awards granted BESA’s green banking strategy as just In July 2011, Sobrinho was elected provides global service to individual and by Global Finance magazine and “Best another ploy to focus attention on the Chairman of the London-based Planet corporate clients. Commercial Bank in Angola” granted by entity, however the reality absolutely con- Earth Institute (PEI), of which the bank Its story is one of success within World Finance magazine. tradicts this notion. BESA shows its true is a founding member. This partnership Angola’s private financial sector. Focusing with PEI ensures the international impact on the relatively unexplored market seg- of a series of actions and has enabled, ments of corporate and private banking, in a among other initiatives, the creation of span of a few years BESA built an excellent Planet Earth Committees in Angola, Bra- reputation, and increased its market share in zil and Cape Verde. the retail banking market, with 28 branches Previously to that, in 2009, Unesco across the country. With huge potential still named BESA the Official Bank of Planet to be exploited in the Angolan banking sec- Earth for the 2010-2020 period, in recog- tor, in areas such as leasing and investment nition of its support for sustainable deve- banking, BESA currently has no focus on lopment. Additional partnerships include internationalization. the Angolan Ministry of the Environment Key to the success and profitability of to endorse environment education cam- the bank, as well as its focus on unexplo- paigns, with the United Nations High red market segments, is its massive inves- Commission for Refugees (UNHCR) and tment in state-of-the-art IT systems, which World Press Photo (WPF). guarantee the security and reliability of its Through BESA’s social responsibili- transactions and financial products. ty strategy and the initiatives undertaken BESA is the first bank in Angola to use by its three areas – BESA Culture, BESA the world-class Flexcube technology, the Environment and BESA Social – the installation of which required a substantial bank implements a community engage- investment and took two years to im[lement. ment policy which differs from those of However Alvaro Sobrinho, CEO of BESA, is other institutions in the Angolan market. convinced that the investment is paying off Their patronage of arts and culture and that the technology will be useful for consists of a series of initiatives grouped years to come. under the program BESA Cultura, such Despite the bank’s consistent trans- as the publication of prestigious art ca- formation, with impressive net assets talogues, the aim of which is to promote increasing year-on-year, 75% in 2009 for the work of Angolan artists nationally and example, Corporate Social Responsibili- “Our strategy has always internationally. ty (CSR) remains one of the bank’s major BESA also runs an annual photo pillars of development, with an extensi- been the same: profitabili- exhibition in collaboration with WPF ve range of initiatives going from raising aimed at encouraging local talent, and to- awareness of environmental issues to the gether the two parties also organize pho- patronage of arts, culture and humanita- ty, social responsibility, and tographic exhibitions of African artists in rian causes. Europe. BESA also received an important The bank recently launched an ins- supporting the economy of distinction from UNHCR for its involve- titutional campaign entitled “Talk about ment in refugee programs aimed at the BESA”. The tone aims to reiterate BESA’s Angola” social rehabilitation of returning Angolan position as one of Angola’s most solid refugees who had fled the country during BESA has been lauded as “Best Bank” in various categories by both Global financial institutions and as the main the civil war. Finance and World Finance magazines Oriental News ANGOLA Bank of the Planet... and still growing

uOriental News talks to Alvaro So- maintain macroeconomic stability, control What is the importance of the future rehabilitating people who had fled during brinho, CEO of Banco Espirito Santo An- inflation and national currency contribu- stock market? the war and then returned to the country. gola (BESA), on the keys to success and ting to the development of a solid financial The stock exchange will enable An- We were the sponsors of this action. profitability sector? golan companies to finance themselves Moreover, culturally and at a national There is no economic development without having to go through banks. On level, we held the first photography contest without financial development, which is the the other hand, it will diversify investors’ in Angola, which had a great impact both After the declaration of independen- basic foundation to helping companies and savings and attract foreign capital to Ango- nationally and internationally. We then se- ce in 1975, Dr. Agostinho Neto said: “We citizens develop an economy. Banks are at la. This will help bring increased economic lected the best artists in the country that will concentrate our efforts on economic the forefront of institutions with greater so- development to the country, reducing the exhibited in Lisbon. and social developments for the benefit of cial responsibilities, even in markets with an public and private debt. Other actions are related to environ- the Angolan people”. How has this been open economy. mental sustainability, with BESA as the applied to the economic and social develo- What is the main factor behind this major sponsor. We have also funded com- pment of Angola in the last decade? What is the financial sector contribu- rapid success? panies that contribute to the growth of the When Dr. Agostinho Neto made this ting to create an atmosphere of confidence It has to do with a bank’s strategy. We country in areas of agriculture and industry. statement, there were two blocks: the capi- that will attract investment and interna- communicate to the market our profitabili- talist and the communist. The economy was tional business? ty, quality of service, added value to share- In addition to the lines of credit, what centralized but its purpose was the same Angola is a country where that really holders and the quality training of our hu- is the potential of Angola’s financial sec- as that of most countries today: improving matters and transactions will only be possi- man resources to better serve customers. tor in attracting investments and creating quality of living and economic develop- ble with banks that have credibility and can Human resources in Angola are scarce. partnerships with the Chinese market? ment. give security. The sector that most develo- There are very few trained people, and this China is one of the most important In the last few years, a reversal model ped in the last seven years was the banking constrains our growth, which is essential countries in the world today. It is essen- was applied in which countries with a cen- sector, both technologically and in terms of for companies to become well established. tial for the development of Angola, and tralized economy changed to a market eco- its efficiency. Our strategy has turned to services and the partnership also provides benefits for nomy, and Angola was no exception. China We must further develop the financial social responsibility. The determination of China. There are many Chinese companies was one of the countries that adopted a mi- sector, not the bank sector, but through some targets of the market was what we here and the Chinese people have a great xed economy, with great success. brokers, funds and other types of products. most cared about, namely businesses and capacity of adaptation. They have contribu- The only actual way of funding is through companies. We are providing services to ted immensely to the reconstruction of our How are the government’s efforts to banks. businesses and private clients, which was country. an undeveloped market in Angola. We can focus on the financial capital One factor that has helped BESA stay but also human. I believe that the contribu- ahead of the competition has been a strong tion cannot be devalued. Regarding finan- focus on advanced Information Technolo- cial support, China has been a very impor- gy. tant partner because in difficult times they We bet on a single information system, were there to help our country out. deployed in the world’s best banks, called Flexcube. It is Indian and its largest share- What is the greatest attraction of the holder is Oracle. Its parameterization took Angolan economy in the eyes of a Chinese two years and was extremely expensive but investor? it will last for many years, giving a lot of Angola is a country with a very large re- confidence in our business. We were thin- turn probability. The Angolan government’s king of the long term and this investment fulfilment to its international actions, such makes a difference. I believe that it has as debt payment, shows its commitment to paid off, and from now on we will see the its financial obligations. Any investor knows results. how to analyze and appreciate this, even in a country where the return on that in- BESA is one of the Angolan banks vestment is potentially larger than in most with a more international vision, not just countries in the world. because it forms part of an international The entrepreneurs have been proacti- group but also for its strategy. What is ve in investing in countries like Portugal or your vision? Spain. We are ready to invest in any market This international perspective has to that is open to Angolan investments. be limited to the area which Angola forms Our relationship with China is not just a part of. An Angolan bank does not lead to limited to the relationship between states; added value markets such as Europe or the some Angolan companies are going directly United States, for example. to China to create partnerships. We can influence markets with very weak banking systems such as Congo- You had a long career at BES in Por- Brazzaville and we can have partnerships tugal before coming to Angola to expand with countries such as South Africa, but the bank’s operations. Why did you accept nothing beyond that. Any kind of approach this challenge? to other markets will not bring value to I worked in BES for over 20 years. shareholders. For example, U.S. commer- When I arrived here, there was only one cial banks have never been able to deploy office with a two or three people. It was in Europe, and vice versa, except through both a great challenge and responsibility; acquisitions. It is very difficult for a bank to there was a lot of expectation from the sha- “The stock exchange will enable Angolan settle in another market. Moreover, we al- reholders. ready have our shareholders, and therefore I am Angolan but I had never worked companies to finance themselves without I believe that our strategy is based on the here because I went to Portugal to study internal market. and started working there. There was still a having to go through banks. It will diver- civil war when we began to assemble BESA, In 2009 BESA was named “Bank of and many uncertainties. In the beginning, it sify investors’ savings and attract foreign the Planet” in recognition of its efforts in was very hard to combine all this. But with communicating messages of social respon- great confidence in the team and their own sibility and sustainable development. motivations, we made the bank a success capital to Angola. This will help bring It was of great importance. Being an here in Angola. African bank, we had already been elec- increased economic development to the ted as the best bank of sub-Saharan Afri- What final message would you like to ca by World Finance magazine, and it is convey to the readers of China Business country” with great pleasure that we are also ‘Bank News? of the Planet.’ We have had two other very I want to encourage Chinese private important distinctions. One by the UNHCR investments in Angola, which are very wel- Alvaro Sobrinho, (United Nations High Commissioner for come. The Angolan entrepreneurs and we, CEO of Banco Espirito Santo Angola (BESA) Refugees) with a United Nations program as a bank, support this partnership and ex- whose greatest success took place in Angola change. Oriental News ANGOLA Boosting African connectivity

uAngola is investing millions to make its require that people have broadband access network that will link countries in southern with the WACS network, it will benefit from ICT market one of Africa’s most competitive “We want everyone which will only be possible if we make inves- Africa, western Africa, and Europe. these services. Furthermore, the private sec- tments in infrastructure,” says Jose Carvalho With a design capacity of 5.2 terabits per tor will also receive a boost through reduced to have access to da Rocha, Minister of Telecommunications second (Tbps), the 14,000 km long fibre optic communications costs and greater efficiency. The African mobile market is now second and Information Technology. submarine cable system will enable seamless Analysis from Frost & Sullivan indica- only to Asia’s. Within this market, Angola is Improvements within the sector aim to connectivity into the rest of Europe and Ame- tes that the mobile communications market making tremendous progress in the area of telecoms and we create an ICT infrastructure to withstand diffe- rica. This remarkable capacity is more than the earned revenues of $8.8 billion in 2010, and information and communications technolo- rent quality services and offer affordable prices total of all the other undersea fiber-optic cables is expected to climb to $15.2 billion by 2015, gy (ICT) development, particularly in mobile are counting on to the population. that currently service South Africa added to- driven by an increase in the number of subs- communications. With a penetration rate of With efforts focused this direction, the gether, and would theoretically permit one to cribers. 57% in 2011, Frost and Sullivan Research Ser- private partner- Minister says: “Today we pursue the goal that download over 8,000 DVDs per minute. Minister Carvalho highlights further vices forecast growth opportunities in the mo- everyone in Angola may have access to tele- Leading the WACS project is an unpre- sectorial developments focused on Angola’s bile sector in coming years. ships to make it communications. We are aware that it is not an cedented consortium of leading international labor pool: “An Institute of Information Tech- In Angola’s drive to rebuild its economy easy challenge and therefore we are counting telecoms companies, which include Angola Te- nologies is under construction. Its pedagogi- after the civil war, the country is investing on private partnerships to make it happen. lecom, Broadband Infraco, Cable & Wireless, cal part is already prepared.” heavily in this sector. It is estimated that since happen” That is why we are about to open the market MTN, Telecom Namibia, Portugal Telecom, So- Mr. Carvalho considers that investments 2006, Angola has invested around US$800 mi- for more investors.” telco, Tata Communications, Telkom SA, Togo in IT services need to be supplemented with llion towards setting up a telecommunications In the Internet segment, the market is Telecom and Vodacom. investments in IT skills. “We are currently pre- infrastructure. Jose Carvalho da Rocha, growing, but growth is less robust because of The cable – expected to be ready for com- paring a training center that will allow us to “We know that increasingly with the in- Minister of monopolistic pricing of international band- mercial service during the first quarter of this update the knowledge of professionals in this tegration of services and technologies people width. This situation, however, will not persist year - has been designed to support present, area,” he said. want to see the data, voice and video services Telecommunications and much longer because of the West Africa Cable and future, Internet, e-commerce, data, video And rightly so: a new technological era is running on their devices which of course will Information Technology System (WACS), a new submarine fiber-optic and voice services. So once Angola links up coming of age in Angola. Angola Telecom: shaping the future

uAfrica is more connected to the rest market despite close Unitel competition. Mobile operators had such an impact cation networks, aware of the driving effect of the world than ever before, following Angola’s growing number of mobile on the expansion of the telecommunica- international cooperation has on sustained years of unprecedented change in the te- subscribers – registering 8.9 million in 2010 tions industry in Angola that technological economic growth. lecoms sector compared with 6.8 million in 2008 – results developments placed fixed line commu- Angola’s is undoubtedly an attractive from increasingly cheaper access to mobile nication access and its infrastructure on a market, full of potential in the telecommu- data. second level. The launch of 3G services and nications sector and is quickly becoming With a population of over 13 million Telecoms markets have a guaranteed videoconferencing translated into a signi- one of the top markets of China’s targets. people, the overriding thirst for connecti- impact on economic activities these days, ficant increase in the use of data services, Many foreign investors, China in par- vity in Angola’s mobile telecommunications with information technology playing a pivo- boosting market demands even further. ticular, have already set their targets on market has sparked off radical development tal role in the development of any country, To optimize its clientele services AT re- Angola’s unexploited telecommunications and competitiveness within the sector. by facilitating and bringing businesses clo- cently underwent corporate restructuring, market. Market experts have described the Now one of the fastest growing eco- ser together. Angola is no exception. and has now reoriented its efforts towards relationship between the two countries as nomies in the world, Angola’s was a clo- As the use of cellular communications expansion, with the objective of competing one of mutual benefit; Angolan’s gain ex- sed market for many years. Following the broadens through to the banking and shop- with the likes of Portugal or France Telecom perience and know-how from the Chinese, government’s decision to open the industry ping sectors among others, Frost & Sullivan within a decade. while their country’s infrastructure is ex- to competition, growth in the telecommuni- forecast that Angola’s mobile communications Though the industry remains regu- panded and upgraded. China, on the other cations industry was immediate. market revenues will almost double by 2015. lated, Angola’s Ministry of Telecommuni- hand, continues to expand its business with In 2009, Angola Telecom (AT), the The report details that the market earned re- cations and Information Technologies is valuable contracts. country’s principal telecommunications venues of US$8.8 billion in 2010 and estimates keen for foreign assistance in rebuilding China’s growing presence in Africa is company, invested a hefty US$102 million this figure to reach US$15.2 billion in 2015. the country’s infrastructure and communi- understood by some as part of a broader into modernizing its fixed-line infrastructu- strategy to expand its global standing and re in the eastern part of the country, which obtain new export markets to feed its rapi- had been greatly affected by the renewed dly expanding economy. outbreak of war in the mid-1990s. A deve- Besides developing international part- lopment designed to complement the fiber- Angola Telecom is fully committed nerships, Angola Telecom is fully commit- optic network is being rolled out along the ted to its social responsibilities within the country’s western border. country. These include sponsoring public This development aims to support the to its social responsibilities, such as and private health, education, environment, growing presence of mobile phones in the culture and sports institutions. country as, with this backbone, it will extend sponsoring public and private health, Angola Telecom is aiming for success, its reach to even the most remote areas. by providing Angolan society with tele- Established in 1992 as a result of a education, environment, culture communications services of international merger between Enatel and Eptel, AT ins- standard for the social and economic de- talled the mobile-cellular service in Luanda and sports institutions velopment and the welfare of the Angolan in 1993, and has since then dominated the people. Feliciano Antonio, Chairman of Angola Telecom Connecting Angola, connecting the world

uAs Angola’s telecommunications employees is one of the most pressing is- sector steps into the limelight, MS sues, MS Telcom prides itself on a highly Telcom is focused on developing the educated and qualified workforce, with most qualified workforce to ensure the between 50 and 55% of its 220 workforce country’s future. possessing higher education qualifica- tions. It also boasts the youngest workfor- ce within the Sonangol group, a good in- When MS Telcom started operations dicator of its strong potential for growth. in 1999, the company’s top priority was While recognizing the importance of to resolve Sonangol’s internal communi- recruiting and training local talent, the cation problems. Decades of war had ra- company also offers positions to interna- vaged the country’s telecommunications tional graduates from the U.S., Portugal, systems and it was proving impossible for South Africa and the U.K., and conducts an ever-expanding corporation like So- extensive on-the-job training and for- nangol to operate efficiently without basic mation as well as sending its employees communication tools. “Outside Luanda, on training courses abroad to China and it was impossible to make a connection. Brazil. Communications were made by sending a MS Telcom is a good example of the disk, once a month,” reminisces Dr. Alber- potential of collaboration and partners- to Serafim Araujo, President of the Execu- hip between Angolan and Chinese com- tive Commission of MS Telcom. panies, especially in the ICT sector – one Once MS Telcom had created an effi- in which the Chinese are particularly ad- cient telecom network for Sonangol they vanced. In 2003 MS Telcom became Chi- started offering their services and excess nese giant Huawei’s first client in Angola transmission capacity to other operators. for equipment and hardware. Since then One of their main customers became the Huawei has expanded its presence in the biggest mobile operator in Angola, Uni- African country considerably. MS Telcom tel. Thanks to this diversification of client also signed a contract with the Chinese base they have become the number one company for the nation-wide installation satellite operator in sub-Saharan Africa, of the Wimax network and works closely with 450 MHz of capacity in different sa- with Hong Kong-based NWT. tellites. The company’s contact with the Chi- In a country where qualified workers Dr. Alberto Serafim Araujo, President of the nese market is not limited to equipment are hard to come by and the formation of Executive Commission of MS Telcom purchases and contracts. On a yearly basis, MS Telcom sends eight workers to the Huawei formation center in Shenzen for technical formation courses. Regarding the company’s future, Dr. Araujo envisions MS Telcom as “the market leader in services to the oil sector and at the same time among the leaders in Internet communications.” He bases these objectives on a flexible, dynamic corporate structure which will be able to adapt to the ever-changing ICT sector while keeping apace with technological developments. Regarding the overall status quo of the country, in Dr. Araujo’s opinion “An- gola is still far from what it should be. The country has huge potential.” He feels more focus should be placed on the pro- fessional formation of the population to create a powerful labor pool. “We could have the best universities and hospitals in the world, but if we do not have human quality to manage and teach it will not be- nefit us,” he adds. As one of the fastest growing markets in Angola, the Telecommunications sec- tor is fundamental to the country’s future prosperity. “We want to grow and always add a great quality to the market. Nobody will invest in Angola unless we have re- liable communications. Communications MS Telcom employees are highly qualified and use the latest technologies are essential,” concludes Dr. Araujo. Oriental News ANGOLA Talk isn’t cheap At the forefront of the Angolan

uMovicel is keen to develop its tele- communications services, and is spending telecommunications sector a billion dollars in the process u Carlos Brito, Deputy Managing What about the transition of What measures is Movicel taking Director of Movicel, comments on the CDMA to GSM? to make its workers grow professio- In 2011, the African mobile market company’s revolutionary transition to It is already public knowledge that nally? overtook Latin America to become the the GSM/UMTS network we offer a GSM/UMTS network, which We are planning to offer training world’s second largest mobile market, will work simultaneously with the in collaboration with external bodies, second only to Asia. Angola’s Movicel re- CDMA system that we are currently namely national and foreign universi- cently injected US$1 billion into projects How do you evaluate telecommuni- using. There are regulations for us to ties. I can say that the number of fo- of expansion and modernization initiated cations in Angola in the last few years? return the CDMA frequencies we have reigners working for Movicel is lower in 2009, and expected to last five years. The country is changing in different today. compared to other telecommunication These initiatives include the company’s sectors, particularly in telecommunica- The GSM system gives us great companies, because we want the com- transition to its new GSM/UMTS network tions where the services available to satisfaction that we don’t have with pany to be controlled by Angolans. So from CDMA technology. citizens and companies are the modern CDMA, such as roaming, high-speed it is necessary to recruit people that In December 2011, Movicel launched means of telecommunications that we communication, etc. This places us on the country is educating, and in large the system in Saurimo City, in the eastern can find in most developed countries. the path of great technological innova- numbers. On the other hand, it is ne- Lunda Sul province, guaranteeing custo- Today, it is possible to pay by bank card. tion, leading to our network, which is cessary to train our workers ourselves mers a smooth process of conversion. “It The networks are developing very the newest in UMTS. in areas like marketing, technical sup- is a service that for some time will work in quickly. Now the country has a huge port, and sales. line with the CDMA that we are currently system of optical fiber. It is good for What are the benefits of transitio- using,” explains Carlos Jorge da Costa Bri- us as a mobile phone operator, so we ning from one system to the other? How difficult is it to find human to, CEO of Movicel. can use this technology to connect our There is no doubt that from the resources in Angola, especially in the Telecommunication services, particu- equipment and have greater coverage market viewpoint, GSM offers a range telecommunications sector? larly in African nations, are undergoing and make an improvement to the qua- of services to companies which makes It is not easy, so there is a big de- many changes. Developments such as the lity of our service. It’s wrong to think it more interesting from the commer- mand among companies to pick the installation of the underwater fiber optic that African countries don’t have the cial point of view. With handsets, for most qualified people. We try to em- cables along the western belt of the con- same needs as developed countries. example, the variety is greater and ploy Angolans here. We participate tinent have stiffened competition in the At Movicel, we know that we should broadband market and destabilized prices. offer our customers advanced techno- Ongoing improvements such as Movicel’s logy that exists in others countries with are expected to ease Africa’s increasing de- more developed economies. And I can mand for data services. say that we are improving our network Movicel, the second-largest operator so people can get the best from their in the country, plays a major role in con- mobile phone. necting Angolan people. The investments It is estimated that Angola has it is pumping into the sector will serve to about 45 or 50% of its population using consolidate the company’s relationship mobile phones, which puts the country with customers, while helping to increase in a good position within Africa. The- market share. se numbers will grow, we are sure. The The company’s focus on new tech- number of landlines is lower, the mobi- nologies is part of a broader strategy to le is an extremely important means to improve the quality of its service, expand connect people and companies. its territorial coverage, and consolidate its Movicel is expanding its coverage with improved quality services and highly qualified personnel I also think that the telecom market position as leader of telecommunications will no longer be concentrated on voi- in innovation. sortium of Angolan companies. World Bank economists consider that ce services – data services will become “We feel that the country and its peo- The distribution remained as such: Angola has greatly improved its situation, more important. ple are in need of more and newer oppor- “Angola Telecom has 18% of the capital, and claims that the country is set to resu- tunities. The data market will grow dra- Correios de Angola has 2% and the re- me investments in the non-oil sector that What would you say is the basis of matically in the next years and will cause maining 80% belongs to local companies,” will further stimulate economic growth. this success? a tremendous change in Angola, in com- comments Mr. Brito. The benefits that mobile services In my opinion, global conditions mercial transactions and people’s lives,” For a year leading up to the major pri- have already brought to hundreds of mi- were created which enabled the possi- foresees Brito. vatization process, Movicel counted on the llions of Africans can be extended to those bility of private investment as well as The CEO’s philosophy is that support of Chinese telecommunications who have yet to connect. Movicel’s shift to public. Without this macroeconomic Movicel’s success depends on customer sa- giant ZTE as an international strategic GSM/UMTS is a move that will surely be and political integration it would not tisfaction, and this in turn relies upon the partner. This partnership consisted of te- imitated by other providers in Africa. have been possible to advance in this quality of the company’s human element. chnological consultancy and equipment By so doing, the African continent can way. It is also true that this is what the All over the world, qualified human resou- provision, as well as ZTE management. continue to bring not only communication market itself was demanding, and tele- rces are essential to the telecoms business ZTE exited the management structure services, but also improved financial servi- communication companies responded and Mr. Brito, a Portuguese national, is de- once the privatization process was com- ces, healthcare and education to its people well, though we are aware that we still termined to maintain continuous staff tra- pleted though the company continues to while boosting its economic wealth and have a way to go regarding the impro- ining throughout his mandate at Movicel. provide technical consultancy and remains development. vement of service quality. We still have Present in the Angolan market since Movicel’s main equipment provider. GSMA’s 2011 African Mobile Observa- problems regarding limitations that 2003, Movicel was incorporated as a sub- To further improve its services, Movi- tory statistics show that in the past decade have nothing to do with our own net- sidiary of the state-owned telephone com- cel remains open to international coope- mobile connections in Africa grew an ave- works. pany Angola Telecom. 2009 was a signifi- ration. “The country in general is open to rage of 30% on a yearly basis and are ex- cant year for the company; it was partially investments of foreign organization,” says pected to reach a total of 735 million by the Please describe these limitations. privatized following a transaction in which Mr. Brito. “Nowadays, every country has end of this year, compared to 620 million We face problems of electricity, 80 percent of its stakes were sold to a con- much to win with foreign investments.” connections registered in September 2011. which we take care of with our own means, though it makes it more difficult for us to offer the quality of service that we aim to provide. On the other hand, there are still some faults in the mecha- nisms that interconnect our systems.

What steps is the government ta- king to attract foreign investment? The government and the regent ins- titution have created the conditions for normal activity without hindering the activities of players of the telecommu- nications market while simultaneously demanding an improvement in the qua- lity of services. But this situation cannot be resol- ved overnight. Nonetheless, I am sure that it is a worry of all operators, Movi- cel particularly. We feel that we have to continue taking significant steps so that we continue improving.

What would you like to see imple- mented in the system, in terms of tele- communications, to make it easier for players in this sector? There are still some issues that need to be resolved. I think that we need to “The data market will grow dramatically move towards number portability within mobile networks to increase the level of in the next years and will cause a tre- competition among operators. We have invested US$100 million renewing our network to quickly ful- mendous change in Angola, in commer- fill Movicel’s objectives of improving quality, increasing mobile coverage and cial transactions and people’s lives” guaranteeing the new services we offer. Can you please explain how Movi- Carlos Brito, Deputy General Manager of Movicel cel shares are distributed? How would describe the relationship between Mo- vicel and Telecom? Angola Telecom (AT) has 18% of the many of the more desirable phones in fairs in Europe to attract Angolan company’s capital, Correios de Angola only work with GSM. human resources. It is one of the si- has 2%, and the remaining 80% belongs Despite the huge financial outlay, tuations that the company has to deal to local companies. we don’t consider the transition of the with, but I think it will change with Angola Telecom and Movicel have a network as a technical imposition. We the development of the country. In five very good relationship. There is much see it as an opportunity to increase our years Angola will be more developed consideration for the work of Angola capacity in the mobile telecommunica- than it is now. Telecom and there is a mutual client re- tions market in Angola. lationship: at the end of the day, we are How does your international expe- their client and they are ours. With all the developments taking rience help the Movicel project? Of course, we don’t always agree on place, what challenges and opportuni- It is true that having worked for everything but we try to find points of ties would a new player to the sector several companies in many countries equilibrium that allow us to continue encounter? helps. I can say that all the companies using the interconnecting circuits AT The decision to allow a new player that I have worked for have had similar offers. to join this market depends exclusively problems. But when I arrived here, I on the government and regulatory en- saw a company capable and willing to In which area of business is Movi- tities of the sector. grow fast, and that is what happened. cel growing the most? On behalf of Movicel, all I can say We have opportunities in the bu- is that if new players appear we will Do you think that Angola has too siness and private markets. In parallel, be ready to compete with them. But great a dependence on countries like Movicel will increase its range of servi- I also have to express a personal opi- the USA, Brazil, Portugal and China? ces during the technological transfor- nion, and that is that the appearance of I think the dependence isn’t the mation that we are implementing. a new player, especially when one of us question here. Some of those countries Going more in depth in the appli- is making a great investment, does not have significant levels of investments cations of data is essential. That’s so- always translate into an improvement here but I wouldn’t say that Angola is mething that we hope will become a in options offered to clients. too reliant on them. Nowadays, every very significant portion of our revenues. Regarding attracting new clients, country has much to gain from foreign what is your strategy of expansion in investments. Speaking of services, would you Angola? say that there is much potential for We are still opening new shops in How would you describe the best services such as short message service, Luanda and other provinces, though moment of your professional life? promotional ring tones, etc, which are we are aware that despite having many I think that the best moment is yet popular elsewhere in the world? shops, our channel of distribution to come. That’s what we think here at There is a lot of potential and the- should not be concentrated in our Movicel, that our best moment is about se services will prosper as our clients own shops. There are others channels to come, while maintaining our focus are showing great interest, as much for of distribution which are complemen- on what we should do for the sake of their entertainment value – and also tary and they work direct or indirectly our customers, employees and share- because they support professional ac- to maintain our presence all over the holders. tivities. country. Oriental News ANGOLA A long way to go uAngola’s industrial sector contribu- Zimbabwe, Mauritius and other countries ducts that could be produced locally. tes only 4% to the country’s GDP, but has in the region that can absorb our products. In January, Angola’s Minister of Geo- potential for growth and development We have food, steel, wood industries, texti- logy, Mining and Industry Joaquim David les, and so on. Our Chinese partners could revealed that at least 210 new private indus- participate in this and other areas of acti- trial establishments were set up in 2011 as a Over the past decade or so, Angola’s vity. We are open to receive industries that result of investments of more than US$800 industrial sector has been benefitting want to join Angolans.” million. This created more than 8,000 jobs from the nation’s push for economic di- As the world’s biggest consumer of and the expected growth last year of the versification. The negative affect the global energy, China has been striking up deals country’s manufacturing industry was bet- economic crisis had on oil and diamond around the world to secure supplies to fuel ween 12.9% and 17.8%. demand and commodity prices has ser- its economic growth, paying particular at- In addition, Mr. David also announced ved to highlight the need for economies tention to Africa. Often exchanging petro- the revival of the country’s textile industry, like Angola’s that depend heavily on such leum and raw materials for infrastructure with the rehabilitation and equipping of commodities to invest more heavily in development, China’s voracious appetite various companies, including Textang II in varying their economic base. As such, in- for minerals and oil has helped Africa make Luanda, Africa Textil in central Benguela ternational investors are being increasin- major inroads into developing its infras- province, and Satec in northern Kwanza gly urged to take an unblinkered view of tructure. This in turn has spurred rising Norte province. The Minister also spoke of the opportunities that abound in Angola demand for in construction materials, such the revitalization of the cotton industry in and look beyond the options on offer in its as cement, ceramics and paints. Chinese northern Malanje province. dominant petroleum and diamond mining companies are involved at all levels of the The Minister also spoke of develop- industries. construction industry, from repairing roads, ments in the construction material industry “Angola is in a very important moment railways and airports, to building football will include the setting up of 13 new ce- in terms of industrialization, because with pitches, schools, hospitals and government ramic plants and seven factories of paints the global crisis, the Government is com- offices, and even creating entire new resi- and varnishes, as well as plans to boost the mitted to diversifying the economy,” says dential suburbs. steel industry, sugar production and flour Kiala Ngone Gabriel, Secretary of State for “We need people to be aware of China’s processing to guide Angola toward self- Energy and the former Deputy Minister participation in the building of infrastruc- sufficiency. for Industry. “So far, the industry sector ture to the country,” says Mr. Gabriel. “An- has had a minor contribution to GDP of gola is changing, and new infrastructure around 4%. We would like to see this con- could change our industries. Today, agricul- tribution increase, reaching 20% to 25%.” ture is regaining its production levels. The Oil production and its supporting ac- mining industry is continuing to develop tivities contribute around 85% of Angola’s its activities, and the secondary sector also GDP, and diamond exports contribute an needs to take shape with the introduction additional 5%. Although this means a huge of manufacturing industries. These indus- source of revenue for the State, the gover- tries require technology, which comes with nment is also acutely aware that this is not partnerships.” sustainable in the long run. The resource- One of Angola’s companies that is ma- rich republic has ample reserves of other king headway in regaining its pre-war glory valuable commodities for export, including is the state-owned manufacturer of plastics coffee, sisal, fish and fish products, timber, and packaging, Empresa Nacional de Espu- and cotton. However, these resources are mas e Plasticos de Angola (ENEPA). In its not currently being maximized as they heyday, during the 70s and early 80s, ENE- could be. PA was one of the largest and most modern The primary concern for Angola is conglomerates in Africa. that its resources are exported in a raw sta- “In the past, our country had a lot of te without being processed or transformed weight in the African continent and our within the country – without the added va- plastic industry was a well-developed sec- lue that would benefit the country’s trade tor,” says Francisco Cabral de Sousa, Ma- balance. This is one of the fundamental ob- naging Director of ENEPA. However, the jectives of stimulating the national indus- company’s operations suffered a great deal trial and manufacturing sector. during Angola’s 27 years of civil war. “We have the potential in terms of “Our philosophy has always been ‘do natural resources,” says Mr. Gabriel. “We not stop’,” says Mr. Cabral de Sousa. “The want to diversify our economy, adding great contribution made by our generation value to these resources, because a coun- was to keep watch and ensure the industrial try that lives on the imports of finished sector’s torch remained lit. Many factories products and exports of raw materials or The lack of a developed industrial sector means that Angola exports raw materials that are manufactured into various products that are then imported into the country at high prices have stopped for many reasons, but we kept minerals without added value, is a country going in order to not stop until the country condemned to underdevelopment. There is na being Angola’s second biggest source of le country, with extensive water resources, development, such as wood exploitation, could enter a phase of growth and develo- “Our philosophy no developed country that does not export imports (14.3%), followed by the U.S. (9.2%) so it makes little sense for it to be currently construction materials manufacture, me- pment.” products with added value or high value. and Brazil (6.8%), according to the Econo- importing almost all food goods consumed chanics, steel, aluminum and fertilizers. ENEPA always recognized that it was This is our goal: to get out of this phase of mist Intelligence Unit. in the country. One of the obstacles to de- “We need to develop these types of indus- essential to maintain the technical skills has always been being a primary economy and become a The Ministry of Industry’s aim is to veloping a strong agriculture sector is the try, and we want our Chinese partners to and know-how of its workers and manage- transformation economy.” reduce imports in a competitive manner widespread presence of landmines in rural collaborate with us on a basis of mutual ment. It sent staff overseas for professional ‘do not stop’... Another key issue is that, because of the by creating a solid industrial sector that areas, a tragic legacy of the civil war. Despite advantage,” says Mr. Gabriel. training courses and to keep up to date with lack of a developed industrial sector, Ango- will be able to satisfy national demand and such problems, the Ministry of Industry is China has become Angola’s num- the developments within the plastics indus- Our generation la relies heavily on imports of a wide range eventually start exporting finished Angolan determined to facilitate the conditions for ber one trading partner. In 2010, 42.8% of try. Management’s trips abroad even during of products, from basic daily essentials and products, processed from Angolan raw ma- food-processing industries looking to set up Angola’s exports were bound for China, fo- the toughest years of conflict were also es- kept watch and consumer products to construction mate- terials. business in Angola. llowed by the U.S. (23%), India (9.5%), and sential to network and keep in touch with rials and cars. Portuguese-made goods head Within this context, one priority is the Various other sectors have been France (4%). European contacts. “We have suppliers in the import league table at 17.9%, with Chi- reduction of food imports. Angola is a ferti- highlighted by the government as ripe for “Today we are speaking about the Chi- Western Europe (France, Germany and ensured the indus- nese and American markets as our priori- Portugal) and we regularly went to industry ties for exports,” says Mr. Gabriel. “China’s shows to talk to our suppliers and participa- trial sector’s torch market is very large and we need large te in seminars,” says the MD. quantities and quality. Angola has a very The government is implementing a remained lit ” important location, being the ‘main gate’ variety of measures to stimulate industrial Grupo Antonio Mosquito to the Southern Africa Development Com- production, among which the installation munity region (SADC), which holds 250 of industrial development hubs in every million consumers. We also work on a com- province of the country. It is also encoura- Francisco Cabral de Sousa, plementary basis with South Africa, a coun- ging national production through import Managing Director of Enepa From diversity to charity try that is already industrialized, as well as duty and tariffs, by increasing tax on pro-

uThis group is propelling develop- ment through its business activities and social contributions

Grupo Antonio Mosquito (GAM) is one of the most important private groups in Angola today. Operating in oil, automotive, economy, banking and construction, GAM is a prime example of how Angola’s eco- nomy has been able to solidly diversify in the past few years and lay the fast-develo- ping foundations for growth in partnership with strong investors. The story of the group’s founder, Anto- nio Mosquito, runs parallel to that of Grupo Antonio Mosquito. From humble origins in the Huambo province working in the family businesses, Mr Mosquito – an hono- rary consul to Austria – then expanded his activities into more diverse, and lucrative, sectors, before he eventually established the holding company in order to organise and better manage the group’s many diffe- rent companies. Today, it could be said that GAM’s tour de force is Falcon Oil, Angola’s sole wholly privately owned oil company. Having suc- cessfully worked with global oil giants like Esso, Petrobras, Total and Eni, Falcon Oil owns a share in Angola’s Blocks 33, 18/06, 17/06, 15/06 and 6/06. Furthermore, the indigenous oil company is in talks to soon expand operations outside the country. CCL-Civil is GAM’s construction com- Antonio Mosquito, President of Grupo Antonio Mosquito pany. Created in 1992, it works hand in hand with the Angolan government in its recons- tion company Odebrecht. Horacio Mosqui- has a firm belief in Angola’s potential and truction efforts. The company has recently to explains, “In real estate, we will partner in education and training as the vehicle to been commissioned to build 50,000 units with other companies, but in ways different deliver development. After many years of of social housing. Ongoing projects include to the current one. In the future, we will civil war, Angola has reached an era of pea- the 124km Caála-Ganda road and Riviera supply the land, the companies will build ce, thus presenting the opportunity to focus Atlantis, a beautiful compound in Luanda the structures, and the administration of on building a better education and health Sul, both in cooperation with Odebrecht the building will be a joint operation – a infrastructure. While GAM invests directly and CCL. In the automotive sector, GAM joint venture with shared profits.” in projects to help build roads, schools holds the shared dealership rights to Vo- A restructuring of the group is under and medical centres across the country, the lkswagen and the exclusive rights to Audi. way that will see GAM more firmly concen- group also makes hefty donations to the Antonio Mosquito’s son, Horacio Mos- trated and consolidated in five main areas: Catholic Missions in Angola, FESA (the quito, now runs GAM from its headquar- oil and gas, agriculture and fishing, general Fundaçao Eduardo dos Santos) and Fundo ters in Luanda. Some of the group’s future commerce, IT, and education and training. Lwini. projects will be joint ventures, including It is in the latter where Antonio Mosquito’s the development of luxury condominiums heart lies. in collaboration with the leading construc- Business aside, the Mosquito family www.gam.co.ao Oriental News ANGOLA Chinese buses keep Ready to Luanda on the move compete with

uTCUL transported ten million pel some common problems that arose with the remainder serving the Luanda kers, TCUL has a training center where the big boys passengers in 2008 – and over 26 mi- and there has been a spirit of mutual area. “Once all our routes are restored its employees are taught several courses llion in 2010 – thanks to a program of help between operators. What interests and expanded, for example with later in order to adapt them to their new po- expansion and modernization, and an us most is improving the quality of our evening services, we hope to carry more sitions.” alliance with China’s X-Motor service delivery.” than the double of the current number The government has taken a big Since 2008 TCUL has been under- of 380,000 passengers per day,” says Mr. step by purchasing buses for the who- going a period of restructuring that has Silva. “During our restructuring period le country, so that all provincial capitals Last December, the Angolan Mi- had an effect at all levels of the company. we have had some problems, but in ge- are provided with transport at interpro- nister of Transport, Dr. Augusto da Sil- The government started by injecting neral we have maintained the movement vincial, municipal and local levels. Last va Tomas, stated that the state-run bus new resources into the operator, and of a large percentage of the population year, TCUL increased the number of company Transporte Colectivo Urbano implemented a program of expansion in Luanda. The injection of new buses buses in circulation that cover routes in de Luanda, or TCUL, topped the list and modernization. It now has a fleet of spurred the creation of new jobs and areas with high flows of student traffic of Angola’s urban bus operators’ per- more than 500 buses, of which around thereby helping to lower the unemploy- to alleviate problems in returning home, formance for 2010 – by a large margin. 95 are used for inter-provincial services, ment in the city. For the training of wor- particularly late in the evening. The The capital city’s public transportation company’s drive to improve and expand company carried at least 26.6 million of its services has included the creation of the total 32.2 million passengers carried a customer call center and diversifying by the Ministry of Transport’s operators its interests into other areas, such as the in 2010. This equates to the company rental business. transporting more than 80% of passen- The private hire of TCUL buses has gers in the sector. It represents a huge proved to be popular with people organi- increase over the 10 million passengers zing special events, such as birthday par- TCUL transported in 2008 and reflects ties, weddings, concerts, tours, funerals the company’s expansion. and religious retreats. “TCUL is a company “Naturally road transportation can with quite a high social aspect,” says Mr. only develop if there is corresponding Silva. “We thought of opening up several infrastructure for this, including roads,” segments to generate additional income. It says Mario Silva, Managing Director is known throughout the world that the ur- of TCUL. “Consequently, with regards ban public transport sector does not provi- to the links between provinces, these de much profit, which means that it must connections have been almost entirely look into other ways of running a profita- rehabilitated. Here we do not have any ble business. Therefore we created a com- problem. However we have encountered mercial area to rent vehicles, for ceremo- some problems in some urban cities, nies, conferences and other events. We are mainly in Luanda, where repairs to the also promoting the advertising spaces on roads have a knock-on effect on traffic our buses and of course the interprovincial Filomeno Mendonca da Silva, President of the Executive Board at Secil Maritima circulation. But as soon as these upgra- expansion of the company; these areas are des are complete, the urban and subur- real assets to our business.” ban areas benefit from much improved So how much are Chinese compa- uOnce close to bankruptcy, state- national partner, who will not only be a transportation systems. nies involved in the revival Angola’s ur- owned Secil Maritima can become a strong asset for Secil Maritima in terms “The impact of the National Re- ban transportation sector? “With regard major player in international shipping of know-how and experience, but also, construction Program has been huge to technical assistance with the fleet crucially, in terms of financial stabili- because the infrastructure being rebuilt that we have, we are working with the ty. “We are in a good phase, with much across the entire country has enabled suppliers of the buses. We have esta- A flagship company in the Angolan effort and courage being applied,” he much more efficient movement of peo- blished a contract with the representa- shipping sector, state-owned Secil Ma- says. “We are getting things organized.” ple and goods. So today it is possible tive of China’s X-Motor, and we hope to ritima specializes in providing maritime Mr. Mendonça da Silva’s ambition to go to places where we could not go sign contracts with other brands,” says transport for goods and passengers along for Secil Maritima is to see the company before, which has been particularly be- Mr. Silva. “In addition to technical as- the Angolan coast. Its roots can be traced offering efficient services and competiti- neficial for the economic development sistance, training, and health care, we back to its launch as a private company ve prices to compete on an equal footing of the agricultural sector. It is now still have to consider the possibility of in 1954, later being nationalized in 1987. with large international shipping compa- possible to travel across the country having other services.” It is responsible for the transportation of nies such as Maersk, Grimaldi and NDS. by road without any hindrance. Impro- He adds: “Overall, China’s presence all the goods imported by the State, and Given Secil Maritima’s status as Angola’s vements in infrastructure as a whole in Angola has been beneficial because operates the terminals at Lobito, Luan- state-owned shipper, the company hopes have been helping Angola’s economic we see Chinese intervention in almost da and Namibe ports. Since the signing to capitalize on this position in order for development. In terms of transport, the all fields of the national economy, and of the peace treaty in 2002 the company its vessels to be given priority when arri- rehabilitation and construction of new in our case most of the fleet we own is has been steadily increasing its shipping ving at the nation’s ports. infrastructure has been very beneficial. Chinese. We have not had any problems activities and investing in an intensive, In addition to its core shipping acti- Although there is still much to be done with the Chinese fleet because both X- ground-up restructuring process. vities, Secil Maritima operates as a ship- in this area, it has already been facilita- Motors and our technical department New management was brought in ping agent and travel agency. It also runs ting the mobility of a large number of have been working together to resolve to Secil Maritima in November 2008, a fleet of 110 lorries offering door-to- people and goods.” some faults that were emerging. The tasked with revamping and relaunching door delivery services transporting cargo Established in 1988 and emplo- cooperation with China was a very po- an ailing company that had been making from the ports to their clients by road. ying around 2,000 people, TCUL is the sitive step by our government for the losses for years, attracting allegations Mr. Mendonça da Silva has around country’s largest and oldest operator development of the country. of poor management. When the new 30 years of experience in the maritime in its sector. In addition to running 40 “We received a delegation of one of regime took over, the company was in sector, having previously been in charge bus lines within Luanda province, it is the buses supplier’s factories that came a critical state, technically on the verge of IMPA, the maritime and port institu- expanding its reach and introducing “Overall, China’s presence in Angola to find out about the state of the buses of bankruptcy. The challenge laid before te, which acts as the sector’s regulating long-distance interprovincial routes to and from our side we gave some opi- them was to put Secil Maritima on the body. Although the company has a young, connect Luanda with the provinces of has been beneficial because we see nions in terms of position and design of right track to becoming a profitable, effi- dynamic workforce, Mr. Mendonça da Benguela, Kwanza Norte, Kwanza-Sul, the bus to better adapt to our reality and cient shipping company, competing with Silva sees the shipping business as one Malanje, Uige and Huambo. “We believe Chinese intervention in almost our roads. This is a very positive attitude the large international transporters that that requires specialized and quite tech- that these services will provide added of the Chinese company. It identifies the dominate the market, often charging ex- nical development. He believes one of value for the company and the popu- concern they have with their product, tremely high prices. the priorities the company needs to fo- lation,” says Mr. Silva. “We have been all fields of the national economy, with a view to establish long-term busi- Since the new administration took cus on is the professional development improving our effectiveness and effi- ness relationships. over, headed by Filomeno Mendonça da of its workforce. “The shipping business ciency in terms of customer service. We and in our case most of the fleet we “I would like to convey to readers Silva, President of the Executive Board is a very complex area that is in constant naturally have more vehicles than our and above all to Chinese investors that at Secil Maritima, the company has made development. It requires the expertise of competitors, and one advantage we have own is Chinese” Angola is open to collaborations both at impressive progress. Independent con- many qualified professionals,” he says, is that we operate throughout the city. the state and the private levels. We have sultants were brought in to revise the adding that human resources training Nevertheless, Luanda is a big city and its an economy that is developing in such financial as well as operational structure is a potential area for foreign collabora- population large enough to ensure there Mario Silva, Managing Director of TCUL a way that a lot of niche businesses are of the company. Mr. Mendonça da Silva tions. “This could be achieved through is room for everyone to operate. Com- opening up in which Chinese entrepre- is pleased with the rapid results achie- partnerships with companies that have petition is not a factor that concerns us neurs, along with other foreign inves- ved so far, and hopes the restructuring financial capacity and know-how. And because in our case it has been healthy; tors, could participate. We welcome any process will soon be over so that he can in this area China has many companies there have been joint meetings to dis- joint ventures with open arms.” focus on finding an appropriate inter- which would make good partners.” Oriental News ANGOLA Rebuilding a nation uAngola has responded magnificently bus service. flights connecting Luanda and Beijing. to the massive task of repairing its war-da- “Through the restructuring of the Work is continuing on Luanda’s new maged road, rail and ports infrastructure transport network, people that in previous international airport, located in Bom Jesus, years did not have access to transport, today Viana, 40km southeast of the capital. Cons- have the possibility of using public trans- truction of the project is in the hands of a Angola’s transport infrastructure su- portation, such as buses or coaches,” says consortium of Chinese companies and Bra- ffered extensive damage throughout the Dr. da Dilva Tomas. “Agricultural producers zilian company Odebrecht. The first phase 27-year civil war that ended in 2002, with in rural areas now have the opportunity of is due for completion later this year. The widespread destruction and years of neglect transporting their goods to urban areas. new airport will cover an area of almost causing the closure of most of its road and School buses are taking kids to school. 10,000 hectares and have two double run- rail networks. Faced with the daunting task The impact on the quality of life for An- ways capable of landing the Airbus A380, 12 of rebuilding the country and reconnecting golan people has been extremely positive. finger docks, 31 terminals for international its main transportation arteries, the govern- Nowadays it is easier to travel to even the flights and 11 terminals for domestic flights, ment prioritized the call for massive inves- remotest parts of the country; merchandise as well as restaurants, offices, a hotel and a tment in the rehabilitation of its road, rail, and people circulation is more fluid.” rail link to Luanda. port and air infrastructure to improve the country’s connectivity and revive Angola’s role as a regional transportation hub. Air Transport Railways “We have two important issues: ac- cessibility and mobility,” says Minister of Military insecurity in the countryside The nation’s three main railways were Transport Dr. Augusto da Silva Tomas. “The meant air travel played a major role in mo- built eastwards from the coast in colonial transport sector is strategic and basic for ving around Angola during the war. Before times, linking Angola’s key Atlantic ports Angola to reach the economical and social the April 2002 ceasefire, up to 80% of tra- to the interior. At their height in 1973 they development that its citizens deserve. We ffic to the interior was by air. Although road carried 9.3 million tons of freight, spurring want to create a transport network that will transport has since become safer following the growth of many of Angola’s main inland efficiently mobilize the whole territory and minesweeping and engineering works after towns and cities, however many were deci- Dr. Augusto da Silva Tomas, add value to the strategic geographical loca- the war, in 2007 the government announced mated during the civil war. Minister of Transport tion of the country.” plans to rehabilitate more than 30 airports In 2005 the government started reha- Most of the funding has come from and aerodromes. The first stage involved bilitating the rail system, mostly funded Chinese-backed loans and credit lines, and the US$400m rehabilitation of 25 airports by Chinese loans. The project involves where a mile of new quayside and two new although many challenges remain, enor- in 2007-08. the rehabilitation of the three main lines: terminals, including one for the hydrocar- mous progress has been made as Angola “With the renovation of airports, flights the 1,336km Benguela railway from Lobi- bons sector, have been constructed in the goes through a period of transformation. arrive earlier and to locations that were un- to to the eastern border with Zambia and past five years. “We have an intense program that Millions of dollars are being spent on upgrades the Port of Lobito, the second largest in the country reachable in the earlier days,” comments Dr. the DRC; the 479km line from Luanda to Congestion at Luanda’s port was re- includes the four main branches of the da Dilva Tomas. Malange; and the 907km Moçamedes railway nowned, but policies implemented by the transport sector,” says Dr. da Silva Tomas. After years of debt and periodically from the coastal town of Namibe (known as Transport Minister cut the queues to enter “We are also endorsing 15 public compa- Roads mission Molares d’Abril told Angolan pu- being suspended from the International Moçâmedes in colonial times) to Menongue. the port from an average of 80 days in 2009 nies, from the financial and technical points blic television, TPA, that by 2013 the target Air Transport Association (IATA) and from Construction is also expected to begin on a to just only 28 days in 2010. of view, in order for them to redefine their In 1994 Angola’s road network tota- of 14 to 16,000km of rebuilt roads would be European air space, the national flag carrier railway line linking Angola to the Namibian Also in 2010, a wide-ranging plan was strategies and implement new models of led 75,000km (46,600 miles). In 2001 it had achieved. Transportadora Aerea Angolana (TAAG) railway network (which in turn links into unveiled for expansion and development business management with efficiency, ethics been reduced to just over 51,000km, and by Also, Angola’s news agency Angop re- was finally allowed back into European the South African railway network). by private sector partners based on 20-year and responsibility. We are highly aware that the end of the civil war in 2002 little of the ported last year that, according to INEA, airspace in August 2009, following an over- concessions, which entail total investments managers must be individuals with capaci- paved network remained outside the main the country increased its network of re- haul of the company by a new management of over US$350 million. ty, competence and good leadership skills. cities. Since 2002 efforts to clear an estima- constructed roads from just 322km in 2006 commission put in place in late 2008. TAAG Ports Work on a new commercial port in Ba- This whole process cannot be done with ted seven million landmines and rebuild to 6,404km in 2010. Eight of the country’s has ambitious plans to establish Angola rra do Dande, 50km north of Luanda, has just our internal resources, and this is why roads and bridges have reopened most of provincial capitals are now linked by paved as a regional air transport hub. European As Angola is heavily dependent on im- been given the green light which will beco- the State is open to external financing, such the main arteries. road and at least 476 bridges are being built carriers flying to Luanda include TAP Air ports, its ports play a major role in its eco- me the main port of entry and exit for goods as the Chinese, Brazilian and Portuguese Over the past decade, the Angolan around the country, including provisional, Portugal, Air France, Brussels Airlines, Bri- nomic performance. Luanda, Lobito and in the country. credit lines and commercial bank loans. Roads Institute (INEA) has reconstructed permanent and metal structures. tish Airways and Lufthansa, and there are Namibe are the country’s main cargo ports, “The strategic geographical location of Furthermore, we are trying to reduce the some 6,500km (around 4,000 miles) of the Luanda is renowned for its heavy and connections to regional destinations inclu- focusing almost exclusively on imports, and Angola makes it an ideal logistical platform lack of technology and know-how through country’s 25,000km network of secondary chaotic traffic, but the government is taking ding South Africa, Namibia, the DRC, Con- activity has grown sharply since the war, for international freight and cargo, interfa- international private and public partners- and tertiary roads. Last October, the Coor- steps to decrease congestion and expand go (Brazzaville), Gabon and Sao Tome. Also, especially in Luanda. More than 80% of cing with other seaports of the region,” says hips.” dinator of the Institute’s management com- the coverage and frequency of its public TAAG is the only airline to offer non-stop imports pass through the Port of Luanda, Dr. da Silva Tomas. Chinese expertise brings the 21st century to Angola’s ports uThe China Harbour Engineering the capital Luanda in the north and Namibe In June 2008 construction started on a port’s staff. More than 30 members of the Company have been vital to the US$1.1 bi- (the country’s fourth-largest port) in the south. “Our relationship new dry port 3km from the existing port in port’s staff have already been sent for pro- llion reconstruction of Porto do Lobito The Port of Lobito’s strategic importance was order to cope with the anticipated increase fessional and technical training in China, highlighted in 2009 when excess cargo ships with China comes in cargo traffic after the reopening of the with very satisfactory results. “Our rela- queuing to dock in Luanda were forced to re- Benguela railway, which will export copper tionship with China comes from long time The Port of Lobito’s history stretches back direct to Lobito. As such, Lobito played a key and other minerals from Zambia and the ago; it is no wonder that the Chinese feel to the early 1900s, when significant copper role in resolving the congestion problems in from long time DRC through Lobito. The construction of at home in Angola and vice-versa,” says Mr. discoveries in Zambia and Zaire (modern-day the Port of Luanda, reducing overall waiting the dry port as well as a new loading/un- Gomes. “On our side we are convinced that Democratic Republic of Congo) prompted times and having a positive knock-on effect on ago; it is no loading terminal at Lobito are scheduled to we chose good friends and good partners, the need to build a transport network to ca- the final price of consumer goods. be completed by the end of 2012. and we are grateful for the help the Chinese rry the copper from the inland mining areas Activity at the port is increasing rapidly. In wonder that the Upgrades at the port represent an es- people are giving to Angola in order to era- to the coast for export to Europe. As a result, 2002, the Port of Lobito handled 300,000 tons timated investment of US$1.1 billion and dicate poverty, hunger, and lack of transpa- construction work on the huge Benguela rai- of merchandise, rising to 1.6 million tons five Chinese feel at have been executed by the China Harbour rency, because we believe that the work they lway project commenced. Meanwhile, a British years later. In 2010, it handled 2.3 million tons Engineering Company (CHEC). Mr. Gomes is have developed will help Angolans to create man, Robert Smith, pinpointed the natural and in 2011 the figure reached 2.7 million tons. extremely satisfied by the work being carried a better future.” bay of Lobito as the perfect place to build a The port managed handled 87,538 containers home in Angola out by the company. CHEC’s workers have Mr. Gomes sees the beneficial partner- port that could be directly linked to the mines last year – 9,638 more than in 2010. shown a great deal of adaptability to work ship as the direct result of President dos by the Benguela railway. The port has been undergoing a com- and vice-versa” conditions in Angola and the speed with Santos’ warm relationship with China. He In its early years, the port served mainly as prehensive program of modernization and which they are carrying out the works mean says, “When Angola wanted to organize a the arrival point for the construction materials expansion in recent years to help meet the that the port should be ready to operate at meeting of donors, Europe and America needed for the works on the 1300km (807-mile) rise in demand for its services. New machinery Jose Carlos Gomes, full capacity within the expected timeframe. did not accept. After the Second World Benguela line. Once the Benguela railway was is being installed and the port’s handling ca- “All our colleagues and friends in China are War there was the Marshall Plan. We wan- completed and connected to the other trans- pacity increased. “I would like to see the port Director General of the doing a great job. In fact I believe we would ted to do the same on behalf of Angola due African lines in the 1920s, the Port of Lobito at the highest possible level of development,” Porto do Lobito not have had the same results if we had made to the huge desolation caused by the war, started receiving the mining products from the says Jose Carlos Gomes, Director General of this alliance with European countries. I have but we did not get any support from Euro- hinterlands and officially received the status of the Porto do Lobito. “We would like to provide to say that it was the right choice, as our part- pe. The only country that showed interest commercial port in 1928. neighboring landlocked countries with access ners are very hardworking,” he says. was China, and did it through credit lines Today the Port of Lobito is the second lar- to international trade routes and see the transit The Port of Lobito’s collaboration with and the direct work efforts of its citizens, gest in the country, acting as a strategic entry of ore passing through the port boosting their China goes beyond its construction and who brought know-how and training to point about halfway down the coast between import and export levels.” upgrade works to cover the training of the our people.” Oriental News ANGOLA Cargo carrier becomes international

uUnicargas is accelerating the deve- lopment of transport within Angola

Transport plays a vital role in the de- velopment of any country, often creating the basis for growth in other sectors. The full use and development of all means of transport is crucial to maximization of a country’s potential, especially those coun- tries with strategic geographic locations, such as Angola. Intent on functioning as a logisti- cal hub for the region, Angola has set its goal of becoming the entry point for landlocked countries that border it to the east, namely Zambia and the Democratic Republic of the Congo. Air, road, rail and even maritime transport are all being developed to positively contribute to the evolution of the country’s economy. On the right track Leading an important part of these initiatives is Unicargas, the state-owned freight operator, created by the Ministry uChinese investment and technologi- new signalization and optical fiber, he said Botswana and Zambia, as well as impro- influence. “Their effect has been so positive of Transport in 1988, which has conces- cal ‘know how’ has brought swift progress he considered the works carried out by the ving traditional links with Namibia. “Even that in a much shorter period of time than sions in cargo loading and dispatch, ship- and impressive results to Moçâmedes Rai- Chinese company Hyway-Construções as in colonial times the latter was already a vi- we envisaged much more has been achie- ping, warehousing and services. lways. Now, the entire region looks set to “very positive.” The cost of entire project, tal link due to the importance of Angola in ved, much more has replaced, and with far Furthermore, the company was as- benefit…. to be concluded in March 2012, was estima- terms of cereals which has always formed greater speed and efficiency.’’ He praises signed a 20-year concession beginning in ted at more than US$900 million, funded part of the basic food for the Namibian po- Chinese technological ingenuity, and prac- 2005 to manage the multipurpose terminal by the Angolan government under the Chi- pulation,” says Mr. Joaquim. ticality: “The Chinese effect is visible in all at the Port of Luanda, which has the larg- Abel Cosme, Managing Director of The Moçâmedes Railway connects the nese credit line. When completed, the line Today’s new rail line utilizes concrete areas where the new lines are located, in est amount of incoming cargo in the entire Unicargas major seaport city of Namibe, in the very is expected to carry 2 million passengers sleepers and semi-automated spacing see- terms of new roads, new housing, new fac- country. Unicargas also operates in the south of the country on the Namibian bor- and 15 million tons of loads per year. It will dlings, and will feature a speed average of tories, schools etc. They plan well, and have field of road cargo transportation across der, with the interior regions of Huila and boost mining production and help develop 80 miles per hour. “It is a technologically an incredible ability to adapt.’’ the country, with a fleet of over 150 trucks. By undertaking these expansionary Kuando Kubango. Historically, the railway “large townships - and perhaps even major advanced railway that will bring important But Angolans have adapted too, espe- “The company has technical and op- measures, Unicargas hopes to offer ef- was always of crucial importance, in par- cities,’’ throughout the region, according to economic, social and even cultural impact cially to the idea of continued investment: erational conditions to be launched at na- ficient services throughout the country, ticular for transportation of iron-ore and Mr. Joaquim. to the population,” says Mr. Joaquim. Ango- “We must continue to invest in training, tional level, transforming Unicargas into which it hopes will encourage healthy other mining products. It was also the main With the vast majority of the Moçâ- la is a country with a “varied linguistic ta- even if the training is to take place in China a logistics company rather than a mere competition amongst private operators, system of passenger transport. During the medes work completed, the need to link pestry” and the new railway can help blend because most of the technology we are ope- cargo carrier,” explains Abel Cosme, Man- and consequentially lower the currently struggle for independence from Portugue- with neighboring regions, especially tho- cultures and open new opportunities: “In rating with is Chinese. We must also ensu- aging Director of Unicargas. exorbitant prices charged for cargo trans- se colonial rule, and then again during the se that have ports, has been underscored. this regard, the entire region will be the re we maintain the importation of Chinese The Angolan civil war destroyed the portation. “We believe that with these 27 year long civil war that followed, large Thus, investment – much of it Chinese – is winner.’’ know-how to train Angolans, and to help three main lines (Benguela, Luanda and four logistical points we can cover the parts of the Moçâmedes Railway, like the now being directed towards linking with He is very positive about the Chinese persuade new Chinese companies to invest Namibe) of the country’s once effective needs of all the country,” affirms Mr. country’s other two major railway networks in other sectors of our economy.” rail system that used to connect important Cosme. – Benguela and Luanda – were destroyed: From the Chinese, Mr. Joaquim has also seaports including Angola’s second-larg- Within the Angolan market, Uni- extensive use of landmines in the region learned to look to the future, and to envisa- est, the Port of Lobito. It is currently un- cargas is recognized as one of the big- made it difficult for reconstruction work to “I’d like to see the ge his country competing on a world stage: dergoing major transformation, as is the gest companies in the field of road cargo begin. However, incredible as it may seem, “If we manage to maintain the same level of Port of Namibe, the country’s third-larg- transportation. The company collaborates the Moçâmedes Railway never ceased wor- Moçâmedes Railway with progress, which I believe we will, then ten est, which mostly handles manufactured with private operators, providing them king: for 27 years of conflict, half of its 847 years from now I’d like to see the Moçâme- goods, food, materials and equipment for with technical and logistical support, and km route, i.e. from Namibe to Matala, was des Railway with a performance level com- the marble and granite industries. is continuously developing solutions to operational. a performance level parable with those of advanced cities such The works are intended to address ensure the entire logistics network, from Reconstruction began in earnest in as Beijing or Paris…” And why not? the sheer volume of cargo arriving to An- the point of disembarkation to when they 2005. The underdeveloped industrial sec- comparable with those golan ports daily, by ensuring the smooth reach their final destination. tor in the region dictated that much of the flow of traffic and reduced waiting times Furthermore, as the public operator, construction material had to be imported: of advanced cities such for ships. Unicargas is coupled with the added re- three factories dedicated to the produc- Since the restoration of peace in sponsibility of guaranteeing the arrival of tion of cement ties (the blocks that unite as Beijing or Paris…’’ 2002, and particularly since Mr. Cosme’s cargo or merchandise to the most remote the rails) were built. They currently have a management team took over at the end provinces; areas not considered profitable production capacity of 2,000 ties a day. The- of 2008, Unicargas has been expanding to by private operators. se factories have not only had a beneficial become a fully-fledged integrated logistics As well as the operational expansion, effect on the speed and quality of the work, Julio Bango Joaquim, operator, extending its operations across Unicargas is currently also undergoing an but have also created approximately 1,000 DG of Caminho de Ferro the country. Prior to the conflict’s resolu- internal restructuring process to maximize local jobs. tion, the company was very much limited management and operational efficiencies. During the war, activity was focused de Moçâmedes to servicing the city of Luanda and its sur- “The company’s activity was concentrated on transporting fuel, passengers and other rounding areas. on the general director. The modern man- subsistence goods, especially to the inte- As a leader in the national market, in agement is guided by team work giving rior. Afterwards, focus shifted to de-mining, 2009 Unicargas started a huge expansion responsibility to employees, each one at and to the replacement of destroyed brid- program of its activities, both technical their level,” explains Mr. Cosme. ges over keys rivers such as Chiatato and and operational, aimed at providing An- The managing director has ambitious Cuelei. It was an onerous task: “Just to give golan citizens an improved quality and plans for Unicargas, envisioning it as the you an idea of the amount of work involved, distribution of its services. leading cargo operator in all Angola, and let me explain that a 600km section of rail So as the company’s geographic being the cargo operator of choice of in- might have more than 13,000 mines,” says scope continues to grow, its develop- ternational countries importing to Angola. Julio Bango Joaquim, DG of Caminho de ments are expected to culminate in the “The intention is to join to the world- Ferro de Moçâmedes (CFM). implementation of four logistic centers in wide network of logistics or freight for- He is inordinately proud of the progress different parts of the country. warding, and we are creating the condi- that has been made: “We immediately reset The first was inaugurated in October tions so that any person who wants to the line at Jamba and Chamuteto – areas of 2010 in central Benguela, a site chosen import or export to Angola, knows that mining production that, in the colonial past, “due to its strategic position in terms of we exist and provide quality services,” he were important bases to the economy of the ports and railway,” says Mr. Cosme. Fifty says. South region.” additional lorries were purchased to fa- Mr. Cosme recognizes that Angola’s Minister of Transport, Augusto da Sil- cilitate and shorten the process of trans- reconstruction, following the civil war, va Tomas has also expressed delight at the portation within the region. was made possible in large part due to rehabilitation and modernisation works. Other centers are planned for Santa China’s support. In appraisal of Chinese Speaking (in Dec 2011) at the end of the Clara, bordering with Namibia, “due to collaboration and looking to the future, experimental trip of a CFM train, following the passage of cargo originating from He adds: “We have managed to create the total rehabilitation of the railway line, the Walvis Bay and South African ports”, and prerequisites for the development of our construction of 56 new stations, as well as a further two for Luanda and Malange. country.” Oriental News ANGOLA Customs reform cuts delays and raises revenues

uCargo clearance times are down and tax receipts are up. Reform of Angola’s customs service has been com- prehensive and effective, producing a modern, efficient operation that makes an important contribution to economic development

Amid the daily bustle of the Port of Luanda, one of Africa’s busiest seaports, customs officers strive to process inco- ming cargo as quickly and efficiently as possible. Smartly attired in blue uniforms, ties and white shirts, they know they are the public face of an organization that ex- pects them to perform to the highest stan- dards of professionalism. The officers are equipped with state- of-the-art scanners for carrying out non- invasive inspections, and supported by an information technology system that has revolutionised the effectiveness of the job they do. Angola’s customs service has under- gone an extensive process of modernisa- tion and expansion over the past decade. And with the country now among the world’s fastest growing economies, it is a timely achievement, as a massive increa- se in port traffic is expected over the next few years. The overhaul of the National Direc- torate of Customs (DNA) began in 2001. As Angola actively re-engaged in interna- tional trade following the end of the civil war, it was clear that action needed to be taken to stem the loss of potential duties and taxes caused by an outdated and in- adequate customs system. The effect on revenue receipts has been spectacular. In 2001, customs reve- reconstruction and economic progress. The up cargo inspections and proving a useful code amounted to a complete revision nue totalled just US$215 million, but by DNA works closely with the Ministry of Fi- tool in combating fraud, tax evasion and of the legal basis of the Angolan cus- 2005 receipts had increased almost five- nance, using the customs tariff not only as the smuggling into Angola of prohibited “At this point we can disembark toms system, replacing outdated customs fold to just over US$1 billion. By 2007, an instrument for increasing government goods. legislation – some of which dated back they had doubled again to more than revenue, but also as a means of boosting so- The establishment of intelligence and any commodity within about to the 1940s – and bringing Angola into US$2 billion. Even more remarkably, the cio-economic development and investment investigation units has strengthened en- line with modern international practices. increases were achieved despite duty rates within the country. forcement. Joint teams of customs and fis- 48 hours, compared with the It has led to greater transparency and being cut on imported goods seen as con- The transformation of the service has cal police officers carry out unscheduled provided a firm foundation upon which tributing to the development of domestic been brought about with the help of UK- checks for operational irregularities and further revenue enhancement could be production. based international consultancy Crown smuggling. A specialist valuation and clas- 20 days previously, which reduces achieved. “There are two factors that have con- Agents, who were engaged to work with sification unit is tasked with accurately “It should be emphasised that we tributed to this increase,” says Dr. Silvio the DNA on the modernization process. identifying and evaluating commodities costs for all parties involved are complying with international stan- Burity, the DNA’s Director General. “One They recruited an international team of and apportioning tariffs, and a post-entry dards,” says Dr. Burity. He says the DNA is that with the advent of peace, the volu- experts from Australia, Brazil, Denmark, audit team identifies high-risk consign- in the import process” is “extremely satisfied” with the results of me of external trade increased considera- New Zealand, Norway, South Africa, ments and importers. the modernisation programme. Looking bly. The other relates to the improved effi- Sweden and the United Kingdom to give Huge investment has been put into ahead, the directorate’s challenge is to ciency of our services and effectiveness in Angola the benefit of a wide range of cus- human resources in terms of training, Dr. Silvio Burity, Director General of Angola’s become “an institution of reference” with collecting taxes from importers.” toms systems from other countries. mentoring and coaching. Consultants have one of the best customs operations of the Clearance times at Angola’s ports A key part of the upgrade has been worked alongside Angolan senior and National Directorate of Customs countries in the SADC. used to be measured in weeks, or even the introduction of new information tech- middle managers, as well as supporting The World Customs Organisation has months. Now they are measured in hours. nology in the form of computerised cus- operational staff in day-to-day activities. also declared itself impressed, observing: “At this point we can disembark any com- toms processing and risk management, The properly trained and monitored “Today Angolan Customs has a modern modity within about 48 hours, compared which has boosted the service’s ability to frontline staff make an important con- terms of employees’ relationship towards A major step forward was made in management that establishes priorities with the 20 days previously, which reduces control the flow of goods and revenue. tribution to the service’s new image, and the customers.” 2007 when Angola became the first mem- and balances control and facilitation of costs for all parties involved in the import A US$43 million deal to supply and reassure the business community and the Steps have also been taken to protect ber state of the Southern African Deve- international trade effectively. It is a very process,” says Dr. Burity. maintain non-invasive scanners and train public that they are being treated fairly. the rights of importers, who can present lopment Community (SADC) to publish functional Customs administration with In addition to achieving greater opera- staff in their use was signed with the Nuc- “We have paid special attention to claims and complaints to the National Te- a consolidated customs code. well defined and standardised procedu- tional efficiency at the country’s points of tech hi-tech company of China in 2007. ethics and integrity,” says Dr. Burity. “We chnical Council for Customs Protection if Described by Dr. Burity as “a stage res and a high degree of satisfaction, mo- entry, the improved service has had a larger The scanners have been crucial to the felt that to improve our image, we had they disagree with the handling or catego- of enormous relevance in the process of tivation and commitment from officers beneficial effect, contributing to national DNA’s improved performance, speeding to improve our mentality and quality in risation of their cargo. legislative reform for the sector”, the new for the modernization process.” Oriental News ANGOLA Diamonds are forever – but mining must diversify

uThe full extent of Angola’s mi- neral wealth is only now being pro- perly charted, and Luanda is keen to attract private investors to exploit it

With more than 10 million cou- ples marrying every year, China’s wedding market is booming – and that is good news for Angola. For when young Chinese couples gaze at diamond rings in jewellery shop win- dows they invariably see gems expor- ted from the African state. China, which is the second largest consumer of diamonds in the world, has overtaken the United States as Angola’s best customer for diamonds, many of which end up on the fingers of Chinese newly-weds. Angola is the world’s fifth largest producer of diamonds by value, ac- counting for approximately a tenth of the world’s supply. Around 70% of its diamonds are considered to be of gem quality, and a further 20% of near-gem quality, with the remaining 10% for industrial use. However, Angola could easily oc- cupy an even more prominent posi- tion in international diamond trading if its reserves were more fully exploi- ted. Most of the diamonds are to be found in the northeastern and central regions of the country, notably in the provinces of Lunda Norte and Lunda Sui. Taking into account both kim- “We have to re-establish the place of Angola’s mining berlite and alluvial fields, reserves are put at between 180 million and sector in the international arena and as a real contributor 200 million carats. But it is estimated that more than half the potential for in the national economy. For that we must open the doors diamond mining remains untapped. That’s not to say that diamonds and create new environments for the private investor” occupy a less than glittering place in the economy – far from it. After oil, diamonds are Angola’s best friend. At current production rates of around Mankenda Ambroise, 8.3 million carats per year with an ex- Secretary of State for Geology and Mining port value in excess of US$1 billion, they are the country’s second largest earner of foreign exchange, and ac- 1979. State-run companies still con- Meanwhile, prospecting for cop- Mr. Ambroise says it will make an try has a cement deficit of around “We have to re-establish the place of count for 98% of the mining sector’s trol most concessions, but private per is also underway; copper produc- important contribution to the pro- 4.2 million tons per year but hopes Angola’s mining sector in the inter- 12% contribution to GDP. Output is companies have become increasingly tion once ranked second to diamond cess of national reconstruction, ope- to raise national cement production national arena and as a real contribu- expected to rise this year. active in the decade since the end of production in Angola. The giant Bra- ning a “new page” not just for mining to rise by 2013 or 2015, reducing the tor in the national economy. For that This heavy reliance on diamonds the civil war, seeking joint ventures zilian company Companhia Vale do but also for other sectors of the eco- need for imports. we must open the doors and create has its dangers, leaving Angola vul- with the national players like Endia- Rio Doce CVRD is reported to be ex- nomy involving land use. “In parallel, we have a program to new environments for the private in- nerable to external market forces. ma, the state-owned diamond mining ploring for copper, cobalt, gold, nic- He stresses the important contri- combat hunger and poverty for which vestor.” This was demonstrated all too clearly company, and Ferrangol, the state kel, phosphates, and platinum-group bution the mining sector has to make we have to produce internally. The Joaquim Duarte da Costa David, when the plunge in diamond pri- iron ore company. metals through its Angolan subsi- as a driver of industrial development mining sector is called upon to assist Minister of Geology, Mines and Indus- ces resulting from the global finan- The Catoca diamond mine, for diary, Vale. and economic diversification, for by improving the soil quality of the try, says that with the right combina- cial meltdown almost closed down example, the fourth largest diamond Adeo Neto, General Director of example by providing construction country, making it more fertile from tion of legislation, peace, joint ventures Angola’s diamond industry, forcing mine in the world, is owned by a con- Angola’s National Geological Institu- materials for home building and fer- the use of the agro-minerals in ferti- with the private sector and financial the government to relieve the sec- sortium including Endiama, Alrosa of te, says the country needs help from tilisers for food production. lizer production.” and technological support from foreign tor by purchasing Angolan diamonds Russia, Odebrecht of Brazil and the outside and is open for cooperation. Angola’s national reconstruction According to Mr. Ambroise, the partners, the mining sector could equal above market prices. Diamond Finance CY BV Group. En- “Angola will develop geological programme aims for the construction biggest challenge the industry fa- the level of development of the oil sec- Since then the industry has been diama, which controls all the diamond and mining studies activities in part- of around 1 million homes. The coun- ces is the need to change its image. tor within 15 to 20 years. on the mend – assisted by steadily ri- concessions in the country, has set up nership with foreign companies that sing demand from China. cooperative relationships with many can collaborate with us. We are open Of course, the answer to over- Chinese companies and is reported to to whatever form of cooperation, pro- reliance on a single mineral product be on the lookout for more Chinese viding that it’s done on the basis of is to diversify the mining sector into partners to take part in exploration, mutual understanding. We want to other potentially rewarding sub-sec- production and distribution. develop more activities and more co- tors, such as metals and phosphates. A new mining code came into llaboration with other countries.” A gem of a company And there is plenty of scope to force in September last year, pulling Current mining operations in An- do so. Angola is rich in mineral re- together various legal provisions and gola are believed to represent only a sources other than diamonds. Indeed, procedural and regulatory principles fraction of the country’s full poten- u CMS, a progressive, international tion in Angola was affected; the govern- studies indicate that the country’s covering mining activities, and pro- tial. Most of the national territory is mining company not only has impressive ment was forced to intervene. In 2009, it landscape contains 35 of the 45 main viding clarification for potential in- yet to be surveyed. “Our knowledge resources and profits, but also re-invests implemented a strategy by which it gua- commercial mining products. vestors. of Angolan territory in terms of its in its workers and in educational initiati- ranteed to buy diamonds from national Prominent among these are fe- Mining for iron ore is being de- resources and potential for mining ves throughout the Lunda Sul province producers above the market rate, in order rrous metals such as iron and man- veloped by a public-private partner- is still at an incipient stage,” says to minimize losses. CMS however, whilst ganese, base metals such as lead, ship between Ferrangol and the An- Makenda Ambroise, Secretary of Sta- reducing output slightly, took it own mea- zinc and copper, and precious metals golan private mining firm AMR. They te for Geology and Mining. The Catoca diamond mine, the fourth sures against the price slump; stock-piling, like gold and platinum. Then there have announced that from 2013 they This is being rectified with a na- largest in the world, is owned by a consor- borrowing capital, and waiting for prices are ornamental stones such as black expect their joint venture to produ- tional geology plan. Working with the tium of international interests including to pick up. It also wisely invested in new, and red granites, quartz and marble, ce around three million tons of iron National Geology Institute, which has Endiama, the state mining company of overseas relationships: in addition to phosphates, uranium, concentrate per year. According to been restructured for the purpose, Angola, (32.8% ownership); Alrosa of Rus- “In that particular crisis, China was kaolin and raw materials used in ce- Diamantino Azevedo, Ferrangol’s the government is seeking to identify sia (32.8%); Odebrecht of Brazil (16.4%); where we placed our diamonds. And it off- ment production. chairman, in subsequent years pro- the precise extent of Angola’s mine- and the Diamond Finance CY BV Group set exactly the decrease in consumption of According to the National Agency duction could rise to 30 million tons ral wealth and where the main depo- (16.8%). The mine’s production is 35 % the United States,’’ says Jose Manuel Au- for Private Investment (ANIP), these of concentrate. sits of each resource are located. gem quality, compared to a global average gusto Ganga Junior, Managing Director of natural resources, coupled with regu- Ferrangol, which last year opened The US$350 million study, des- of just 20 %. In 2009, diamonds from Ca- Catoca Mining Society. latory reforms, make the sector “ripe a new US$3 million headquarters in cribed by the Secretary of State as toca Mining Society (CMS) topped world By 2007, China was already the third for private investment”. As it seeks to Luanda, has three mining projects “ambitious but possible”, is being sales, with a net profit of $70m. In its 2011 largest export market for Angolan dia- diversify and expand the sector, the in the Huila and Kwanza Norte pro- carried out in phases over five years. annual report, CMS sales figures for the monds in terms of quantity (carats ex- government knows it needs the fi- vinces. The iron ore will be used to Dividing the national territory into previous 12 months represented approx ported), fourth in terms of income. While nancial and technological support of manufacture steel. Plans to build two four areas – north, northeast, south 78% of the total amount sold by diamond emphasizing the important role China private – mostly foreign – companies. steel mills in the province of Huila and southeast – it will involve a geo- companies throughout Angola. plays, Mr. Ganga Junior says that political The sector has been open to pri- and one in the Kwanza Norte region logical, air and geophysical survey CMS is the result of a government ini- stability, vastly improved infrastructure, vate companies since the introduc- would effectively mark a relaunching and drawing up geological and water tiative to tap the country’s vast diamond new mining legislation and more relaxed tion of Angola’s first mining code in of the national steel industry. resource maps. resources in a responsible, sustainable Jose Manual Augusto Ganga Junior, and far more supportive investment fra- manner. Kimberlitic diamonds were dis- Managing Director of Catoca Mining Society meworks have all played a role in attrac- covered in the 1960s, but due to political ting foreign interest. Overseas investors, instability the process of exploration and 1998, but suitable conditions in which to he says, can now operate “with complete production was delayed 30 years. Viabi- operate were not achieved until the end of peace of mind’’ because “political and so- lity studies were carried out during the the war in 2002. Shortly thereafter, due to cial risk in Angola is today nonexistent.” 1980s, but it was not until 1995 that the a decline in demand in traditionally strong He is proud of CMS’s corporate so- company was set up. Production started in markets such as the U.S., overall produc- cial responsibility culture; 80% of their sta- Rock solid investments ff was recruited locally in the Lunda Sul province where the mine is located. Most uBauxite Angola is looking for part- in two parts of Kwanza Sul province by the of these workers had few if any professio- ners to help exploit the country’s vast mi- Angolan government to prospect for bauxite nal or academic qualifications. “We had to neral wealth rock. It is also the owner of the mining rights invest heavily in training, but the results to bauxite deposits in Guinea-Bissau and of are very positive.’’ CMS is also very acti- concessions in Guinea-Conakry. ve in sponsoring educational initiatives From the motor industry to aeronautics, With regard to how the industry could in province. It helps build hospitals and to food packaging and construction, alumi- benefit from increased ties with China, health centers, as well as participating in num is in high demand. Homebuilders use it Mr. Campos comments: “China is a potent HIV/AIDS awareness and prevention pro- in doors and windows, and its high conduc- country with a strong economy that it is still grams. It also supports agricultural pro- tivity sees it used in electrical applications. growing. It has a vast literate and academic jects aimed at promoting self-sufficiency; In Angola, the drive for economic diversifi- population, and it is producing articles of “We plow, sow the fields, and deliver the cation has spurred expansion across various the most diverse industries and ranges. Chi- expertise directly to the person on the industries, which in turn has increased de- na may be an example to Angola and other land who, in turn, continues the farming mand for the lightweight, multi-purpose countries in the world. They managed to activity. ‘’ metal. combine communism with capitalism, which Progressive thinking from a progressi- Around 85% of all the bauxite mined is an interesting fact. They have a strategic ve company whose ambition now is to di- worldwide is used to produce alumina for vision and we must seize this opportunity. versify operations: “Today we are working refining into aluminum. In 2007 the govern- “We need to find partners that are avai- only in the Catoca kimberlite, but the ments of Angola and Guinea-Bissau formed lable to fund specific projects. In the area of company currently has eight other mining Bauxite Angola in partnership with private technology transmission there is also a lot to concessions to carry out detailed geologi- shareholders to begin production of bauxite be developed: we have a few capable, quali- cal, and technical and financial viability and tap its economic potential. “A company fied people able to lead the great challenges studies…’’ of such a nature has the support of the gover- that lie ahead. We need knowledge, specific With an estimated 60% of the nments, but with the dynamism of the priva- training of staff so they can become leaders country’s diamond resources still untap- te sector,” says Bernardo Campos, Chairman in the various sectors of the economy. We ped, the future for Angola – and CMS – is Bernardo Campos, Chairman of Bauxite of Bauxite Angola. In 2008 BxA, as the com- have an extraordinary mineral wealth and it bright. Angola pany is also known, was granted concessions should be utilized.” CMS is dedicated to the mining, treatment, processing, recovery and trading of diamonds Oriental News ANGOLA Clean water – a vital resource uEPAL provides potable water and Agua Para Todos – Water For All – program- towns and cities has put increasing pressure ded to supply the whole country with treated treats wastewater in the capital city, and me to expand access to safe drinking water on domestic water supplies. Around a quar- water by 2016. also trains technicians throughout the across the whole country. According to the ter of Angola’s 21 million people live in and One of the main organisations tasked country Secretary of State for Water Luis Filipe da around Luanda, with another 1.5 million li- with upgrading and expanding the water Silva, in 2011 the programme created more ving in the Benguela-Lobito region. In Sep- distribution network is Luanda’s water com- than 280 water access points, a process that tember, on Angolan television the Secretary pany Empresa Publica de Aguas de Luanda With the exception of its southern de- entails collecting water from the source with of State confirmed that statistics pointed to (EPAL). The state-run agency’s main focus is serts and coastal scrublands, Angola is a holes and electric pumps to feed a single drinking water coverage in urban areas ha- on providing potable water and treating was- surprisingly verdant country. More than 15 fountain. In the same period, 117 small water ving reached 50%. tewater in the capital city, although it also rivers form parts of Angola’s borders, and its supply systems were implemented, resulting As a country in full development, fo- trains technicians in provinces throughout interior holds the sources of various tributa- in 340,785 new customers in rural areas. He reign investment is welcomed in all sectors the country. ries to major river systems beyond its boun- added that the provinces of Cunene, with a in Angola and the water and sanitation in- According to the President of the Board daries, including the famous Congo and coverage rate of around 69.8%, and Kwanza dustry is no exception. The government’s of Directors at EPAL, Leonildo Seitas, the Zambezi rivers. Despite its variable rainfall Norte, with 60.6%, are the regions with the ambitious plans for the water sector over the nation’s treated water output is 700,000 – ranging from a monthly average of 124mm highest rates of coverage in the country. period 2011-2016 include the construction cubic metres per day, but 2 million cubic Q&A with Luis in April to zero in June and July – Angola is In December, Mr. da Silva stated that of laboratories for research on water qua- meters are currently needed. In the capital, well served with water resources that 45.5% of people in rural areas had clean lity, the strengthening of water supply and huge demand puts incredible pressure on could potentially meet its needs for drinking water. Also in December the Mi- sanitation systems in several provincial ca- existing infrastructure, where the drinking both human consumption and nister of Energy and Water, Joao Baptista pitals, and the renovation and construction water and sewage systems were originally Filipe da Silva, farming, and also substantia- Borges, predicted some 3.6 million ci- of groundwater supply management in rural designed for around 400,000 people. Popula- lly contribute to its energy tizens will benefit from a clean water areas. tion estimates for the metropolis now range demands through hydro- supply by the end of 2012, which Mr. da Silva has stated the government’s from just over 4 million to as many as 6 mi- Secretary of State power. The country’s would require the construction of at target for access to potable water in the ca- llion people. main challenge, howe- least 400 new access points, and 300 pital to be 80% by 2015 and that it is loo- EPAL currently operates five water in- ver, lies in harnessing new small and medium-sized water king to set up more companies to manage take stations on the Kwanza and Bengo ri- its natural blessings supplying systems. water supply systems and sanitation. On vers, which supply water to its three water for Water effectively, and distri- Angola is home to an increasingly an even wider scale, the Ministry of Energy treatment plants (WTPs), where it is trea- buting a clean supply urban population. Mass migration over and Water has estimated that investment of ted to potable standard and piped into the u Secretary of State for Water Luis Fi- new service, especially in rural areas. We of water to its citi- the past three decades to US$4 billion is nee- national distribution network. As part of a lipe da Silva is responsible for devising go- know that we have achieved more in com- zens. US$650-million government investment vernment policy and strategic plans for the parison to years past, but we still have not In 2007, the scheme, EPAL is building two new massi- proper use and distribution of the country’s reached our targets. It is necessary that Angolan gover- ve WTPs that are expected to be the largest water resources. In recent years he has been the people involved in the management nment laun- in sub-Saharan Africa. One plant will be at working with international institutions of water systems contribute not only fi- ched its Bita, near Kilamba Kiaxi to serve southern such as the United Nations and the World nancially but also in preserving what has Luanda, and the other at Quilonga Grande Health Organisation (WHO) to apply inter- been done. Our development must be on the River Kwanza. national standards to water treatment and sustainable. After its capture and treatment, the next distribution in Angola. challenge is to effectively distribute water to Is there potential for private inves- the population. EPAL is in the process of tment or to have public-private partner- renovating 10,000km of distribution network How important is the provision of ships in this sector? pipelines and has so far delivered more than basic water services for the Angolan po- Our focus is on people having clean 400km of new pipelines and refurbished pulation? water, and the government now assumes 300km in the capital city. Extending pipeline The water supply is one of the prio- that role and the necessary strategic in- networks is time-consuming and expensive, rities of our government. In peri-urban vestments that are needed. This effort especially when it involves digging trenches areas, which grew disorderly without fo- can be supplemented with public-priva- in hillside areas. llowing land development plans, we want te partnerships and private investment The longer-term solution is to have the at least 80% of the population to have without affecting the bulk of the program- water and sanitation infrastructure in place access to water. We also plan to have co- me. Partnerships can arise, whether in the before new neighbourhoods are constructed llective supply points, such as fountains, implementation of projects or in the ma- and homes are occupied. This is now happe- which can provide a satisfactory water nagement of the water supply, particularly ning in new large-scale government-backed level for people within a radius of 500 me- in provinces that do not always have the estates in the Luanda area. ters of each point. staff or technical resources for the proper These new developments also feature In addition, the government-funded operation of the system. easily accessible water meters that help in Water For All programme aims to ensure We have had the opportunity to work the collection of water charges. Efficient bill the entire population has access to drin- with partners from China, with many vi- payments provide EPAL with the revenue king water in accordance with the stan- sible results, and we hope that this will needed to continue infrastructure inves- dards recommended by the WHO. continue in the future, not only in the tment. According to Mr. Seitas, EPAL has implementation of projects with Chinese 150,000 registered customers – with only What is the state doing to educate funding, but also with their participation 10% paying irregularly – and plans to raise the public about the social and environ- nationwide on projects funded by the go- its paying clientele to one million by the end mental aspects of your work? vernment, or other sources such as the of 2013. Almost every month we inaugurate a World Bank. Oriental News ANGOLA

Powering ahead QUOTED

uENE, Angola’s state-owned na- an internal restructuring program. In tional electricity supply company, has re- conjunction with the legal framework “Thermal vised its internal structures and increa- to protect investment, the internal pro- sed its attractiveness to private investors gram aims to give ENE a more dynamic power genera- and efficient structure, as well as rejuve- At the time of the nation’s indepen- nating and re-qualifying its labor force. tion units will dence in 1975, the Angolan electricity The company’s board regards training distribution grid had been limited to the programs as a long-term investment and be installed in more affluent parts of cities and urban has paid great attention to the technical centers. Plans were immediately set in skills of its employees, receiving positive motion to improve and expand the reach feedback and results from some emplo- 2012 in of electric power in the country in order yees going back to study. It has been wor- to further develop this young nation’s po- king on improving the attractiveness of its Cabinda, Luan- tential and empower its citizens. Located on the compensation packages in order to recruit Unfortunately, due to the subsequent Kwanza River in the finest young talent in the country, as da, Dundo, Lu- outbreak of a power struggle soon after Malanje Province, well as providing scholarships for young independence, and an ongoing civil war the hydroelectric Angolans to attend university. bango, Namibe, in the country, its proposed expansion Capanda Dam Another vital part of the restructu- was put on hold for almost 30 years. A generates power ring process is the creation of different large part of the infrastructure had also by utilizing four business units, within the whole, that will Menongue, been destroyed during the war. However, turbines of 130MW each be responsible for different areas of a genuine reconstruction process began each, creating a total activity and different parts of the process Ondjiva, with the civil war’s end in 2002. installed capacity of of production, distribution and commer- Since then, buoyed by its renewed 520 MW cialization of electrical power. The objec- Huambo and and ongoing period of peace and stabi- tive of the creation of these divisions is lity, the Angolan government has made a ultimately to make the process more effi- Benguela” concerted effort to rebuild the necessary cient but, perhaps more importantly, more infrastructure and expand the penetration transparent, so that the costs involved in of electricity throughout the country – an each step of the process can be properly essential step in improving the socio-eco- assessed, making it easier to evaluate the nomic standing of the country as a whole, final tariff. “If the but also as a means to improve the daily In his State of the Nation address last life of its citizens. President Jose Eduar- October, President dos Santos declared: Executive’s do dos Santos focused his end-of-year “In order to overcome the challenge speech to the people of Angola on the of reducing the electricity deficit in the energy sector nation’s development, affirming that the country to zero, the rehabilitation of the eradication of poverty, famine and illitera- Ngove, Mabubas, Lomaum and Cambam- cy would top the government’s agenda this be I dams are under way, to be completed sub-program is year. He asked Angolans not to lose heart in 2012. These projects will add 295.6 me- as the government is working around the gawatts to the power system. fully met, the clock to ensure everyone has a decent life, “To better distribute the energy pro- and explained: “Education, health, hou- duced a ‘power grid’ will be built, whose power supply sing, employment, and the supply of water its abundant natural potential and stren- droelectric dam in the province of Lunda “We have to be a bit more aggressive in main axis is the interconnection between and electricity are the areas that require gthen the agro-industrial sector. The go- Sul, is a perfect example of the promising order to raise more revenue.” the north and center of the country. Cu- will improve most attention and priority.” vernment also announced its intention potential of such public-private partners- The majority of investment in this rrently under way is the rehabilitation Demand for energy in Angola is ri- to take a closer look at other renewable hips in the region. sector still comes from the government, and expansion of the electricity distribu- sing rapidly, in line with is strong with sources of energy at Angola’s disposal, in- Similarly, the Ngove hydroelectric which in turn has been greatly helped tion network in Cabinda, Saurimo, Dun- significantly in its strong economic growth in recent cluding solar and wind. dam, situated 90 miles from the city of by credit – Chinese credit in particular. do, Caxito, Sumbe, Porto Amboim, Huam- years. Electricity production is currently ENE, (Empresa Nacional de Electrici- Huambo, is to be rehabilitated with help Up to 2008, the total investment figure bo, Caala, Lubango, Namibe and Tombwa. 2013, and struggling to keep up with demand and dade) Angola’s national electricity supply from Brazilian construction firm Odebre- had reached a total of US$5 billion. Of “Approved structural projects will be blackouts have affected the major cities. company, has been run in accordance chet; the works involved have an initial this total, a significant amount has been implemented in Soyo, Cambambe, Lauca, from 2017 African Economic Outlook reports that with the government’s General Electric estimated value of more than US$150 channeled into various electricity pro- Caculo Cabaca, and Keve/Ebo by the year investment in the sector is focusing on Law since 1996, and has previously part- million. In January 2012, João Baptista jects, but primarily the reconstruction of 2016, which will generate an output of the main revitalizing the country’s energy transpor- nered with Russian investment in the res- Borges, recently appointed Minister of the distribution grid. As a result, there are 5000MW, an investment of US$8 billion tation and distribution network, as well as tructuring and development of a commer- Energy and Water, announced that the numerous Chinese firms involved in the for production and about US$9 billion for on expanding production capacities. The cially viable electricity supply company dam would be functional from August project, such as CMEC (China Machinery the power distribution and transportation problems will government has set a target of increasing for Angola and its citizens. this year, producing 60 megawatts for the Engineering Corporation). system. production to 7,000MW by 2016, enabling Given the capital intensive nature provinces of Huambo and Bie. The involvement of Chinese firms has Having survived colonization and civil be practically a per capita consumption of 4,000 kilowatt of the renewal projects however – espe- However, according to ENE, the profi- mainly been concentrated in the areas war, Angolans are now capitalizing on the hours (kWh) – an eightfold increase in the cially those involving the construction tability of the electricity sector needs to be of expanding the national grid and dis- dawning of a new age of peace, prospe- solved” current consumption level. of hydroelectric power plants (Angola’s made more attractive to private investors. tribution network, and building power rity, and, most importantly, stability. Con- Upgrading the nation’s hydroelec- main source of electricity) – the govern- Consequently, the government is revising substations. However, there is increasing fidence, inspired by the promise shown tric facilities is a key component of the ment has recently made further financial plans to adapt electricity tariffs relative to interest from Chinese companies to get through tentative investment projects government’s strategic plan to improve allowances for the participation of private the costs involved in its production, and involved in larger projects, such as the with pioneering foreign firms has revi- Jose Eduardo dos and expand the nation’s power generating company investment in the production improve the company’s revenues, thus construction of hydroelectric power gene- talized trust and ignited a desire within capacity and network grid. Last year, the and distribution of electricity nationally. making it for more attractive investments. ration plants, seen as the soundest long- the country’s young government to build Santos, President Ministry of Energy and Water announced ENE’s partnership with Russian in- “The business currently registers very low term investment products. stronger relationships with foreign inves- of the Republic of plans to build 150 micro-hydroelectric vestment sources, specifically that of mi- revenue rates,” says Fernando Barro, Pre- As a result of this renewed inter- tors that will be of mutual benefit. plants across the country to capitalize on ning company Alrosa, in building a hy- sident of the Board of Directors of ENE. est in its operations, ENE is undergoing Angola Oriental News ANGOLA

Q&A con Ernesto Muangala, Governor Lunda Norte of Lunda Norte

u Ernesto Muangala, Governor of Lunda Norte, looks at the province’s de- velopment and the potential it holds for investors beyond its renowned diamond mining industry

How do the revenues from diamond exploration affect development in Lunda Norte? Due to the war situation, Angola used to live fundamentally off oil and diamond exploration revenues. But as the war en- ded, diamond exploration gained more ground and became the second biggest contributor to the government’s budget. So, the increase of diamond production contributed greatly to the improvement of people’s living conditions not only in Lun- da Norte but also Lunda Sul and Moxico. With the end of the war, Lunda Norte had take greater advantage of the province’s natural resources, such as its hydro (water) resources, which in my view hold the most potential. We have nine months of rain here and that simul- taneously demonstrates our potential for agriculture.

Could you explain more about the u Lunda Norte, not only a fertile land Historically, Lunda Norte had a tradi- agriculture sector? of diamonds, it is also blessed with agri- “Countries can only develop properly tion of rich agricultural production, espe- In colonial times, the population – cultural potential, and a resilient, educa- cially rice and potatoes, but previously this mostly women – would practice subsis- ted workforce if they concentrate on education and was a monopoly of the colonial diamond tence farming in specific areas designated company Diamang. Governor Muangala by Diamang (Angola’s former national training, maximising their human wants to create the conditions for Lunda diamond mining company). Men would The glittering province of Lunda Norte Norte to be agriculturally independent work in other activities, such as in the dia- is situated in the north-east of Angola and potential and ensuring that the po- once again. One of the local government’s mond mines, education, nursery services, covers an area of 103,000 km². Together, biggest challenges promoting this vision etc. Just to illustrate, after independence, with the province of Lunda Sul – in co- of agriculture has been to shift the native Diamang had more than 30,000 animals in lonial times they were unified under the pulation has the means to participate population’s mindset. its livestock-raising area, and products like same administration – Lunda Norte has Years of colonial interest exclusively rice, corn, lettuce, tomato, etc. used to be Ernesto Muangala, traditionally been most famous for its dia- actively in the reconstruction and in the diamond industry have left their produced there. Governor of Lunda Norte monds. mark, and the government now has made We want to revive this situation: we The vast majority of Angola’s annual development of their own country inroads in emphasizing the message that want farmers to be organized into coo- production of around 9 million carats co- a community cannot rely solely on the re- peratives and associations, and to do that Hydropower and construction are mes from these two provinces, making them and land” venue created by diamonds: the economy the government has invested a lot in new major areas. Public-private partnerships highly important to Government revenue. needs to be diversified and a strong agri- machinery, farming equipment and fishing are taking place in all sectors across the However, as is often the case, mineral wealth cultural sector – with the local businesses boats in order to bring self-sufficiency country. alone has not been enough to drive the and associations that go with such an en- back to our population. For years we have socio-economic development desired for Ernesto Muangala, Governor of Lunda Norte deavour – is an essential part of this diver- had to import fruits and vegetables, but if How is the government attracting the region, and the provincial governments sification process. they were produced here the importers investment? have been active in recent years in terms of Governor Muangala has further would buy from domestic producers ins- The first strategy is to highlight our diversifying revenue streams and reinves- enthusiasm for the region’s touristic po- tead of importing. openness and portray a new and united ting profits earned from the diamond in- tential. Lunda Norte has been blessed image of the province, and that there are dustry back into the economy. with a rich and varied natural landsca- How is the government promoting no longer obstructions to investment. The presence of diamond mines pe making it a beautiful, as much as it is farming activity? Being open is an important step for meant that the Lunda provinces were hit practical, area for outdoor pursuits such Angolans’ are not in the habit of wor- us. Investors, whether national or foreign, particularly hard by the devastation of the as hunting and trekking. The province is king on farms due to the fact that they can come here and find easy ways to invest civil war. Much of the infrastructure was also home to Angola’s largest museum, were not previously given the opportunity in terms of fast tracking or avoiding seve- destroyed and the widespread use of land- which explores the region’s rich cultural to engage in agriculture. First, we helped ral bureaucratic steps that slow down the mines to defend diamond mines has only heritage. people realize that we are living in diffe- entire investment process. complicated the task of reconstruction. As with the rest of the country, Lun- rent times and that today the opportuni- We are asking investors to not only Since the end of the conflict in 2002, da Norte’s reconstruction process has be- ties are more diversified, with lots of areas come and invest, but also to stop looking the Provincial Government of Lunda Nor- nefitted immensely from Chinese credit where they can be employed. Second, we at Luanda as their only target market. We te, assisted by the directives of the central lines, its workforce, and its technology. organized farmers into cooperatives and have vast lands suitable for farming to be government in Luanda, and in line with The Governor recognizes the impact the associations so that they can better benefit explored, as well as raising livestock, and the National Reconstruction Plan, has co-operation the Angolan government has from the government’s support and in a other sectors in which they may like to get spent most of its resources on rebuilding had with China on various projects that more organized way. involved. Keep in mind that the develo- its infrastructure, helping local businesses are currently under way in the province. We declared 2009 the year of agricul- pment of the province will also help the get moving again and re-opening its hos- Specifically, he is proud of the urbanisa- ture so the population could understand development of the whole country. As a pitals and schools. tion projects in the city of Dundo and the that diamonds are not the only solution matter of fact this has been the appeal of In 2004, a Higher Education Institute construction of various regional and inter- or key to our development. People also President Jose Eduardo dos Santos, who of Pedagogy was also opened and Lunda provincial roads and highways as concrete understand that to fight unemployment, is aiming to combat regional discrepancies Norte now proudly boasts a public uni- examples of much-welcomed Chinese assis- Angola needs to back agriculture and the regarding investments and development. versity, the Rainha Lueji University, with tance in Lunda Norte. diversification of the economy. faculties of Law, Economy, Medicine, Going forward, the governor is optimis- What is your assessment of the Chi- Agronomy, and Veterinary sciences. Fur- tic about the prospect of attracting further Are there any other sectors that nese presence in Angola? thermore, four of the province’s major ci- actively in the reconstruction and develop- from the diamond industry) and their con- foreign investment to the region. The pro- would be of interest to investors? It is very positive, especially in Lun- ties are now home to high schools, none of ment of their own country and land.” In just tribution to the province’s development, vince has reduced bureaucratic procedu- Tourism holds huge potential. We da Norte, where Dundo Airport is being which existed at the time of independence five years the local government’s education he is also very determined to highlight the res to encourage investment and there are have many very interesting features for modernized and enlarged. Chinese teams from Portuguese colonial rule in 1975. policies have reduced the number of chil- province’s other promising areas of activity, highly attractive fiscal incentives in place tourists, a lot of rivers and waterfalls, and are also working on projects that are res- The province’s Governor Ernesto dren not attending school from over 10,000 in particular the burgeoning agricultural for businesses considering investing in opportunities for sports and hunting acti- tructuring the water piping system in Muangala, while aware of the need for finan- to under 2,000. Progress is being made at a industry. The governor has even gone so far Lunda Norte. The Governor also believes vities, as well as the rich culture of Lunda- Dundo, expanding the existing network cial investment in the region, is also empha- great rate. as to say that Lunda Norte’s water resources that it is important that foreign investors Tchokwe. of the town and its surrounding areas. In tic about the importance of education in While Governor Muangala also re- are a more valuable asset than its diamonds, forget their “misconception about Lunda Lunda Norte also has one of the most addition, the project includes building development, believing that “countries can cognizes the great value of the province’s and as a result the provincial government Norte being a rich province only because important museums of the country – the community laundries and drinking water only develop properly if they concentra- diamond resources (the three provinces of has recently invested heavily in developing of its reputation for diamonds. It is in fact Museum of Dundo. The famous O Pensa- collection points. The presence of Chinese te on education and training, maximizing Lunda Norte, Lunda Sul, and Moxico are agricultural activity, by buying equipment a province that has a huge other potential dor (The Thinker) sculpture is from here, companies is without any doubt playing a their human potential and ensuring that the beneficiaries of 10% of the total fiscal and machinery and creating attractive fiscal for outside investment and partnerships for which is a symbol of our national culture very significant role in the nation’s recons- the population has the means to participate revenue the central government makes incentives. development.” and appears on our currency. truction process. Oriental News ANGOLA Looking forward Kwanda Sul to a sweet future uThe lush region of Kwanza Sul, in coas- agricultural enterprises, and has created uAldeia Nova’s focus on sugarcane llages. tal Angola, has rich investment potential several agricultural educational institutes “The province’s production could help reduce Angola’s The Aldeia Nova Project, which is to improve the efficiency of the workfor- dependence upon oil revenues also known by its Portuguese initials PAN, ce. Government-sponsored projects like biggest asset is its includes an animal feed production unit The Province of Kwanza Sul is si- the Aldeia Nova Project have greatly con- and another for milk and dairy product. It tuated on the northern coast of Angola. tributed to a renewed interest in agricul- people, who are Although half of the country’s food already produces eggs, beef and pork, as With an extension of 58,698 km² and a tural activity. is exported, agriculture continues to well as 120,000 chickens a year. population of 1.6 million, it has 180km of The Governor is particularly proud provide the main livelihood for most of Following the pilot’s success, Aldeia coastline and an extremely varied lands- of the success of Aldeia Nova in terms of hard working and Angola’s population. For many years, the Nova’s focus shifted to a future based on cape, making it an area of great promise its impact on the social reinsertion issue presence of landmines left over from the a sugarcane project (ProCana), as this for the development of the Angolan tou- of ex-combatants. Although the project dedicated by war hindered development in rural areas. crop provides a much quicker return rism sector. is not limited to this social group, it was However, the government’s road re- on investment than, for example, coffee, Historically, Kwanza Sul has been a originally intended for war veterans from nature” habilitation priorities, which included which takes much longer to yield a first great producer of coffee; an industry that, both sides of the conflict and it has pro- mine clearance around primary, secon- harvest. unfortunately, came to a virtual standstill ven a productive and successful way to dary and tertiary routes, have improved Another reason justifying its inter- during the war, but which is currently deal with the issue of retired war veterans. Serafim Maria do Prado, transport issues for the agricultural sec- nal production was that Angola does being enthusiastically re-launched. Kwanza Sul’s natural resources also Governor of Kwanza Sul tor, facilitating movement of foodstuffs not produce sugar, and yet consumes In 2008 a Superior Institute of Agri- hold huge potential for the develop- to markets. around 200,000 tons per year. culture was inaugurated to compliment ment of a tourism sector. The pro- This progress is re-establishing trade Angola is not the first country to burgeoning agricultural pursuits. As well vince has 180km of varied coast- links between rural areas and urban cen- consider this crop as a means of eco- as reigniting the coffee producing indus- line with plenty of spectacular, ters and enabling the development of ini- nomic diversification – Brazil, now the try, there has also been a concerted cam- unspoilt beaches, and the tiatives such as the Aldeia Nova Project, world’s leading sugarcane producer, has paign to encourage more agricultural pro- interior offers a rich lands- which forms part of a series of social hou- already done so, and has demonstrated duction in the region, especially cotton cape famous for its many sing projects set up by the government. that the sugarcane culture brings with it and coffee, historically strong products caves – which host some The first phase of this project was aimed certain agricultural diversification. Sin- in the region, but also new crops, such as fascinating murals – and at meeting the housing needs of public ce producing it, Brazil has reduced its oil sugarcane and rice. waterfalls. Furthermore, servants by building 2,400 homes. dependency, increased its energy securi- Since the end of civil war in 2002, there is a long tradition The pilot program for Aldeia Nova ty and bolstered its economy. there has also been a combined effort to of artisan production (New Village in Portuguese) was laun- Another important aspect of su- restore the main highways of the provin- and handicraft in Kwan- ched in the municipality of Wako Cungo, garcane plantation is the production of ce. The two main highways – one running za Sul. Kwanza Sul province, as an agro-indus- biofuels, including ethanol, for which north-south along the coast and leading However, the provin- trial initiative developed by the govern- global demand is increasing. If major north to Luanda and south to Bengue- cial government has yet to ment in partnership with the Israeli firm world powers such as Europe, China and la; the other running west-east from the define a strategic approach LR Group. The objective was construc- the United States remain determined to coast to the interior and leading to Huam- as to how to best develop this ting a kibbutz-like village to house de- blend ethanol with gasoline, there is the bo – are now completely asphalted, thus considerable potential for tou- mobilized soldiers. potential for the creation of a large glo- greatly reducing travel time and impro- ristic endeavours, but it is envisio- Despite initial complications of bal market, in which eventually Angola ving much-needed infrastructure. ned that sooner or later this resource force majeure, firm government sup- could have a market share. Adding sheen to the vibrancy that will become the province’s primary eco- port and international collaboration Technologies applied to the cultiva- goes with its new phase of development, nomic driver. contributed significantly to the socio- tion and production of sugarcane could Kwanza Sul is also home to the Aldeia With that vision in mind, the Gover- economic framework of the region: 800 bring with it further local and regional Nova Project, and Governor Serafim nor is also aware of the potential envi- families were sheltered and 1,000 direct benefits that include job creation, and Maria do Prado is rightly proud that his ronmental impact resulting from the de- jobs created. it could be a viable means of bringing province has been designated to host this velopment of a strong tourism sector and Additional works included the reha- electricity to rural areas without large project, which is now expected to expand since the creation of the Ministry for the bilitation of old infrastructure, including investments. to other provinces. He says, “The provin- Environment, has scrupulously followed 1,500 km of drainage canals and irriga- Sustainable development, long- ce of Kwanza Sul has benefited from the this Ministry’s preservation guidelines in tion systems that led to an agricultural term vision and local opportunities lead Aldeia Nova Project... It is a project that this area. boom in the area and the development PAN’s initiatives, which also give utmost should be embraced and we suggested Kwanza Sul further boasts a strategic of family farms. importance to training. Courses have it be executed in other provinces too. It geographical position, in terms of trans- The housing developments have had been developed on location in coope- is an extremely important agri-livestock portation, situated halfway between the the desired effect of boosting agricultu- ration with the Technical University of project, both in terms of social and eco- capital Luanda and the major commercial ral production and cattle raising in the Lisbon. nomic viewpoints.” port of Lobito, in the Benguela Provin- Kwanza Sul’s natural resources hold huge potential for the development of a tourism industry area – activities that had been completely The LR Group, which has been in- As well as being a quite fertile re- ce. A fully asphalted road now connects impossible during the war – which also volved since the start-up of Aldeia Nova, gion, the province is further enhanced Luanda to Lobito, passing along Kwanza The Governor reiterates that “the played an important role in the socio- has recently taken over the running by its richness in natural resources and Sul’s coastline. province’s biggest asset is its people, who construction of roads, bridges, housing economic framework of the region. of the project, under the auspices of consistent water supply from the River The province also manages its own are hard working and dedicated by na- projects, energy and water systems, and One such example is the village of Angola’s Ministry of Agriculture. Keve. That said, the main driver of the port at Porto Amboim, just north of the ture.” Consequently he has placed a big it has been speculated that the cons- Waco Cungo that, over the years, has LR has also contributed to Angola’s economy is the agricultural sector and city of Sumbe; and there are plans for its emphasis on the training and educational truction of a new commercial port at experienced visible progress among rural development through the signing this has been one of the most consistent expansion. needs of the region. Keen to attract more Porto Amboim, just north of the provin- the neighborhoods being developed, in of an agreement to construct 100,000 investments for the provincial and central Asphalted roads lead from the coast Chinese investment in the industrial sec- cial capital Sumbe, and the new regio- terms of the houses built and the quality homes throughout all 18 provinces of governments. Considerable public inves- to the interior of the province, all the tor, he has also shown a great degree of nal railway, may well be carried out by of life of the population that immedia- the country. tments and incentives – in the production way to the city of Huambo, capital of the satisfaction with the impact of Angola’s Chinese companies, who have a parti- tely benefited from improved transpor- Because of close Chinese-Angolan of cotton, sugarcane and coffee – have led neighboring Huambo province and the strong commercial and political relations cularly good, long-standing relations- tation facilities. As developments con- ties and cooperation in other sectors, to increased interest in terms of private second largest city in the country. There with China in Kwanza Sul. hip with the Angolan government and tinue, Presild, the government-backed Aldeia Nova welcomes, and is seeking, investment. The provincial government are also currently plans to extend and up- Many Chinese companies are invol- its people. national food distribution network, Chinese involvement and investment to hopes to see more small and medium grade the province’s railway system. ved in public work projects, such as the distributes the produce made in the vi- further this initiative.