Is This Diamond Forever?
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Issue No. 1, October-December, 2014 theworldfolio.com A DIFFERENT PERSPECTIVE DIAMONDS: TELECOMS: Angola’s Moving at high diamonds rock speed OIL AND GAS: CONSTRUCTION: A stop- Building boom and-start responds to needs revolution in of new middle natural gas class INVESTMENTS CHINA IN from Angola ANGOLA: aid its former Win-win colonial partnership master, or marriage of Portugal convenience? 20 AGRICULTURE: Biocom: Sweet energy from sugar cane ANGOLA IS THIS DIAMOND FOREVER? 01 Cover-10-8x10,5.indd 1 14/11/14 11:55 02_Angola_TheWF-polina.indd 1 11/14/14 1:17 PM AN INTRODUCTION TO THE WORLDFOLIO MAGAZINE Alexi Fernández Executive Director, The Worldfolio elcome to the rst issue of The Worldfolio Magazine, ulished The Worldfolio a usiness news ortal which is art of the grou of comanies. The Worldfolio roides intelligence aout econo- mies with the highest growth otential focusing on un- derstanding them from within. n a world where these countries la an increasingl imortant role and where no one has a monool on information its essential that international inestors and comanies – and indeed all readers with gloal interests hear what the leaders of these high-otential economies hae to sa. nder- lated merican inestments in the standing their iewoints is e not onl to eing well- countr now total oer illion. informed ut to doing usiness in these countries. TheWorldfolio.com has ust e can roide that information through our net- een redesigned to structure the in- wor of corresondents which each ear is resent in formation in such a wa that it adds an aerage of cities around the gloe in more than alue to the content we roduce and countries where the conduct an aerage of one- maes it friendlier for our users and on-one interiews with goernment ofcials and senior readers. he new latform orga- usiness eecuties. nies information sector and countr ust as we did in our rei- The Worldfolio Magazine is a uarterl ulication ous wesite. oweer the new site that focuses on the economies we consider most inter- also includes ersonal roles and esting and remarale in theworldfolio.com. e conduct coman roles so our readers in-deth analsis and resent it in a fresh contemorar can now more aout the different magaine format that contains interesting stories. his eole and comanies the want to rst issue will e distriuted to senior usiness eecu- contact or do usiness with in the ties decision maers and oinion leaders in the areas countries of their interest. of ew or and ashington .. he were chosen through a careful selection rocess ased on the sector e hae also redesigned our the reresent and the imortance of their comanies. log TheWordlfolio.com/blog to mae it a etter source of informa- ee chosen ngola as the suect of our rst issue tion aout the economies we ana- due to its growing imortance in the gloal econom the le. n our log ou can nd rst- wide arra of oortunities it resents and ecause its one hand information aout what to of the fastest-growing economies in the world. fricas sec- do how to do usiness and aout ond-largest oil roducer ngola also oasts a wide range social roects we consider inter- of mineral riches most notal diamonds. he .. is cur- esting in the countries where we rentl ngolas second-largest trading artner accumu- are resent. 03 CEO letter - 8x10,5.indd 1 14/11/14 11:20 TABLE OF CONTENTS 4 issue1 TABLE OF CONTENTS 08 INTRO: 30 INTERVIEW: Oil Minister Using oil wealth to create lasting prosperity José María Botelho de Vasconcelos 10 ANGOLA: 32 BATTLE FOR AFRICA: the big picture, in facts and gures the u.s.-china struggle for influence on the continent plays out in Angola 16 DIAMONDS: 37 BANKING AND FINANCE: Angola’s diamonds rock New players wrestle for their share of a growing market 21 ANGOLA/PORTUGAL: role reversal: Affluent Angola lends 42 INTERVIEW: a hand to impoverished Portugal Teodoro de Jesus Xavier Poulson, Member of Investment Committee, FACRA 24 OIL AND GAS: 44 DOING BUSINESS: A stop-and-start revolution in natural gas New rules seek to change old habits 04-06 staff + sumario 8x10,5.indd 4 14/11/14 11:51 5 TABLE OF CONTENTS 48 INTERVIEW: 68 AGRICULTURE: Trade Minister Rosa Escorcio Pacaviria de Matos Biocom: Sweet energy from sugar cane 50 CONSTRUCTION: 74 CHINA IN ANGOLA: Building boom struggles to repair war damage, Win-win partnership or marriage satisfy the needs of a new middle class of convenience? 56 TELECOMS: 78 LAND MINES: Moving at high speed The civil war’s lethal legacy 62 INTERVIEW: 82 TOURISM: Antonio Nunes, CEO, Angola Cables Undiscovered places for intrepid travelers 64 THE VIEW FROM HERE: 92 LIFESTYLE: Two economists based in Angola give their views traf c snarls, soaring prices and kizomba on the country’s short- and medium-term prospects 04-06 staff + sumario 8x10,5.indd 5 14/11/14 11:51 ABOUT THE AUTHORS ISSUE Contributing writers to this issue of Worldfolio: 1 Manuel José Alves da Rocha, who contributed an essay STAFF to The View From Here section, is an economist and the director of the CEIC (Centre for Studies and Sci- enti c esearch at the atholic niersit of ngola. Nathalie Bourgeois, a freelance journalist based in the wrote our stor on diamonds. former reorter for ssociated ress and lle magaine in aris she writes for a ariet of ulications in rench and in nglish. Aled Bryon, a staff writer for he orldfolio magaine reorted on the oil industr in ngola as he has for a numer of secial reorts at faress. led also con- triuted the sidear on food in our ifestle section. Benjamin Jones is a eteran ournalist and a former corresondent for the ew or imes in adrid. n this issue he tells how ortugals ailing econom has een aided inestments from ngola and also aout the reolution in the countrs farm sector. Jonathan Meaney is a staff writer for The Worldfolio magaine. e has reorted etensiel on usiness and economics with a focus on telecoms. n this issue onathan also writes aout ngolas inest- ment rules its relations with the nited tates and aout music. ÁLVARO LLARYORA Robert Latona, who contributed the story on land mines Chairman, The Worldfolio in ngola is a freelance ournalist in adrid who writes about politics, current affairs and the arts for a ALEXI FERNÁNDEZ numer of rint and online ulications. ecutie irector he orldfolio Estelle Maussion is corresondent for gence rance EDWARD HOLLAND ress and adio rance nternational in uanda. ditor he orldfolio magaine stelles stor on ifestle in ngola is ased on her own eeriences liing and traelling etensiel in KRISTIN KJELLGARD the countr. ead of ournalism et. Richard Middleton, author of the article on ngolan rt irection grahic design aning and nance is a ondon-ased freelance EDUARDO BERTONE, SHERGIO SERRANO, TAÍNA ALMODÓVAR ournalist whos written across usiness toics includ- ing the global drinks industry and the international maret. es also wored for he ndeendent hoto credits newsaer and ort nline. oer Angola Image Bank. age Ministry of Petro- leum, Angola. age Cruks (Via Creative Commons). Nicholas Staines, who contributed an essay to The View age U.S. Government. age Voice of America. From Here section, is the resident director of the In- age Estelle Maussion. ages - Afa Press. ternational onetar und in uanda. ages - Arianne Martin. age Midan Studios for Geraldo Fashions. Model: Christianne of Step Models. Rob Train, another freelance journalist resident in Ma- age Joke Schot. ll other hotos Thinkstock drid wrote the articles on the ngolan tourism and construction industries. o is a former staff mem- rinted QUAD GRAPHICS er of the nglish language edition of l as ains istriution GANNETT PUBLISHING SERVICES leading dail newsaer. 04-06 staff + sumario 8x10,5.indd 6 14/11/14 11:52 07_Angola_TheWF-idia.indd 1 11/14/14 12:27 PM Angola INTRO 8 ANGOLA: Edward Holland, Editor, The Worldfolio. USING OIL WEALTH TO CREATE LASTING PROSPERITY If Africa is a continent of contrasts, nowhere are they as stark as in exclusively on oil revenues, to the detriment of the rest of Angola´s Angola. Africa’s second-largest oil producer and one of the fastest- considerale natural resources. he world nancial crisis and the growing economies in the world, Angola has a per capita income of decline in crude oil prices provided a reality check, as GDP growth more than $4,500 a year, qualifying it as an upper-middle income lummeted from . in to . in nation. et goernment of cials admit that of its eole lie Thanks in part to a standby program from the International below the poverty line Monetary Fund, the government of President José Eduardo dos The country holds vast tracts of arable land and an abundant antos managed to ut ulic sector nances in order stailie the water supply, but oil revenues and a robust currency have led it to echange rate and ring infl ation down to historicall low leels. import nearly all the food consumes. Still, agriculture - or rather Today, Angola’s government has embarked on an ambitious plan subsistence farming - continues to be the largest employer, occupy- to develop the non-oil sectors by investing petroleum revenues in ing more than two-thirds of the work force. a variety of sectors: infrastructure, mining, telecommunications, The contrasts are not only in the numbers. A nighttime view of agriculture, tourism, all of it designed to create jobs and build a the skyline of Luanda, the world´s most expensive city, shows new diersi ed sustainale econom.