123RD year | no. 42,871 ISSN 0289-1956 © THE JAPAN TIMES, LTD., 2019 ANGOLA Wednesday, August 28, 2019 A new president moves fast to improve the good and correct the bad in Angola

The groundbreaking policies of João Manuel Gonçalves Lourenço are rapidly transforming the economy of the sub-Saharan African country.

Sub-Saharan Africa’s third-largest economy, country’s financial systems to modern interna- Angola, is undergoing a dramatic transformation. tional standards. It is a process that started in August 2017, when the Many international observers are amazed at the country democratically elected its fi rst new presi- steps Lourenço has already taken to achieve his dent in 38 years: João Manuel Gonçalves Lourenço. objectives. In a country where the majority of the Since then, Lourenço has been “improving wealth was perceived to be controlled with impu- Angola’s international image as a result of his nity by a minority elite, he has acted against cor- sweeping reform agenda and eagerness to engage ruption by fi ring long-standing senior personnel with the international community,” according to from key organizations like the central bank, the the U.S. Department of State. state oil company Sonangol and the country’s sov- The Angolan government predicts that this ereign wealth fund for the suggested mismanage- agenda, with its focus on revitalizing Angola’s ment of public funds, fraud and other activities. economy, will bring a positive growth in gross The government also swiftly introduced a domestic product (GDP) from 2019 onward that macroeconomic stabilization program and a will rise to 4.1 percent by 2022. national development plan for 2018 to 2022 and, Foreign direct investment is also on the rise — to further encourage private-sector involvement Angola’s fertile lands are home to a wealth of natural resources. not least from Japan, with trading company Toyota in the economy, it announced plans to privatize Tsusho and export credit agency the Japan Bank over 70 state-owned companies operating in vari- for International Cooperation signing a $650-mil- João Manuel Gonçalves Lourenço ous sectors in May 2018. This includes part of the tionships with vital country partners like Japan, Lourenço also intends to develop other sectors lion deal in January to develop a port on the national Angola Telecommunications Company, “We will move forward in order to expand investments, export markets as diverse as mining, agriculture, manufacturing, President of Angola Atlantic Ocean near Angola’s border with Namibia, the non-core activities of Sonangol and manufac- with a program of export and tourism. Japan and Angola have had diplo- steel making, building materials, information for example. turing enterprises. Although details of the bidding matic, trade and other partnerships since 1976. and communication technologies, food process- Investments like this mark a welcome return sharp loss of around 70 percent,” said Lourenço; processes have yet to be announced, the govern- promotion and import In 2013, for instance, Angola’s Agostinho Neto ing, textiles, education and health. To further aid to the world stage for the middle-income coun- “Economic activity slowed to such an extent that, ment has said they will be open to international substitution, where the University and Japan’s Ryukoku University signed diversifi cation, “We will move forward with a pro- try that is home to about 30 million people and a according to offi cial data, the real GDP growth rate investors. a cooperation agreement that represented the gram of export promotion and import substitution, wealth of natural resources. It is the eighth-largest fell from 6.8 percent in 2013 to 0.1 percent in 2016.” May 2018 also bought a new investment law, main actor will be the fi rst relationship between the Angolan and Asian where the main actor will be the private sector, exporter of oil worldwide and produces 1.7 million Oil dependency was not the only challenge the which was developed in consultation with the private sector, domestic and higher-education sectors. And in 2016, Marubeni domestic and foreign,” he said. barrels of petroleum every day. 65-year-old former defense minister faced when private sector. Some of the law’s highlights are Corp. carried out a $1 billion rehabilitation of In Angola’s most-established industry, Angola is also the world’s fi fth-largest producer he was nominated for the presidency by José the removal of the requirement for international foreign.” Angolan textile factories. improved regulations, incentives and terms for of diamonds, with 60 percent of its reserves of the Eduardo dos Santos, the man who had held that investors to form partnerships with local com- However, the relationship between the two exploration have already led to energy giants like gem yet to be exploited. In addition, it is rich in position since 1979. Angola also suffered from a panies, an elimination of the previous minimum João Manuel Gonçalves Lourenço countries stepped up a gear when Lourenço BP, Total and ExxonMobil snapping up the oppor- natural gas, iron ore, phosphates, copper, gold, lack of perceived business friendliness, inade- investment value, and investors being given the President of Angola became president. Toyota Tsusho’s expansion and tunity to develop new offshore oil operations, and manganese, agricultural land and water sources quate fi nancial, administrative and infrastructure right to repatriate profi ts and capital. Initiatives extended fund facility worth $3.7 billion that is modernization of the Port of Namibe’s facilities is the country’s fi rst licensing round for hydrocarbon that offer signifi cant potential for hydroelectric systems and a high level of corruption. like this have seen Angola’s business environ- “designed to support the implementation of the the fi rst investment from the Japanese private sec- blocks in eight years will take place in 2019. green-energy generation. ment gain nine places in the World Bank’s Doing authorities’ policies by providing substantial tor in Angola but many more are set to follow. Last but not least, the president is introducing Despite this variety of resources, the Angolan The new way forward for Angola Business reports since the new president took resources and policy advice, coupled with tech- There are opportunities for these investments Angola to the world through tourism. As patron economy has been dependent on oil since it found To help attract new investment partners, Lourenço offi ce. nical assistance,” she said. In the fi rst half of that in numerous areas. Ports are not the only infra- of the World Tourism Forum 2019 held in Luanda, lasting peace in 2002, after a civil war that affected is cracking down on corruption, which he International organizations, other countries year, the central bank raised over $2 billion in over- structure Lourenço wants to expand, for example. he is opening up for exploration a country con- the country from the time it gained independence described as a “scourge on society,” making the and foreign businesses have reacted positively subscribed government bonds and Western banks A new $6 billion international airport should open taining dazzling landscapes, national parks, a rich from Portugal 27 years earlier. Until 2014, the focus public sector more efficient and transparent, to Lourenço’s changes. In December 2018, for pledged credit worth more than $1 billion. fully by 2025, but the country has an urgent need historical legacy and stunning beaches. Under on oil created GDP growth of almost 10 percent improving Angola’s macroeconomic stability and instance, the International Monetary Fund’s Under Lourenço, Angola has also taken an to build other infrastructure for renewable energy, Lourenço’s leadership, Angola is well on its way a year. However, that all changed when global competitiveness, and working with the central Managing Director, Christine Lagarde, traveled active role in international organizations such as oil and gas, electricity, water, waste, telecommuni- to becoming a treasure for both investors and oil prices dropped. “Our oil revenues recorded a bank, the National Bank of Angola, to adapt the to Luanda, Angola’s capital, to agree a three-year the African Union and boosted diplomatic rela- cations, housing and transportation. tourists.

The rejuvenated Angola is a key African partner for Japan Japan’s public and private sector have welcomed the “I have the utmost changes taking place in Angola’s business environment respect for the actions and are strengthening their presence in the country. of the president to implement economic and

“Angola has huge economic potential. Lots of government’s remarkable achievements. There administrative reforms changes are taking place under the new govern- is also an intention to make a presidential bilat- in order to create a better ment of President Lourenço, which is making a eral visit to Japan.” great effort to correct the country’s weaknesses business environment.” and to boost its competitive advantages,” said Increasing collaborations OF JAPAN AFFAIRS OF FOREIGN MINISTRY IMAGE: Hironori Sawada, Ambassador of Japan to Angola the Ambassador of Japan to Angola Hironori Japan views the rejuvenated Angola as a key Sawada. partner on the African continent although “I have the utmost respect for the actions the countries have an extensive history of col- European standards for DTT, but no advances of the president to implement economic and laboration going back to 1976. Since 2002, for had been made so the new Angolan admin- administrative reforms in order to create a bet- instance, “The Japan International Cooperation istration has announced the adoption of the ter business environment and attract invest- Agency (JICA) has been promoting govern- Japanese system instead.” Japan’s Ministry of ment, and I’m convinced that these efforts ment cooperation with Angola in a wide range Internal Affairs and Communications has indi- will yield positive results. Japan is ready to of sectors through fi nancial support, technol- cated that it will help ensure a smooth migra- strengthen relations between the two coun- ogy transfer and human training in the fi elds of tion to digital television for only the second tries,” he added. education, health, agriculture, industry, energy African country after Botswana to adopt the There are clear indications that this is already and infrastructure,” said the ambassador. These Japanese system. happening, with multiple interactions tak- projects have included a $236-million support The Angolan government has also shown ing place recently between the two countries program for energy sector reform, and the interest in the participation of Japanese com- at all levels. To give just two examples: at the advancement of rice and cotton cultivation. Japan’s Minister for Foreign A airs Taro Kono meets Angola’s President João Manuel Gonçalves Lourenço in Luanda in May. panies in an upcoming tender for the building Tokyo International Conference on African In the last few years, Japan’s private sector has of a new oil refi nery in Lobito on the Atlantic Development (TICAD) conference in 2018, the also increased its presence in the African coun- Angola’s Ministry of Transport for the third magnitude of the collaboration is having a foreign companies to invest in Angola indepen- coast; a project that will be worth $6 billion. foreign ministers of Japan and Angola, Taro try. A leading illustration of this is Marubeni phase of a redevelopment of the Port of Namibe, positive impact in the Japanese business com- dently, I think it is a great strategy for Japanese Japanese authorities are reportedly inves- Kono and Manuel Augusto, discussed increasing Corp., which rehabilitated three Angolan textile which will become a leading logistics hub for munity as it is creating awareness of the huge investors to get assistance from local businesses tigating the potential of a power plant project bilateral ties. And in January, Angola’s embassy factories in a $1 billion project fi nanced by JBIC southern Africa. opportunities Angola has to offer. Egyptian and due to language and cultural differences.” in the north of Angola, constructing electricity in Japan, the Japan International Cooperation in 2016. JBIC also funded NEC Corp.’s installa- The first two phases of the expansion and Portuguese construction companies are also The Angolan and Japanese governments want transmission infrastructure in the south and a Bank (JBIC) and the Japan Institute for Foreign tion of the South Atlantic Cable System between modernization program, carried out by Japan’s keen to participate in the project, so its impact to open up more investment opportunities for signifi cant agricultural initiative for cotton. Investment organized a seminar on invest- Angola and Brazil. This network provides high- TOC Corp., were financed by JICA and JBIC. is being felt globally.” the private sector, according to Sawada. “So we Sawada sees part of his job as helping ment in Angola that was attended by over 100 speed submarine data transmission between JBIC is also involved in the latest stage but — Japanese companies taking advantage of have been working hard together to fi nd new Japanese companies to understand the prof- Japanese entrepreneurs from numerous sectors. Africa and Latin America for the fi rst time and, as a result of growing international confi dence these opportunities should consider working areas for cooperation in different strategic sec- itable opportunities available in Angola and The relationship between the countries is stated Sawada, “makes it possible that Angola in the new Angolan government — part of the in partnership with Angolan businesses, he tors,” he said. the positive changes that have been made to likely to strengthen even further this year, noted will become a center of Africa in the communi- fi nancing for the $600 million project will come believes, saying: “Currently, eight Japanese One new sector that will certainly be of inter- its business environment by Lourenço, he said. Sawada: “We are hosting TICAD7 in Yokohama cation sector.” from private institutions like Nippon Export companies have activities in Angola. Not all est to Japanese companies is digital terrestrial “There is still great room for the development of in August and hope that the new president will Japan’s private-sector involvement in Angola and Investment Insurance. of them have offi ces there, preferring to have television (DTT), as Angola adopted Japan’s our bilateral relationship and, hopefully, busi- visit us for the fi rst time to share with the world took another step forward in January when “This project will have a big impact on bilat- local partners to supervise their joint activities. digital broadcasting technology in March, he ness relations between the two countries will be the opportunities Angola has to offer and his Toyota Tsusho Corp. signed a contract with eral relations,” said the ambassador. “The Even though new investment regulations allow stated: “In 2013, Angola decided to use the far more active in the next few years.”

PAGE: 1 2B2 | The | The Japan Japan Times Times | Wednesday | Wednesday,, August August 28, 2019 28, 2019 (Sponsored content) GLOBAL INSIGHT ANGOLA www.global-insight.net

Planning for the future Angola’s National strategic axes Development AXIS   policies When Angola’s National Development Plan NDP is also in line with Angola’s transition (PRODESI) program, which includes initia- Human development  programs (NDP) 2018-2022 was presented to the world strategy to graduate from being classifi ed as tives for boosting agriculture, manufacturing Plan -  and welfare in July 2018, Minister of Social Communication a least-developed country to a being a devel- and tourism. Through this and other programs,  goals Aníbal João da Silva Melo called it a key docu- oping country, which the United Nations has the government projects that the main drivers at a glance Example goals: Reduce the poverty rate Total budget: ment that comprised all the new government’s scheduled for 2021. of economic growth between 2018 and 2022 from % to %, double secondary school development policies and programs for the next According to the IMF: “The NDP is under- will be agriculture at 8.9 percent of GDP, fi sh- enrolment, raise the annual number of higher- about $ billion fi ve years in every sector and at both national pinned by a somewhat conservative macro- eries at 4.8 percent, manufacturing at 5.9 per- education graduates from , to over and provincial levels. economic framework for the medium term. cent, construction at 3.8 percent and services, ,, ensure % of people have access The plan for promoting economic, social and It envisages a decline in both oil production including tourism, at 5.9 percent. By 2022, the to health care, and increase spending on territorial development has been well received (including gas) and prices, and a gradual but government also aims to increase foreign direct education and health from % by international observers. The International robust recovery of the non-oil sector, supported investment in sectors excluding oil and gas by to % of the public budget Monetary Fund (IMF), for example, said, “The by an improvement in public investment effi - 60 percent and double the value of exports of AXIS AXIS  targets under the NDP are ambitious but ciency and adoption of business-friendly mea- non-oil goods to $1.8 billion. Territorial and Sustainable, diversi ed and many are achievable, including a substantial sures.” As a result of its conservative analysis, The NDP’s strategy for trade integration will international integration inclusive economic development reduction in poverty and income inequality, the government forecasts that implementing help enable that export growth. The govern- improved access to basic education and health the NDP will result in a growth in gross domes- ment has committed to reducing the average Example goals: Graduate from United Example goals: Improve Angola’s World services, a more business-friendly environment tic product (GDP) of 3 percent a year on average time for export procedures from 192 hours to 72 Nations’ least-developed country category Bank Doing Business ranking by 15 places, and strengthened governance.” until 2022. By then, it also predicts that private- hours and to almost halve export costs. In addi- by 2021, start integrating into the Southern privatize at least 20 state-owned enterprises, The NDP is based around six strategic axes: sector investments will make up 20.7 percent tion, it will start integrating into the free-trade African Development Community free trade raise the contribution of non-oil sectors from sustainable, diversifi ed and inclusive economic of GDP and infl ation should be reduced to 6.4 zone of the Southern African Development zone by 2020, reduce the average export 8% of GDP to 16%, double non-oil exports to development; good governance; international percent. Community, a market of 16 countries and procedure time from 192 hours to 72 hours $1.8 billion, build at least one new oil trade integration; infrastructure; human devel- around 300 million people, in 2020. and lower the average cost of an export re nery and domestically produce 50% or opment and welfare; and regional development. A diversi ed economy Many of the programs in the NDP’s infra- procedure from $825 to $400 more of Angola’s demand for sugar,  our Those axes are further broken down into 25 Macroeconomic stability is crucial for achiev- structure axis will also improve Angola’s attrac- and steel pipe policies, 83 programs and 500 goals. The esti- ing the government’s goals for economic devel- tiveness as a hub for exports and business mated cost for achieving these goals is around opment. Fiscal consolidation is, therefore, an generally. Substantial development projects $97 billion, which will be raised through bud- important component of the NDP, which are planned for all forms of transport, logistics, getary funds, new borrowing and private-sector includes measures to contain government electricity, energy, water, sanitation and tele- resources. expenditure and anti-corruption strategies, for communications. As an illustration of the ambi- AXIS  AXIS  Work began on the NDP almost immediately example. The implementation of a new debt- tion of these schemes, the government aims to Territorial development Infrastructure development after the government took offi ce. It was coordi- management strategy will also help reduce the raise access to electricity from 36 to 50 percent nated by the Ministry of Economy and Planning, public-debt-to-GDP ratio to 60 percent by 2022. and increase energy generation capacity from Example goals: Pave at least 4,000 Example goals: Luanda’s new airport to with technical assistance from an international In addition, the government aims to modernize 3.9 GW to 7.5 GW. kilometers of primary roads and 4,180 receive at least 5 million passengers consortium led by Investment, Training and the country’s fi nancial systems by expanding kilometers of secondary roads, build or a year, 110 state logistics assets to be Human Development Consulting and CESO, the use of electronic payment technology, for Promoting the development of society rehabilitate 8 public buildings, and 10 concessioned to private operators, increase experienced development consultancies. instance, and to double the number of con- Advancing human development and welfare urban centers should be undergoing access to electricity from 36% to 50% A wide range of stakeholders closely collabo- tracts awarded through competitive bidding. is the core axis of the NDP for the government. integrated urban development of the population and rated in the plan’s creation, with input received The latter initiative will partly address the Key to this is increasing spend on education programs by 2022 access to water from every ministry and provincial govern- fact that Angola is currently too dependent on and health from 21 percent of the public bud- to over 76% ment, national and local government agencies, public investment. Among other NDP mea- get in 2018 to 35 percent in 2022, in addition AXIS  representatives from each industrial sector, sures to encourage the private sector are the to investing in housing, culture and sport. Good governance businesses and civil society. This has resulted new investment and competition laws that Inequalities will also be addressed through and related reforms in sectoral and cross-sectoral programs that were introduced in 2018. One of the goals programs targeted at each of Angola’s regions complement each other, and have clear objec- of business-friendly legislation like this is to so that the country’s most remote areas benefi t Example goals: Raise the plurality of the tives, targets and paths of responsibility. improve Angola’s ranking in the World Bank from social and economic revitalization as well national media to 75%, approve a plan for The programs and the NDP as a whole also Doing Business ratings by 15 positions by 2022. as its cities. combating corruption by 2019 and complement and incorporate the commit- The private sector will receive another lift Over the next few years, implementation initiate its implementation, ensure that 77% ments made by Angola to international devel- from the privatization of at least 20 state-owned of the NDP’s programs will transform many of the population have access to the national opment plans like the United Nations’ 2030 enterprises and the sale of equity stakes in pri- aspects of life for Angolan citizens, busi- registry and modernize public administration Sustainable Development Goals, the African vate enterprises. Another major contribution to nesses and investors. President João Manuel Union’s Agenda 2063 and the Southern African building businesses and economic advance will Gonçalves Lourenço’s government has, as the Development Community’s Regional Indicative be the development of non-oil sectors to reduce World Bank put it, “geared policies towards Strategic Development Plan, which are also the country’s dependence on hydrocarbons. macroeconomic stability, leveling the playing focused on poverty reduction, stronger com- Within the NDP, the main initiative for fi eld for a more diversifi ed and inclusive econ- petitiveness, economic diversifi cation and, in achieving this is the Production, Export omy, and putting in place a social safety net for the case of the regional plans, free trade. The Diversification and Import Substitution the vulnerable.”

The government ‘takes the bull by the horns’

diversification are important focuses for your in dormant areas. The results of these are beginning Angolan Minister of Social Communication Aníbal João government. Can you tell us about the national to be felt. da Silva Melo provides an insider’s guide to the country’s Production, Export Diversifi cation and Import Substitution (PRODESI) program you have imple- Angola has a reputation for corruption. How is development plans. mented to help achieve these things? your government tackling this? We are betting seriously on economic diversifi - Previous governments spoke of corruption but cation. The objective of the PRODESI program is to effective measures to fi ght it were not implemented. Could you provide some background to the eco- stimulate the agriculture and agribusiness sectors Lourenço made a commitment to change this in the nomic situation in Angola when President João as well as to promote tourism, which has a lot of 2017 elections, in which he had a clear campaign Manuel Gonçalves Lourenço’s government came dormant potential. It is a very broad program with slogan: “Improve what is right and correct what is to power in 2017? both bureaucratic and economic measures, and wrong.” Angola had been in a recession that began in 2014 the government is now beginning to implement it. Corruption was a problem that the whole of that was caused by the fall in the price of oil on the Included in it are measures to stimulate the society recognized, unanimously, needed to be world market. In addition to that, due to some seri- domestic production of goods, in order to reduce addressed urgently. It had reached a level where ous management problems under the previous our level of imports of foods that are part of the wrong practices were considered normal and administration that were identifi ed during our fi rst basic basket or are raw materials for industry. The acceptable. This was an obstacle for private invest- new priority in the agricultural sector is to support ment. A favorable political climate had to be created year of being in offi ce, the new government found Africa’s leaders pose a er signing the continent’s new free trade agreement. itself with empty coffers. small family farming. While the government will not so that competent institutions could do their job In the Angolan national treasury there were only forget large agricultural investments, they will no and the country could really advance. The president suffi cient funds to pay seven months of salaries to longer be the priority. said he would “take the bull by the horns” and he public offi cials. As well as that, the liquid interna- An important part of PRODESI is that Angola’s did from day one. Strengthening trade in Africa tional reserves of the country showed a very steep armed forces and the Ministry of the Interior will downward trend from 2014. Inflation had once be obliged to acquire materials from local produc- What are the other main challenges Angola faces In March 2018 at an African Union summit in nifi cant economic, political and cultural leaps again grown, and had reached a rate of between 30 ers. This is very signifi cant because we are talking in attracting foreign direct investment and what Rwanda, President João Manuel Gonçalves over the next few decades.” and 40 percent. The exchange rate was an adminis- about two of the agricultural sector’s biggest inter- are some of the country’s attractions for investors? Lourenço was the fourth of 44 heads of states to Melo felt that African trade blocs are essential trative and artifi cial rate, and there was a huge gap nal clients. The most important challenges would be the sign on to the creation of the African Continental for encouraging further growth in intraregional Aníbal João da Silva Melo between it and the real rate. development of transport, water and energy infra- Free Trade Area (AfCFTA). trade. “If we work together with our neighbors Minister of Social Communication What role do hydrocarbons have in Angola’s future structure, and education. Internal and external Negotiations are still continuing on the details on the continent, the prospects for growth are What were the fi rst steps the government took to economy? communication is another challenge we must face. but the groundbreaking agreement will see the very positive. Traditionally, Angola kept away improve the economic position? 2018. But the economic expectations for 2019 are It is obvious that a country that has oil must learn We need to show that the current Angola is not the elimination of tariffs on most goods, liberaliza- from the idea of opening up regional trade, but It was a very critical situation and things were unanimously positive, from not only Angola’s gov- to use these riches correctly, and return the reve- Angola of war and there are no problems with citi- tion of trade in services, removal of non-tariff we have another strategy today. The new govern- worse than we had imagined. That is why the fi rst ernment, but also international institutions such nues to the economy in order to support diversifi - zen security. barriers to intraregional trade and eventually ment is determined to participate in this process measure of the government of Lourenço was to as the World Bank and the International Monetary cation and serve the social areas of education and We need to communicate that Angola, with this result in a huge new continental single market of regional and continental trade development.” approve a macroeconomic stabilization plan with Fund. For 2019, economic growth is expected, sup- health. The government is acting to reorganize the new government, is a new country offering great with free movement of labor and capital. As a result of a number of smaller African eco- different objectives. First, to reduce the gap between ported by the achievements of the macroeconomic oil sector because, in recent years, not only has the opportunities that hopes to establish more rela- By establishing the world’s biggest trade zone nomic communities, trade within the continent the two exchange rates by ending the administra- stabilization plan. price of a barrel of oil fallen but so has Angola’s oil tionships with international partners. Angola is made up of 1.2 billion people, AfCFTA is set to is already rising, with the International Monetary tive exchange rate and introducing a fl uctuating a strategically located country that can serve as a have an immense impact on the participating Fund estimating that intraregional imports, as a exchange rate. platform for other regions of Africa and our human countries’ economies and open up major oppor- share of total imports, have almost tripled in the Urgent measures were also approved to create “The economic expectations for  are unanimously capital is another excellent competitive advantage tunities for businesses with operations in some last two decades to around $100 billion. a better business environment. The positioning of positive, from not only Angola’s government, but also that we need to communicate to the international of those nations. One of the most important of those blocs is Angola in the World Bank’s Doing Business ranking community — Angola is a culturally and ethnically Businesses based in Angola, currently the the Southern African Development Community lists was very low and it was essential to improve international institutions such as the World Bank.” diverse country that welcomes all those who visit us. sixth-biggest economy in Africa, will be in a par- (SADC) free trade zone, which includes 13 coun- that. So, one of the fi rst initiatives of the new gov- ticularly advantageous situation, said Minister tries and around 27 percent of the continent’s Aníbal João da Silva Melo, Minister of Social Communication ernment was to alter the legislation on private How do you see the relationship between Angola of Social Communication Aníbal João da Silva total population. Angola, the second-largest investments — simplifying the law and ending the and Japan developing in the future? Melo, “The strategic location of Angola between economy in the region, opted out of joining this requirement for foreign investors to have manda- At this moment we can say, without any doubt, production and we stopped gaining new invest- The development of the Port of Namibe rep- central and southern Africa means that it is in an trade bloc when it was set up in 2007. Partly as tory partnerships with Angolan partners. that the stabilization measures are working and are ments in the sector. We have introduced important resents the fi rst substantial example of Japanese excellent position to serve as a gateway to other a result of that decision, although Angola rep- At the same time, the government changed our paying off. In February, for example, we recorded reforms quickly that have addressed this stagnation. funding for a major infrastructure project that is regions of the continent.” resents 30 percent of exports from the region, migration regulations: simplifying the visa process, the lowest infl ation rate for the last three or four The first of these was to separate the conces- fundamental for the development of Angola. I think The AfCFTA countries currently have a com- it only accounts for 5.8 percent of intra-SADC establishing visa agreements with some countries, years — we estimate that it is below what the gov- sionaire function from the production function in that, soon, we will begin to discuss the implemen- bined gross domestic product of $2.5 trillion exports. and creating a business visa to facilitate the attrac- ernment had budgeted for. We are realistically opti- the public sector. Historically, Sonangol, the state- tation of digital terrestrial television as Angola has but many, including the minister, expect this to That is about to change. In 2018, the Angolan tion of investors and to encourage the arrival of mistic that the effects of our stabilization measures owned oil and gas company, had both of these adopted the Japanese standard and we are going to expand signifi cantly in the near future. “Africa government announced it would be joining the tourists. and our promotion of domestic production will functions but we have created a National Oil, Gas work on it with Japan. This project opens up great has great advantages on which this growth can be SADC free trade zone and, within a few years, begin to be felt in the pockets of consumers and in and Biofuels Agency that has taken over Sonangol’s possibilities for associations with Japanese com- based including the continent’s enormous diver- tariffs on an estimated 5,000 items should be How have initiatives introduced by the govern- the daily life of citizens during 2019. This is the main regulatory roles. panies in that and other sectors. And, undoubtedly, sity. But most important is the demographic fac- gradually removed. “We want to encourage the ment changed Angola’s economic standing? objective of all the government’s work. Measures have also been taken to provide clarity 2019’s Tokyo International Conference on African tor — Africa has a young population and the use growth of intracontinental trade as this will help Our government was inaugurated in October to our main international oil investors to encourage Development will be an excellent opportunity to of technologies has grown very rapidly in some Africa become the world’s next success story,” 2017, which was still a year of recession, as was Increasing domestic production and economic them to reinvest and return to prospecting activities intensify bilateral cooperation in even more projects. countries. This will allow the region to make sig- explained Melo.

PAGE: B2 (Sponsored content) Wednesday, Wednesday August, August 28, 2019 28, 2019 | The | The Japan Japan Times Times | B3 | 3 www.global-insight.net ANGOLA GLOBAL INSIGHT Stable, resilient and SHUTTERSTOCK/JAN ZIEGLER SHUTTERSTOCK/JAN modern monetary © policies and banks

As part of Angola’s Macroeconomic Stabilization Program, the central bank is reducing infl ation to one digit, transforming the exchange rate mechanism and currency controls, and ensuring that the country’s banking sector meets the highest international standards.

Angola’s new government has created two the gap had been reduced to about 20 percent. central road maps for revitalizing the country. To achieve that, BNA needed to devalue the One is its National Development Plan 2018- kwanza by 45 percent. 2022, which includes initiatives for promoting Although this has impacted import prices, economic, social and territorial development. inflation has remained under control and The other is its Macroeconomic Stabilization Angola’s international currency reserves had Program (MSP), which is focused on removing risen to $16.7 billion by January — enough financial imbalances. to cover the cost of almost six months of the Launched in January 2018 and expected country’s imports. to be fully implemented by 2020, the MSP involves the government addressing issues Stronger supervision of banks in three areas. Two of these — fiscal consoli- “These initiatives have been of great benefit dation and improving the business environ- and created a more transparent market that is ment — are being overseen by the Ministry better regulated,” said Massano. However, the Part of Sonangol, the state-owned oil and gas company, will be privatized in the near future. of Finance, and the Ministry of Economy and bank is going much further to develop a more Planning, respectively. While at the heart of credible, resilient and modern financial sys- the third — reforming monetary policy — is tem by 2020 that can better enable Angola’s the National Bank of Angola (BNA). economic advance and provide confidence to Reforms lead to growth in public Created in 1926, BNA is the country’s state- potential international investors. José de Lima Massano owned central bank and it is headed by one of “We have not just changed our foreign Governor, National Bank of Angola Angola’s most respected bankers, José de Lima exchange system but we have also strength- Massano. He first held the post of governor ened our ability to supervise the banking revenues and the private sector of the bank between 2010 and 2015, during According to Massano, “Everyone expected sector, and become far more strict when it which time he bolstered Angola’s financial that these changes would have a tremendous comes to compliance and best practices in position to the point where inflation dropped impact on prices but that has not been the the Angolan banking sector, for instance,” he Angola’s Ministry of Finance has introduced a package to under 10 percent — the lowest the country case.” said. had ever seen. Previously, Angola had a fixed foreign The NBA is improving its reporting stan- of reforms that is bringing fi scal consolidation and In October 2017, he was reappointed as exchange rate mechanism that was pegged to dards to an international level and now opportunities for business. governor by President João Manuel Gonçalves both the dollar and the euro, and foreign cur- follows the Basel Committee on Banking Lourenço to restore BNA’s credibility and help rencies were allocated to individual banks by Supervision’s standards for overseeing the ensure the success of the MSP. the BNA. The Angolan economy is currently sector, for example. “We have also achieved A new program of Angolan reforms that aim to cial institutes, and it replaces a more limited con- dependent on petroleum and, when the price massive advances in making sure guidelines increase macroeconomic stability and fiscal sumption tax. Reducing inflation is the main goal of oil plummeted in 2014, the inflexibility of for anti-money laundering and countering consolidation, while enabling private sector-led “Until now, the Angolan tax system has been one Within that program, the BNA’s primary this system put tremendous stress on the the financing of terrorism are implemented economic growth and diversifi cation, is “off to a of the few in the world that did not have VAT. We goal is to reduce inflation in a way that does country’s international currency reserves with and adhered to,” Massano said. promising start,” according to an International began its implementation in July, gradually, and we not impact on Angola’s economic growth in over a third of them being lost in two years. “In addition, we are currently working with Monetary Fund (IMF) review from June. believe that there are signifi cant advantages for the order to protect the country’s currency (the “Something had to be done,” noted the World Bank to reshape our entire pay- The review of the program, which the IMF treasury, government and taxpayers, despite con- kwanza), revenues and foreign exchange Massano: “The central bank is responsible ment-system law. By modernizing our finan- helped to develop, was the institution’s fi rst since it straints that may still occur at this stage. The fact reserves. for managing and protecting the country’s cial legal frameworks we can guarantee that agreed to extend about $3.7 billion to Angola under that we are considering a single rate avoids admin- “Bringing inflation down to one digit is the players that operate in our market follow its Extended Fund Facility (EFF) in December 2018. istrative and legal issues, and simplifi es computer our main objective and greatest challenge. “The BNA will continue to the rules of good practice and represent no And the report’s positive conclusions resulted in the systems. Among other benefits, VAT may also According to the MSP, we have to deliver this risk for consumers or the Angolan financial IMF approving a new tranche of funding for the attract investment, as it can be deducted, and help result by the end of 2022 and in a manner build on the foundations sector,” he added. program of around $248 million, bringing the total move people from the informal economy into the Archer Mangueira that does not create further imbalances for it has developed for robust Recent announcements from the NBA illus- so far disbursed to $1.24 billion. formal economy,” Mangueira said. Minister of Finance the economy,” Massano said. trate its commitment to stronger supervision Angolan Minister of Finance Archer Mangueira The government has put in place a number The Angolan central bank is well on its way governance and internal of a sector made up of 29 banks, five of which provided background to the agreement: “In 2018, of other measures aimed at formalizing Angola’s to meeting this goal, he stated: “In 2016 the controls and the highest are responsible for around 80 percent of lend- the government initiated some deep reforms as significant informal economy as a way to maxi- not only to compete for jobs, but also to create their inflation rate was 42 percent, in 2017 it was ing activities in the country. part of our Macroeconomic Stabilization Program mize revenues. These include the introduction of own jobs.” 23.7 percent and in 2018 it was 18.6 percent. international standards.” Last year, a threefold increase in the mini- that were aimed at creating the conditions of stabil- new high-tech computer systems that will make One of the country’s most attention-grabbing This downward trend is fantastic and I believe mum share capital requirement for banks ity and predictability needed to attract and enable it much easier for more individuals to register for measures for encouraging the private sector and that BNA’s management strategies and the José de Lima Massano was introduced, with a deadline of December private investment. That process continues in 2019 tax identifi cation numbers. increasing public revenues is a major privatization measures we have implemented have enabled Governor, National Bank of Angola 2018 given to meet this level. “As a result of at the same time as structural reforms that favor the According to the minister, “Technology is also program that initially consists of about 193 compa- it. Even though it is still high, we are on the this, in 2019 we have closed down three banks business environment are implemented. being used to accelerate the legalization and nies and assets. The program includes businesses right path.” international reserves. At the same time, we that failed to meet the new minimum capital “However, to complement this strategy, as well as incorporation of companies, and to simplify the in agriculture, industry, tourism, fi nance, mining, The positive signs are continuing in 2019, want to create a better and more competitive requirements. to provide greater stability and robustness to our processes involved in taxes and fees. We have transport and telecommunications, as well as part with February’s inflation rate being 17.6 per- business environment — so we had to intro- “This is part of our process to improve the reforms, the government decided to take advan- launched an online platform for opening new busi- of the oil and gas giant Sonangol, the largest state- cent — “That is the best it has been in a single duce changes.” banking environment, and allow operations tage of the knowledge accumulated by the IMF nesses, for example, which eliminates the need for owned company. month since 2015. So, for 2019 we are target- Now, the fixed-rate regime has been only of those institutions that have the men- by requesting a technical and fi nancial assistance an initial deposit of capital and reduces the number “In March, we began the process of privatizing ing a rate of around 15 percent at the end of replaced by exchange rate flexibility and it is tality and the structure to keep up with the package from the organization.” of requirements for the creation of a company from state-owned enterprises, which is being conducted the year. Upcoming changes to electricity and the market that guides the rate, rather than changes we are implementing,” stated the The three-year program contains “a series of vital eight to fi ve.” by the Institute for Asset Management and State fuel prices could have a short-term impact the BNA. “Through the MSP, we have allowed governor. fi scal, fi nancial, monetary and structural reforms Participation (IGAPE). Our privatization program on inflation but we remain optimistic that we commercial banks to bid for foreign cur- This improvement process will continue, — we believe that the EFF will boost the relaunch Encouraging the private sector will follow a transparent process. It will be carried will deliver what we have promised,” said the rency. We now organize auctions on a regu- said Massano: “We want to be sure that of economic growth in Angola,” said the minister. A key target for these simplifi ed procedures is the out on the stock exchange and be fully open to for- governor. lar basis and, following the Dutch model, we Angola has a resilient and modern financial country’s entrepreneurs, he said: “The govern- eign investors,” said Mangueira. offer foreign currency to the highest bid,” he sector, and we need to guarantee that con- Fiscal consolidation ment’s strategy for transforming the economy The process started with seven manufactur- Market-led currency systems explained. sumers are fully protected. The BNA will A critical pillar of the program — and one that par- involves increasing the participation of the private ing units in different industrial sectors that are The BNA’s containment of inflation is even The currency reforms have had an imme- continue to build on the foundations it has ticularly concerns Mangueira’s ministry — is fi scal sector with a focus on boosting micro-, small- and located in the Luanda-Bengo exclusive economic more impressive when you consider that over diate impact. In early 2018, the gap between developed for robust governance and inter- consolidation in order to bring down the country’s medium-sized enterprises. The state needs to cre- zone (EEZ) that was set up in 2009. The units are the last year the bank has also substantially the formal and informal currency markets nal controls and the highest international debt, which had risen to 84 percent of gross domes- ate the necessary environment for entrepreneurs fi tted with machinery and equipment, were being reformed Angola’s exchange rate system and for the kwanza in relation to the dollar was standards, while retaining its commitment tic product by December 2018 due to a fall in oil to be able to freely develop their activities.” sold for between $3 million and $18 million, and the way foreign currencies can be accessed. around 150 percent but, by October that year, to inflation.” revenues. Other encouragements for revenue mobilization attracted interest from over 60 national and inter- Although the IMF’s June review predicted a pos- from entrepreneurs and established businesses national investors, said Gilberto Luther, IGAPE’s sible increase in this fi gure during 2019, it assessed include a new and incentive-packed private invest- executive director. Angola’s debt level as sustainable. A rapid decrease for in ation in Angola Mangueira, however, is a man of caution, say- ing: “The Angolan economy remains dependent “Our privatization program will follow a transparent  on oil and there has been a high level of volatil- process. It will be carried out on the stock exchange and be ity in its price recently. Given that, I felt there was a need to revise the country’s budget for 2019 in fully open to foreign investors.” .% order to adopt a more moderate stance on the ref- Archer Mangueira, Minister of Finance erence price of a barrel of oil and current levels of  Source: National Bank of Angola production. “Reducing the price from $68 to $55 resulted in a ment law, a competition law that seeks to eliminate Mangueira was unsurprised by the high level of 19.4 percent decrease in tax revenues. But this will Angolan monopolies and legislation to promote interest, “The EEZ stands out as a space for inves- .% not refl ect an increase in the gross fi nancing needs public-private partnerships. tors. It has a strategic location, and ideal water, of the state because, under the fi scal consolidation A further stimulus comes from Germany’s energy and road infrastructure — all factors that  measures we have adopted, the revised budget pro- Deutsche Bank, which announced in June 2019 underpin the viability of investments,” he said. .% vides for a cut in expenditure.” that it has set up a $1.13 billion credit line for pri- The second step in the process came in June, The Angolan authorities have responded “deci- vate investments in Angola that will be distributed when IGAPE launched an international tender for .% sively” by enacting a conservative budget for 2019, through fi ve Angolan banks. the privatization of four farming estates, which said David Lipton, fi rst deputy managing director “Deutsche Bank’s long relationship with Angola could be worth about $110 million in total. At the  and acting chair of the IMF executive board, in June. includes supporting €3 billion of public sector proj- same time, IGAPE announced that its next set of He was confi dent that “fi scal consolidation will ects. Now it is time to continue this relationship and tenders would be for 17 companies, including .% continue in 2019 under the recently approved also involve private-sector initiatives. Angola’s rapid slaughterhouses, tomato concentrate factories, supplementary budget. This is supported by a transformation is creating exciting opportunities,” cold stores and silos. .% conservative expenditure envelope, which pre- said Ignacio Ramiro, head of structured trade and In its June report on progress in Angola, the IMF  serves social spending, and by non-oil revenue export fi nance for Deutsche Bank Spain. noted that better fi nancial management, greater mobilization, including the adoption of a value- Opportunities that the government is initiating transparency and front-loaded fiscal consolida- added tax (VAT).” for citizens should also advance public revenues, tion, among other improvements, had “stoked Portugal is supplying technical assistance to stated Mangueira, “For instance, we are imple- confidence” in the country’s enactment of its  Angola for the introduction of this new VAT sys- menting a vast employment program to generate EFF program, which had “provided impetus to a       tem. It could impose a rate of 14 percent on all 500,000 jobs by 2021 and supplying specialized reform-minded government.” Summing up the imported goods, taxpayers with annual incomes training to 30,000 young people — a measure that country’s current position, Mangueira said, “Angola over $44,000, large public enterprises and fi nan- is giving our young workforce the necessary skills is now a sea of opportunities.”

PAGE: B3 4B4 | The | The Japan Japan Times Times | Wednesday | Wednesday,, August August 28, 2019 28, 2019 (Sponsored content) GLOBAL INSIGHT ANGOLA www.global-insight.net The great little revolution in transportation The government’s strategy for expanding Angola’s transport infrastructure is turning the country into a regional hub for logistics. SHUTTERSTOCK/MRGOMEZ © In June 2019, Angolan Minister of Transport Ricardo Viegas D’Abreu confi rmed that the new and much- anticipated $5.2 billion Luanda International Airport should be fully operational by 2025. Predicted to be a future aviation hub for West Africa, it will be able to handle up to 15 million passengers and 600,000 metric tons of cargo a year. The airport — located 40 kilometers from Angola’s capital — is a central cog in the govern- ment’s strategy to improve national and interna- tional connectivity through the development of a more integrated, modern, efficient and sustain- able transport and logistics network. According to D’Abreu, “One of our main aims is to turn Angola into a vast logistics platform in order to facilitate interregional trade and the movement of goods and people. The country can become a strong logistics hub for neighboring African countries, and that will obviously boost our domestic economy and acceler- Ricardo Viegas D’Abreu ate economic diversifi cation.” Minister of Transport Angola has already carried out substantial recon- struction of its transport infrastructure since 2002, covering roads, bridges, railways, seaports and air- The Luanda International Airport, which is being ports. However, to take the country to the next level, built and equipped by a Chinese consortium and the government is now looking to attract interna- Brazilian company Odebrecht, will be at the fore- Angola’s plans for transport infrastructure development cover sea, air and land. tional investment to a wide range of projects, many front of Angola’s restructured air transportation of which are under the auspices of the Ministry of network. It will cover an area of over 1,300 hect- Transport. “We are responsible for rail, maritime ares, have two runways capable of handling the infrastructures. In port management, for example, and air transport infrastructure, as well as the legal world’s biggest passenger aircraft and serve as an we are not utilizing their potential as transshipment and regulatory frameworks for civil aviation, road, alternative to Luanda’s existing Quatro de Fevereiro hubs for the South Atlantic, the Gulf of Guinea and Japan invests $600 million in Angola rail and sea transportation,” explained D’Abreu. International Airport. Southern Africa,” he said. The government is turning to foreign companies Construction began over a decade ago and To achieve this, the country will launch tenders The development of the Port of Namibe is Toyota Tsusho improvement project in 2018. With $20 mil- and away from publically funding projects for two has been on hold for a while, said D’Abreu: to manage a number of its facilities. One, the Port lion in funding from the Japan International reasons, he stated: “One is that our public expendi- “Unfortunately, it was not properly planned in of Lobito, “is probably among Africa’s best ports. We Corp.’s biggest project in Angola to date. Now the company Cooperation Agency, this involved paving the ture is currently limited. The second, which is pos- line with modern international standards. We are are interested in signifi cantly increasing its produc- container terminal and reinforcing part of its sibly more relevant, is that private investors will addressing this but, because of the delay, we have tivity with a partner that shares our vision of tak- is looking to make further investments in the country. quay. not just bring capital but also knowledge, technical to start restoring Quatro de Fevereiro airport in the ing full advantage of Lobito’s geographical location Under an export credit line agreed in 2019 expertise and supporting industries. In addition, meantime. An international tender for this will be for cargo transportation toward inland countries between the Japan Bank for International we need to make our existing infrastructures more launched in 2019.” like the Democratic Republic of the Congo (DRC), Angola offers Japanese businesses important very important for us. We can take advantage of Cooperation (JBIC) and Angola’s Ministry of Zambia, Botswana and Zimbabwe,” stated D’Abreu. opportunities, said the President and CEO of their investment capacity, while they also bring Finance, the latest stage of the port modern- The ports of Lobito, Namibe and Luanda are ter- Toyota Tsusho Corp., Ichiro Kashitani, after in human and technology skills.” ization project will be co-fi nanced by the JBIC “One of our main aims is to turn Angola into a vast logistics minal stops on each of Angola’s three railway lines holding a meeting with the country’s President Those skills will be used in a development and private Japanese financial institutions platform in order to facilitate interregional trade and the and one way the government intends to make the João Manuel Gonçalves Lourenço in Luanda project consisting of two parts: an expansion of including Sumitomo Mitsui Bank Corp. and most of their potential for transporting minerals in May. Following those discussions, during Namibe’s container terminal and a rehabilita- the Hongkong and Shanghai Banking Corp.’s movement of goods and people.” and other commodities is by developing and mod- which the leading executive expressed his com- tion of its iron-ore export terminal. As part of Tokyo branch. ernizing the railway network. pany’s interest in investing in various sectors the container terminal expansion, Toyota will Providing insurance for the private sec- Ricardo Viegas D’Abreu, Minister of Transport: The government is currently investing in this of the Angolan economy, he visited the site of be increasing pier capacity, dredging the har- tor loans is Nippon Export and Investment network by, for instance, buying new trains and Toyota’s biggest commitment to date: the Port bor so that it is suitable for large vessels, and Insurance, a spokesperson for which said: productive and this can only be done if we bring in Also on the horizon is part-privatization for building more stations, but according to the min- of Namibe. supplying and installing new container cranes “This project, in which Japanese public and international partners that can integrate them into Empresa Linhas Aereas De Angola (TAAG), the ister: “Restructuring and expanding our railway sys- In January, it was announced that Toyota and other Japanese equipment. private sectors will work together to develop the global economy. Our challenge is to establish a country’s national airline, in order to reinforce its tem to DRC, Zambia and Namibia is a priority. It is had signed a contract worth over $600 million Toyota has also been asked to rehabilitate ports in Angola, has great significance. The solid, transparent, secure and competitive frame- modernization and growing capacity. It currently up to us to develop about 200 kilometers of line to with Angola’s Ministry of Transport to renovate the Sacomar iron-ore terminal because the project is expected to strengthen the bilateral work for foreign investment and public-private operates 12 domestic, 10 regional and six intercon- connect with Namibia and then we will be able to and expand the country’s third-largest port. Angola government intends to reopen the iron- relationship between Japan and Angola, and partnerships.” tinental routes, and has codeshare agreements with move cargo by rail from Cape Town to the Port of Located in the city of Moçâmedes in the south producing Cassinga Mine in the interior of the be a milestone for Japanese companies to win With 30 airports, 17 of which have recently been airlines such as Lufthansa, Emirates and Air France. Namibe quickly and cheaply. Our reactivation proj- of Angola and near the border with Namibia, country that is connected to Namibe by the business opportunities in Africa.” rehabilitated, the country’s first focus for devel- “TAAG was recently cleared to fl y without restrictions ect for the ‘Lobito Corridor’ line, which links to DRC the project is expected to be completed within Benguela railway and was closed during the Toyota, which has been active in Angola oping this type of framework was civil aviation. It by the European Union and has successfully com- and Zambia, will also be a game changer for some three years and should turn the port into a country’s civil war. since 1966 — through the supply and distri- started by introducing improved aviation law and pleted the International Air Transport Association’s international commodity prices.” competitive logistics gateway for imports, As the minister explained: “There are proven bution of vehicles, post-war mine clearing and establishing the independent Angolan Civil Aviation Operational Safety Audits. Its fl eet is now being ren- A new light railway is one proposed option for exports and transshipments for the surround- reserves and production will resume soon but the development of local human resources — Authority to comply with recommendations from ovated to allow a signifi cant increase in domestic solving another issue that Angola faces: urban ing African region. the only way we can export the commodity clearly sees its development of the Port of the International Civil Aviation Organization. and regional fl ights,” said D’Abreu. mobility. “Luanda and some of our main provinces According to Minister of Transport Ricardo is through the Port of Namibe. It is interest- Namibe as a milestone in its relationship with Next, stated D’Abreu: “We are dividing the currently face tremendous challenges in terms of Viegas D’Abreu, “It will be able to compete with ing that Toyota is responsible for this project the country. functions of Angola’s National Company for the Investment opportunities in ports and rail mobility. We need to develop strong and sustainable the other major ports in Southern Africa, like because, historically, Japan was one of the At his meeting with Lourenço, Kashitani sug- Exploration of Airports and Air Navigation (ENANA). With a coastline of 1,600 kilometers, another focus mobility programs, and Japanese experience could Walvis Bay in Namibia and Cape Town in South main importers of our iron.” gested that Toyota was interested in investing One publicly owned company will be in charge of for Angola is the rehabilitation of its numerous be key in this area,” D’Abreu said. Africa.” Japan’s interest in Namibe goes back to 2009, further in, for example, more infrastructure, navigation and air traffi c control, and a separate ports. One of the largest, the Port of Namibe, is Overall, he is extremely positive about the future Originally constructed in 1957, the port has when the Japanese government fi nanced a fea- the automotive sector, new transportation airport management company that will open its currently being developed by Toyota Tsusho Corp., of transportation in Angola: “We have reached a been a historically important export route to sibility study into the port’s redevelopment that technologies for services like traffi c manage- capital to private national and international inves- but the minister pointed out that there are many moment where the social, political, economic and Europe and Asia for commodities such as iron was carried out by TOA Corp., which has over ment, energy and training. “The company will tors. We will group our airports into regional clusters other opportunities for investors in the country’s fi nancial preconditions for success have been estab- ore, granite and oil. When asked why Toyota a century of experience in marine infrastruc- continue to contribute to the revitalization and and aim to publish international tenders for these maritime sector. “We need international players lished. In the Angolan transport sector, we are start- was chosen to lead the facility’s moderniza- ture. As a result of that study’s success, TOA was economic development of Angola,” a spokes- clusters by the end of 2019.” to assist in maximizing our existing and future port ing a ‘great little revolution’.” tion, D’Abreu replied: “Japanese cooperation is also responsible for the second stage of the person confi rmed. Angola’s crusade against corruption Angola is becoming an international case study for Strategic Plan for the Prevention and Fight Against and money laundering, and it has already begun to Corruption that was published in December 2018 recover assets located abroad and within the coun- how countries can best introduce successful anti- and is now being implemented. “In the plan, we try,” stated Pitta Gróz. established the guidelines for action by the relevant Having offered a six-month amnesty to those corruption policies. bodies for combating this phenomenon,” stated illicitly holding capital overseas, new legislation Pitta Gróz. came into force in 2019 that will assist the new The strategy is based on three pillars of action: body’s ability to recover an estimated $30 billion When the government of President João Manuel and foreign investors, and we have responsible prevention, fi ght and institutional development, that has been illegally removed from the country. Gonçalves Lourenço came to power in 2017, Angola management of the public treasury. We want the with the PGR itself being one of the focuses for that “Overall, we now have a very solid legal frame- The 2019 OECD Global Forum on Integrity and the Fight against Corruption. was rated 167th out of 180 nations in terms of per- resources we have to be used for the benefi t of all development as it had previously been severely work that has been adapted to meet good inter- ceived corruption by Transparency International. and not just for the benefi t of a few, as has happened underfunded. “We even lacked our own facilities national practices against corruption and all other Thanks to an ongoing and extensive crusade against previously. No individual or company should have but have now acquired an autonomous property economic and fi nancial crimes. Recently, we have Collaborating on crime corruption mounted by the president and his team, unfair advantages and all businesses should be able in which we will operate. also introduced new laws to support the work of that situation looks like it is changing considerably. to compete with equal opportunities.” We are also working to modernize the PGR our new agencies. These cover, for example, public During 2018, $500 million in illicit funds were ernment recover these assets and return them to The country rose two positions in the non-gov- The Attorney General’s Offi ce (PGR) “aims to be because economic-fi nancial criminality is increas- property, money laundering and fi nancial institu- repatriated to Angola as part of a coordinated their real owners, the Angolan people.” ernmental organization’s 2018 rankings, which rated the national reference organ in Angola’s prevention ingly sophisticated and we have to move at the same tions,” noted the attorney general. Another impor- investigation between Angola’s authorities and Further support came at the Organisation it “one to watch” for further rises in the near future of and fi ght against corruption. It is a public body pace. We have to be equipped with and trained in tant piece of new Angolan legislation is a revised the U.K.’s National Crime Agency (NCA). “We’ve for Economic Co-operation and Development’s once more initiatives had been implemented. While with a constitutional mandate to defend demo- state-of-the-art technologies that are being used penal code that includes severe punishments for forged a successful and cooperative relationship (OECD) Global Forum on Integrity and the Fight in June 2019, Hippolyte Fofack, chief economist of cratic legality and its powers align with this new era worldwide for the investigation of technological corruption. with Angolan prosecutors and the government as against Corruption in 2019. Speaking at the event, the pan-African bank Afreximbank, spoke for many of integrity, ethics and good governance. That is crimes,” he said. One of the PGR’s most vital weapons against they work to create a strong infrastructure to com- Angolan Minister of Justice and Human Rights expert observers when he told the Portuguese news why its role in this area is fundamental,” explained corruption is education, he said: “We are working bat corruption,” said NCA Director Donald Toon at Francisco Manuel Monteiro de Queiroz said, “A agency Lusa that Angola had become a “case study” Pitta Gróz. Recovering stolen assets on a broad training plan for all magistrates and the a meeting with Angolan Attorney General Hélder crusade is being carried out in Angola against for how to set about reforming anti-corruption poli- After establishing a new anti-corruption agency Angola ratified the United Nations Convention offi cials who work with them. To ensure the qual- Pitta Gróz in London. corruption that can be a reference in Africa, but cies and processes. in March 2018, which operates under the auspices Against Corruption in 2010 and, as part of its subse- ity of our work, we need to invest in educating the “It would not be possible to carry out our work for it to become a success we need international “We are experiencing a very signifi cant change,” of the Angolan Criminal Investigation Service, the quent moves to fully implement the treaty’s princi- individuals who carry out these important tasks.” to fi ght corruption without international coopera- cooperation.” OECD Public Governance Director said Attorney General Hélder Pitta Gróz. “Angola government asked PGR to develop the country’s ples, various bodies are in place that cooperate and PGR’s educational ambitions against corruption tion. In addition to the U.K., we have agreements Marcos Bonturi replied, “Angola has shown very only prosecuted 10 corruption cases between 2012 collaborate to share information about potentially extend to all other public employees and the wider with various international entities, including clearly its priority in the fi ght against corruption.” and the new government’s inauguration at the end fraudulent acts. These include a court of accounts, a population. For this reason, it is currently carrying Portugal and Mauritius,” said Pitta Gróz. He also stressed that the OECD was very interested of 2017. Since then, we have dealt with more than “We are a country that is fi nancial information unit, the National Directorate out awareness campaigns on television and radio. Another agreement was reached in 2019, when in developing closer cooperation. 200 cases so far.” of Prevention and Fight against Corruption, and the “We must make the PGR a more functional and pro- U.S. Assistant Secretary of State John Sullivan Angola’s partnerships against corruption go The new executive is focused on eliminating all working to improve legal National Directorate of Criminal Investigation and active body that is closer to citizens, and improve announced that the U.S. would grant Angola far beyond these examples, said Pitta Gróz: “In types of corruption, which it sees as a practice that security through an e ective Action. our interactivity with them. We are a country that about $2 million to combat money laundering addition, the United Nations Convention against weakens democracy as well as the trust of citizens In 2019, the PGR set up another new body to join is working to improve legal security through an and terrorist fi nancing. The FBI and U.S. Justice Corruption opens the doors to work in an inte- and investors in the state’s operations. According justice system in which no them: the National Asset Recovery Service. “This effective justice system in which no one is untouch- Department will also work to help recover stolen grated manner with countries with which we have to Pitta Gróz: “Our objective is to achieve a better one is untouchable.” very important service aims to create mechanisms able. We are counting on everyone’s collaboration money, he said,“We have trained staff, researchers no formal collaboration. There is a clear interna- country, where state institutions are more trans- so that the state is compensated for damages suf- in Angola’s crusade against corruption,” stressed and prosecutors who can help the Angolan gov- tional demonstration of willingness to cooperate.” parent for all parts of our society, including citizens Hélder Pitta Gróz, Attorney General fered through criminal attitudes, bribes, corruption Pitta Gróz.

PAGE: B4 (Sponsored content) Wednesday, Wednesday August, August 28, 2019 28, 2019 | The | The Japan Japan Times Times | B5 | 5 www.global-insight.net ANGOLA GLOBAL INSIGHT A modern approach to justice and human rights SHUTTERSTOCK/FRAMESTOCKFOOTAGES © Minister of Justice and Human Rights Francisco Manuel of this aspect. Our biggest challenge is to take advantage of any cooperation project in order Monteiro de Queiroz explains how his ministry is improving to prepare Angola’s human capital for the future. Each of the companies working with us is its services through modernization and the use of technology. made responsible for providing training and transferring know-how, so that we can auton- omously provide the services with our own What do you see as the main responsibility of human resources when the contracts end with your ministry? those external suppliers. We also run permanent The Ministry of Justice and Human Rights has technical training programs to ensure that this a transversal impact when it comes to economic happens. and social development. It is transversal because, in the fi rst place, it is concerned with people’s How are you using new technologies to help citizenship. For the collective, it is about the con- businesses and international investors? stitution of companies and societies, as well as When we talk about registration, that is not the organization of civil society. In addition to limited just to people — we also need to talk that, my ministry is also responsible for human about the registration of companies and other rights — which, today, is a subject that is impor- commercial enterprises. In March, we launched tant in all its activities. the ability to create companies online. Through our Portal for Electronic Public Services (SEPE), You recently announced that you are opening any Japanese business can now be constituted Angola is investing in cutting-edge technology. a new Identity Card Issuance Center, which here just by scanning in the required documents will include 16 production lines to allow the and fi lling in the necessary forms. For foreign issuance of more than 20,000 identity docu- investors, setting up companies here is now a mented a strategy for the courts to be able to “Through our Portal for attorney general’s offi ce to make the justice sys- ments a day. The center will bring together a very easy and fast procedure. function by channeling fi nancing to them from tem work better and reduce corruption through lot of Angola’s civil and criminal identifi cation the funds generated by charging fees for different education, prevention and action. Francisco Manuel Monteiro de Queiroz Electronic Public Services, services, employ over 200 people and will have Are you modernizing Angola’s judicial and administrative and judicial actions. Minister of Justice and Human Rights a real-time connection to identity registration legal systems in order to attract more foreign To improve the human skills in Angola’s justice any Japanese business can Why should Japanese and other international centers in each of the country’s 18 provinces. investment? system, we are carrying out training initiatives now be constituted here just companies consider investing in the modern Why are you investing so much in identity cards with state-of-the-art technology. After we have Those seeking to establish themselves in a with the National Institute of Judicial Studies, Angola? and wider citizen registration at the moment? opened that, although there is already a loca- new country to do business need two funda- and working with magistrates from the Public by scanning in the required For many reasons. Angola is a country that is It is a major priority for us in 2019 because we tion for issuing identity cards in all of Angola’s mental elements in place: political stability and Prosecutor’s Offi ce and judicial magistrates. In documents and lling in the very rich in natural resources, has a great capac- need to solve a big problem that we have, espe- 164 municipalities, we are going to extend those legal security. Angola, fortunately, is the safest addition, we have implemented cooperation ity for generating energy and also contains good cially in rural areas, where 75 percent of Angolan services to the smaller administrative units and country in Southern Africa and has remarkable projects with foreign universities for the train- necessary forms.” physical, economic and social infrastructures. children under 5 years old do not have birth cer- districts in the country. political stability, as well as being a country free ing of Angolan magistrates. Above all, Angola has a huge wealth of human Francisco Manuel Monteiro de Queiroz tifi cates. Without registration it is not possible to Later in 2019, we will begin the construc- of confl icts. Finally, from the legislative point of view, the resources. This human capital will be the fun- Minister of Justice and Human Rights obtain an identity card and, without that card, tion of three other regional centers. The entire In terms of legal security, it is imperative that government is approving and implementing damental element for achieving the ambitious citizens will not be able to obtain services, regis- infrastructure for this, from both the physical any national or international entrepreneur be numerous new laws, especially in the economic objectives set by Lourenço. ter property or pay taxes, and will be completely and technological points of view, will be imple- certain that when they sign a contract they are arena, that guarantee the legal and economic — that offers guarantees for contracts and regu- Angola has undergone an incredible trans- excluded from the functioning of the economy mented in the coming months. acquiring rights and obligations that will be security of national and international commer- lations on obligations. Our overall objective is to formation, especially in the fi eld of education, and society. defended by local courts and laws. Our judicial cial operators in different market sectors. These improve the country’s business environment and which can be seen in the substantial growth of We have developed a vision for civil registra- Has Angola relied on its own expertise to create system is currently undergoing reforms in order laws cover issues such as ethics, compliance, its competitiveness for investors. educational institutions that have advanced in tion and a strategy that will result in us extending this new system? to give it greater autonomy and, in 2019, we will good practices and transparency. Recently, one of our biggest concerns has terms of quality. civil registration posts for citizens to the entire To achieve our goals for civil registration we complete the process of ensuring the administra- In January, we also approved a new, modern been the fi ght against corruption because it is We are a young country that has a large work- country by the end of this parliamentary term. have had international cooperation. The tech- tive and human resource autonomy of our courts. penal code that has an extensive chapter on a determining factor for improving the business force that needs to be trained and be given the So that every time a new Angolan is born, they nological infrastructure, for example, is very For courts to function, they require fi nancial economic crimes and replaces one that was 132 environment. It is very complicated to inspire opportunities to work and generate wealth. can be easily registered as a citizen. Our new important and we are establishing cooperation resources, human capital and good legislation. years old. In addition, we have a new civil code confi dence in an environment marked by cor- Angola has enormous potential and it will be Identity Card Issuance Center will be equipped with Chinese companies for the development Regarding fi nancial resources, we have imple- — an adaptation of the current Portuguese code ruption and that is why we are working with the through our people that we succeed. Angola is on the path to ICT development By opening up telecommunications through new private lion square kilometers it is about three times with ICT,” which introduces citizens to new Da Rocha’s ministry is also working to stim- gic partner — which sent specialists to Angola the size of Japan — it will take some time to technologies through short courses and other ulate new digital services outside of the SEPE to work with us — we have been carrying out sector involvement, and investment in services and fully develop a comprehensive fiber-optic activities. “We are also developing a compre- environment. “Banking, for instance, is one a program that will allow us to develop terres- infrastructure, Angola is developing a digital economy. network. hensive training program for students in sec- economic sector that most uses ICT. In this trial digital television. At the moment, we are The minister added: “The government ondary and higher education, and we offer a area, we are working with the Angolan fi nancial involved in a pilot project for this in the city of decided to develop satellite infrastructure that series of free courses for young people in areas industry to use the capacity of our telecommu- Luanda, but we are also looking for funding to “We are building a new Angola that seeks to would quickly cover our territory. Investing related to ICT,” he said. nications operators — which represent more extend this project throughout the nation,” da establish technological bridges and strengthen in that technology would allow us to conduct In addition, the government is hastening than 13 million mobile users — so that they are Rocha stated. the impact that information and communica- observation activities of our entire territory but Angola’s transformation into a digital economy able to provide mobile payment services. The As with all of his ministry’s initiatives, the tion technology (ICT) has on man and society,” also, and fundamentally, to achieve a transfer of by developing its own online platform — the government is also developing regulations for overall aim is to expedite the spread of ICT, stated Minister of Telecommunications and technology and knowledge. We recognized that Portal for Electronic Public Services (SEPE) — this, which will be supervised by the National either through encouraging new telecom- Information Technologies José Carvalho da as soon as we have that service available, we that offers an increasing number of services for Bank of Angola,” he said. munication services or by expanding the Rocha. will see a boom in the development of ICT ser- both citizens and businesses. In a country that currently has only around infrastructure that supports those services. He explained why he saw this as vital: vices and the access of citizens to information.” 1.5 million subscribers to television through “This is because there is an intrinsic relation- “Increasingly, ICT plays a fundamental role in Angola’s fi rst satellite, Angosat-1, was built by “The government is satellite and cable, another focus area for his ship between three factors: service provision, the development of any country because of the a Russian fi rm and launched in December 2017 ministry is the expansion of digital media. infrastructure development — and economic role they play in the rapid diffusion of ideas and in Kazakhstan. However, it developed opera- evaluating how the “With the Japanese government as our strate- growth,” he said. programs. Particularly as a developing coun- tional problems and will soon be replaced by privatization of Angola try, we need ICT to facilitate the provision of the more powerful Angosat-2. With its $121 government services, and the introduction of a million cost being covered by the insurance Telecom will be carried out digital economy and knowledge-based society.” package on the defective Angosat-1, the new His ministry’s strategy for an ambitious satellite is likely to be in orbit by 2021 and in order to allow the entry expansion of telecommunications services, is being build by Airbus in France, with over of an international investor networks and infrastructure is laid out in a 60 Angolan scientists and technicians also recently produced ICT white paper that details involved in the project. that will fully develop it.” the many steps the government intends to José Carvalho da Rocha “The admission test and basic preparation José Carvalho da Rocha take before 2022 in order to best facilitate the Minister of Telecommunications and program for the Angolan specialists who are Minister of Telecommunications and Information advancement of Angola’s economy and society. Information Technologies currently working in this area was developed The use of mobile and digital technologies with support from Japan through the University has seen signifi cant recent growth in the coun- tion and the entry of more private operators,” Space Engineering Consortium, a group of uni- As da Rocha explained: “What we are seek- try, according to the Angolan Communications said da Rocha. versities with which we have reached a training ing to facilitate is the provision of services Institute. Almost half of the population — 13.2 As a start to this process, in 2018 the govern- agreement,” commented da Rocha. that people can utilize through electronic million people — used mobile phones in 2018 ment enacted legislation to enable new oper- However, said the minister, “In the fi eld of devices without having to leave their homes and 4.5 million people accessed the internet ator licenses to be awarded and it released a ICT, we must promote the development of not or offi ces. in 2017, a number that the institute expects to tender for a fourth, restriction-free global oper- just internal infrastructure, but also external “Services are already available in a wide range rise 32 percent to 5.9 million by the end of 2019. ator license in 2019. “Naturally, the entry of a infrastructure — Angola is part of a global vil- of areas — from downloading books for pri- Angotic: The technology forum new operator will create more alternatives and lage and we need to be connected.” At pres- mary education free of charge to pre-licensing More private operators for telecoms offers for customers that we hope will translate ent, more than 70 percent of those essential for the importation of 54 products considered Telecommunication services are currently into greater variety and quality in services, and external communications are made through part of the basic basket. You can also create a that is making the future supplied by three operators: the state-owned more accessible prices,” he explained. submarine cables. company online through the platform, a ser- Angola Telecom and two private companies, In a further move toward a more competitive The local telecommunications operators vice that we have also made available to foreign This June saw the latest edition of an annual Space Information Science and the Institute of Unitel and Movicel. In March, the latter of these market, 45 percent of Angola Telecom will soon make up a consortium, Angola Cables, that is investors as a way of improving the position Angolan event that is gaining increasing recog- Industrial Science at the University of Tokyo were signed a partnership agreement with Vodafone, be privatized, da Rocha noted: “The decision part of the West Africa Cable System project — of Angola in the World Bank’s Ease of Doing nition on the world stage: Angotic — the Angola among representatives from academia. While which will see the international giant provid- has been made. Now, the government is evalu- a submarine communications cable that links Business rankings.” Information and Communication Technology industry players the size of IBM, Ericcson, KPMG, ing the Angolan fi rm with strategic support in ating how the privatization of Angola Telecom 14 countries, including Angola, and extends Created by the Ministry of Tele com mu ni- Forum. Held at Luanda’s Talatona Convention Facebook, Microsoft, Huawei and Inacom also had various areas. will be carried out in order to allow the entry of from the U.K. to South Africa. “The same con- cations and Information Technologies in part- Center, the conference and exhibition acts as a a presence. “This engagement will provide Movicel with an international investor that will fully develop sortium is fully funding a segment of cable nership with the Ministry of Economy and knowledge-sharing and networking hub for gov- The main reason for many being there was artic- technical and marketing expertise that will it activities. As a consequence of both of these that links Angola to Brazil, which is part of the Planning, the online one-stop service for com- ernments, public bodies, leading companies and ulated by keynote speaker Brian Jakins, regional improve the quality of services we offer to our measures, Angola will have four global opera- Google-associated Monet Cable System that pany registration was launched in March. By startups from Africa, Asia, Europe and America. vice president of satellite services provider Intelsat customers and accelerate the expansion of dig- tors competing to provide telephone, internet runs from the U.S. to Brazil. This will allow us reducing the bureaucracy involved in setting The three-day event was opened by Angolan Africa, who said that the Angolan ICT market was ital services across Angola,” said Gianvittorio and television services.” to exponentially increase our connection speed up a business and simplifying the administra- Vice President Bornito de Sousa Baltazar Diogo set for major growth and offered substantial Maselli, Movicel’s CEO. and quality with the American continent,” said tive processes, it can now take only two days to and attracted about 8,000 participants — double investment potential. To help speed up the mar- The agreement between Movicel and Expanding infrastructure da Rocha. open a new company in Angola. 2018’s number. 150 speakers were involved in over ket’s advance, Minister of Telecommunications Vodafone comes at a time when competition To improve access to those services, public and Further support packages for national and 50 events that covered topics like digital transfor- and Information Technologies José Carvalho da in the sector is about to heat up. “The govern- private sectors are working together to expand Embracing technology international users will be added to the SEPE mation strategies, smart cities, cybersecurity, the Rocha signed memorandums of understanding ment recognizes the great contribution of the the country’s telecommunications infrastruc- To help the Angolan population embrace the platform soon, the minister stressed: “The next fourth industrial revolution and space. at the forum that will see Angola strengthening private sector in the provision of services, and ture network. In the case of fiber optics, for potential of a knowledge-based society, the step is for us to carry out coordination work International speakers included the former its cooperation in ICT with Rwanda and Sweden. in generating employment and, particularly, example, the government has installed 10,000 country has sent up a National Institute for the with other government institutions so that prime minister of Cape Verde, José Maria Neves, Angotic 2020 should be an even greater success, wealth. We maintain the principle that, in areas kilometers of cable to date, with the private sec- Promotion of the Information Society, which the number of services provided by SEPE can who congratulated Angola’s government for the he said: “We have great expectations for its future like this, the state should withdraw and just be tor adding a further 12,000 kilometers in order aims to promote universal access and digital increase in the coming months. We are look- “signifi cant changes” it was making in progress- in terms of quality and participation. And we hope responsible for creating the regulations that to connect Angola’s 18 provincial capitals. Due inclusion. ing for exponential growth in what the portal ing information and communication technol- that it will become an essential stage for debate allow the market to develop through competi- to the country’s considerable size — at 1.25 mil- It runs various programs including “Walking offers.” ogy (ICT). Professors from Japan’s Center for and learning about ICT in the region.”

PAGE: B5 6B6 | The | The Japan Japan Times Times | Wednesday | Wednesday,, August August 28, 2019 28, 2019 (Sponsored content) GLOBAL INSIGHT ANGOLA www.global-insight.net An improved business climate grabs global attention Having risen nine places in two years in the World Bank’s Doing Business rankings, Angola continues to develop its business environment in order to attract the private investors that will enable economic growth and diversifi cation. SHUTTERSTOCK/NATALY REINCH SHUTTERSTOCK/NATALY

“Private investment is the key to Angola’s economic the socio-economic advantages and fi nancial sus- © growth and diversifi cation. That is why the govern- tainability of the project, budgetary responsibilities, ment is creating the ideal business environment to risks, procedures and decision-making channels foster both domestic and international investors will all be spelled out and transparent,” da Fonseca and ensure their success,” said former Minister of said. The draft law also lays out the types of project Economy and Planning Pedro Luís da Fonseca. that are compatible with public-private partner- Since its election in 2017, the Angolan govern- ships, including concessions of public works and ment has been implementing a wide-ranging services, the acquisition of services and the man- package of reforms and initiatives that is changing agement of projects. the business climate considerably and attracting The government is open to international inves- international attention. In January, for example, tors partnering with Angolan public or private enti- U.K.-based investment intelligence fi rm EXX Africa ties — or investing alone — to take advantage of the picked Angola as its second-favorite African desti- opportunities available in nearly every sector of the nation for investments in 2019. country’s economy. “Agriculture is undoubtedly one “The International Monetary Fund’s recent loan priority as Angola currently imports food with a approval will add further legitimacy to the eco- value of about $250 million a month. Others include nomic reformist trajectory that has been ongoing the development of agro-industry, raw materials for since President João Manuel Gonçalves Lourenço light industry, livestock, fi sheries, tourism, mining took offi ce in September 2017,” it said. In the opin- and education,” he stated. Pedro Luís da Fonseca ion of EXX Africa’s analysts, the Angolan economy is Former Minister of Economy and Planning set to benefi t from its “pro-market policies that help Support for production and exports facilitate an environment conducive to investment Within the NDP, probably the most important ini- and general expansion.” the entire life cycle of an investment project, starting tiative that the Ministry of Economy and Planning Meanwhile, the World Bank’s Doing Business with minimizing barriers to entering the Angolan is overseeing is the Program to Support Production, report for 2019 ranked Angola at 173, nine places market. “As an example, the process of obtaining Export Diversification and Import Substitution Angola provides an ideal environment for ostrich farming. higher than in 2017. According to the organization, visas is now much simpler and easier for both busi- (PRODESI), which will accelerate private projects this rise was the result of updates to the country’s nesspeople and tourists,” da Fonseca said. in those areas over the short, medium and long electricity infrastructure, the implementation of term, he said: “The concept came from the fact fi sheries and processors will have access to up to “Our government is focused A significant proportion of those projects are state-of-the-art electronic data systems to sim- Revising legislation for investments that Angola’s economy is dependent on oil exports $434 million that is being distributed by nine com- likely to be located in the Luanda-Bengo Exclusive plify importing and exporting, improvements to New legislation has been enacted to further facili- and our productive industries are underdeveloped mercial banks. The initiative replaces the Angola on improving the business Economic Zone, another of the ministry’s strategic construction permit procedures and the develop- tate investor entry and private sector growth. The with low levels of productivity and competitiveness. Investe Program (PAI), which distributed over $262 projects. “It was created in 2009 and provides many ment of the Port of Luanda. However, since Doing Private Investment Law provides tax and other PRODESI aims to provide a sustainable start to the million to 400 businesses. environment for the private benefi ts to domestic and foreign investors, such as Business 2019 was published, many more business- incentives that are applicable to investments of any structural transformation of the country’s economic “Unlike PAI, which served various sectors of the sector in accordance with access to integrated infrastructures, simplifi ed visa friendly reforms have taken effect that should see size made by local or international businesses. The base, where the role of the state changes from actor economy, PAC has a more targeted scope — it aims procedures, a one-stop shop for business adminis- Angola take a further leap up in 2020. government is also privatizing public enterprises and operator to coordinator and regulator.” to assist the growth in domestic production of the its role as a driver of diverse tration, tax incentives, and exemptions from export The Angolan government laid down its own in a program that is open to all buyers. In addition, The PRODESI program contains numerous 54 goods identifi ed in PRODESI and favors produc- economic growth.” duties, raw material import duties for fi ve years and goal for the country’s position in the rankings in its public-private partnerships (PPP) are seen as a via- measures that will improve the business environ- tion chains that use local inputs in order to increase equipment import duties for 10 years,” he noted. National Development Plan 2018-2022 (NDP): to ble option for developing infrastructure projects or ment and support private investors, with 44 of them national added-value creation,” da Fonseca said. Pedro Luís da Fonseca Angola’s new and coordinated strategy for boost- move forward 15 places by 2022, said da Fonseca, providing high-quality and effi cient public services. directly impacting the World Bank’s Doing Business PAC should play an important role in achieving Former Minister of Economy and Planning ing the private sector is working. According to AIPEX, who headed a ministry that is central to ensuring “The PPP model is internationally accepted and rankings. These include supporting the internal many of PRODESI’s goals including expanding the 118 projects worth $850 million were registered by the NDP’s success. “The Ministry of Economy and has proved to be an effective way of engaging the production and sale of 54 products that are part of domestic market for goods and services, substitut- Venture Capital Fund and, most importantly for international investors between August 2018 and Planning is responsible for planning national devel- private sector in pursuing public objectives and the basic basket of goods or are otherwise seen as ing imports and diversifying exports, while also international investors, the Angolan Investment April, many of them in manufacturing, trade and opment and coordinating the implementation of diversifying the economy. For this reason, the min- essential, such as rice, wheat fl our, sugar, eggs, oil, strengthening businesses, competitiveness, qual- and Exports Promotion Agency (AIPEX). “AIPEX is farming. Da Fonseca commented: “Angola is now public policies to advance the economy, as well as istry has recently published a revised PPP law. It salt and glass containers; and fostering the quantity ity standards, productivity, strategic and operational responsible for attracting internal and external pri- a great investment opportunity as its domestic for overseeing activities in the areas of economic follows international standards and lays out the and quality of non-oil exports. alliances along the production chain and training. vate investments, promoting the increase and diver- market is expanding rapidly and it is part of the integration, cooperation and internationalization. general principles that will govern any partnership. Increasing access to finance is an important Access to opportunities for private investors sifi cation of exports, ensuring Angolan companies Southern African Development Community eco- In addition to technically coordinating the NDP’s “For example, the state’s aims must be fulfi lled aspect of PRODESI and in February, Angola has additionally been improved by the minis- are in international markets, implementing policies nomic zone of 300 million people. In addition, the preparation, it oversees the production of its annual and public resources used efficiently, and there announced the launch of a vital new initiative: the try’s restructuring of various government bodies, and programs that substitute imports and increase government is focused on improving the business action plans and program budgets,” he explained. will be respect for the interests and rights of both Credit Support Program (PAC). Through PAC, micro- including the National Institute of Support for exports and overseeing investment projects from environment for the private sector in accordance Actions that have already been established cover service users and the private partner. In addition, to medium-sized businesses including family farms, Micro, Small and Medium Enterprises, the Angolan preparation to registration,” said da Fonseca. with its role as a driver of diverse economic growth.” Undiscovered treasure in tourism

SHUTTERSTOCK/MRGOMEZ locations all along the Atlantic coast, such as of Environment and it goes hand in hand with © From sun and sand to wildlife and waterfalls, Angola has it Benguela and Lobito, there are opportunities remarkable scientifi c work that is discovering all and plenty more besides. Now, the government is looking for investors in areas like infrastructure, hotel new species, mainly in terms of birds and fl ora,” services, catering, entertainment and sports. Bragança explained. to the private sector to unlock the potential in tourism. Bragança pointed to Namibe as an example of Opportunities also abound for advancing cul- what was possible for the private sector, “It is a tural tourism at locations such as the historic region with desert, nature, sun, culture, history city of Mbanza Congo, near the border with the Angola offers 1,650 kilometers of stunning beach and ports, and the pearl of our tourism sector Democratic Republic of Congo and a potential coastline; immense biodiversity in its rainforests, today.” UNESCO World Heritage site, or at Muxima in savannahs, plateaus, desert dunes and vast riv- A government priority for costal tourism Luanda province, where the largest Catholic ers; rich and varied cultural experiences; excel- development is Cabo Ledo in the national Marian shrine in southern Africa attracts hun- lent weather all year round and an extremely park of Quiçama, a breathtakingly beautiful dreds of thousands of pilgrims a year. hospitable population. “Angola is a treasure to zone of 2,000 hectares located 120 kilometers In addition, as a way of ensuring the benefi ts be discovered. Unquestionably, there is great from Luanda that will delight global surfers. from tourism are spread across the country, the potential in our tourism sector, which is at a very According to the Ministry of Tourism, $400 mil- minister said, “We would welcome investments early stage of development if you compare us to lion is expected to be invested in accommoda- in a project we are launching to develop tourist neighboring tourism giants like Namibia,” said tion, a marina and other facilities at Cabo Ledo villages, which will involve strengthening human Minister of Tourism Ângela Bragança. in the near future. capacities and establishing communities with

SHUTTERSTOCK/GABRIEL SARABANDO SHUTTERSTOCK/GABRIEL With the World Travel and Tourism Council Quiçama is just one of 13 conservation areas harmony between government, civil society and © predicting that the country’s international visitor in Angola that together encompass the rich- companies.” arrivals will rise from 498,000 in 2018 to 787,000 ness and diversity of the country’s landscapes, The government is investing in training to in 2028, it would appear that this African gem fauna and fl ora. Within these protected regions will soon become a hotspot for those seeking live species as varied as gorillas and other apes, “Angola is a treasure to be unspoiled pleasures. elephants, gnu, springbok, zebras, giraffes, lions, The advancement of tourism to enable more leopards, hippopotamuses, sea turtles and discovered. Unquestionably, people to experience those pleasures and to crocodiles. Ângela Bragança there is great potential in diversify the economy is a high priority for the The government is focused on sustaining this government, Bragança said, “It is one of the sec- Minister of Tourism natural environment and hunting, for example, our tourism sector, which tors that is most expected to achieve an imme- is prohibited. Which means that the country is at a very early stage of diate return in terms of gross domestic product we only have 5,829 units, and we have 317 travel offers substantial potential for ecotourism and and the creation of jobs, particularly for young agencies.” there are many opportunities for investing in development.” people.” By 2022, the government aims to increase infrastructure and services for safari-based vaca- The biggest impediments to the growth of the number of hotel rooms in the country by 45 tions and eco-resorts. Ângela Bragança, Minister of Tourism tourism are accessibility and infrastructure, percent. Part of this growth will come from large “Angola is also excellently placed for cruises according to the minister. “Our biggest challenge international chains that have already expressed and bird-watching, as the country is home to 14 is aerial and terrestrial connectivity. In terms of interest in expanding in the country. In May unique species of birds. We want to work with ensure that the human skill sets are in place to international air travel, my ministry is working 2019, for instance, Erwan Garnier, Radisson the private sector to push initiatives that take make these all of these projects a success. It is with the Ministry of Transport to boost the civil Hotel Group’s director of development for the advantage of the assets that are here. In par- spending $20 million on building a school-hotel aviation sector, and we are implementing an sub-Saharan Africa region, confi rmed that the ticular, as well as Cabo Ledo we are developing in Luanda with capacity for 500 students and 50 exemption and facilitation program for obtain- chain expected to build fi ve hotels ranging from projects in Calandula and Okavango — these are bedrooms, and another center will soon open SHUTTERSTOCK/ANDRE SILVA PINTO SILVA SHUTTERSTOCK/ANDRE

© ing visas. Both of these things will allow us to three to fi ve stars in quality in Angola’s capital viable schemes that will quickly boost our tour- in Benguela. operate new international fl ight routes and we Luanda within the next few years. ism,” said the minister. To inform the world about the potential in are currently looking at numerous destinations,” The 2,000-hectare project at Calandula, in the Angolan tourism and the initiatives being devel- she stated. Country-wide opportunities north of the country, will allow visitors to dis- oped, the country hosted the World Tourism The Ministry of Tourism is also helping At present, 60 percent of Angolan hotels are in cover the dramatic region surrounding Africa’s Forum in May, which was attended by an esti- to improve internal terrestrial connectivity Luanda, a city where modern skyscrapers stand second-largest waterfalls. The Okavango project, mated 1,500 delegates, while the ministry always between the areas with the highest poten- alongside Portuguese colonial architecture and on the other hand, covers the Angolan part of the participates in the most important international tial for tourism by coordinating the actions of where tourists can relax on sandy beaches or world’s biggest inland delta, which the country tourism fairs. agencies responsible for land transportation, explore the bustling urban center. The capital shares with Namibia and Botswana. Bragança also recently launched a new web- regional planning, and energy, water and other is the ideal place to shop for the widest range “This initiative has an international compo- site — angolaturismo.ao — to act as a “window infrastructure. of traditional Angolan handicrafts, with those nent and the objective is to take advantage of of information and a gateway to Angola. If we “The role of private foreign investment will carved from wood being among the most sought the number of tourists that visit Namibia. It is open the country up to tourists, it will attract be essential for pushing forward our plans for after. The city’s exuberant nightlife is best experi- important to highlight that this is a project we investors in other sectors. Tourism can be advancing tourism,” said Bragança. “At the enced during the Easter carnival, when Angola’s are carrying out in cooperation with the Ministry Angola’s calling card,” she said. moment, for example, there are only around musicians and dancers take to the streets. 28,462 hotel rooms in Angola, which is a very Although highly entertaining, “The quality The bustling city of Luanda, Africa’s second-largest waterfalls and , kilometers of low number considering the size of the coun- of the tourist offer in our capital has a long way This report was produced by Global Insight and can also be read online at: beach coastline are just a few of Angola’s attractions. try. The situation is similar for restaurants, as to go,” noted the minister. There, as at other www.japantimes.co.jp/international-reports

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