Angola Market Survey Angola has one of the fastest-growing economies in the world with an annual growth rate of 11.1% being observed for the period 2001-2010. There is significant foreign direct investment and the economy is dominated by oil which is exported mostly in its crude form and lesser quantities in the refined form. The country offers a wide range of trade and investment opportunities as it is undergoing a re-building phase following the civil war.
i. Government priority setting The Angolan Government is keen on diversifying into other economic activities in order to reduce dependence on oil, which currently contributes at least 80% to government revenue. The target sector for diversification is agriculture due to the existing potential.
ii. Resource endowment Angola is a resource rich country with oil, fertile soils, huge water bodies and unexploited deposits of various minerals, fish, forests and a growing population. These offer opportunities for mineral exploitation and processing, agriculture and timber and furniture manufacture.
iii. Opportunities in Angola There are trade and investment opportunities in Angola for Zimbabwean companies and Zimbabwe as a nation.
One of the key trade opportunities lies in the focus of the Angolan government on agricultural production and processing in that despite interventions in the agricultural sector by the government, there is still need for further investment. Investment in agriculture has presented an opportunity to the imports of farm implements especially those ox-driven. Meat and dairy products have export potential in Angola. Potential exists for pharmaceuticals, nonetheless with need to be aware of stiff competition; partnering with locals presents better avenues for market entry and export opportunity exploitation.
Clothing has potential although noted that the common fashion trends follow those of Brazil in addition to the preference of international brands and labels. Future prospects exist forprotective clothing exports to Angola. Very few construction companies currently use protective clothing although plans are underway by government to streamline and enforce health and safety regulations at work places.
Products with potential in the Angolan market include among others meat (fresh beef, pork, chicken), processed meat products, dairy products, farm implements, designer clothes, protective clothing and building materials.
There is also a gap in Angola in respect of human capital availability. Generally there is a shortage of English tutors/schools and artisanal skills. There are opportunities to establish English language training institutions and translation services for Government, diplomatic services, business and tourism activities.
Despite the availability of a wide range of opportunities, market entry into Angola has its own fair share of challenges and weaknesses.
iv. Import sources Angola imports about 90% of all its consumer goods and utilities. Currently trade is dominated by Portugal, Brazil, China and South Africa being the only main exporter from the SADC region. These countries have established their own niche markets, which to some extent are difficult to penetrate.
v. Trade prospects and opportunities for Zimbabwe There are generally good relations between Zimbabwe and Angola. It remains for Zimbabwe to take advantage of these good relations in accessing the market. There is work-in-progress towards finalization and implementation of a bilateral, economic and technical cooperation trade agreement which has been in the pipeline for some time; it is anticipated will pave way for future trade and investment initiatives.
vi. Investment opportunities Investment opportunities derive from the fact that Angola is still in need of infrastructural development which includes, road construction, housing and industrial development. Thecountry is endowed with a wide range of natural resources to support this sector including raw materials especially for the manufacture of bricks and cement.
There are a wide range of investment opportunities in Angola with countries like Brazil, Portugal, Spain and China having made significant market penetration in most economic and social sectors. Opportunities for investment are in agriculture (horticulture, poultry), animal husbandry, property development (residential, commercial and industrial), production of cement, schools that can teach English and skills development.
For Zimbabwean companies to make a breakthrough into the Angolan market, a medium to longterm strategy coupled with local partnerships is recommended. In addition to this, enterprises need to collaborate for them to have the financial edge for market penetration and also understand the business culture of the country.
Credit : ZIMTRADE
