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Angola

Executive Summary

This country fact sheet provides key trade and investment related statistics for Angola. Specifically, it shows

Angola’s trade and investment flows including an analysis of top markets and products with South Africa and the

Western Cape highlighting the largest and fastest growing products and sub-sectors. The key highlights in the

Angola country fact sheet are provided below:

Economy

Angola’s GDP (PPP) was estimated at USD176bn in 2014 growing at 4.2% with growth forecast at 3.5%

in 2015.

Angola’s oil sector accounts for 50% of GDP, 90% of export revenue, and 80% of government revenue.

Trade

Angolan exports grew by 0.6% in 2014 to reach ZAR690bn from ZAR686bn in 2013.

Imports to Angola increased by 31% to reach ZAR281bn in 2014.

China was the leading export market for Angola with a value of ZAR337bn.

Crude petroleum oils was the leading export product valued at ZAR663bn and accounting for 96% of

Angola’s global exports.

Light vessels/dredger floating docks were the leading product imported into Angola, valued at ZAR19bn.

South Africa’s exports to Angola increased by 17% in 2014 to reach ZAR11bn from ZAR9bn in 2013.

The leading export product to Angola from South Africa in 2014, was motor vehicles for the transport of

goods valued at ZAR646bn

Western Cape’s exports to Angola increased by 4% in 2014 to reach ZAR2.5bn from ZAR2.46bn in 2013.

The leading export product to Angola from the Western Cape was brandy and similar products valued at

ZAR225m.

Investment

Between January 2003 and May 2015 a total of 29 FDI projects were recorded from Angola. These

projects represent a total capital investment of ZAR17.82bn.

Portugal was the largest destination market in terms of projects for FDI from Angola, with 7 investment

projects.

Between January 2003 and May 2015 a total of 27 FDI projects were recorded from South Africa to

Angola. These projects represent a total capital investment of ZAR6.22bn.

Financial services was the largest sector investing from South Africa to Angola, accounting for 37% share

of projects.

Between January 2003 and May 2015 a total of 2 FDI projects were recorded from Angola into South

Africa. These projects represent a total capital investment of ZAR258m.

Between January 2003 and May 2015 a total of 11 FDI projects were recorded from the Western Cape to

Angola. These projects represent a total capital investment of ZAR2.85bn.

Tourism

The number of Angolan arrivals into South Africa grew by 18% in 2014 from 45,589 arrivals in 2013 to

53,592 in 2014,

Angolan arrivals to the Western Cape grew by 21% in 2014 from 12,155 arrivals in 2013 to 14,680 in

2014.

2

Table of Contents

1. General Information ..................................................................................................... 3

2. Economic Overview ..................................................................................................... 3

2.1 Major companies in Angola ................................................................................................................ 5

2.2 Doing Business in Angola .................................................................................................................. 6

2.2 Angola’s Risk Ratings ............................................................................................................................ 6

3. Trade ............................................................................................................................. 7

3.1 Angola Global Trade in Goods .............................................................................................................. 7

3.2 Angola Trade in Services ....................................................................................................................... 9

3.3 South African Trade with Angola ......................................................................................................... 11

3.4 Western Cape Trade with Angola ........................................................................................................ 12

3.5 Trade Regulations Markings and Standards ........................................................................................ 14

3.6 Logistics ............................................................................................................................................... 15

3.7 Trade Agreements ............................................................................................................................... 15

3.8 Tariffs ................................................................................................................................................... 16

3.8 Port-to-Port Rates ................................................................................................................................ 17

4. Investment .................................................................................................................. 18

4.1 Global Investment into Angola ............................................................................................................. 18

4.2 Global Investment from Angola ........................................................................................................... 20

4.3 FDI between South Africa and Angola ............................................................................................. 23

4.3.1 South African FDI to Angola ....................................................................... 23

4.3.2 Selected Investment Opportunities in Angola ........................................... 26

4.3.3 Angolan FDI to South Africa ....................................................................... 27

4.4 FDI between the Western Cape and Angola ....................................................................................... 27

5. Tourism ...................................................................................................................... 28

5.1 Angola Trends and Travel Patterns ................................................................................................. 28

5.2 Angolan Tourist Arrivals into South Africa & Western Cape ................................................................ 29

3

1. General Information

Angola is a country in Southern Africa. It is the 7th largest country in Africa, and is bordered by Namibia on the

south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic

Ocean and Luanda is its capital city.

Since the adoption of a new constitution in 2010, the politics of Angola takes place in a framework of a presidential

republic, whereby the President of Angola is both head of state and head of government, and of a multi-party

system. Legislative power is vested in the President, the government and parliament. Angola is a member state of

the United Nations, OPEC, African Union, the Community of Portuguese Language Countries, the Latin Union and

the Southern African Development Community.

GENERAL INFORMATION

Capital city Luanda

Government type Republic; multiparty presidential regime

Chief of State President Jose Eduardo Dos Santos

Population (July 2015) 19 625 353

Life expectancy 55.63 years

Literacy 71.1%

Ethnic groups

Ovimbundu 37%, Kimbundu 25%, Bakongo 13%, mestico

(mixed European and native African) 2%, European 1%, other

22%

Religions Indigenous beliefs 47%, Roman Catholic 38%, Protestant 15%

Languages Portuguese (official), Bantu and other African languages

HDI (2014) 149

Sources: CIA World Factbook, 2014 and World Bank Data, 2015

2. Economic Overview

Angola’s GDP (PPP) was estimated at USD176bn in 2014, making Angola the world's 65th largest economy. At

4.2% growth in 2014 the country was ranked the 73rd in terms of growth. The country has a GDP per capita of

USD7,200 and a relatively stable inflation rate of 7.3%.

The Angolan economy is one of the fastest-growing economies in the world and Africa’s 2nd biggest oil producer.

The oil sector is a major Angolan sector as it accounts for over 50% of GDP, over 90% of export revenue, and over

80% of government revenue.

Angola became a member of OPEC in late 2006 and its currently assigned a production quota of 1.65 million

barrels a day (bbl/day). Angola’s oil production is expected to rise from 1.8 million barrels per day (bpd) in 2013 to

2 million bpd in 2016 with new fields, notably: British Petroleum’s Plutão, Saturno, Venus, and Marte complex,

Cobalt International Energy’s deepwater exploratory wells and Chevron’s development of the Mafumeira Sul project

just off the Angolan coast.

Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food is still

imported. About 36% of the population lives below the poverty line and unemployment remains high at 26%.

4

ECONOMIC INFORMATION

GDP (PPP) (2014 est.) USD175.6bn

GDP growth (2014 est.) 4.2%

GDP per capita (2014 est.) USD7,200

Inflation (2014 est.) 7.3%

Commercial bank lending rate (31 December 2014) 15.2%

Budget Revenue USD51.51bn

Doing Business in...(2016 ranking) 181

Total Exports (2014) ZAR690bn

Total Imports (2014) ZAR281bn

Inward FDI (2003-May 2015) ZAR840 780m

Outward FDI (2003-May 2015) ZAR17 824m

Source: CIA World Factbook, 2015; Doing Business in Angola, 2015

Angola’s economy will experience a steady increase in GDP value during the forecast period with GDP increasing

from AOA1.4trn in 2012 to AOA2.1trn in 2020. Angola’s growth is forecast to be 3.4% in 2014 is expected to grow

at 3.5% in 2015 and average an annual growth of 4.6% between 2012 and 2020 (IMF, 2015).

Main drivers of growth are oil, a fast growing middle class, good performance in the agricultural sector, increasing

participation of the private sector and increased government spending.

Source: IMF, 2015 (Constant Prices, PPP)

According to the figure below, Angola’s largest sector in 2013 was mining and manufacturing utilities sector at 53%

share of GDP. Wholesale, retail trade, restaurants and hotels was ranked 2nd at 15% share of GDP, followed by

agriculture, hunting, forestry, fishing with 9%.

The leading industrial sectors in Angola are petroleum; diamonds (3rd third largest producer of diamonds in Africa),

iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food

processing; brewing; tobacco products; sugar; textiles and ship repair.

Manufacturing: Manufacturing’s annual growth which rose from 6.5% in 2012 to 8% in 2013 was driven by wood,

cement, and electric materials production.

Services: Angola has used its oil windfall to promote the rapid development of other sectors, including services

which currently accounts for 21.7% of GDP. With the emerging middle class being the main growth engine.

2012 2013 2014 2015f 2016f 2017f 2018f 2019f 2020f

Value (AOAbn) 1 464 1 563 1 638 1 695 1 755 1 821 1 899 1 987 2 090

Growth 5,16% 6,80% 4,80% 3,49% 3,52% 3,77% 4,25% 4,66% 5,18%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

500

1 000

1 500

2 000

2 500

Gro

wth

Valu

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AO

Ab

n)

ANGOLA'S REAL GDP & GROWTH, 2012-2020

5

Telecommunications: In 2014, Angola announced the building of the first optic fibre underwater cable in the South

Atlantic Southern Hemisphere directly linking Angola (Africa) to Brazil (Latin America). The first Angolan satellite,

AngoSat-1, will be ready for launch into orbit in 2016.

Agriculture: High quality soil and good water supply makes farming a valuable industry for Angola. Agriculture

accounts for 10% of GDP and 70% of total employment.

Transport: Transport in Angola consists of the following:

Three separate railway systems totalling 2,761 km (1,715 mi),

76,626 km (47,613 mi) of highway of which 19,156 km (11,903 mi) is paved,

1,295 navigable inland waterways,

8 major sea ports, and

243 airports, of which 32 are paved.

Source: UNCTAD, 2015

2.1 Major companies in Angola

Some of the largest companies in Angola with publically recorded turnover are shown below:

LARGEST COMPANIES IN ANGOLA, 2011

AFRICA RANK RANK

COMPANIES SECTOR TURNOVER (‘000USD)

2 Sonangol Petroleum 22 244 664

52 Total E&P Angola Petroleum 3 095 712

150 Endiama Mining 955 000

242 Catoca Sociedade Mineira Mining 527 330

Source: Africa Report, 2014

Agriculture, hunting, forestry,

fishing9%

Mining & utilities53%

Manufacturing6%

Construction7%

Wholesale, retail trade,

restaurants and hotels15%

Transport, storage and

communications5%

Other activities5%

ANGOLA SECTOR CONTRIBUTION TO GDP, 2013

6

2.2 Doing Business in Angola

According to the World Bank’s Doing Business 2015 report, Angola’s is ranked 181st out of 189 countries in terms

of the ease of doing business.

ANGOLA’S EASE OF DOING BUSINESS, 2015

SELECTED INDICATORS RANKING OUT OF 189

COUNTRIES, 2015

Starting a Business 141

Dealing with Construction Permits 108

Getting Electricity 166

Registering Property 169

Getting Credit 181

Protecting Investors 66

Paying Taxes 141

Trading Across Borders 181

Enforcing Contracts 185

Resolving Insolvency 189

Doing Business 2015 181

Source: Doing Business, 2015

2.2 Angola’s Risk Ratings

Standard and Poor's Ratings Services (Jan; 2015), affirmed Angola's long and short-term foreign and local currency

sovereign credit ratings at a stable outlook. As a result of the decline in oil prices, Standard & Poor’s now expects

that as a result of budget deficits in 2015 and beyond and before starting a reversal of this process Angola’s public

debt to increase to 30% of Gross Domestic Product in 2015, after a total of 23% in 2014. The “stable” outlook

according to S&P’s analysts is a reflection of a set of financial instruments available to the government and the

monetary authorities to control the impact of a prolonged drop in oil prices and therefore tax revenue.

ANGOLA’S COUNTRY RATINGS

STANDARD & POORS SOVEREIGN RATINGS FITCH RATING MOODY'S RATINGS

Local Currency Rating

Foreign Currency Rating

T&C Assessment

Credit Rating Credit Rating

BB- B+ BB- B+ Ba2

Source: Standard & Poors, 2014, TradingEconomics

The table below shows Angola’s risk assessment in terms of export transactions and direct investments. Ratings

are between 1 and 7, and between A and C, with 7 and C being the maximum risk indicators. The table shows that

the political risk and commercial risk and all direct risks that include war, expropriation and transfer risk are all

relatively high.

ANGOLA’S RISK ASSESSMENT

EXPORT TRANSACTIONS

Political Risks

Short Term 6

Medium-Long term 5

Special Transactions 6

Commercial Risk C

DIRECT INVESTMENTS

War risk 4

Risk of expropriation and government action 5

Transfer risk 5

Source: ONDD, 2015

7

3. Trade

3.1 Angola Global Trade in Goods

In 2014 Angola experienced the highest trade value both in terms of exports and imports over the eleven year

period. Angolan exports grew by 0.6% in 2014 to reach ZAR690bn from ZAR686bn in 2013. Imports to Angola

increased by 31% to reach ZAR281bn in 2014. Over the period analysed Angola’s trade surplus has been

increasing mainly as a result of the fast growth in oil exports, however in 2014 there was a decrease mainly due to

the low oil prices.

Source: TradeMap, 2015

China was the leading export market for Angola with a value of ZAR337bn. The United States and India rank

second and third valued at ZAR62bn and ZAR61bn respectively. The fastest growing markets for Angolan exports

were Italy (92%), France (91%) and Spain (41%). South Africa was ranked the 8th largest export market for Angola

in 2014.

TOP 10 DESTINATION COUNTRIES FOR ANGOLA’S EXPORTS, 2014

RANK COUNTRY VALUE

2014 (ZARbn)

% GROWTH 2013-2014

1 China 336.8 9.69%

2 United States 61.9 -26.24%

3 India 61.1 -6.44%

4 Spain 39.0 40.88%

5 Taipei, Chinese 31.9 -13.72%

6 Portugal 23.1 -31.23%

7 France 22.5 91.24%

8 South Africa 21.9 16.08%

9 Italy 13.3 92.85%

10 Netherlands 13.2 -3.20%

TOTAL EXPORTS 689.7 0.59%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports (ZARbn) 89,6 160,5 214,4 292,9 549,6 330,3 385,8 472,4 607,0 685,6 689,7

Imports (ZARbn) 55,2 65,0 70,4 89,0 165,9 145,4 114,4 128,9 168,5 215,4 281,1

Trade balance (ZARbn) 34,4 95,5 144,1 203,9 383,6 184,9 271,4 343,5 438,5 470,2 408,6

0,0

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ANGOLA'S GLOBAL TRADE, 2004-2014

8

49th Global Exporter Pearls,

precious stones,

metals, coins, etc

23rd Global Importer Meat,

fish and seafood food preparations

nes

88th Global Exporter Lead

and articles thereof

11th Global Importer Ships, boats and other

floating structures

14th Global Importer for

Milling products, malt,

starches, inulin, wheat

gluten

15th Global Exporter Mineral

fuels, oils, distillation products

China was the leading import market for Angola in 2014, valued at ZAR65bn. Portugal and the United States were

ranked second and third valued at ZAR46bn and ZAR22bn respectively. The fastest growing import markets were

Singapore (236%), France (88%) and China (70%). South Africa was the 6th largest import market for Angola in

2014.

TOP 10 SOURCE MARKETS FOR ANGOLA’S IMPORTS, 2014

RANK COUNTRY VALUE

2014 (ZARbn)

% GROWTH 2013-2014

1 China 64.7 69.94%

2 Portugal 45.7 15.04%

3 United States 22.1 59.27%

4 Korea, Republic of 19.5 63.44%

5 Brazil 13.7 11.90%

6 South Africa 11.4 17.92%

7 France 11.1 88.21%

8 United Kingdom 10.8 31.48%

9 Singapore 8.5 236.19%

10 India 6.6 22.96%

TOTAL EXPORTS 281.1 30.52%


The figure below shows Angola’s ranking Angola’s top three globally ranked exports and imports in 2014. Angola

ranks 15th in terms of its global exports of mineral fuels and 14th globally in its imports of milling products.

Angola's imports represent 0.1% of world imports and is the world’s 70th

largest importer.

Angola's exports represent 0.3% of world exports and is the world’s 52nd

largest exporter.


9

Crude petroleum oils was the leading export product valued at ZAR663bn and accounting for 96% of Angola’s

global exports. Diamonds and refined petroleum ranked second and third valued at ZAR8.8bn and ZAR8.2bn

respectively. The fastest growing export products were turbo-jets, turbo-propellers and other gas turbines (393%),

diamonds (44%) and petroleum gases growing at 15%.

Light vessel, dredger floating dock was the leading imported product in Angola, valued at ZAR19bn, followed by

refined petroleum and other furniture and parts valued at ZAR11bn and ZAR7bn respectively. The fastest growing

import products were other furniture and parts (105%), light vessel, dredger floating dock (76%) and tubes, pipes

and hollow profiles, seamless, or iron or steel (56%).

TOP 10 PRODUCTS EXPORTED BY ANGOLA, 2014 TOP 10 PRODUCTS IMPORTED BY ANGOLA, 2014

RANK PRODUCT VALUE

20134(ZARbn)

% GROWTH 2013-2014

RANK PRODUCT VALUE

2014 (ZARbn)

% GROWTH 2013-2014

1 Crude petroleum oils 662.5 2.76% 1 Light vessel, dredger; floating dock; floating/submersible drill platform

18.5 75.82%

2 Diamonds 8.8 44.73% 2 Refined Petroleum oils 10.6 7.43%

3 Refined Petroleum oils 8.2 -5.12% 3 Other furniture and parts 6.9 105.35%

4 Petroleum gases 7.1 28.82% 4 Cars 6.0 47.48%

5 Ferrous waste and scrap 0.6 -11.75% 5 Machinery parts 5.8 33.64%

6 Granite, porphyry, basalt, sandstone 0.3 -15.63% 6 Meat and edible offal, of the poultry 5.2 22.84%

7 Copper waste and scrap 0.2 -23.97% 7 Tap, cock, valve for pipe 5.1 4.42%

8 Crustaceans 0.2 4.53% 8 Tubes and pipes 4.2 56.51%

9 Turbo-jets, turbo-propellers and other gas turbines

0.1 392.56% 9 Trucks and motor vehicles 4.0 11.53%

10 Aluminum waste and scrap 0.1 -6.64% 10 Structures (rods,angle, plates) 3.9 46.48%

TOTAL EXPORTS 689.7 0.59% TOTAL IMPORTS 281.1 30.52%


3.2 Angola Trade in Services

In 2013 Angola experienced the highest trade in services both in terms of exports and imports over the ten year

period. Angola’s export in services grew by 98% in 2013 to reach ZAR13m, while global imports increased by 21%.

Over the period analysed Angola has consistently maintained a negative trade balance.


2005 2006 2007 2008 2009 2010 2011 2012 2013

Exports (ZARm) 1 119 1 305 2 183 2 672 5 169 6 245 5 265 6 379 12 635

Imports (ZARm) 42 981 50 357 88 810 179 594 158 988 136 682 170 200 180 906 219 391

0

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ANGOLAN SERVICES TRADE, 2005-2013

10

The table below shows Angola’s trade in services for the period 2013. Business travel was the largest services

export valued at ZAR9.6bn followed by personal travel and air transport valued at ZAR2.3bn and ZAR244m

respectively.

Technical, trade-related, and other business services was the largest import service into Angola valued at

ZAR90.6bn followed by construction valued at ZAR48m.

TOP 10 SERVICES EXPORTED BY ANGOLA, 2013 TOP 10 SERVICES IMPORTED BY ANGOLA, 2013

CODE SERVICE VALUE

2013 (ZARm)

% GROWTH 2012-2013

CODE SERVICE VALUE 2013

(ZARm)

% GROWTH 2012-2013

4.1 Travel, Business 9 592 90.88% 10.3 Technical, trade-related, and other business services

90 664 22.88%

4.2 Travel, Personal 2 255 199.54% 5.2 Construction in the reporting economy

48 486 -4.84%

3.2 Air transport 244 37.42% 3.1 Sea transport 43 702 25.59%

9.1 Telecommunications services 201 -25.98% 3a.2 Freight transport, All modes (alternative breakdown)

43 010 23.60%

3a.3 Other transport (other than passenger and freight), All modes (alternative breakdown)

182 32.77% 12 Government goods and services n.i.e.

15 143 91.33%

11.2 Other personal, cultural, and recreational services (other than audiovisual and related)

181 35.47% 6.1 Direct insurance 6 381 1205.10%

10.3 Technical, trade-related, and other business services

161 768.95% 9.1 Telecommunications services 6 131 64.63%

3a.1 Passenger transport, All modes (alternative breakdown)

62 63.41% 11.2 Other personal, cultural, and recreational services (other than audiovisual and related)

2 023 11.63%

3.2 Air transport 2 003 33.08%

6.2 Reinsurance 1 925 19.59%

3a.1 Passenger transport, All modes (alternative breakdown)

1 471 35.62%

3a.3 Other transport (other than passenger and freight), All modes (alternative breakdown)

1 225 192.37%

4.1 Travel, Business 838 13.11%

4.2 Travel, Personal 760 35.99%

7.1 Explicitly charged and other financial services

709 87.56%

9.2 Computer services 496 22.13%

10.2 Charges for the use of intellectual property n.i.e.

116 -94.74%

TOTAL EXPORTS 12 635 98.05% TOTAL IMPORTS 219 391 21.27%


11

3.3 South African Trade with Angola

South Africa’s trade with Angola significantly increased from 2004 to 2014. South Africa’s exports to Angola

increased by 17% in 2014 to reach ZAR11bn from ZAR9bn in 2013. Imported goods were valued at ZAR22bn in

2014 compared to ZAR19bn in 2013, increasing by 15%. Except for 2004 to 2006, South Africa has maintained a

trade deficit with Angola, with imports exceeding exports over the period 2007 to 2014.

Source: Quantec, 2015

The leading export product to Angola from South Africa in 2014, was motor vehicles for the transport of goods

valued at ZAR646bn, followed by monitors and projectors, reception apparatus as well as refined petroleum oils

valued at ZAR524bn and ZAR495bn respectively. It is evident from the basket of goods shown that Angola has an

appetite for South African agribusiness, petroleum, automotive and metal products. The fastest growing products

were parts suitable for use solely or principally with the machinery aluminium plates (169% in growth), monitors

and projectors, reception apparatus for television (138%) and cereal groats, meal and pellets (31%).

The leading import product into South Africa from Angola was crude petroleum oils valued at ZAR22bn, accounting

for 99% of all imports from Angola, followed by diamonds, not mounted or set (ZAR83m).

SOUTH AFRICA’S EXPORTS TO ANGOLA, 2014 SOUTH AFRICA’S IMPORTS FROM ANGOLA, 2014

RANK PRODUCT VALUE

2014 (ZARm)

% GROWTH 2013-2014

RANK PRODUCT VALUE

2014 (ZARm)

% GROWTH 2014-2014

1 Motor vehicles 646.2 -2.50% 1 Crude Petroleum oils 21 700.4 16.10%

2 Monitors and projectors 523.7 137.55% 2 Diamonds 83.0 -58.25%

3 Refined Petroleum oils 494.5 30.79% 3 Parts suitable for use solely or principally with the machinery

12.1 1480.41%

4 Cereal groats, meal and pellets 446.5 30.82% 4 Machinery, apparatus and equipment 3.6 -

5 Prepared binders for foundry moulds or cores; chemical products and preparations

392.9 -3.93% 5 Containers for compressed or liquefied gas

2.3 614.39%

6 Buttermilk, curdled milk and cream, yogurt, kephir

268.0 27.96% 6 Other lifting, handling, loading or unloading machinery

2.1 11665.67%

7 Cane or beet sugar and chemically pure sucrose, in solid form

252.6 -11.18% 7 Parts suitable for use solely or principally with the engines

2.0 -64.49%

8 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol

227.2 -24.35% 8 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats

1.8 2789.93%

9 Parts suitable for use solely or principally with the machinery

189.7 169.46% 9 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators

1.8 -52.19%

10 Cigars, cheroots, cigarillos and cigarettes, of tobacco

186.3 -7.08% 10 Parts of goods of heading 88.01 or 88.02

1.7 11.93%

TOTAL EXPORTS 10 478.8 16.57% TOTAL IMPORTS 21 832.2 15.39%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports (ZARbn) 2,9 3,0 3,9 4,9 6,7 5,6 4,8 5,7 7,5 9,0 10,5

Imports (ZARbn) 1,7 1,9 2,5 11,6 22,4 11,7 14,6 11,5 23,0 18,9 21,8

Trade balance (ZARbn) 1,2 1,1 1,4 -6,6 -15,6 -6,1 -9,8 -5,8 -15,5 -9,9 -11,4

-20

-15

-10

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SOUTH AFRICA'S TRADE WITH ANGOLA, 2004-2014

12

3.4 Western Cape Trade with Angola

Western Cape’s exports to Angola increased by 4% in 2014 to reach ZAR2.5bn from ZAR2.46bn in 2013. Imported

goods were valued at ZAR14bn in 2014 compared to ZAR12bn in 2013, increasing by 21%. The Western Cape

has maintained a trade deficit with Angola, with imports exceeding exports over the period 2004 to 2014. Angola

is the Western Cape’s 9th largest export market and 5th largest import market.


The leading export product to Angola from the Western Cape was liqueur, spirits and alcohol <80% (brandy and

similar products) valued at ZAR225m, followed by cigars, cigarettes (ZAR186m). The fastest growing export

products was Flat-rolled products of iron or non-alloy steel (74%). Most exports were from the agribusiness sector

with the petroleum and metals sector also featuring. The leading import product into the Western Cape from Angola

was crude petroleum oils valued at ZAR14.2bn, accounting for 99.9%.

WESTERN CAPE’S EXPORTS TO ANGOLA, 2014 WESTERN CAPE’S IMPORTS FROM ANGOLA, 2014

RANK PRODUCT VALUE

2014 (ZARm)

% GROWTH 2013-2014

RANK PRODUCT VALUE

2014 (ZARm)

% GROWTH 2013-2014

1 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol

225.0 -24.63% 1 Petroleum oils and oils obtained from bituminous minerals, crude.

14 168.3 20.70%

2 Cigars, cheroots, cigarillos and cigarettes, of tobacco

185.9 -7.07% 2 Parts suitable for use solely or principally with the machinery

6.3 -

3 Wine of fresh grapes, 160.7 6.61% 3 Machines and mechanical appliances having individual functions

0.7 537.39%

4 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled.

160.6 47.33% 4 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats

0.6 -

5 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more

145.4 74.09% 5 Interchangeable tools for hand tools, whether or not power- operated, or for machine-tools

0.5 -

6 Apples, pears and quinces, fresh. 141.4 -6.64% 6 Other bars and rods of other alloy steel; angles, shapes and sections

0.5 -

7 Other fermented beverages (for example, cider, perry, mead);

134.1 -15.97% 7 Containers (including containers for the transport of fluids)

0.3 3054.76%

8 Potatoes, fresh or chilled. 131.9 48.71% 8

Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases

0.1 249.18%

9 Petroleum oils and oils obtained from bituminous minerals, other than crude

60.8 -35.53% 9 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators.

0.1 -33.62%

10 Fruit juices (including grape must) and vegetable juices

51.9 -2.21% 10 Tubes, pipes and hoses, of vulcanised rubber other than hard rubber

0.05 -

TOTAL EXPORTS 2 550.0 3.84% TOTAL IMPORTS 14 177.8 20.75%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports (ZARm) 76,8 523,6 793,2 1 048,8 1 798,8 1 315,0 1 616,9 1 756,1 2 155,2 2 455,6 2 550,0

Imports (ZARm) 946,8 1 803,6 1 618,1 10 583,1 19 186,8 7 344,5 8 931,7 5 265,2 12 122,3 11 741,7 14 177,8

Trade balance (ZARm) -870,0 -1 279,9 -825,0 -9 534,3 -17 388,0 -6 029,4 -7 314,9 -3 509,1 -9 967,1 -9 286,1 -11 627,9

-20 000

-15 000

-10 000

-5 000

0

5 000

10 000

15 000

20 000

25 000

Valu

e (

ZA

R '0

00)

WESTERN CAPE TRADE WITH ANGOLA, 2004-2014

13

Western Cape trade with Angola by sector is shown below. In 2013, the largest exports to Angola where in the

beverage sector accounting for 24%, food (15%), tobacco (8%) and machinery and equipment (5%).


24,42%

14,45%

7,86%

4,83%

4,00%

3,77%

2,86%

2,46%

2,10%

2,04%

1,73%

1,27%

0,91%

0,84%

23,37%

11,99%

8,15%

10,51%

4,84%

5,20%

2,14%

0,57%

2,52%

1,71%

1,68%

1,18%

0,50%

0,76%

Beverages

Food

Tobacco

Machinery & equipment

Basic iron & steel

Coke & refined petroleum products

Metal products excluding machinery

Other transport equipment

Professional & scientific equipment

Furniture

Other chemicals & man-made fibres

Plastic products

Textiles

Electrical machinery

WESTERN CAPE EXPORTS TO ANGOLA BY SECTORS (% SHARE), 2013

2012 2013

14

3.5 Trade Regulations Markings and Standards

Import Tariff

The current customs tariff schedule, Decree-Law 2/08, came into force in September 2008. It provides for tax

exemptions on the import of raw materials, equipment and intermediate goods for industries, as well as reduced

tariffs on 58 categories of basic goods to lower the price of these products for the end consumer. The tariff schedule

imposes a tax on luxury products and subjects certain goods to a special importation regime. Fees collected at the

port include:

clearing costs (2% of declared value),

revenue stamp (0.5%),

port charges ($500 per 20 foot container or $850 per 40 foot container), and

port storage fees (free for the first 5 days, then $60 per 20 foot container or $120 per 40 foot container

per day).

Trade Barriers

Angola prohibits importing viable transgenic grain or seed until regulatory systems governing biotechnology is

developed.

Import Requirements and Documentation

A mandatory pre-shipment inspection (PSI) regime applies for the export of certain goods identified by the ministries

of Finance, Agriculture, Health, Commerce and Industry. Goods such as used cars, live animals, meat, fish, dairy,

live plants, seeds, fruit, cereals, alcoholic beverages, tobacco, toys, chemicals, and pharmaceutical products must

be submitted to a PSI.

Importing certain goods into Angola requires an import license issued by the Ministry of Commerce. Goods

requiring ministerial authorization include:

pharmaceutical products for human use;

saccharine and saccharine-derived products;

radios;

transmitters;

receivers and other devices;

weapons, ammunitions;

fireworks and explosives;

plants, roots, bulbs, microbial cultures, buds, fruits, seeds; and

crates and other packages containing these products.

Standards

On the 23rd of January the Angolan government introduced the Joint Executive Decree No. 22/15 in an effort to

increase national production, by reducing and restricting the import of food and non-food commodities. This decree

has also imposed regulatory measures on the import market and the network for distribution and sale of food

products where internal supply guarantees more than 60% of national consumption. In this was Angola has set

maximum import quotas for the year 2015.

15

The import quotas are listed below:

IMPORT QUOTAS FOR FOOD PRODUCTS TO ANGOLA, 2015

Product Tons/units

Vegetable oil 334,000

Maize flour 99,001

Wheat flour 688,000

Salt 100,000

Rice 457,000

Sugar 367,438

Potatoes 70,000

Garlic 14,500

Onion 100,000

Eggs (units) 156,0000,00 units

IMPORT QUOTAS FOR BEVERAGES TO ANGOLA, 2015

Product hectolitres

Water 150,000

Sodas 200,000

Beer 400,000

Juices and Nectars 200,000

Source: Angolan Ministerial Decree, 2015

3.6 Logistics

Rail way: There are three separate railway lines in Angola: Luanda Railway (CFL) (northern), Benguela Railway

(CFB) (central) and Moçâmedes Railway (CFM) (southern). The Benguela Railway already connects to the

Democratic Republic of the Congo.

Waterways: Angola had an estimated 1,300km navigable waterways and the country’s comparison to the world is

ranked 36th globally.

Pipelines: gas, 2km; crude oil 87km (2008). In April 2012, the Zambian Development Agency (ZDA) and an

Angolan company signed a memorandum of understanding (MoU) to build a multi-product pipeline from Lobito to

Lusaka, Zambia, to deliver various refined products to Zambia. Angola plans to build an oil refinery in Lobito in the

coming years.

Ports and harbours: The government plans to build a deep-water port at Barra do Dande, north of Luanda, in

Bengo province near Caxito.

Airports: Angola had an estimated total of 30 paved runways and 181 unpaved runways.

3.7 Trade Agreements

South African and Angola are members of Free Trade Agreement involving the 12 Southern African Development

Community countries (SADC). The SADC Free Trade Area was achieved in August 2008, when a phased

programme of tariff reductions that had commenced in 2001 resulted in the attainment of minimum conditions for

the Free Trade Area - 85% of intra-regional trade amongst the partner states attained zero duty.

As the process to remove tariffs on sensitive products is still ongoing, there is still potential for further expansion of

intra-SADC trade as most of the products on the sensitive list such as textiles and clothing and leather products

are highly tradable products.

16

3.8 Tariffs

Tariffs imposed on South African exports to Angola for 2015 are listed below.

TARIFFS IMPOSED ON SOUTH AFRICAN IMPORTS BY ANGOLA, 2015

HS CODE AND PRODUCT

DESCRIPTION

TARIFF

(%)

HS CODE AND PRODUCT

DESCRIPTION

TARIFF

(%)

HS CODE AND PRODUCT

DESCRIPTION

TARIFF

(%)

H01: Live animals 3.16% H33: Essential oils, perfumes, cosmetics,

toiletries 16.08% H65: Headgear and parts thereof 10.00%

H02: Meat and edible meat offal 10.23% H34: Soaps, lubricants, waxes, candles,

modelling pastes 17.57%

H66: Umbrellas, walking-sticks, seat-

sticks, whips 10.00%

H03: Fish, crustaceans, molluscs,

aquatic invertebrates 24.66%

H35: Albuminoids, modified starches,

glues, enzymes 7.78%

H67: Bird skin, feathers, artificial flowers,

human hair 47.50%

H04: Dairy products, eggs, honey, edible

animal product 7.61%

H36: Explosives, pyrotechnics, matches,

pyrophorics 18.83%

H68: Stone, plaster, cement, asbestos,

mica, articles 26.25%

H05: Products of animal origin 13.19% H37: Photographic or cinematographic

goods 4.40% H69: Ceramic products 29.20%

H06: Live trees, plants, bulbs, roots, cut

flowers 19.52% H38: Miscellaneous chemical products 3.67% H70: Glass and glassware 14.42%

H07: Edible vegetables and certain roots

and tubers 50.00% H39: Plastics and articles thereof 10.96%

H71: Pearls, precious stones, metals,

coin 31.36%

H08: Edible fruit, nuts, peel of citrus fruit,

melons 50.00% H40: Rubber and articles thereof 4.30% H72: Iron and steel 8.10%

H09: Coffee, tea, mate and spices 23.44% H41: Raw hides and skins (other than

furskins) and leather 2.00% H73: Articles of iron or steel 12.11%

H10: Cereals 30.00% H42: Articles of leather, animal gut,

harness, travel goods 20.14% H74: Copper and articles thereof 2.24%

H11: Milling products, malt, starches,

inulin, wheat gluten 2.32%

H43: Furskins and artificial fur,

manufactures thereof 50.00% H75: Nickel and articles thereof 2.08%

H12: Oil seed, oleagic fruits, grain, seed,

fruit, 3.26%

H44: Wood and articles of wood, wood

charcoal 33.07% H76: Aluminium and articles thereof 11.50%

H13: Lac, gums, resins, vegetable saps

and extracts 8.53% H45: Cork and articles of cork 4.73% H78: Lead and articles thereof 3.49%

H14: Vegetable plaiting materials,

vegetable products 10.00%

H46: Manufactures of plaiting material,

basketwork, etc. 30.00% H79: Zinc and articles thereof 4.80%

H15: Animal, vegetable fats and oils,

cleavage products, 9.20%

H47: Pulp of wood, fibrous cellulosic

material, waste 4.32% H80: Tin and articles thereof 2.00%

H16: Meat, fish and seafood food

preparations 24.28%

H48: Paper & paperboard, articles of pulp,

paper and board 8.79%

H81: Other base metals, cermets, articles

thereof 2.00%

H17: Sugars and sugar confectionery 19.92% H49: Printed books, newspapers, pictures 12.08% H82: Tools, implements, cutlery, of base

metal 3.35%

H18: Cocoa and cocoa preparations 20.00% H50: Silk 9.95% H83: Miscellaneous articles of base metal 9.91%

H19: Cereal, flour, starch, milk

preparations and products 9.96%

H51: Wool, animal hair, horsehair yarn

and fabric thereof 2.00% H84: Nuclear reactors, boilers, machinery 2.99%

H20: Vegetable, fruit, nut food

preparations 50.00% H52: Cotton 13.72% H85: Electrical, electronic equipment 5.97%

H21: Miscellaneous edible preparations 19.16% H53: Vegetable textile fibres paper yarn,

woven fabric 18.19%

H86: Railway, tramway locomotives,

rolling stock, equipment 5.63%

H22: Beverages, spirits and vinegar 44.32% H54: Manmade filaments 2.00% H87: Vehicles other than railway,

tramway 10.38%

H23: Residues, wastes of food industry,

animal fodder 2.00% H55: Manmade staple fibres 2.00%

H88: Aircraft, spacecraft, and parts

thereof 2.01%

H24: Tobacco and manufactured tobacco

substitutes 18.76%

H56: Wadding, felt, nonwovens, yarns,

twine, cordage 2.00%

H89: Ships, boats and other floating

structures 4.86%

H25: Salt, sulphur, earth, stone, plaster,

lime and cement 22.33%

H57: Carpets and other textile floor

coverings 20.00%

H90: Optical, photo, technical, medical

apparatus 2.74%

H26: Ores, slag and ash 2.12% H58: Special woven or tufted fabric, lace,

tapestry 12.45%

H91: Clocks and watches and parts

thereof 20.43%

H27: Mineral fuels, oils, distillation

products, 10.49%

H59: Impregnated, coated or laminated

textile fabric 6.98%

H92: Musical instruments, parts and

accessories 8.94%

H28: Inorganic chemicals, precious metal

compound, isotopes 2.18% H60: Knitted or crocheted fabric 10.00%

H93: Arms and ammunition, parts and

accessories thereof 27.14%

17

Source: Market Access Map, 2015

NOTE: Exporters should not take the HS2 tariff as conclusive and as the actual tariff that will be applied to the exported product.

The tariffs indicated above are average tariffs and for products within the category it may be higher or lower than indicated. Where

the tariff is zero it can be assumed that there is zero tariff applicable to all products within that HS code. Tariffs are determined

according to the importing country’s national tariff line from the HS6 level and upwards. Exporters are advised to visit

www.macmap.org to determine the exact tariff applicable to the product at HS6.

3.8 Port-to-Port Rates

Luanda port, Angola’s largest port, processes about 80% of cargo shipped to Angola. The port installed new cranes

and provided more training to reduce its cargo unloading time by 80% as the government reviews a plan to build

Africa’s biggest shipping terminal. Angola is also planning a new port at Dande, 50km north of the main Empresa

Portuaria de Luanda EP. The main ports are shown in the table below.

CAPE TOWN PORT TERMINAL TO ANGOLA MAIN SEA PORTS

ANGOLA PORTS DISTANCE TRANSIT TIME

Ambriz 3121.11km 5 days 0 hours

Cabinda 3369.99km 5 days 9 hours

Essungo Marine 3281.00km 5 days 6 hours

Futila 3379.91km 5 days 10 hours

Girassol 3160.07km 5 days 1 hours

Kiabo 3180.23km 5 days 2 hours

Kiame Marine 3200.73km 5 days 3 hours

Lobito 2702.65km 4 days 5 hours

Lombo 3248.29km 5 days 5 hours

Luanda 3047.85km 5 days 21 hours

Malango 3392.28km 5 days 10 hours

Mocamedes 2377.18km 3 days 19 hours

Polanca 3225.03km 5 days 4 hours

Porto Amboim 2862.45km 4 days 14 hours

Soyo 3300.10km 5 days 7 hours

Sumbe 2824.55km 4 days 21 hours

Takula 3413.99km 5 days 11 hours

Source: Sea-Rates, 2014

H29: Organic chemicals 2.11% H61: Articles of apparel, accessories, knit

or crochet 10.00%

H94: Furniture, lighting, signs,

prefabricated buildings 17.49%

H30: Pharmaceutical products 2.00% H62: Articles of apparel, accessories, not

knit or crochet 11.28% H95: Toys, games, sports requisites 16.79%

H31: Fertilizers 2.00% H63: Other made textile articles, sets,

worn clothing 11.78% H96: Miscellaneous manufactured articles 20.30%

H32: Tanning, dyeing extracts, tannins,

derivatives, pigments 9.23%

H64: Footwear, gaiters and the like, parts

thereof 9.82%

H97: Works of art, collectors pieces and

antiques 14.71%

http://www.macmap.org/

18

4. Investment

4.1 Global Investment into Angola

Between January 2003 and May 2015 a total of 327 FDI projects were recorded into Angola. These projects

represent a total capital investment of ZAR840.78bn which is an average investment of ZAR2,570m per project.

During the period, a total of 52,604 jobs were created. Projects peaked in 2009 with 52 projects, while capex

peaked in 2014 at ZAR189bn, the highest value over the period 2003 to 2014.

Source: FDI Intelligence, 2015

Portugal was the largest source market for inward FDI into Angola in terms of projects, with 143 investment projects,

accounting for 44%. The United Kingdom and the United States ranked second with 29 projects each. South Africa

was the 4th largest source of global FDI by number of projects for Angola.

TOP 10 SOURCE MARKETS FOR FDI INTO ANGOLA, 2003–MAY 2015

RANK COUNTRY PROJECTS %

PROJECTS CAPEX (ZARm) % CAPEX COMPANIES % COMPANIES

1 Portugal 143 43.73% 34 837 4.14% 30 17.96%

2 UK 29 8.87% 104 372 12.41% 19 11.38%

3 United States 29 8.87% 280 365 33.35% 18 10.78%

4 South Africa 27 8.26% 6 219 0.74% 16 9.58%

5 Spain 14 4.28% 3 194 0.38% 13 7.78%

6 China 11 3.36% 75 317 8.96% 8 4.79%

7 France 9 2.75% 244 651 29.10% 7 4.19%

8 Switzerland 6 1.83% 1 138 0.14% 2 1.20%

9 Germany 6 1.83% 3 967 0.47% 6 3.59%

10 Brazil 6 1.83% 37 342 4.44% 6 3.59%

Total 327 100% 840 780 100% 167 100%


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Value (ZARm) 147 272102 866 6 528 32 177 96 259 134 173 68 033 15 578 4 482 34 666 7 289 189 017

Projects 15 15 17 19 27 49 52 44 34 23 20 10

0

10

20

30

40

50

60

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

Num

ber o

f pro

jectsV

alu

e (

ZA

Rm

)

INWARD FDI INTO ANGOLA, 2003-MAY 2015

19

The figures below show global inward FDI into Angola by sectors, for 2003 to May 2015 by number of projects and

capex. In terms of FDI projects, most projects were in the following sectors:

Financial services accounting for 40% of projects,

Coal, oil and natural gas accounting for 9% share of projects, and

Beverages and Business services accounting for 6% share of projects each.

In terms of sector classification of FDI by capex, most FDI went to the following sectors:

Coal, oil and natural gas accounting for 83% of capex, and

Real estate accounting for 6% share of capex.


The top 10 global companies investing into Angola by projects from 2003 to May 2015 are shown below.

COMPANIES INVESTING INTO ANGOLA, 2003-MAY 2015

RANK INVESTING COMPANY PROJECTS CAPEX (ZARm)

SECTOR COUNTRY

1 Banco de Fomento Angola 69 7 412 Financial services Portugal

2 Banco Millennium Angola 21 1 761 Financial services Portugal

3 Finibanco Angola 10 1 289 Financial services Portugal

4 Standard Bank Angola 7 819 Financial services South Africa

5 Rangel Group 5 1 253 Transportation Portugal

6 Cabinda Gulf Oil Company 5 98 246 Coal, Oil & Natural Gas United States

7 SABMiller 5 3 331 Beverages United Kingdom

8 Shoprite 5 969 Food & Tobacco South Africa

9 ZTE 4 4 177 Communications China

10 Unitel 4 1 994 Communications Portugal

Total 327 840 780


Financial Services

40%

Coal, Oil and Natural Gas

9%Beverages6%Business

Services6%

Transportation5%

Communications4%

Food & Tobacco

4%

Building & Construction

Materials3%

Industrial Machinery,

Equipment & Tools3%

Metals2%

Other sectors18%

INWARD FDI INTO ANGOLA'S SECTORS BY PROJECTS, 2003-MAY 2015

Coal, Oil and Natural

Gas83,2%

Real Estate5,8%

Financial Services

1,7%

Building & Construction

Materials1,7%

Beverages1,2%

Communications0,8%

Metals0,7%

Hotels & Tourism

0,7%

Food & Tobacco0,6%

Transportation0,5%

Other sectors3,3%

INWARD FDI INTO ANGOLA'S SECTORS BYCAPEX, 2003-MAY 2015

20

4.2 Global Investment from Angola

Between January 2003 and May 2015 a total of 29 FDI projects were recorded from Angola. These projects

represent a total capital investment of ZAR17.82bn which is an average investment of ZAR615.15m per project.

During the period, a total of 1,163 jobs were created. Projects peaked in 2013 with 7 projects, while capex peaked

in 2010 valued at ZAR6.2bn.


Portugal was the largest destination market in terms of projects for FDI from Angola, with 7 investment projects,

accounting for 24%. Namibia and Cape Verde are ranked second and third accounting for 17% and 10%

respectively. South Africa is the 5th largest destination for FDI from Angola for the period 2003 to May 2015.

TOP 10 DESTINATION MARKETS FOR FDI OUT OF ANGOLA, 2003–MAY 2015

RANK COUNTRY PROJECTS % PROJECTS CAPEX (ZARm)

% CAPEX COMPANIES % COMPANIES

1 Portugal 7 24.14% 2 518 14.13% 5 45.45%

2 Namibia 5 17.24% 644 3.62% 3 27.27%

3 Cape Verde 3 10.34% 387 2.17% 1 9.09%

4 Israel 2 6.90% 379 2.12% 1 9.09%

5 South Africa 2 6.90% 258 1.45% 2 18.18%

6 Brazil 2 6.90% 6 549 36.74% 2 18.18%

7 Venezuela 1 3.45% 5 793 32.50% 1 9.09%

8 Egypt 1 3.45% 129 0.72% 1 9.09%

9 Ghana 1 3.45% 528 2.96% 1 9.09%

10 China 1 3.45% 76 0.43% 1 9.09%

TOTAL 29 100% 17 824 100% 11 100%


The figures below show global outward FDI from Angola by sectors, for 2003 to May 2015 by number of projects

and Capex. In terms of FDI projects, most projects were in the following sectors:

Financial services accounting for 83% of projects,

Minerals accounting for 7% share of projects, and

Coal, oil and natural gas accounting for 7% share of projects.

2004 2007 2008 2009 2010 2012 2013 2014

Value (ZARm) 379 489 977 177 6 180 4 274 1 311 4 038

Projects 2 2 4 1 4 4 7 5

0

1

2

3

4

5

6

7

8

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Num

ber o

f pro

jects

Valu

e (

ZA

Rm

)

OUTWARD FDI INTO ANGOLA, 2004-MAY 2015

21

In terms of sector classification of FDI by capex, most FDI went to the following sectors:

Coal, oil and natural gas accounting for 33% share of capex,

Financial services accounting for 47% share of capex, and

Communications accounting for 18% share of capex.


In terms of sub-sector classification of FDI from Angola by projects, most FDI went to the following:

Retail banking accounting for 72% of projects and 42% capex,

Investment management accounting for 10% of projects and 5% capex, and

Other non-metallic mineral products accounting for 7% of projects and 2.1% capex.


Financial Services MineralsCoal, Oil andNatural Gas

Communications

% projects 82,76% 6,90% 6,90% 3,45%

% capex 46,67% 2,12% 32,93% 18,27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% s

hare

OUTWARD FDI FROM ANGOLA, 2003- MAY 2015

3,45%

3,45%

3,45%

6,90%

10,34%

72,41%

18,27%

32,50%

0,43%

2,12%

4,68%

41,99%

0% 20% 40% 60% 80%

Wired telecommunication carriers

Other petroleum & coal products

Oil & gas extraction

Other non-metallic mineral products

Investment management

Retail banking

OUTWARD FDI FROM ANGOLA BY SUBSECTORS, 2003-MAY 2015

% capex % projects

22

The top 10 global companies investing from Angola by projects from 2003 to May 2015 are shown below.

COMPANIES INVESTING FROM ANGOLA, 2003-MAY 2015

RANK INVESTING COMPANY SECTORS PROJECTS CAPEX (ZARm)

1 Banco Sol (Sol bank) Financial services 7 4 296

2 Banco Africano de Investimentos (BAI) Financial services 5 875

3 Banco Bic Financial services 5 1 106

4 Banco Angolano de Negocios e Comercio (BANC) Financial services 3 848

5 Endiama Minerals 2 379

6 Sonangol Group Financial services 2 5 869

7 Ridge Solutions Financial services 1 177

8 Ridge Capital Solutions Financial services 1 129

9 Banco de Negocios Internacional Financial services 1 360

10 Ridge Solutions International Holdings Financial services 1 528

Total 29 17 824


23

4.3 FDI between South Africa and Angola

4.3.1 South African FDI to Angola

Between January 2003 and May 2015 a total of 27 FDI projects were recorded from South Africa to Angola. These

projects represent a total capital investment of ZAR6.22bn which is an average investment of ZAR230.83m per

project. During the period, a total of 3,048 jobs were created. Projects peaked in 2012 with 7 projects while capex

peaked in 2013 with ZAR1.4bn.


Johannesburg was the largest investor of FDI to Angola among South African cities, both in terms of projects (59%)

and capex (54%), followed by the Cape Town with 37% projects and 36% capex and Stellenbosch 3.7% projects

and 10% capex.


2006 2007 2008 2009 2010 2011 2012 2013 2014

Value (capex) 128 1018 652 128 162 1129 874 1440 684

Projects 1 1 4 1 2 5 7 4 2

0

1

2

3

4

5

6

7

8

0

200

400

600

800

1000

1200

1400

1600

Num

ber o

f pro

jects

Valu

e (

ZA

Rm

)

SOUTH AFRICA'S FDI TO ANGOLA, 2003-MAY 2015

Johannesburg Cape Town Stellenbosch

% projects 59,26% 37,04% 3,70%

% capex 54,15% 35,95% 9,91%

0%

10%

20%

30%

40%

50%

60%

70%

% s

hare

SOUTH AFRICA FDI TO ANGOLA BY CITIES, 2003-MAY 2015

24

The figures below show FDI from South Africa to Angola by sector, for 2003 to May 2015 by number of projects

and capex. Most projects were in the following:

Financial services accounting for 37% share of projects and 22% capex,

Food and Tobacco accounting for 26% share of projects and 30% capex, and

Software and IT accounting for 7% share of projects and 2% capex.

In terms of sector classification of FDI by capex, most FDI went to the following:

Food and Tobacco accounting for 26% share of projects and 29% capex,

Financial services accounting for 22% share of projects and 37% capex, and

Metals accounting for 16% projects and 4% of capex.


37,04%

25,93%

7,41%

7,41%

3,70%

3,70%

3,70%

3,70%

3,70%

3,70%

22,01%

29,70%

1,50%

13,89%

2,24%

0,16%

2,88%

16,37%

9,91%

1,27%

Financial Services

Food & Tobacco

Software & IT services

Consumer Products

Textiles

Hotels & Tourism

Transportation

Metals

Beverages

Business Services

SOUTH AFRICA'S FDI TO ANGOLA BY SECTORS, 2003-MAY 2015

% capex % projects

25

The figure below shows FDI from South Africa to Angola by sub-sector, for 2003 to May 2015 by number of projects

and capex. Most projects were in the following:

Retail banking accounting for 37% of projects and 22% capex, and

Food and beverage stores accounting for 22% share of projects and 19% capex,

The above sectors were also the two largest recipients of FDI by capex between 2003 and May 2015.


In terms of South Africa’s FDI to Angola by business activity the following received the most FDI:

Business services accounting for 41% share of projects and 23% capex,

Retail accounting for 30% of projects and 31% capex, and

Sales, marketing and support accounting for 15% share of projects and 5% capex.

Business services and retail were also the largest recipients of FDI by capex between 2003 and May 2015.


Retailbanking

Food &Beverage

Stores

Softwarepublishers,

except videogames

Clothing &clothing

accessories

Generalmerchandise

stores

Miscellaneous storeretailers

Airtransportatio

n

Dairyproducts

Alumina &aluminiumproduction

andprocessing

Advertising,PR, &related

% projects 37,04% 22,22% 3,70% 3,70% 3,70% 3,70% 3,70% 3,70% 3,70% 3,70%

% capex 22,01% 18,70% 0,40% 2,24% 6,95% 6,95% 2,88% 11,00% 16,37% 1,27%

0%

5%

10%

15%

20%

25%

30%

35%

40%

% s

hare

SOUTH AFRICA'S FDI INTO ANGOLA BY SUBSECTOR, 2003-MAY 2015

40,74%

29,63%

14,81%

11,11%

3,70%

23,30%

31,10%

4,56%

37,28%

3,75%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Business Services

Retail

Sales, Marketing & Support

Manufacturing

Logistics, Distribution & Transportation

SOUTH AFRICA'S FDI TO ANGOLA BY BUSINESS ACTIVITY, 2003-MAY 2015

% capex % projects

26

Standard Bank Angola was the leading investor from South Africa with 7 investment projects valued at ZAR819m,

followed by Shoprite with 5 projects (ZAR969m) and Standard Bank Group with 2 projects (ZAR422m).

TOP 10 COMPANIES FROM SOUTH AFRICA INVESTING IN ANGOLA, 2003- APRIL 2015

4RANK COMPANY SECTORS PROJECTS CAPEX (ZARm)

1 Standard Bank Angola Financial services 7 819

2 Shoprite Food and tobacco 5 969

3 Standard Bank Financial services 2 422

4 Pick n Pay Food and tobacco 1 195

5 Provantage Media Business services 1 80

6 Webtickets Software & IT services 1 68

7 South African Airways Transportation 1 179

8 Nampak Plastics 1 1 018

9 Distell Group Beverages 1 616

10 FirstRand Financial services 1 129

TOTAL 27 6 219


4.3.2 Selected Investment Opportunities in Angola

The Angolan National Private Investment Agency provided the following investment opportunities (2015):

Infrastructures:

• Almost the entire road network, both primary and secondary, is in poor or very poor condition;

• Port infrastructures are operating below capacity because of obsolete equipment;

• The main airports require considerable upgrading and/or repairs;

• The urban water supply and drainage systems currently reach only a small proportion of the population;

• The rural environment lacks infrastructure to support production and transportation;

• The housing stock is highly degraded and falls well short of demand;

• The construction and construction materials market is in its infancy and therefore undeveloped; and

• There is insufficient monitoring and quality control. Materials and know how are in short supply.

Agribusiness:

• Waterworks maintenance & management;

• Consultant engineering, all kinds of production /marketing technical & material assistance;

• Agricultural mechanization & technical assistance;

• Industrial poultry breeding, cattle & pig breeding;

• Investments in factories for extraction, grinding and distribution of limestone, phosphates;

• Seed production for cereals and fertilizer industries;

• Agro-industries for processing maize, palm oil, sugar, soybeans, cassava etc.;

• Storage and silos;

• Tools factories and other agricultural equipment;

• Agricultural mechanization, Fruit production and processing, animal feed production; and

• Biofuels production.

Key challenges for South African companies are the Portuguese language, Lusophone culture and the market

dominance of firms from Brazil, China and Portugal, many of which have contracts funded by state-to-state credit

line (Angolan National Private Investment Agency; 2015).

27

4.3.3 Angolan FDI to South Africa

Between January 2003 and May 2015 a total of 2 FDI projects were recorded from Angola into South Africa. These

projects represent a total capital investment of ZAR258m which is an average investment of ZAR129m per project.

During the period, a total of 34 jobs were created.

In 2008, Angola-based bank Banco BIC has opened a liaison office in Johannesburg, South Africa as part of the

institution's internationalisation process that started in 2008 in Portugal. The move is intended to promote

commercial relations in markets where BIC operates like Angola, Portugal, Republic of Cape Verde and Brazil.

In 2010, Banco Africano de Investimentos (BAI), a subsidiary of Angola-based Sonangol Group, has opened its

ninth overseas office. The new branch is located in Johannesburg, South Africa and BAI intends to use the

presence to reinforce economic ties between Angola and South Africa.

4.4 FDI between the Western Cape and Angola

Between January 2003 and May 2015 a total of 11 FDI projects were recorded from the Western Cape to Angola.

These projects represent a total capital investment of ZAR2.85bn which is an average investment of ZAR258.95m

per project. During the period, a total of 1,637 jobs were created. Five of the eleven investment projects were

initiated by Shoprite. In terms of business activity, 8 of the eleven projects were in the retail sector.

In 2014, South Africa-based Webtickets, an online ticketing specialist, expanded its international footprint into

Angola. The development is part of a wider growth strategy which will involve the firm opening offices in Zambia

and elsewhere in east Africa. Distell Group, a subsidiary of South Africa-based Remgro, established a new

manufacturing facility in Angola. The planned development is part of a wider growth strategy which will see an

additional facility established in Nigeria. Both initiatives are expected to become operational during 2015.

In 2013, South Africa-based The Foschini Group, a retail specialist, planned to expand its international presence

into Angola. The expansion is part of a wider growth strategy which will see additional stores opened in Ghana and

Mozambique. South Africa-based retailer Shoprite planned to expand its business across Angola by opening 21

new stores. The expansion is part of a wider international growth strategy which will also see 44 new stores

established in Nigeria. The retailer expects the new outlets to have opened by 2017.


WESTERN CAPE FDI TO ANGOLA, 2003-MAY 2015

DATE INVESTING

COMPANY

DESTINATION

STATE INDUSTRY SECTOR SUB-SECTOR INDUSTRY ACTIVITY

CAPEX

(ZARm) JOBS

Sep-14 Webtickets Not Specified Software & IT services

Internet publishing &

broadcasting & web search

Sales, Marketing &

Support 68.0 16

Jun-14 Distell Group Not Specified Beverages Breweries & distilleries Manufacturing 616.3 222

Nov-13 The Foschini

Group Not Specified Consumer Products General merchandise stores Retail 432.4 179

Aug-13 Shoprite Not Specified Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Retail 194.5 177

Aug-12 Shoprite Luanda Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Logistics, Distribution & Transportation

233.2 147

Sep-11 Pick n Pay Not Specified Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Retail 194.5 177

Sep-11 Woolworths (South Africa)

Not Specified Consumer Products Miscellaneous store retailers Retail 432.4 179

Feb-11 Shoprite Not Specified Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Retail 194.5 177

Aug-10 Shoprite Huambo Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Retail 152.3 100

Nov-08 PEP Benguela Textiles Clothing & clothing accessories

Retail 139.4 86

Sep-08 Shoprite Not Specified Food & Tobacco Food & Beverage Stores (Food & Tobacco)

Retail 194.5 177

TOTAL 2 851.9 1637

28

5. Tourism

5.1 Angola Trends and Travel Patterns

Despite the extremely positive evolution of travel and tourism in Angola, the main tourism indicators are supported

by business tourism flows. The main goal of the Angolan government in the forecast period is to improve travel and

tourism so that the country will no longer be so dependent on oil extraction. In order for the importance of this

industry to increase in terms of national GDP, a number of measures targeting the upgrading and development of

infrastructure in travel and tourism as a whole are expected to emerge.

5.2 Tourism Expenditure

International expenditure per tourist into Angola is shown in the figure below, recorded between 2010 and 2019.

The highest year-on–year growth of 6% was recorded in 2010. Growth is expected to decrease from 2015 to 2019,

mainly attributed to the low oil price that is expected to slow down economic growth in Angola and reduce income.

Source: Business Monitor International, 2015

5.3 Inbound & Outbound Tourism

The figure below shows Angola’s inbound and outbound tourists from 2010 to 2019. Except for 2010, the total

number of departures is far greater than the number of arrivals, increasing from 385,000 in 2011 to 562,000 in

2019.


2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019f

USD 714 715 626 599 574 576 572 557 536 513

Growth 5,50% 0,12% -12,45% -4,32% -4,13% 0,38% -0,71% -2,67% -3,65% -4,38%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

0

100

200

300

400

500

600

700

800

Gro

wth

Valu

e (

US

D)

INTERNATIONAL EXPENDITURE PER TOURIST, 2010-2019

2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019f

Total Departures ('000) 385 452 467 488 501 509 518 532 546 562

Total Arrivals ('000) 425 361 370 370 374 385 406 423 438 455

Net Tourist ('000) -40 91 97 118 127 124 112 110 108 107

-100

0

100

200

300

400

500

600

To

tal T

ourists

Arr

ivals

('0

00)

ANGOLA'S TOURIST ARRIVALS & DEPARTURES, 2010-2019

29

The table below illustrates the top ten markets by departures from Angola from 2010 to 2019. Namibia was the top

market for Angolan tourists over the period 2010 to 2019 accounting for an estimated 76% in 2014. Other top

markets were South Africa, Brazil, United States, Zimbabwe and Botswana. All the top 10 markets are expected to

experience positive growth during from 2010 to 2019.


5.2 Angolan Tourist Arrivals into South Africa & Western Cape The graph below depicts total tourist arrivals from Angola into South Africa and Western Cape between 2013 and

2014. The number of Angolan arrivals into South Africa between grew by 18% in 2014 from 45 589 arrivals in 2013

to 53,592 in 2014, while arrivals into the Western Cape grew by 21% in 2014 from 12,155 arrivals in 2013 to 14,680

in 2014.

Source: SATourism, 2015

For more information on this publication and other Wesgro publications please contact [email protected] or for more

publications visit the Wesgro publications portal on our website at http://wesgro.co.za/publications

2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019f

Namibia 296,83 361,48 366,29 374,63 382,85 380,62 380,71 384,78 389,98 396,09

South Africa 38,54 39,22 47,71 57,32 61,98 64,75 68,12 72,49 77,55 82,38

Brazil 38,03 37,17 37,66 38,12 40,37 47,51 51,99 57,7 60,37 64,67

USA 7,56 8,29 10,59 12,62 10,62 10,85 10,84 11,19 11,61 12,14

Zimbabwe 2,29 3,3 1,44 1,65 1,87 2,08 2,29 2,51 2,72 2,94

Botswana 1,26 1,27 1,31 1,4 1,47 1,49 1,5 1,53 1,58 1,63

Hong Kong 0 0 0,42 0,47 0,52 0,51 0,5 0,5 0,49 0,49

Ukraine 0,16 0,29 0,34 0,43 0,48 0,35 0,38 0,42 0,45 0,49

Mexico 0,21 0,24 0,2 0,29 0,26 0,27 0,27 0,28 0,29 0,31

Uganda 0 0,21 0,22 0,23 0,24 0,25 0,26 0,27 0,28 0,29

0

50

100

150

200

250

300

350

400

450

Depart

ure

fro

m A

ngola

('0

00)

TOP 10 MARKETS BY DEPARTURE FROM ANGOLA, 2010-2019

Western Cape South Africa

2013 12 155 45 589

2014 14 680 53 592

Growth 20,77% 17,55%

15%

16%

17%

18%

19%

20%

21%

22%

0

10 000

20 000

30 000

40 000

50 000

60 000

Gro

wth

To

tal A

rriv

als

ANGOLAN ARRIVALS TO SOUTH AFRICA & WESTERN CAPE, 2013-2014

mailto:[email protected]

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