Africa Monitor Intelligence
Angola: Perceptions of Political Instability Affects Foreign Investment
Angola's capacity to attract private foreign investment is being “severely impaired” due to the repercussions abroad of the events recorded in Cafunfo (AM 1286), according to assessments by international, political and economic circles, which see in them the “potential ”To boost perceptions of political and social instability.
The association with the events of Cafunfo, in particular its external impact, of trends that generate scenarios of political and social instability combined with other factors that had already been damaging the business environment in the country and, as a result, discouraging foreign private investment.
Among the “majors” of the international mining sector, Angolan legislation is considered to be unfavorable to private investment when compared to countries in the region, including Zimbabwe, Zambia, and South Africa. None of these “majors” is implanted in Angola (AM Special Report 62), which is described as “unusual” considering the vast mining potential of the territory.
The Minister of Mineral Resources, Oil and Gas, DIAMANTINO Pedro de AZEVEDO (DA), has been giving priority to the partnership with ALROSA, a Russian diamond company which controls Sociedade Mineira da Catoca, the main mining company in the country. ALROSA intends to extend the partnership with ENDIAMA to the Luaxe mine (AM 1272).
Private foreign investment in sectors of the Angolan economy (agriculture, agro-industry, mines, fisheries, among others) whose exploitation is considered vital to fill the void that the decline in oil production is increasingly widening, is mainly small and medium-sized - the most demanding in terms of satisfying conditions capable of making it safe and profitable. READ MORE