Africa-Press – Angola. The vice-president of the African Chamber of Energy (CAE) in Angola, Verner Ayukegba, defended that agriculture, logistics infrastructure, telecommunications and technologies and the financial sector are the four sectors that should receive more foreign investment.
In an article recently published on the website of the African Chamber of Energy (CAE), an organization aimed at attracting investment in Africa, mainly in the energy area, the vice president writes that the fall in oil prices from 2014 “triggered the The realization that the over-reliance economic model in a sector that has long been the source of billions of dollars for Angola and led the country to become one of Africa’s largest economies needed to change”.
Economic diversification, he adds, has led the Government to launch reforms inside and outside the oil sector, and the four key sectors “expected to witness investments and rapid growth in ongoing diversification efforts include agriculture, logistics infrastructure , telecommunications and the financial sector”.
Angola’s economy is heavily based on oil, which represents more than a third of GDP and more than 90 percent of exports, but the Government has approved a series of reforms to reduce dependence on this raw material and avoid the impact of fluctuations. international prices, which at this time are above 110 dollars per barrel, almost double what was foreseen in the State Budget for this year.
“In order to mitigate the risk of external shocks in oil prices, as well as reduce the country’s dependence on imports” Angola is, says CAE, “strengthening efforts to diversify the economy beyond oil and gas, not not only by expanding its industrial base, offering tax incentives, special programs to promote agriculture, attract foreign investors and the creation of free trade zones, but also creating more employment opportunities for the young population and rapid growth of the country.” .
In agriculture, Verner Ayukegba highlights that “despite the challenges brought by the pandemic, the agricultural sector in Angola has grown by more than 5.0 percent in the last two years, offering good prospects for future performance”.
The logistical infrastructures, fundamental for economic development, are another of Luanda’s bets, not only at a national level, but also being able to be a distribution center at a regional level, benefiting from the strategic location of the Angolan capital.
The third area that should receive more foreign investment, predicts Verner Ayukegba, is mobile technologies and telecommunications: “Mobile telecommunications and Internet access are a catalyst for the growth of companies and entrepreneurship, and by expanding and updating of telecommunications, the Government seeks to enable companies to become more efficient and for electronic commerce to stimulate economic growth”.
On the finance and banking sector, Verner Ayukegba says that, after the turmoil that followed the fall in oil prices in 2014, which launched the country into an economic recession from which it has only just emerged, the sector offers good opportunities.
“The rules that restrict ownership in the banking sector have been relaxed and are likely to see investment in the sector by foreign banks seeking to increase their African footprint”, concluded the businessman, noting that these and other sectors will be highlighted in this year’s edition of meeting on Oil and Gas (Angola Oil & Gas 2022), scheduled for the end of the year.
Agricultural activity seen as the main lever
Economist Juliana Evangelista said, recently, interviewed by Jornal Economia & Finanças, that she has no doubt that socio-economic development in the country depends on the strengthening of agro-industry and agricultural and livestock activities, which should be the main levers to sustain the national economy. Therefore, according to Juliana Evangelista, any strategy to relaunch this sector must take into account the potential that the country has. For the economist, upon entering the top, Angola becomes a reference on the continent and a choice option for foreign investors, and will have the advantage of a set of investment opportunities, through privatizations, mergers and concessions. .
“As a receiving country of investment, it is mainly expected the creation of new jobs and new categories of work, an exposure of human capital to new technologies, and knowledge, without failing to consider with a greater collection of taxes, of course”, stressed.
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