The future is bright for business in Angola. A new president and a new law are set to open the doors for foreign investment and more opportunities for the people in the country.
The country recently passed a new Private Investment Law. This Angola business law is set to attract lucrative businesses to the nation.
Angola Business Law
The unanimously passed Private Investment Law opens Angola’s doors to foreign investment that had previously been impeded by difficult requirements and country’s bad reputation.
The old law mandated that any foreign investor that partners with a local company or natural person has to have at least a 35 percent stake in the proposed business or investment. This requirement was intended to help Angolans partner with foreigners but turned out to be a restrictive factor for carrying out investments in the country.
To help aid international business, the new Angola business law removes the minimum amount of investment. Foreigners can now invest in Angola without paying in the hefty $1 million minimum, which was also one big barrier. The law also requires that foreign investors hire Angolan workers and provide a discrimination-free environment with good salaries, job training and a healthy environment.
The Work Behind the Law
The new Angola business law is all part of President Joao Lourenco’s plan for developing the country as an economic miracle.
After being elected and ousting former President Jose Eduardo dos Santos, who has been in power for nearly four decades, Lourenco promised to attract foreign investment. In recent years, the country has struggled due to its lack of a diversified economy. The country heavily relies on selling crude oil externally, as oil accounts for more than 90 percent of all exports.
Ever since a decrease in oil prices, Angola has struggled to remain competitive. The new law makes business more open to foreigners and will ideally attract new businesses that can hire Angolans and bring capital to Angola’s economy.
The Fight Against Corruption
Lourenco ran his campaign on the promise of fighting corruption within Angola’s government, but he is also very committed to helping business thrive in his country.
“We are very committed to removing a major obstacle to doing business in Angola, which is the so-called phenomenon of corruption,” he told in an interview with Euronews. “So, this is a struggle that is difficult, it will take some time but we are prepared to face this giant problem of corruption and we are sure that we will win.”
By opening his country for foreign business and tackling barriers, he encourages large corruptions and wealthy investors to consider Angola.
Chairman and CEO of ABO Capital, Zandre Campos, is particularly encouraged by the law. He stated that the future is bright for Angola’s economy and its investment opportunities. All of the elements included in the law can greatly contribute to the growth of businesses, research, and trade, which is crucial for the country.
The world should watch Angola in the coming months to see if this law attracts foreign business and helps the nation build its economy. If nothing else, parliament’s nonpartisan stand and President Lourenco’s work thus far are very encouraging for the country.
With the new Angola business law, the future looks bright for Angola’s economy and workers.
– Sarah Stanley