"Although the reforms help in assessing Angola's risk in relation to the investment and trade environment, the uncertainty surrounding the Government's effective capacity to successfully implement the promised measures means that the overall operational risk levels remain acute", reads on a Fitch Solutions note.
According to the analysis, sent to investors and to which Lusa had access, the experts of this consultant owned by the same owners of the rating agency Fitch write that "business in Angola faces a challenging operating environment in the short and medium term".
Structural deficiencies in the logistical context will "keep investment in the non-oil sector relatively hampered by cuts in electricity, water and fuel, in a context where diversification efforts and reforms remain slow".
Corruption, they add, "remains a concern, due to the strong involvement of the State in the economy, as well as the lack of transparency".
The dependence on oil and Chinese demand for fuel export earnings "has negatively affected the economy during the fall in price declines and has exposed how vulnerable the country is to external shocks", argue analysts.
The tax system, they conclude, offers no relief to investors, with "taxation, high corporate taxes, the weakened banking sector, extensive bureaucracy and widespread corruption serve to further raise risks", despite the President, João Lourenço, have demonstrated a much greater commitment to reforms and the fight against corruption than many expected".
