In an article published on the website of CAE, an organization aimed at attracting investment in Africa, mainly in the energy area, the vice president in Luanda writes that the drop in oil prices from 2014 "triggered the perception that the economic model of excessive reliance on a sector that has long been the source of billions of dollars for Angola and led the country to become one of Africa's biggest economies.
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 by creating more employment opportunities for the country's young and rapidly growing population".
In agriculture, Verner Ayukegba highlights that "despite the challenges brought by the pandemic, the agricultural sector in Angola has grown by more than 5 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 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 Angola's Oil and Gas (Angola Oil & Gas 2022), scheduled for the end of the year.
