
Foreign Direct Investment
According to UNCTAD’s World Investment Report 2022, Angola reported negative net FDI inflows of USD -4.15 billion in 2021, compared to USD -1.87 billion in 2020, as capital repatriation by multinational oil and gas companies accelerated. The stock of FDI in the country decreased significantly to USD 13.17 billion in 2021 from USD 17.32 billion in 2020. According to UNCTAD’s Investment Trends Monitor, global FDI momentum weakened in 2022 in the context of the war in Ukraine, rising food and energy prices, financial turmoil and debt pressures. The petroleum sector remains the main destination for FDI flows. Most of FDI in Angola comes from the Netherlands, France, China, Portugal and Brazil (IMF). In 2019, Trading company Toyota Tsusho and export credit agency Japan Bank for International Cooperation (JBIC) signed a deal to invest USD 650 million in the Namibe Bay project, the first Japanese private sector’s investment in Angola. In 2022, Brazil announced an investment portfolio of over 1.7 billion euros in the areas of military security, pharmaceuticals, construction, and agribusiness.
Rich in hydrocarbons, minerals, fisheries and agricultural land, Angola also has significant hydroelectric potential. The government is trying to improve the business climate and adopted favorable legislation in the last few years, including : a new Private investment law reducing the minimum capital requirement, facilitating capital repatriation, and eliminating the requirement that local investors have a 35% stake ; a Competition law ; a Privatization law and a law allowing the creation of free trade zones. A single contact mechanism enables investors to obtain the necessary permits in a simplified manner. The National Agency for Investment Promotion and Export (APIEX) aims to stimulate economic growth, diversify the economy, and expand private sector participation in Angola's economy. According to the latest The Economist’s Business Environment ranking, Angola’s performance is poor, occupying the 81st position out of 82 countries. Angola also occupies 116th place out of 180 in the Corruption perception index of the organization Transparency International, in continuous progress over the past years. In addition to its vulnerability due to dependence on oil revenues, Angola suffers from high levels of bureaucracy and an underdeveloped financial system, as well as widespread corruption, poor infrastructure, ineffective ports, abundant but unskilled labour and high costs on the ground for businesses.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | -1,866 | -4,355 | -6,142 |
FDI Stock (million USD) | 21,595 | 20,861 | 14,719 |
Number of Greenfield Investments* | 17 | 9 | 5 |
Value of Greenfield Investments (million USD) | 3,437 | 2,594 | 359 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Angola | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 4.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 6.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 6.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
