Angola

FDI in Angola has been highly volatile and concentrated in the extractive sector. Initiatives to improve investment attractiveness are hampered by various challenges affecting the policy environment. The IPR provides action-oriented recommendations to create an environment conducive to investment and leverage the FDI potential to progress towards sustainable development. The report contributes to the Government’s efforts to achieve the dual objective of graduating from least developed country (LDC) status and meeting the SDGs.

The Government of Angola is implementing reforms to promote economic diversification and reduce the country’s dependency on the extractive sector. Attracting FDI to productive sectors such as agriculture and food processing is a key objective of several government programmes such as the PDN and PRODESI. Subsistence farming produces most of the agriculture outputs but the expansion of the agriculture sector is hindered by limited access to finance seeds and fertilizers as well as a lack of skills and the use of obsolete technologies (Government of Angola 2018a). Agriculture productivity is further affected by weak infrastructures low connectivity inefficient input markets a lack of market information and the absence of food processing facilities (World Bank 2018b). Therefore despite its potential for agribusiness the country remains a net importer of food (see context). Shifting from subsistence to commercial farming is essential to increase productivity address food security and promote economic diversification. This chapter highlights the main opportunities for FDI in agribusiness and building on the Principles for Responsible Agriculture Investment (PRAI) and UNCTAD’s experience on investment policy investment promotion enterprise development and business facilitation it proposes an approach to attract investment in agriculture and mitigate associated risks.

UNCTAD Investment Policy Reviews (IPR) are intended to help countries improve their investment policies with the objective of meeting the Sustainable Development Goals (SDG) and to familiarize governments and the international private sector with an individual country’s investment environment. The reviews are considered by the UNCTAD Commission on Investment Enterprise and Development. The analysis is based on the UNCTAD Investment Policy Framework for Sustainable Development (IPFSD) and its core principles and guidelines (UNCTAD 2015a). The recommendations of the IPR are then implemented with the technical assistance of development partners including UNCTAD. The support to beneficiary countries is delivered through a series of activities that can span several years. Consistent with the SDGs IPRs encourage official development assistance and investment in countries where needs are greatest. The IPR recommendations are in line with countries’ national development plans and focus on key development sectors including agriculture mining manufacturing tourism and infrastructure. By helping countries in this manner the IPR programme notably contributes to:

Under its overall mandate on trade and development the United Nations Conference on Trade and Development (UNCTAD) serves as the focal point within the United Nations Secretariat for all matters related to foreign direct investment. Its work is carried out through intergovernmental deliberations research and analysis technical assistance activities seminars workshops and conferences.

Since 2017 the Government of Angola has intensified the implementation of reforms aimed at improving the business climate. These include investment facilitation business establishment property registration taxation as well as governance. The reform efforts have positively influenced the perception of the private sector and lay the foundation for improved investment attractiveness including in non-oil related activities. However entry restrictions limiting access to several sectors remain in place and operational constraints continue to affect the cost of operating businesses in the country thus reducing the impact of reforms. This chapter aims to support the ongoing efforts to diversify the economy through FDI and non-equity investments by making recommendations to improve investment policies and address remaining gaps. Based on the IPFSD – the UNCTAD’s Investment Policy Framework for Sustainable Development this chapter analyses the regulatory and institutional framework for investment in Angola (UNCTAD 2015a). It then proposes a series of concrete recommendations to be implemented over the short medium and longer term to assist the Government achieve the objectives of the PDN 2018–2022 and sustainable development.