1 Luanda via Lisbon Parcerias luso-alemãs para uma presença mais forte em Angola The Portuguese Economy in Angola João Luís Traça Member of the Executive Board
2 WHO ARE WE? The Portugal-Angola Chamber of Commerce is a not-for-profit organization incorporated in 1987, with by-laws approved by the Angolan Government in 1991 Head Office in Lisbon and representatives in Luanda, Benguela, Cabinda and Lubango Our purpose: to promote the relationship between businesses from both countries More than 400 members of which almost 15% are Angolan companies
3 OFFICERS General Assembly President PORTUGAL TELECOM SGPS Vice-President SONANGOL SOCIEDADE NACIONAL DE COMBUSTÍVEIS DE ANGOLA Secretary CGD CAIXA GERAL DE DEPÓSITOS Board of Directors President GALP ENERGIA(*) Vice Presidents BANCO BPI(*), ESCOM, BANCO BIC, TRADINGPOR EMPRESA DE COMÉRCIO EXTERNO DE PORTUGAL(*) Members AMORIM HOLDING II SGPS, BES BANCO ESPÍRITO SANTO, MILLENNIUM BCP(*), MIRANDA, CORREIA, AMENDOEIRA & ASSOC. SOC. ADVOGADOS(*), MOTA-ENGIL, ENGENHARIA E CONSTRUÇÃO, RANGEL INVEST(*), SECIL COMPANHIA GERAL DE CAL E CIMENTO, SOCIEDADE DE CONSTRUÇÕES SOARES DA COSTA, SPE SOCIEDADE PORTUGUESA DE EMPREENDIMENTOS(*), UNICER BEBIDAS Audit Committee President DELOITTE CONSULTORES Members COSEC COMPANHIA DE SEGUROS DE CRÉDITO, TAAG - LINHAS AÉREAS DE ANGOLA Substitute member NOVACÂMBIOS AGÊNCIA DE CÂMBIOS, WAYFIELD TRADING INTERNACIONAL (*) Members of the Executive Board
4 MAIN ACTIVITIES Events Information on recent legal changes Information to members on new studies on the Angolan economy Issuance of certain certificates that Angolan entities may request Updates on business opportunities Library with a significant number of studies on the Angolan market Information on Public Tenders Publications
5 PORTUGAL AND THE AFRICAN MARKETS African markets currently represent almost 50% of Portuguese non-eu Exports Angola 29,6% Algeria 3% Cape Verde 2,9% Morocco 2,8% Mozambique 1,6% Tunisia 1,4% Portuguese product-mix fits African markets and economies It s more than just the language!
6 PORTUGAL-ANGOLA TIES Both countries share the same: History Language Legal culture Culture Family Ties
7 THE ANGOLAN MIX Exports natural resources (oil represents more than 95% of exports and diamonds around 1,5%) Very limited local industrial or agricultural production Oil represents 60% of the GDP Average GDP growth from 2006 to 2010: over 11% Except for 2009, imports growing at fast pace: average of 51% /year for the period
8 The Angolan Economy Facts and Figures GNP (in billions of USD) * Real Growth 20,6% 18,6% 23,30% 16,60% % Oil 62,9% 55,70% 55,80% 58,30% Price per Barrel in USD ,.0 Public Accounting 7,4% 14,8% 11,5% 12,4% Imports (in billions of USD) Kz/USD Exchange Rate Source BPI * Market Prices (in billions of USD) Dec. Feb. April May June July Foreign Exchange Reserves Fonte BAI
9 PORTUGAL-ANGOLA BUSINESS RELATIONSHIPS In 2009, direct Portuguese investment in Angola reached a total of 557,4 M - a drop of 217,7 M in relation to 2008 The main areas of investment continue to be construction and public works and banking and commerce Angola was the first non-eu importer of Portuguese exports, to a total of 2.24 B (same as 2008) Portuguese exports grew 282% between 2005 and 2008 Imports of Angolan products to Portugal have dropped from 257 M to 151 M over the same period
10 PORTUGUESE EXPORTS TO ANGOLA More than 50% of Portuguese exports to Angola are civil construction and food-related items Several Portuguese companies hold relevant positions in the country s nonoil-related sectors, which opens doors and creates opportunities for their Portuguese suppliers and clients, namely in the following sectors: Banking Consulting and other services Civil Construction Food Hotels and Restaurants Logistics and Transportation The total area of Angola is 13 times larger than Portugal and houses a population only 1.7 times larger than that of Portugal.
11 A TWO-WAY RELATIONSHIP Angolan investment in Portugal Galp BPI ZON Sol Newspaper Just to name a few.
12 ANGOLA IS IN A PROCESS OF CHANGE: POSITIVE ASPECTS The Civil War ended just 9 years ago. Change is occurring: New kinds of business relationships (more demanding) New and more competition New possibilities beyond Luanda New local political and business class New Private Investment Law New Companies Law New Land Law New Tariff and Customs Code
13 ANGOLA: LESS FAVOURABLE PERSPECTIVES Scarce skilled and qualified Human Resources Stricter Labour Law than in Portugal Obtaining ordinary and work visas Expats with difficulties in adapting Very limited basic facilities like communications, electricity, water and roads Very expensive real estate and food
14 THANK YOU João Luís Traça