Stock market and investment in non-oil sector increase Angola’s revenues

9 March 2006

London, United Kingdom, 09 March – The creation of the Angolan stock market and the government push for investment in the non-oil sector are expected to contribute to the diversification of the country’s sources of income, according to Business Monitor in its latest report on the country.

In the report published this week, the London-based consultancy said that the efforts of the Angolan Finance Ministry to encourage investment in sectors such as construction and industry were “a very positive development (…) given the country’s current dependence on the oil industry.”

Business Monitor said that investment in sectors other than oil and diamonds brought the country 123 million euros of revenue in the first half of 2005, according to the latest figures from the Angolan investment agency.

Official forecasts for these sectors point to growth of 11.9 percent in 2006.

Business Monitor highlighted the contribution of Chinese companies to this growth. This investment, it said, “have been arriving in the country after a 2 billion euro loan was granted by China’s Eximbank.”

Another “positive development,” which will also widen the State’s revenues, is the creation of its new stock exchange, which is due to be launched in the third quarter of this year.

“The creation of a stock market will not only be a symbol of development of capital markets in Angola, but will also guarantee another source of revenue for the Government, through taxation,“ Business Monitor said.

The stock market is expected to be launched with initial capital of around US$6 billion. (macauhub)