Angola business community takes advantage of “unique window of opportunity”

28 June 2006

Lisbon, Portugal, 28 June – The Angolan business community is affirming its position in the country by taking advantage of a ‘unique window of opportunity” created by economic growth, liquidity and support form the authorities, the head of Deloitte in Angola has said.

‘The strategy to make the economy more Angolan is reflected in all strategic sectors, including oil, banking, mining, insurance, and construction, with some impressive success stories,” said Pedro Barreto, a managing partner at Deloitte in an article published in Lisbon.

Angolan business owners have thus taken advantage of “a happy combination of factors,” such as the “considerable sustained growth in price and production of oil and the successful implementation of the Government’s Stability Program,” as well as the “critical lack of availability of products and services,” he said.

The latest projections from the International Monetary Fund (IMF) point to the Angolan economy growing by around 26 percent this year and to an average of over 13 percent between 2007 and 2010.

According to Barreto, “the private sector in Angola is going through a unique phase of transition, seen in the Angolan business community as a groundbreaking moment, which is expected to last for a further three years.”

“Despite the fact that there is as yet no confidence index for Angolan business people, it is quite clear that this time is being seen as a unique window of opportunity to position Angolan business people in the economy’s key sectors,” he added.

Barreto also said that the main constraints were currently a lack of qualified workers, the weakness of institutions, bureaucracy, lack of infrastructures, the fact there is no capital market and an underdeveloped financial system.

“The critical factors for success in this market are, therefore, intimately linked to the capacity of local business owners and managers to overcome or manage these obstacles, often with the decisive support of a wide informal network of contacts,” Barreto said.

The best way of overcoming these difficulties, according to the Deloitte manager, lay in creating strategic alliances, or joint ventures with Angolan companies, contracting local managers, contracting consultancy companies operating in the Angolan market, amongst other possibilities. (macauhub)