Angola: Private sector loses 82,000 companies over 30 years

12 December 2007

Luanda, Angola, 12 Dec – The private sector in Angola has lost 82,000 companies over the last 30 years, which accounts for 82 percent of the total, said the chairman of Angola’s Chamber of Commerce and Industry (CCIA), Antonio Santos in Luanda Tuesday.

“In 1970 there were 100,000 private companies in Angola and now there are just 18,000,” Santos said whilst making a speech on “Opportunities and challenges for the development of the business sector,” at a seminar on the private sector.

In order to change the situation, business owners have called on the government to simplify the process for setting up businesses, in order to prevent the expansion of the black market.

Due to the long time it takes to set up companies, he said, many businesspeople opt to be part of the informal market, which is not correct, but helps them overcome the many constraints of bureaucracy at a time when the informal market still has a significant weighting in the national economy.

Thus, said the chairman of the CCIA, it is urgent that a national strategy for reducing informal business be set out, simplifying legalization processes and setting up companies that can be of great social benefit in terms of tax collection, employment and increasing income.

As well as this, the process of registering property and ownership is very difficult and is not sufficient for using property as an asset to serve as guarantee in credit processes.

“There is a need for the State to set up instruments for guaranteeing loans and encourage the emergence of more private companies,” Santos said.

Difficult access to business opportunities due to the State’s demand for services mainly being focused externally is placing many constraints on the development of the private sector.

Therefore, he said, many national businesspeople have had difficulty in developing competitive capacities in the market, despite there now being macroeconomic stability, which is providing a favorable backdrop for private investment. (macauhub)