State withdraws from economic and productive activity in Angola

13 February 2018

Economic and productive activity in Angola is now exclusively reserved for the private business sector, and the state has been limited to promoting economic growth, said the Minister of Economy and Planning, Pedro Luís da Fonseca.

This decision of the Angolan State, presented by Fonseca to business people from the manufacturing sector, as part of the Programme to Support Production, Export Diversification and Substitution of Imports (Prodesi), stems from the fact that the State, which intends to foster domestic production, competes with the private sector, which seems unfavourable.

With this move, the minister said, the state will only manage macroeconomic aggregates, creating infrastructure and other conditions, in order to promote a more competitive economy, Angolan news agency Angop reported.

In order for the State to be able to do its work as part of Prodesi, the minister said, it needs to “improve the business environment, encourage investment, consolidate physical infrastructure, strengthen Angola’s organisational and digital capital, train and qualify human resources, promote the establishment of strategic partnerships and build on the experience of successful countries.”

It should also make it easier to obtain construction permits, given that Angola is in 80th place out of 190 countries in this regard, and remains in 172nd place in terms of ease of access to bank loans.

In terms of investment incentives, the minister said that the Private Investment Law needed to be amended and bureaucracy to be reduced. In terms of consolidation of infrastructures he said gave the use of public-private partnerships as one possible solution. (macauhub)