Angola News
Angola News
Newsletter of The Embassy of the Republic of Angola in Abu Dhabi – UAE | Issue 2 | August 2010
Contents
Editorial A new STEP
Page 1
$1 billion loan
from Brazil
Editorial
A new step
Contact details
Embassy of the Republic
of Angola in the UAE
Loan
$1 billion loan from Brazil
Page 2
Quotes from
Hon Col. Kundi Paihama
Angolan international relations
-Angola and Belgium identify common
interests
-Argentina and Angola explore new
areas of collaboration
Note
Foreign investment
Page 3
Key figures
Angola in numbers
Zoom
The province of Cabinda
Visit
Portuguese President visits Angola
Page 4
Projects
Cabinda Link
Contracts
MoU establishing US-Angola Strategic
Partnership Dialogue
Contact Details
In April 2008, Angola quietly surpassed
Nigeria to become Africa’s top oil producer.
The country’s gross domestic product is
projected to grow nearly 16 percent in the
coming years, placing Angola among the
fastest growing economies in the world.
Business is booming in Luanda, the
capital. Development indicators for the
country have improved little since the end
of its decades-long civil war in 2002. Then
the Angolan government has made efforts
to strengthen political institutions and
to develop an economic diversification
strategy.
Welcome to the second edition of Angola
News. This new issue is focused on
determining project such as Cabinda Link
and highlights international relations and
agreements signed with United States,
Belgium and China.
Every issue brings essential reading to
business-people, investors, expatriates
and professional service providers.
H.E. Rui Jorge Carneiro Mangueira
Ambassador of the Republic of Angola
to the UAE
Reconstruction is a major industry in
Angola, a country only seven years removed
from a 27-year civil war that left much
of its infrastructure in tatters. Luanda,
Angola’s capital, finances these projects
predominantly with oil revenues, but it also
taps some external sources of financing.
With an additional $1 billion line of credit,
Brazil has advanced the lead it holds as the
largest foreign investor in rebuilding Angola’s
infrastructure. But from Brazil’s perspective,
there is more than simply gaining construction
contracts in Angola. The biggest motivation
is likely linked to Brazil’s desire for Petroleo
Brasileiro to increase its foothold in the oil
deposits waiting to be tapped off Angolan
shores.
Angolan President Eduardo dos Santos visited
Brazil in June to meet with Brazilian President
Luiz Inacio Lula da Silva and came away with
an additional $1 billion loan from Brasilia,
which is the leading foreign founder of
reconstruction projects in Angola. The money
will likely be used to hire Brazilian firms to
carry out reconstruction projects in Angola.
It could also allow Brazil’s state-controlled
oil company Petroleo Brasileiro (Petrobras) to
strengthen its foothold in Angola’s offshore
oil industry and gain valuable experience for
developing Brazil’s massive pre-salt offshore
reserves.
For further information, contact:
Embassy of the Republic of Angola,
Address: P.O. Box 36532, Abu Dhabi, UAE
Phone: +971 2 447 7042
Fax: +971 2 447 7043
Email: [email protected]
Website: www.adangola.ae
Angola News
1
Angola News
Angola and Belgium identify common interests
A Belgian delegation comprising
for t y ent repreneu r s of e c onom ic
a nd t rad i ng m ission, who v isited
recently Angola, expressed interest in
strengthening cooperation ties with the
country taking into account its political
stability.
The Belgian Ambassador to Angola Daniel
Dargent said in Luanda, on friendship
and bilateral cooperation between the
two States, that the delegation expressed
its interest in seeking business and
partnership opportunities, in the fields
of industry, construction and transport,
health and architecture.
The diplomat stressed that the Belgian
interest to continue cooperating with
Angola, is due to the fact that the Angolan
people and his government continue
Quotes from
Hon Col. Kundi Paihama
offering the necessary conditions to
attract foreign investments.
The Belgian delegation went to Angola
for an economic and trading mission
aimed at analysing the possibilities
of investment, the Angolan economic
climate, and also promoting economic
t rading relat ions bet ween t he t wo
countries
Argentina and Angola explore new areas
of collaboration
The exports from Argentina to
Angola in 2009 reached USD 400 million,
said the Argentina Ambassador to Angola,
Juan Agustín Caballero. He added that
this amount is a result of exports of varied
products (food, machines...).
The diplomat said that governments and
companies are interested in establishing
partnerships in several sectors.
He added that recently a delegation of
Angolan businessmen led by the state
secretary for Industry, Kiala Gabriel met
Argentina businessmen to discuss the
opportunity to increase cooperation and
find new areas of interest.
Angola has a big potential in agriculture
and Argentina has the capacity to support
Angola News
with technology and equipments and also
train Angolans in the development of the
country.
Argentina has huge natural resources and
an agriculture sector oriented to exports
and diversified industry. The country is a
member of G20 and the 31 largest GDP in
the world
Angola Minister of Defense Kundi
Paihama highlights the collaboration
between Angola and United States.
“During the Cold War, we had a rather
distant relationship with the United
States, we did not share a strong common
ground. But life is made up of change.”
“Today, the Americans see us as strategic
partners as far as the African continent
is concerned, and we thank them for that
understanding. They understand our
aims perfectly.”
“We now cooperate to a certain extent in
the military arena, although it’s still in
its early stages. Now we want to stabilize
that. We have technical task forces to
identify areas of cooperation, and then
we analyze them. There is no distrust.
Relations are good.”
The province of Cabinda
C
abinda is an exclave and
province of Angola, a status
that has been disputed by many
political organizations in the
territory.
the Congo (Congo-Brazzaville),
and on the West by the Atlantic
Ocean. Adjacent to the coast are
some of the largest offshore oil
fields in the world.
Geography
Oil
The capital city is also called
Cabinda. The prov ince is
divided into four municipalities:
Belize, Buco Zau, Cabinda and
Cacongo. Modern Cabinda is
the result of a fusion of three
kingdoms: N’Goyo, Loango
and Kakongo. It has an area
of 7,823 km2 and a population
of 1,5 million (2006). Cabinda
is separated from the rest of
Angola by a narrow strip of
territor y belonging to the
Democratic Republic of the
Congo, which bounds the
province on the South and
the East. Cabinda is bounded
on the North by the Republic of
Petroleum exploration began
in 1954 by the Cabinda Gulf
Oi l Compa ny. Pet roleu m
production accounts for most
of Cabinda’s domestic product.
Conservative estimates are that
Cabinda accounts for close to
60% of Angola’s oil production,
estimated at approximately
900,000 barrels a day, and it
is estimated that oil exports
from the province are worth
the equivalent of US$100,000
per annum for every Cabindan.
Cabinda Oil is associated with
Sonangol, Agip Angola Lda (41%),
Chevron (39.2%), Total (10%) and
Eni (9.8%).
Economy
Consisting largely of tropical
forest, Cabinda produces
hardwoods, crude rubber,
pet roleu m, d ia monds,
gold, magnesium, phosphates,
uranium, gas, tropical wood,
coffee, cocoa, palm oil, bananas,
fish...The product for which it is
best known, however, is its oil.
Cabinda is a small, rich, open
economy with self-reported
crude oil reserves of about
130 billion barrels (12% of
world reserves). Petroleum
accounts for nearly half of GDP,
95% of export revenues, and
80% of government income.
Cabinda’s climate allows for
much agricultural development.
Consequently has no decency or
need of food imports. Cabinda
continues its discussions with
foreign oil companies to develop
fields in the country
Portuguese
President visits
Angola
On his first state visit to the
Portuguese-speaking country of
Angola, President Anibal Cavaco
Silva made a strong effort to speak to
business owners and to strengthen
relations between Portuguese and
Angolan businesses.
The trip lasted from July 18th to
23th. Cavaco Silva met with the
President of Angola José Eduardo
dos Santos along with many of the
governors of the different regions
of Angola. This trip is expected to
be the last state visit that Cavaco
Silva will make during his first term
of the presidency.
Cavaco Silva tried to consolidate
the strategic relationship Portugal
has with Angola, as well as explore
other areas, such as the divulgation
of the Portuguese language and
solidarity. Angola and Portugal
have decided to strengthen
their economic cooperation and
promote it to a new stage of
development.
Note Foreign investment
The Luanda gov ernment has
increased the attractions of Angola
by introducing an investment law
establishing a new commercial code,
laying down land tenure and property
ownership rights, and treating foreign
and Angolan enterprises equally.
The A ngola n Nationa l Agency for
Angola News
2
Private Investment (ANIP) is actively
promot ing foreig n invest ment by
providing tax incentives in targeted
industr y sectors and development
zones.
During the last 4 years, ANIP handled
more than 1124 projects involving more
than $4 billion in investment capital
Key figures Angola in numbers
9,6%: part of 2008 GDP for agriculture sector
24,6%: part of 2008 GDP for services sector
65,8%: part of 2008 GDP for industry sector
15,25 billion: US Dollars Imports (2008)
72,58 billion: US Dollars Exports (2008)
114,95 billion: US Dollars GDP (2008)
Angola News
3
Angola News
Cabinda link
C
h i na, A ngola second
largest trading partner,
has started to build a highway
in the sky to link Cabinda to the
mainland. Cabinda isolation
from the rest of Angola will
soon end. A Chinese company
develops a 12-milelong bridge
(47meters above the river) that
will cross the territory of the
Democratic Republic of Congo
and link the province to its
mother state.
José Joanes A ndré, A ngola
Deput y Minister of Public
Works, says that the China
Road and Bridge Corporation
undertakes the work at an
estimated cost of $2.55 billion.
The construction will take
four years, with completion
scheduled for October 2012.
T he br idge w i l l bi nd t he
oil-rich enclave of Cabinda
more effectively to the Angolan
mainland.
T he f ac t t h at a C h i ne s e
company is responsible for
this flagship project illustrates
t he st rong econom ic a nd
politica l ties that link the
two countries, 25 years after
they first established bilateral
relations.
Four years ago, the ExportImpor t Ba n k of Ch i na
(EximBank) pledged the first
$2 billion loan to Angola to
fund the reconstruction of
country infrastructures, which
had been shattered by three
decades of civil war. Then, in
2005, the China International
Fund Ltd., a private Hong
Kong-ba sed i n st it ut ion,
extended $2.9 billion to assist
in the postwar reconstruction
effort.
Angola need for reconstruction
is urgent, and President Jose
Eduardo dos Santos last year
estimated that it required an
investment in the region of $20
billion. The need to diversify
t h e e c on om y i s e q u a l l y
crucial.
C h i nese bu si ness people
believe that peace has brought
sufficient economic stability to
Angola to substantially reduce
the risks of investing there.
More than 10,000 Chinese
investors are estimated to have
visited the country to study the
market and identify investment
opportunities. 22,000 Chinese
are already working in the
count r y, according to t he
Angolan Interior Ministry.
L a st yea r, Ch i na beca me
A n g o l a’s s e c o n d - l a r g e s t
trading partner after Portugal,
the former colonial power in
Angola, when Chinese exports
to the African state doubled to
$368 million.
Excluding the oil and minerals
trade, China’s direct investment
in Angola has soared, reaching
more than $40 million last year.
China has put its financial and
technical assistance behind
more than a hundred projects
in the energy, water, health,
education, telecoms and public
works sectors.
MoU establishing US-Angola Strategic Partnership Dialogue
The US and Angol a have signed
a memorandum of understanding to
formally launch the US-Angola Strategic
Partnership Dialogue in August. The pact
was signed in Washington on June 8th
by Secretary of State Hillary Rodham
Clinton for t he US and Minister of
External Relations Asuncao Afonso dos
Anjos for Angola.
The Strategic Partnership Dia logue
e n c om p a s s e s t h e d e t a i l s o f t h e
cooperation between the two nations
in key areas, including energ y and
security.
“This Dialogue represents a new chapter
in the relationship between Angola and
the United States and reflects the many
ties that already connect our nations”
Clinton said.
Angola News
4
“W hile today is our officia l launch,
work has already begun. The working
group on security cooperation has met
and discussed issues including Angola’s
growing role in regional security, its work
against human trafficking, and our joint
efforts to improve air and maritime
safety, as well as the need to destroy
excess munitions” the US Secretary of
State said.
Minister dos Anjos said the Dialogue was
made possible by the political will of the
leadership of both nations.
“I had an opportunity during our meeting
and dialogue together to remember and
to talk about all these initiatives that we
took together, and to stress how it was
possible in such a short period to get
together and work in all these different
areas. This is only possible when people
are really committed to doing it. This is
only possible when heads of state have the
political will to do it. This is only possible
when there are two peoples who really
want to consolidate their relationship.
And this is only possible when there’s
a community of interests, of ideals, of
interests in solving the problems of
mankind” the Angolan Minister said.
In April, Angola and the US signed an air
services arrangement, paving the way
for increased commerce and air travel
between the two countries.
Also, the first meeting of the US-Angola
Trade a nd Invest ment Fra mework
Agreement Council was held in Angola
recently to discuss ways to deepen trade
and expand it beyond the oil sector.