Luanda, Nov. 20, 2024 (Lusa) - Access to foreign currency, inflation and bureaucracy are among the main challenges to business investment in Angola, according to the Managers' Barometer 2024 report presented on Wednesday.
The report, produced by the Portugal - Angola Chamber of Commerce and Industry (CCIPA), carried out in partnership with consultants PwC and AICEP (Agency for Investment and Foreign Trade) is based on a survey of 43 managers, with the main sectors of activity represented being construction and real estate (16%), manufacturing (14%), and consultancy (14%).
The document emphasises that Angola presents many opportunities for sustainable investment, but also significant challenges.
Investors pointed to various obstacles that can make it difficult to fully realise the country's potential, including dependence on oil; the regulatory environment; infrastructure; corruption; access to finance; security; economic diversity; and worker training.
The challenges cover several areas, but the majority of managers surveyed consider that access to foreign currency (93%), inflation and interest rates (70%) and bureaucracy (53%) are the main obstacles to business investment in Angola.
In terms of internal management, hiring employees with the necessary skills and client late payments are the challenges most identified by managers (around 70% of those surveyed).
Entrepreneurs believe that having qualified and motivated teams is essential to achieving high levels of productivity and innovation, but "the recruitment and selection process faces various challenges such as the fact that the education system in Angola is still in the development phase and the bureaucratic complexity of obtaining work visas for foreigners," the report emphasises.
The Barometer highlights the importance of creating a more favourable environment for investment and business development in Angola. It points to actions to mitigate the challenges, such as encouraging efficient foreign currency management, developing strategies to combat its scarcity, facilitating complex administrative processes, and investing in training qualified labour.
Given the high degree of uncertainty at the national and international levels, only 9% of managers feel optimistic about the evolution of the international economy and 14% about Angola's economic evolution.
Most companies (63%) are cautious, but 47% of managers expect an increase in their company's turnover in 2024.
"Political volatility, the need for greater transparency and economic challenges must be carefully considered when planning new investments," he added, stating that risk mitigation strategies, thorough market analyses, and keeping up to date with regulatory changes are essential for success.
"We can conclude that Angola presents a promising investment scenario, with significant return potential for those who are prepared to face the challenges and take advantage of the opportunities offered," the document emphasises.
The Managers' Barometer covers issues related to the economic environment in Angola as well as other disruptive issues for companies, such as the application of technology in general, artificial intelligence, and the growing importance of cybersecurity.
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