Introduction

Situated in the western part of the Southern Africa, Angola sits astride the hydrographic basins of the longest river in Western Africa, the Zaire or the Congo (4000 km) and the longest in Eastern Africa, the Zambezi (2680 km). Angola borders the Democratic Republic of Congo to the north and northeast, Zambia to the southeast, and Namibia to the south. There are two seasons in Angola - the rainy and dry seasons. The latter is cooler and extends from May to September and the former is hotter and runs from September to April. The maximal temperature in Angola is 35°C.

Investment Climate

The economic potential of Angola is vast, diversified and should not be neglected by the country's present or future business partners, especially since the country has achieved full peace.

Oil And Gas - Oil accounts for 42 percent of Angola's GDP and 90 percent of Angola's total exports. Angola currently ranks second in Africa for oil production, producing almost one million barrels per day. Besides oil, Angola also has important gas reserves, estimated at 50,000 million cubic meters.

Diamonds - Angolan diamond production is characterized by its abundance and great quality. More than 70 percent of the diamonds found are of extreme purity. Alluvial reserves of diamonds are estimated at 40 million to 130 million carats. In addition, there are untapped diamond reserves in volcanic pipes called kimberlites. Of Angola's known kimberlites, diamond reserves are estimated at 180 million carats.

Other Mineral Reserves - Angola also has substantial, largely untapped, deposits of gold, iron ore, phosphates, manganese, copper, lead, quartz, gypsums, marble, black granite, beryl, zinc and numerous base and strategic metals. Between 1950 and 1975, iron was extracted with an average that peaked at 5.7 million tons per year between 1970 and 1974. Besides iron, Angola has an unexploited reserve of phosphates estimated at 150 million tons. There are also reserves of marble, granite and quartz.

Agriculture - Rehabilitation of coffee plantations is a priority for the government. Under its privatisation program the Government is liquidating 33 state-owned companies and is inviting international investors to bid for the largest plantations.

Forestry - Angola has considerable timber resources. The valuable tree species include rosewood, ebony, African sandalwood, mahogany, tola and mulberry. Nearly 150,000 hectares of eucalyptus, cypress and pine plantations are waiting to be rehabilitated.

Fisheries - The 1600 kilometre long Angolan coastline offers some of the richest fishing grounds in Africa. The coast is rich with mackerel, tuna and sardines. The Government has deregulated fish prices and has set up the Angolan Support Fund for Fisheries Development to support the development of the industry with the help of the World Bank.

Manufacturing & Industry - The Industrial sector has enormous potential because of the abundance of raw materials and depends heavily on international cooperation. The textile and chemical industries require investment. Three pharmaceutical factories are under construction. Angola currently produces beer, soft drinks, sugar, wheat flour, pasta, cooking oil, molasses and salt. With an infusion of capital, technology and training, the food processing sector and light industry could revive quickly.

Light industry production includes textiles, shoes, matches, soap, paint, plastic bottles and glues. Heavy industry accounts for about 15 percent of Angola's manufacturing output and includes cement production, oil refining, tire production, steel production and vehicle assembly.

Energy and Electric Power Generation - With numerous powerful rivers crossing the country, Angola has tremendous potential for generating electricity. Angola currently generates more electricity than it needs and could very well be the regional exporter of hydroelectric energy. Angola is part of an international consortium to develop power stations along its border with Namibia. The 520 MW Capanda Hydro-Electric dam on Kwanza River will double Angola's generating capacity and will provide enough power to meet the country's need for the next 4 decades when completed.

Transport - Based on the study carried out by the World Bank, the amount of investment planned by the Government for the repair of this sector over the next five years is around 2.5 billion dollars. This includes roads, bridges, railways, airports, runways, public administration buildings and border posts.

Tourism - Angola has immense potential for tourism in the areas of natural, cultural, business, sports and eco-tourism. The Government offers to the investors the possibilities and opportunities of business in the regime of direct or joint-ventures investment with Angolan companies. The consolidation of the peace process opens new horizons to projects in the hotel and resort industry.

Angola – India Relations 

Diplomatic relations between the Republic of Angola and India started to develop from July 1985 when the first Indian Ambassador was accredited to the Angolan Government, but de facto relations between the people of Angola and India are very ancient. They date from the difficult period of anti-colonialist liberation war and grew more recently in the context of the Non Aligned Movement. In November 1992 the first Ambassador of Angola in Asia, Mr. Armando Mateus Cadete was accredited to the Governments of India, Japan and South Korea with residence in New Delhi. The relations between Angola and India started to flourish based on the Agreement concluded in October 1986 in New Delhi, by the former Angolan Minister of Trade, Mr. Ismael Martins and Mr. P. Shiv Shanker, the former Indian Minister of External Affairs and Trade. In 1986 Mr. Rajiv Gandhi, the former Prime Minister of India, became the first Indian statesman to visit Angola. In 1987, the President of Angola, Mr. Jose Eduardo dos Santos came to India on a state visit. 

The incumbent Ambassador Extraordinary and Plenipotentiary of the Republic of Angola, Mrs. Ana Maria Carreira, presented her credentials to the President of India on the 30th of April 2001. The relations between Angola and India have a great deal of possibility and potential. In the future, they are bound to become much more profound and diverse. 

Angolans consider that India has the requisite technical know-how suited to the specific particularities of their country and would like to deepen the cooperation especially in the spheres of trade, industry and agriculture. Angolans also recognize the professionalism of Indians as partners. 

Further information on Angola can be obtained from the Embassy of Angola in New Delhi or their Website: www.angolaembassyindia.com.

Angola Country Data