Angola is investing more in Portuguese territory and Portugal is exporting more products to Angola, according to official figures. According to the National Institute of Statistics, Portugal exported €1,424 million to Angolan territory last year and imported €624 million, translating into a Portuguese trade surplus of €800 million. But Angola invests more in Portugal than national companies in that African market.
The country’s foreign direct investment led by João Lourenço in Portugal amounted to EUR 5,093.7 million at the end of the first quarter of this year, up from EUR 4,977.4 million in the same period of 2022, according to figures from the Bank from Portugal. For example, Angola has interests in companies such as Galp and BCP through the oil company Sonangol. Portuguese direct investment in Angola fell 12.9% year-on-year to €2,682 million at the end of March, according to central bank data presented by AICEP.
In 2022, Portugal exported 1424 million euros to Angola and imported 624 million euros. But Angolan foreign direct investment is higher than Portuguese.
But Africa’s second-largest oil producer wants more Portuguese investment, and its ongoing privatization program is an opportunity. The call was made by the president of Angola last week in an interview with the Lusa news agency. “There are a large number of assets in the public sphere that we want to transfer to the private sphere. Portuguese investors are invited to consider purchasing the same assets,” said João Lourenço. And he indicated in which sectors he would like to attract Portuguese capital. Indeed, where we want more foreign private investment is in agriculture, tourism – where Portuguese investment is lower compared to investment in other countries – (…), in agriculture, fisheries, industry, apart from the oil industry”, specified the ruler in the same interview.
According to consulting firm Oxford Economics, Angola’s privatization program, which has been extended until 2026, will include large companies that can pique investor interest. The Angolan director “will bet on the privatization of the largest and most profitable assets in the next four years, including the diamond company Endiama, the mobile telecommunications operator Unitel, the airline TAAG and 30% of Sonangol, which could happen in several phases .”, advances.
On his trip to Angola today and tomorrow, the Prime Minister will be accompanied by several ministers, including those of Finance, Economy and Agriculture, and will sign a series of bilateral agreements, including the Program for Strategic Cooperation (PEC) 2023-2027. He will also sign the reinforcement of the credit line Portugal-Angola from 1.5 to 2 billion euros (announced in April by the Minister of Finance when he traveled to Luanda), and a memorandum of understanding between the administration of the ports of Sines and Algarve and the Barra do Dande Development Society.
In a video message published yesterday on the government’s website, António Costa underlines Luanda’s economic diversification strategy, saying that Portugal “wants to match that ambition while also creating new investment and growth opportunities for Portuguese companies”.
With Lusa
Live Money journalist
Source: DN
