WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-09-15 Time: 15:00:05 Posted By: News Poster
By Nelly Nyagah
Angola’s existing multi-billion dollar infrastructure and vast mineral resources are some of the aspects that are drawing investors to the southern African country, despite the less than ideal business regulatory environment.
Although many deals made in Angola in the recent past have turned sour, a lot of South African companies and other foreign investors still see the country as a potentially lucrative market for expansion. So what does it require to crack this market? TradeInvestAfrica interviewed the honorary chief executive of the South Africa-Angola Chamber of Commerce (SA-ACC) Roger Ballard-Tremeer, on how one can successfully do business in Angola. Ballard-Tremeer, a former South African ambassador to Angola, intimately understands the country’s business and political landscape.
What is driving Angola’s high growth rate?
Due mainly to high oil and rough diamond prices and China’s intervention between 2004 and 2008, Angola’s Gross Domestic Product (GDP) rose into and remained in double digits territory. The resultant over-confidence, imprudent financial and economic management and the spin-off effects of the international financial crisis caused the country’s GDP to undergo catastrophic decline. Corrective action driven by the International Monetary Fund (IMF) plus better oil and rough diamond prices is now resolving this crisis.
What challenges face investors in Angola?
The most difficult challenges presented by the Angolan market can simply be described as “a cross-cultural business and personal diversity gap” that has to be bridged in order for business to be established and maintained. Doing business in Angola is not the same as it might be done in other markets and the personal challenge of integrating into rather than assimilating with Angolan society is profound to say the least.
What are the most common fears expressed by potential investors in Angola?
Wise investors usually fear that they may not reach and maintain a level of being properly informed about the very challenging business environment that they are entering. They also fear that they may not have conducted their due diligences at the necessary level and that they may thus not be able to establish and maintain a high level of care and control. The effect of this is that too many country managers may be left to “run amok” only to be found out after far too long!
Which non-oil sectors of the economy are most attractive to investors?
Sonangol (Oil and gas) and Endiama (diamonds) – both parastatals – have greatly stimulated the growth seen in most of the other sectors of the economy. South African and foreign companies with operations in Angola have invested in the service sectors including oil and gas, human resources, financial services, transport, manufacturing, IT, wholesale, retail, agriculture and tourism sectors, although trade may not necessarily be in South African products and the sources of investments may not necessarily be from South Africa. Those that succeed in making the Angolan market work usually have non-executive, Angola-specific directorship or the equivalent high-level expertise available in the company and are thus able to manage the risks so that returns are commensurate with transaction costs.
What advise does SA-ACC have for potential investors?
The SA-ACC advises its members on how to bridge the cross-cultural diversity gap as it relates to the selection of partners that will add value rather than subtract value from the business, how to deal with the language challenges – Portuguese language skills may not be the solution if the people are not managed with a lot of care. The adoption of “shoot from the hip” type of management approach from head office should be avoided because it will result in a meltdown. The legal and regulatory challenges must not – I repeat must not – be dealt with on a “do it yourself” basis. Rather engage professional support with market-specific expertise from the outset or suffer the consequences.
Original date published: 6 September 2010
Source: http://allafrica.com/stories/201009150694.html?viewall=1