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					ANGOLA
World Report
ANGOLA Report
World
World Report
ANGOLA
FIELDS Oenergise
  New investors
                F
   E oil and gas
DRthe AMS sector
ANGOLA
New investors energise
        and gas opportunities
the oilGlitteringsector
       for mining companies
Diamond Life
Glittering opportunities
for mining companies

   This supplement was produced by World Report Limited Inc, who are solely responsible for the content
CONTENTS



                                                W
4 REFORMING FINANCE                                                 hile a fragile peace is    Angola is among the world’s
     Restructuring and privatisation                                gaining in strength in
     aim to promote competition
                                                                    Angola and the econ-       poorest countries but its oil
                                                                    omy shows signs of
     and develop transparency                                       expanding, how will its    and gas reserves, diamonds
                                                war-shattered citizens put together their
                                                lives, and what will be their priorities?      and other minerals could
                                                   In a nation where hundreds of
                                                thousands of people are malnourished
                                                                                               turn it into one of Africa’s
                                                and depend on airlifted supplies, self-        richest nations
                                                sufficiency in food is the top priority.
                                                Angola ought to be capable of producing
                                                enough to feed its 12 million people, but
                                                more than a quarter of a century of civil
                                                conflict has left the country’s agriculture
                                                and infrastructure devastated.
                                                   Angola is among the world’s poorest
                                                countries, yet its oil and gas reserves –
                                                and its diamonds and other mineral
8 COAST TO COAST                                resources – could turn it into one of the
                                                African continent’s richest nations if
      Angola’s 18 provinces are
                                                there were peace and stability.
      seeking to boost agriculture


                                                                                               Unlocking a land
                                                   At least one million people have been
      to obtain self-sufficiency                killed in the conflict that has gone on
                                                almost continuously since independence
                                                from Portugal in 1975. Last year, 388
                                                were killed and more than 450
                                                wounded, many of them children, by




                                                                                               poten
                                                land mines alone. One estimate puts the
                                                number of mines around the country-
                                                side at 10 million.
                                                   UN secretary general Kofi Annan has
                                                said there are “encouraging signs” of
                                                movement towards peace in Angola.The
                                                Security Council has been discussing a
                                                report on Angola presented by the
                                                secretary general and a report by the UN
                                                sanctions monitoring committee.
                                                   In March, Angola’s MPLA (Popular
18 GLITTERING FUTURE                            Movement for the Liberation of Angola)
     The diamond industry is                    government announced a peace plan
     enjoying greater stability                 calling for the leader of the Unita rebel
     after decades of conflict                  forces, Jonas Savimbi, to declare an
                                                unconditional ceasefire, hand in his
                                                weapons to the UN, stick to the 1994
                                                Lusaka Protocol and participate in an          contributed equally to the expansion of       state subsidies – reducing the amount of
                                                election, tentatively scheduled for 2002.      Angola’s financial market,” he says.          subsidy paid to state petroleum company
                                                   Angola’s president, Jose Eduardo dos           The government anticipates that gross      Sonangol from 48 per cent to 36 per
                                                Santos, says Unita’s activities have           domestic product (GDP) will grow from         cent. But the governor of Angola’s cen-
                                                become increasingly isolated and it has        3.3 per cent to 11 per cent next year. This   tral bank, Aguinaldo Jaime said recently
                                                lost its capability for major operations.      is based on a 16 per cent increase in oil     that the deadline needed to be extended
                                                “We have been making calls for peace,          exports as new fields come onstream.          into the first half of 2002 for the IMF
                                                and we still think that the Lusaka peace          However, Angola has been struggling to     targets to be met.
                                                accord is the sole valid tool to settle the    achieve goals set by the International           Meanwhile, the UN’s World Food
                                                military crisis in Angola,” he says.           Monetary Fund (IMF) that would qualify        Programme will invest $168 million in
                                                   Foreign minister Joao de Miranda has                                                      aid for the poorest Angolan citizens next
Cover photo: Pedro Salvador                     written to the UN Security Council,
                                                urging it to tighten its eight-year-old        Economy expands                               year. Much of it will be for humanitarian
                                                                                                                                             assistance.
                                                sanctions against Unita. Mr de Miranda                                                          Despite Angola’s increasing oil revenues,
Printed by Quebecor, Northamptonshire
Reproduction by F. E. Burman, London
                                                says the sanctions, which include a
                                                clampdown on smuggled diamonds used
                                                                                               as inflation falls                            the war has forced the government
                                                                                                                                             to spend vast sums on defence – 41 per
This supplement was produced for The
Independent by World Report Limited Inc,
who are solely responsible for the content.
                                                to pay for the rebels’ arms, have had “a
                                                positive impact, significantly reducing        and currency                                  cent of its budget in 1999 – to keep the
                                                                                                                                             country’s Unita rebels at bay.
                                                Unita’s war-making capacity”.                                                                   In this year’s budget more than a
World Report Limited Inc. is not connected or
associated with any company registered in the      Paulo Teixeira Jorge, secretary of the      becomes stable                                fifth of resources have been directed
United Kingdom bearing the same or similar      MPLA’s political bureau for international                                                    to national reconstruction and social
name.                                           relations, highlights the irony of the situ-   the country for a loan package and techni-    benefits. A top priority is the resettle-
For more information contact:                   ation Angolans have found themselves           cal help to get the economy back on track.    ment of some 500,000 displaced people,
World Report Limited Inc, PO Box 2339,          in. “If Angola were a country without             Inflation targets and other objectives,    most of whom have been living in
London, W1A 2NX. Fax: (020) 7495 3707
                                                great resources, we would not have this        including increased privatisation of state    wretched conditions in camps.
                                                war,” he says.                                 companies and monitoring of oil sector           The cultivation of staple crops has
    This report can also be read online:           According to Angola’s finance minister      operations, were not met by the IMF’s         resumed in most regions, but the means
     www.worldreport-ind.com/angola             Julio Bessa, the economy is expanding as       June deadline.                                to market and deliver surplus to the
                                                inflation declines and the currency stabil-       At the beginning of October, the gov-      areas of greatest need do not exist.
                                                ises. “The decline of inflation and the        ernment hiked retail petrol prices in a          This is a huge problem that anguishes
17 NOVEMBER 2001                                stability of the national currency have        move towards the IMF goal of ending           Fernando Muteka, the minister for

2 World Report ANGOLA
                                                                                                                                                                                                          INTRODUCTION


                                                                                                                                       Top of the investment list




                                                                                                                                                                                                                                      Photo: Pedro Salvador
                                                                                                                                       Rapid growth: cash inflows from overseas firms topped the $1.8 billion mark in 1999




 of huge                                                                                                                               ❑ Angola was one of the three
                                                                                                                                       principal recipients of foreign direct
                                                                                                                                       investment in Africa last year. Among
                                                                                                                                       the world’s least-developed countries,
                                                                                                                                       it topped the list of FDI recipients
                                                                                                                                                                                        “The majority of the precious
                                                                                                                                                                                        resources lie in the west, where war
                                                                                                                                                                                        has never been a problem,” he says.
                                                                                                                                                                                        “There is still room for our partners to
                                                                                                                                                                                        invest with high safety.”




n tial
                                                                                                                                       in 1999, taking in a massive                        Critics contend that much of the
                                                                                                                                       $1.8 billion.                                    billions of dollars in development
                                                                                                                                           About 90 per cent of the FDI to              aid that has already poured into
                                                                                                                                       Angola is absorbed by the oil sector,            Africa has gone into useless projects
                                                                                                                                       into which the multinationals have               or been siphoned off by corrupt
                                                                                                                                       poured billions of dollars. Principal            officials. In some cases, critics say,
                                                                                                                                       investors are the US and France.
                                                                                                Photo: Trygve Bolstad/Panos Pictures




                                                                                                                                           Outside the petroleum and diamond                               DE MIRANDA
                                                                                                                                       sectors, investment has inevitably
                                                                                                                                       been deterred by the civil conflict.
                                                                                                                                       Portugal, the former colonial power,                                ‘There is still room for
                                                                                                                                       was the leading investor outside                                    our partners to invest
                                                                                                                                       these sectors last year, reaching                                   with high safety’
                                                                                                                                       $123 million. In the past five years,
                                                                                                                                       Portuguese investment in Angola has
                                                                                                                                       seen rapid growth, estimated to have             donor cash has enabled governments
                                                                                                                                       increased 90 per cent year-on-year.              to abdicate social responsibility.
  territorial administration. “We do not         announced that he is to stand down at the                                                 Sectors offering opportunities for              Delegates at the 14-member
  like to beg. It is the war that forces us to   next election, which is scheduled to take                                             investment include mining (not just              Southern African Development
  receive free food,” he says.                   place next year. After more than 20                                                   diamonds), agriculture and fishing,              Community (SADC), of which Angola
     Presidential adviser Carlos Feijo says      years in the job, he says: “It is only                                                food processing, soft drinks                     is a member, were told at its annual
  the fighting has held back agricultural        natural that in our society and in our                                                production and brewing. Coca-Cola                summit in August that the region’s
  development in many rural areas. The           country there should be other people                                                  invested $36 million in a new                    economic growth was too low to have
  government is in control of most of the        capable of discharging these duties. It is                                            bottling plant last year.                        any impact on poverty.
  country, but while rebel activity persists     my desire to open this possibility and that                                               According to Joao de Miranda,                   Although the economy grew by
                                                 is exactly what I have done.”                                                         minister for foreign affairs, the                3.4 per cent last year, that is too low
                                                    Among the possible successors to the                                               country’s western regions offer                  compared with the World Bank’s
                    LOURENCO
                                                 presidency is Joao Lourenco, the current                                              particularly valuable opportunities.             minimum of six per cent.
                                                 secretary general of the MPLA, which
                    ‘We are making great         has dominated Angolan politics since
                    economic efforts that        independence from Portugal in 1975.
                    should be recognised’           He says his party is willing to enter
                                                 into dialogue with Unita as long as it
                                                 falls within the framework of the
                                                 Lusaka Protocol, which requires Unita                                                 • Geological and geotechnical surveys       • Land stabilization
                                                                                                                                       • Injection of cement and other products    • Lowering of phreatic levels
                    JORGE                        to disarm completely.                                                                 • Barrier, tunnel and bridge construction   • Foundations of all kinds
                                                    “Since 1998 when the last blue helmet
                    ‘If Angola were a country    (UN peacekeepers) departed from Angola
                                                                                                                                       With all the technical and human resources
                                                 we have been fighting alone against the
                    without resources we         enemy, without any support,” he says.                                                 at our disposal, we aim to consolidate our
                    would not have this war’     “We are making great economic efforts                                                 leading position and to continue playing a crucial
                                                 that the international community should                                               ROLE IN ANGOLA’S DEVELOPMENT.
                                                 recognise.                                                                            Geotécnica: a reputation that’s built to last
  “we must organise agricultural areas              “Thanks to these efforts, we now have
  where war cannot reach, and protect            some political stability in Angola, and that
  others”, he says.                              is important for the development of the                                               Rua N’Gola Kilwanje, Luanda, Angola.
    President dos Santos, one of Africa’s        SADC (Southern African Development                                                    Tel: (244 2) 324 287 / 381 987 / 381 795
  longest-serving heads of state, has            Community) region.” s                                                                 Fax: (244 2) 322 969 / 382 730


                                                                                                                                                                                         World Report              ANGOLA 3
FINANCE



A                                               Reform programme seeks
         new 17-storey building on the
         skyline of downtown Luanda is
         one of the more visible signs that
         the war-shattered economy of
Angola is beginning to get back on its feet.
   The $50 million tower block is the
headquarters for the wholly state-owned
Bank of Commerce and Industry (BCI).
                                                Measures to restructure and
Accelerating its privatisation programme,       privatise the financial sector
the government is planning to sell a stake
of up to 51 per cent in BCI by 2002.            aim to promote competition
   Other financial institutions being
considered for sale include Angola’s            and increase transparency
Savings and Credit Bank. More recently,
the state-owned Agriculture and Fisheries
Bank was closed down as part of the             think the best way of helping the private
International Monetary Fund’s (IMF)             sector is to have a modern and rebuilt
restructuring programme for the country.        financial system. In this way, we are
   The banking sector, like every part of       introducing competition and we want
the economy, virtually needs to be rebuilt      more banks to come to Angola.
from scratch or extensively restructured,          “We have taken some very courageous
and there is pressure from the IMF for          measures. This is not easy because people
institutions to become more transparent.        are used to having everything provided
   The central bank, National Bank of           by the state. They are not used to
Angola (BNA), is working to become              employment competition and efficiency,
more independent from the state while           and it takes some time to be understood.”
playing a leading role in reform.                  In its drive to make the sector more
   “Angola has made a major effort,” says       transparent, the central bank has taken
bank governor Aguinaldo Jaime. “It has          measures to eliminate tax evasion and
done so under particularly harsh condi-         employed foreign experts, some from
tions because we lack resources, despite        Britain, to reform the tax administration.
the increase in the price of oil. It is about   “Efficiency will increase as a result of        Credit to the nation: the BNA is working to make the sector more efficient and modern, and is improving
time the financial institutions matched         these measures and our reforms will create
the major efforts of the government.”           a good economic structure,” he says.            also preparing treasury bills that will            Relations with foreign banks have
   He points out that the authorities are          The launch of central bank bills has         supplement the role being played by the         greatly improved and Mr de Almeida
trying to achieve a seismic shift from a        created a primary market between the            central bank,” he says.                         says an account reconciliation process is
centralised to a liberalised economy in         BNA and other banks. In turn, a                    The largest bank in terms of capital,        under way. Dormant loans have been
which the private sector plays the major        secondary market is appearing in which          BCI granted more than $11 million in            renegotiated with Portugal’s Espirito
                                                the banks pass on the bills to the public.                                                      Santo Bank and new credit facilities have
                                                   Mr Jaime says people were sceptical                                                          been devised for the trade sector and
                   JAIME
                                                when the bills were first introduced.
                                                “They would not believe in the efficiency
                                                                                                Relationships with                              small investments.
                                                                                                                                                   BCI has branches in 10 of Angola’s 18
                   ‘Our internal reserves
                   have increased and the
                                                of these bills because they knew the
                                                state had a big foreign and national debt.
                                                                                                foreign banks have                              provinces, as well as several agencies.
                                                                                                                                                With more than 4,300 accounts, Mr de
                                                But our internal reserves have increased                                                        Almeida, who joined the bank in Febru-
                   exchange rate is stable’
                                                greatly, the exchange rate is quite stable      improved greatly                                ary last year, says it is planning to expand
                                                and we don’t have the frustration we had                                                        its network of branches in Luanda and
role. “When we decided to shift away            before. There is no depreciation of the         loans last year, a 42 per cent increase on      other parts of the country.
from that kind of [centralised economy]         national currency any more.                     1999. Generoso Hermenegildo Gaspar                 Privatisation is welcome, he says, as
model, the reform programme started.               “Now people realise that instead of          de Almeida, chairman of the BCI board           this will give Angolan investors the
   “Our first change was to liberalise the      buying dollars to keep their savings they       of directors, says fixed deposits have risen    opportunity to buy shares in BCI for
exchange rate because it used to be fixed       can invest them in national currency in         302 per cent over the same period. The          the first time.
administratively by the central bank. In        central bank bills because the remunera-        bank is in the first year of a three-year          A former governor of the central
fact, there were times when the difference      tion is attractive and the interest rates are   strategic restructuring plan and progress       bank, Mr de Almeida adds: “Today, the
between the official exchange rate and the      above inflation. The finance ministry is        has been “positive” so far.                     situation is very different because the
parallel market exceeded 500 per cent.
   “We are modernising the functioning
of the national monetary market and we
are strengthening our supervision depart-
ment so that all the players in the finan-
                                                  State insurer gets ready to compete after
cial system can play according to the             ❑ The insurance sector in Angola is            Competition must occur, but we must            Angola, new investors are coming here
rules. All these measures have been taken         dominated by the state-owned                   prepare the necessary weapons so that          and they will require guarantees for
with one objective – to make the central          National Insurance and Reinsurance             we don’t get hurt in the marketplace.          their investments.”
bank totally independent from the state.”         Company, Ensa, which enjoyed a                 I believe competition is good because
   In the private sector there are BAI, an        monopoly for more than two decades.            it creates quality.”
                                                                                                                                                                  AUGUSTO
Angolan investment bank, BCA, an                     With the liberalisation of the sector          As the market develops in Angola,
Angolan commercial bank, and three                through new legislation passed last            he suspects that some social burdens
Portuguese firms – Banco do Fomento,              year, there is now competition for             may be lifted from the government’s                              ‘New investors are
Banco Portugues do Atlantico and Banco            Ensa’s share of the market.                    shoulders. “More insurance activity                              coming here and they
Espirito Santo. There is also a handful of           The new entrant is AAA Seguros and          will bring social security benefits and                          will need guarantees’
bank representative offices, including            other insurance companies are also             help the economic development of the
Citibank and Banque Paribas, providing            being set up. “At the moment                   country. The insurance sector can
specialised financing and services.               we are effectively handling the                complement social security.”                      Ensa, which covers most areas of
   Mr Jaime adds: “We are trying to give          competition from AAA Seguros,”                    Mr Augusto, who has been with               insurance, is to gain new status as an
incentives to the private sector so that          says Ensa president Aleixo Augusto.            Ensa since its creation in 1978,               autonomous society before being sold
the economy can function properly. We                “We are not afraid of competition.          adds: “With the development of                 by the government. “The state is

4 World Report ANGOLA
                                                                                                                                                                                                       FINANCE



 to rebuild the banking business
                                                                                   better facilities, so we can now support    were approved this year,” says Mr de         adds. “There will be a need for enter-
                                                                                   some industries and projects.”              Almeida. “We have already created a real     prises that have the organisation and
                                                                                      BCI also works on behalf of a            estate department and we will develop        capacity to manage the market and our
                                                                                   state-created fund that was created to      other sectors in order to increase our       banks can do it.
                                                                                   support small investors. The Fundo de       internal capital.”                              “Angola is changing and we are getting
                                                                                   Desenvolvimento Economico e Social             As Angola develops, it will need a        the stability and peace we need. Many
                                                                                   (FDES) was set up to motivate small         developed capital market. “The banks         foreign companies are coming here.
                                                                                   entrepreneurs and it grants credits of up   can provide a safe passage for this phase    Now is a good time for people to invest.
                                                                                   to $500,000. “We have had hundreds of       because we are more organised and we         Privatisation will allow the entry of
                                                                                   requests and the first investor projects    know how to manage such things,” he          foreign partners in the banking sector.” s
                                                           Photo: Pedro Salvador




                                                                                                                                                                     Diamonds are the jewel
                                                                                                                                                                     in the crown of Angola’s mining
the administration of taxation to eliminate evasion
                                                                                                                                                                     industry and ASCORP is the sector’s
           BNA and the ministry of finance can                                                                                                                       leading player. The company has
           control inflation. There are still some                                                                                                                   more than delivered the goods,
           things that escape control, because the
                                                                                                                                                                     contributing substantially to the
           country needs more stability and free
           circulation of people and goods, but the                                                                                                                  Angolan national budget since its
                                                                                                                                                                     foundation in February 2000.
                              ALMEIDA                                                                                                                                In that short space of time, we’ve

                              ‘We can provide credit
                              with better facilities and                                                                                                             built a reputation for providing a
                              support some industries’                                                                                                               consistently high standard in both
                                                                                                                                                                     our products and services, while
           way things are going it is easier to main-                                                                                                                ploughing back profits into commu-
           tain tighter control to combat inflation.”                                                                                                                nity development. This commitment
              About 60 per cent of BCI’s operations
                                                                                                                                                                     to quality and steady growth coupled
           are related to the import and export
           trade. “With the new measures it has                                                                                                                      with crystal clear vision has been
           adopted, credit control is made indirectly                                                                                                                appreciated by our shareholders and
           by the central bank. Because of our                                                                                                                       the Angolan people alike.
           internal assets we can provide credit with
                                                                                                                                                                     A prosperous future for both ASCORP
                                                                                                                                                                     and Angola is guaranteed.

  new legislation
           preparing the legislation to sell part
           of Ensa’s shares,” he adds. “When
           the law is approved, we are counting
           on the participation of several
           partners to help us apply new
           technology and train staff.”
              Ensa’s main clients are in the
           petroleum business. Few Angolans
           have any form of personal insurance,
           but the long-term prospects for
           developing new products and                                                                                                                             Rua Tipografia Mama Tita, Edificio Soleil B
           markets are good.                                                                                                                                       P.O. Box 3978, Ingombotas, Luanda, Angola
              The government has created the                                                                                                                       Tel: (2442) 396465 / 397615 / 394724
                                                                                                                                                                   Fax: (2442) 397615
           Instituto do Supervisao do Seguros,                                                                                                                     E-mail: ascorpadmin@ebonet.net
           a watchdog body which will track the
           development of the sector.

                                                                                                                                                                             World Report            ANGOLA 5
6 World Report ANGOLA
At the Eduardo dos Santos Foundation                          welfare of Angola’s young our top priority
(FESA) we know that true progress starts                      and, from providing adequate schooling
with today’s generation. We are a fully                       facilities for urban students to encouraging
established, non-partisan and non-profit                      participation in athletic programmes, we do
organisation which aims to bolster the                        our utmost to promote an egalitarian and
quality of community life throughout Angola. progressive society.
Since it was founded in 1996, FESA has
                                                                                FESA: Instrumental in
invested over US$30 million in the sectors of
                                                                                spearheading social
education, healthcare, sports and scientific
                                                                                change in Angola.
research and development. We make the




                                      FESA - Eduardo Dos Santos Foundation
                                Rua da Companhia de Jesus 4, (Complexo Endiama) Miramar P.O. Box 545, Luanda, Angola
                                         Tel: (2442) 34 98 07 / 34 68 66, Fax: (2442) 34 68 66, Mobile: (244 91) 50 52 52
                                                             E-mail: fesa.dg@ebonet.net. Website: http://www.fesa.og.ao




                                                                                                                            World Report   ANGOLA 7
PROVINCES

Angola’s 18 provinces have
been granted greater
autonomy by the government
and their governors are
seeking to boost agriculture
to obtain self-sufficiency



T
         here is potential for development
         and investment throughout the 18
         provinces of Angola. Carlos Maria
         Feijo, adviser of the president for
territorial administration, advocates
greater incentives for foreigners investing
in “the most difficult areas, rather than
the capital, Luanda, so we can have
equilibrium in the country”.
   The coastal region of Angola – which
includes the provinces of Zaire, Luanda,
Bengo, Kwanza Sul, Benguela, Namibe
and the enclave of Cabinda – has been
given high-priority status for development
in agriculture, tourism and industry.
   Others, such as Kwanza Norte,
Huambo, Uige, Bie and Malanje, are
medium-term priorities. Meanwhile the
easternmost and largest provinces of




                                                                                                                                                                                            Photo: Pedro Prumo
Lunda Norte, Lunda Sul, Moxico and
Kuanda Kubango, to which most goods
are supplied by air, will take considerably
longer to join in the slowly reviving
economic life of the country.
   The government has devolved greater         Benguela: a relatively well-developed agriculture sector with many agrarian projects implemented by non-governmental organisations
powers to the provinces. Minister of
territorial administration Fernando




                                               Investment opportuniti
Faustino Muteka says: “The daily life,
development and fulfilment of the
state’s policies are exercised by the gov-
ernors under the supervision of the
ministry. The government has approved
agricultural programmes for all
provinces. We transfer the money to the
provincial governors who are develop-
ing production activities.                                 Benguela                                             RANGEL                                     Namibe
   “Provinces such as Uige, Bengo,
Kwanza Norte and Kwanza Sul could              The province of Benguela benefits from                           ‘We intend to consolidate    Nearly half the size of England with a
produce coffee when there is total peace.      its petroleum resources as well as a                                                          population of just 255,000, Namibe is a
                                                                                                                the fisheries sector
To those interested in producing coffee,       relatively well-developed agriculture and                                                     southern province bordering the Atlantic
we will give the land that has been left       fisheries sector. There are around 50 -                          to raise production’         Ocean and Namibia. In addition to its
without anybody working on it,” he says.       farmers’ associations and many agrarian                                                       beaches, extraordinary rock formations
   The province of Cunene rears cattle         projects are being implemented by non-                                                        can be found in the desert and a wide
and goats and produces a lot of sorghum,       governmental organisations.                    infrastructure improvements and plans to       variety of wildlife in the national park of
whereas Huila, whose infrastructure has           Benguela’s governor, Dumilde das            invest in hotels and tourism.                  Iona. The Cunene is the only river that
been less devastated, has the capacity to      Chagas Simoes Rangel, says: “In future            Mr Rangel says: “This province is rich in   flows throughout the year in this region.
grow a variety of crops.                       we intend to consolidate the fisheries         beaches, nature parks and museums. We             According to Namibe’s governor,
   Benguela is an important producer of        sector so that we can have more organ-         are investing in hotel construction and        Salomao Xirimbimbi: “Although Namibe
fruit, sugar cane and maize, while cassava     ised sales operations and better produc-       tourist facilities.”                           was not affected by the war, development
and maize are vital crops in Malanje.          tion, because our products are often sold         The government established the Fenix        was limited. Now the president has
Namibe has the potential to vastly             below production costs. We will deter-         fund to develop Benguela in collaboration      defined a strategy for the rehabilitation
improve its fishing industry, while timber     mine a reliable price so that we can           with Portugal. It is open to all foreign       and development of each province.” This
is a valuable export in Cabinda and rice       protect our national producers.”               investors and Mr Rangel says there has         runs until 2004 and one of its top
could be grown in greater quantities in           The governor is determined that:            already been interest from Britain, Spain      priorities for arid Namibe is irrigation and
both Bie and Kuanda Kubango.                   “The agricultural sector and the develop-      and the US.                                    supplying water to towns and villages.
                                               ment of livestock will be the motor of            “With this fund we will help small and         The province is the third largest for
                                               our economy.”                                  medium-sized enterprises to transform so       cattle rearing and is the main goat and
The coastal region                                Petroleum and industrial projects are
                                               planned for the province, including a
                                                                                              that, eventually, we will be able to avoid
                                                                                              the need to import some products.”
                                                                                                                                             poultry producer. Mr Xirimbimbi adds:
                                                                                                                                             “We are the only province in Angola that
                                               4,000-hectare site intended for an oil            Rehabilitation of the railways is also      produces grapes and olives, and we also
has been given                                 refinery and small industries to support it.   under way, with the aim of connecting the      grow tomatoes, cabbages, carrots, lettuce,
                                               The rehabilitation of a sugar factory, the     provinces of Benguela, Huambo, Moxico          onions, sweet potatoes and cassava.”
high-priority status                           cement industry and the port of Lobito
                                               are also on the drawing board, along with
                                                                                              and Bie, as well as developing the link to
                                                                                              Namibe and on to South Africa.
                                                                                                                                                Fishermen work in the rich waters off
                                                                                                                                             Namibe’s coast, where 65 per cent of

8 World Report ANGOLA
                                                                                                                                                                                                PROVINCES

                                                                                                                                                                                           NZAKUNDOMBA

                                                                                                                                                                                           ‘Once we have peace
                                                                                                                                                                                           we will be able to restart
                                                                                                                                                                                           coffee production’


                                                                                                                                                                         climate,” says Mr Nzakundomba. “Our
                                                                                                                                                                         priority is to restart agricultural produc-
                                                                                                                                                                         tion. From there, we want to create
                                                                                                                                                                         micro-industries for food processing and
                                                                                                                                                                         grow little by little. We must achieve food
                                                                                                                                                                         self-sufficiency.”
                                                                                                                                                                            Soft drink manufacturers have already
                                                                                                                                                                         set up in Uige, and some coffee is being
                                                                                                                                                                         grown – and a little exported. Other crops
                                                                                                                                                                         include cassava, sweet potatoes, bananas,
                                                                                                                                                                         peanuts, beans and maize. These are all
                                                                                                                                                                         intended for local markets, however,
                                                                                                                                                                         as the province is virtually isolated from
                                                                                                                                                                         the rest of the country as a result of poor
                                                                                                                                                                         roads and wrecked bridges.
                                                                                                                                                                            While the provinces have gained some
                                                                                                                                                                         autonomy, Mr Nzakundomba believes
                                                                                                                                                                         that “political power without financial
                                                                                                                                                                         resources is useless”.
                                                                                                                                                                            He says: “The trouble is, all the invest-
                                                                                                                                                                         ments are centralised in Luanda, which
                                                                                                                                                                         disburses them later. The provincial
                                                                                                                                                                         governors are pushing for financial decen-
                                                                                                                                                                         tralisation in order for them to allocate
Photo: Ramon Vivo




                                                                                                                                                                         funds more efficiently.”


                                                                                                                                                                                       Huambo
                    Namibe: one of the most accessible of the Angolan provinces with many opportunities for tourism, and facilities for water sports and safaris
                                                                                                                                                                         Huambo province has suffered most from
                                                                                                                                                                         the war. About three-quarters of its




es from coast to coast
                                                                                                                                                                         population are displaced citizens, the
                                                                                                                                                                         infrastructure is badly damaged and
                                                                                                                                                                         industry is at a virtual standstill. But
                                                                                                                                                                         governor Antonio Paulo Kassoma says
                                                                                                                                                                         Unita rebels failed in their attempt to
                                                                                                                                                                         conquer the province, and the movement
                                                                                                                                                                         led by Jonas Savimbi has been “totally
                                                                                                                         investors feel at home here. Once we have       defeated” and will never recover.
                                              XIRIMBIMBI                                    Uige                         peace and some investment, we will be             There are sporadic outbreaks of
                                                                                                                         able to restart coffee production – it is not   guerrilla warfare, but Mr Kassoma says
                                              ‘We have potential. We       Uige’s governor, Cordeiro Ernesto             labour intensive and we have a good                                 continues on page 10
                                                                           Nzakundomba, is also seeking self-
                                              have peace. What we
                                                                           sufficiency in food production for his
                                              don’t have is investment’    province, as well as the chance to grow
                                                                           crops for export. Coffee was once a major
                                                                           export until civil unrest drove people            As the only pharmaceutical company in Angola, ANGOMÉDICA is looking to
                            Angola’s catches are made, but the fishing     away from the land. Fruit juices and               become a leader in the SADC. Angomédica is seeking investors to share
                            industry has slumped and requires              beverages were also produced, but the                        knowledge and technology and join in their success.
                            rehabilitation. Fishmeal would solve the       factories have long since closed.
                            problem of cattle feed, he says.                  “There is a national programme to
                               Namibe has mineral resources, such as       fight the Unita rebels, and there is good
                            copper, tin, marble and quartz, and there      cooperation between the provinces. There
                            is a possibility that diamonds could also      is also cooperation in the agricultural
                            be found in the province, while oil may lie    sector and in cattle breeding in order to
                            beneath its offshore waters.                   create food self-sufficiency.”
                               Namibe is one of the most accessible of        Mr Nzakundomba says that in colonial
                            the Angolan provinces. “We have enor-          times there was some exploitation of the
                            mous potential in tourism,” he says. “We       province’s mineral resources, including
                            have beautiful panoramas and flora that is     copper, uranium, lead, zinc, gold and
                            unique to the world, such as the curious       diamonds. “Sources have been located
                            desert plant Welwitschia Mirabilis, which is   and identified, but not been exploited.
                            found only in the desert of Namibe.            We haven’t had time to develop these.”
                               “We have nice beaches and the waters           The province’s tropical rainforest could
                            off Namibe are the best off the West           provide a managed source of hardwoods,                                                                             Angomédica
                                                                                                                                                                          Bairro Palanca, Rua do Sanatoria
                            Coast. We have facilities for water sports     he adds. “We are open to any type of
                                                                                                                                                                            P.O. Box 2698, Luanda, Angola
                            and for safaris, and we have peace. What       investment. Our people are welcoming                                                                     Tel: (244 2) 363765/75
                            we don’t have is investment.”                  and we’ll do everything we can to make                                                                     Fax: (244 2) 362336


                                                                                                                                                                         World Report             ANGOLA 9
                       PROVINCES

                                                                                         KASSOMA                                Lunda Norte                                            MAIATO

                                                                                                                      Lunda Norte province has received a
                                                                                         ‘Agriculture must            government-distributed cash injection of
                                                                                                                                                                                       ‘I would like to develop
                                                                                         function as the engine       $2.68 million – its share of earnings                            mechanisation and
                                                                                         to develop Huambo’           from the diamond industry – for social                           livestock rearing’
                                                                                                                      development.
                                                                                                                          The Programme for the Stabilisation of
                                                                       are the main staples grown as cash crops.      the Diamond Sector (Proesda) has been set      we have been promoting agriculture and
                                                                       “In Huambo our slogan is ‘Agriculture is       up to restructure the industry. Although       livestock because the government found
                                                                       the petroleum of Huambo’. Cabinda has          diamonds will continue to be a vital source    it better to involve the population in these
                                                                       the oil and can develop with oil, whereas      of income, the provincial government has       activities. But we have had positive
                                                                       we have agriculture and that must func-        made food self-sufficiency a top priority,     results. Besides diamonds, I would like to
                                                                       tion as the financial engine to develop the    with the modernisation of its 48-year-old      develop more mechanised agriculture and
                                                                       province,” he says.                            hydroelectric plant a close second.            livestock rearing.”
                                                                          Huambo has a university faculty                 Lunda Norte is 1,300km from Luanda
                                                                       devoted to agricultural science and an         and 1,470km from Benguela’s ports. The
Photo: Alexandre Rey




                                                                       Institute of Agronomic Research. With          poor state of the roads and the threat of                     Bengo
                                                                       assistance from foreign organisations,         attack by rebels and robbers makes road
                                                                       these two centres are being reactivated to     transport hazardous and everything has to      In Bengo province, governor Isalino
                                                                       train more people in modern agricultural       be airlifted. Even so, UN food aid flights     Mendes faces problems that are familiar
                                                                       methods, including peasant farmers.            to several towns were suspended earlier        across Angola. “Our population cannot
                       Lunda Norte: agriculture is a top priority         Mr Kassoma says: “Following the             this year because of attacks on cargo          keep on depending on the support of
                                                                       example of Germany, we are starting the        aircraft by Unita rebels. Rehabilitation of    non-governmental organisations,” he says.
                       continues from page 9                           industrialisation of Huambo with micro-        the province’s infrastructure will take           There is hope that petroleum may be
                       these will end when people have the             industries, which give people jobs and         considerably longer than hoped.                found in exploitable volumes but, he says,
                       necessary means for agricultural work and       allow them to earn some money, and also            Lunda Norte’s governor, Manuel             “the challenge for our government is the
                       living standards improve.                       create the capacity for bigger industries      Francisco Gomes Maiato, believes the           agricultural sector because farmers com-
                          The capital, Huambo city, was founded        to get started.”                               population “became lazy” as the diamond        prise 80 per cent of our population”.
                       by the Portuguese in the early 20th                The biggest investments in Angola are       industry, initiated by the Portuguese             Three big rivers flow through Bengo
                       century. With much of it destroyed now,         being made in the oil industry and in the      colonialists, rose in importance and took      and, with the completion of two irrigation
                       the aim is to reconstruct the city’s infra-     capital, Luanda. The Huambo governor           people away from the land.                     schemes, some 85,000 hectares of land
                       structure. Mr Kassoma says Huambo’s             says it is vital that the government directs       “This is one of the poorest provinces in   will come under cultivation. Corn, sun-
                       agricultural land is fertile, but lack of       more investment to the provinces and that      Angola,” he says. “We have a food deficit      flowers and tomatoes are the preferred
                       irrigation is holding back development.         the way to do this is to grant investors in    because our people are not used to prac-       crops because they will form the basis of
                       Maize, potatoes, beans and soya beans           the provinces even greater incentives.         tising much agriculture. For two years         processing industries.




                               We provide for the needs of Angola




                                                Since its creation in 1987, TECNOCARRO has been growing and expanding with the addition of other companies in key economic sectors.
                                                HABITAR - Sociedade de Construções in the construction industry and IMBONDEIRO - Condominiums & Resorts, a real estate company, are very
                                                active in the Angolan market. In the food industry, PECCUS’ main activity is livestock and is constantly seeking to improve its business.
                                                TECNOCARRO offers continual training to its 2,150-strong work force. Keeping the future of the country always at the forefront, TECNOCARRO
                                                contributes to the social, as well as the economic, development of Angola.




                                                                                                      -Grupo Tecnocarro-                       Rua Alfredo Troni, Edif. BPC - 13th Floor, Luanda, ANGOLA
                              Rua D. Francisco de Almeida, Lote 4, 2754-524 Cascais, PORTUGAL
                              Tel: (351) 21 4844778/21 4844704                                                                                                                Tel: (244 2) 392126/392028
                              Fax: (351) 21 4840036/21 4845673                                                                                          Fax: (244 2) 330976, E-mail: tecno.cpt@snet.co.ao



                       10 World Report ANGOLA
                                                                                                                                                                         PROVINCES

                  MENDES

                  ‘I am optimistic for the
                  future because our
                  economy is stabilising


  Fisheries – Bengo has a 50km coastline
but no fishing ports – timber and possibly
petroleum could contribute, although Mr
Mendes insists: “Agriculture will be the
motor for development in this province. I
am optimistic because we are closer to
peace and our economy is stabilising.”




                                                                                                                                                                                                 Photo: Alexandre Rey
                 Zaire
Petroleum is the main resource of Zaire
province. Governor Ludy Kissassunda
says: “We have more than 300km of                 Uige: wants to create micro-industries for food processing, and the region’s tropical rainforest could provide a managed source of hardwood
coastline and rich fishing waters, but there
is no infrastructure for a fishing industry.         As Mr Kissassunda points out, the                                                            peanuts and manioc. “But without fuel, it
Our strength is in agriculture – in some          province was once self-sufficient in many                   Lunda Sul                           is very difficult to modernise agriculture.”
regions we harvest beans twice a year and         sectors. “We imported almost nothing,”                                                             He adds: “For now we are committed
we grow a lot of corn, fruit and manioc,          he says. “With peace we can avoid for-          In contrast, the province of Lunda Sul’s        to developing the energy sector only. Even
the staple food of this region. Much more         eign imports and work by ourselves. It is       most urgent requirement is energy and           the Catoca project (a diamond mine) has
could be grown.”                                  senseless for us to buy beans because we        petrol has to be brought in by air on a         energy problems. They have been using
   He adds: “At this moment the level of          can produce them in high quantities, and        daily basis. The need for a hydroelectric       diesel generators and have to spend a lot
development in every sector is low. The           each of Angola’s provinces can produce          station is pressing and a $35 million pro-      of money on fuel transportation.
petroleum sector is the target for invest-        enough to feed its people.                      ject, which will require foreign invest-           “We don’t have any industry because
ment, but our long-term bet is on the                “We have many rich resources and we          ment, is being evaluated. The province          people want to invest in areas with good
agricultural sector because petroleum is          are ready to work with partners. And            once exported rice and, says governor           energy supplies. As we improve our
a non-renewable resource. We cannot               there is also a great possibility of creating   Francisco Sozinho Chihuissa, there is           energy sector, we will also see improve-
depend on petroleum alone.”                       agro-industry in Zaire,” he says.               potential to grow more, as well as corn,        ments in our agricultural production.” s



                                                 Bengo, strategically
                                                 located on Angola’s
                                                    coast and readily
                                                 accessible from the
                                                  capital Luanda, is a
                                               province with a future.
                                               With significant water
                                                resources and a small
                                                 population, Bengo is
                                                  perfectly suited to
                                               become the country’s
                                                 premier agricultural
                                               zone, cultivating crops
                                               ranging from maize to
                                                 tomatoes. Plus, the
                                               province’s 50-km-long
                                                   coast holds great
                                                    potential for the
                                                     development of
                                                   industries such as
                                               aviculture and fishing,
                                                      as well as that
                                                       of shipping.
                                                By encouraging agri-
                                                cultural development
                                                  and implementing
                                                   upgrades in infra-
                                                      structure and
                                                 electricity provision,
                                                  the government of
                                                  Bengo is aiming to
                                                      bring greater
                                                    prosperity to all.
                                               The province of Bengo
                                               is ready for the future
                                               and to receive foreign
                                                       investment.
                                       Caxito, Bengo, Angola Tel: (+244) 34 81032 / 81072, Fax: (+244) 34 81004

                                                                                                                                                 World Report            ANGOLA 11
INFRASTRUCTURE



Overcoming the legacies of war and
T
        ravelling around Angola is a bit of   The country’s air, road and rail transport facilities all require
        a nightmare. Roads, bridges and
        railways have all been severely       an extensive programme of modernisation and investment
        damaged during years of civil war,
to which may be added problems caused
by millions of land mines littering the       been destroyed.” He says some can be                                                ,
                                                                                             supplying steel girder bridges. ENP which
countryside, as well as flooding in the       repaired, but many others will have to be      employs around 400 people, also carries
rainy season and drought elsewhere.           replaced with entirely new structures.         out road building and other civil works.
   Efforts are now being made to rebuild      “Our objective is to connect the entire           The vast majority of businessmen,
key routes, but the fact that so many         country through the reconstruction of          international visitors and politicians use
bridges have been destroyed means that        bridges, and at the same time connect          planes to reach Angola’s cities and
transporting materials is especially diffi-   areas where only ENP can go.                   towns, and air transport will remain vital
cult. The reopening of the road linking          “Foreign firms will not go to remote        for the distribution of goods until the
the cities of Huambo and Benguela via         areas because of the lack of security. So it   roads and railways have been sufficiently
Londuimbali, for example, depended            is our duty to reconstruct the bridges. We     repaired. It is not, however, an option
entirely on the reconstruction of bridges     are a public company and so we must            available to the vast majority of the
over the Colongue and Cuito rivers.           work all over the country.”                    population, most of whom work on the
   Despite the fact that the Huambo-             ENP is not yet being considered for         land, and much perishable agricultural
Londuimbali-Benguela road was paved,          privatisation, but joint ventures with         produce is unable to reach wider
until the bridges were built motorists        foreign firms have not been ruled out.         markets. Nor is it always possible to
were obliged to go via Ganda. Seasonal        Mr Gois hopes such a venture may be            deliver vital goods and materials to many
rains caused severe damage to this route      created with a British firm that has been      remote rural areas.
earlier this year and it took drivers up to                                                     As with all sectors of the country’s
25 days to make the journey.                                                                 economy, investment is desperately
   The Empresa Nacional de Pontes                               GOIS                         needed to ensure that the aviation system
(National Bridges Company, or ENP) is                                                        continues to function adequately.
struggling to reopen routes as fast as it                       ‘The ENP aims to connect        Manuel Nunes Junior, chairman and
can. General manager Antonio Gois                               the country through the      managing director of the National
says: “Everything that was of benefit                                                        Airport Operations and Air Navigation
                                                                reconstruction of bridges’
to the population was destroyed during                                                       Company (ENANA), says renovation of
the war. The majority of the bridges have                                                    Luanda’s 4th February Airport, Angola’s
                                                                                             sole international facility, is “a move that
                                                                                             cannot wait much longer or the airport

                   ELECTRICITY                                                               itself will enter into a stage of collapse”.
                                                                                                Work on renovating the airport has
                                                                                             already begun and the cost is estimated
                            POWERING                                                         at $300 million. Mr Nunes Junior says
                                                                                             most of the work will be self-financed.
                           DEVELOPMENT                                                       The 4th February Airport is mainly used
                                                                                             for cargo, including fuel, raw materials
                                                                                             and food. It handles fewer than one
                                                                                             million passengers a year.
                                                                                                Plans for a second international
                                                                                             airport in Luanda are being drawn up.
                                                                                             Two sites are being considered, Viana          Work in progress: efforts are being made to rebuild ke
                                                                                             and Cabo Ledo, but construction work
                                                    INVESTING IN                             is not expected to begin until 2015 and
                                                                                                                                                              KAPUTU
                                                                                             would take up to 10 years to complete.
                                                    TODAY TO                                 In the meantime, Huambo airport will
                                                    GUARANTEE                                act as an alternative international link                         ‘We hope to restart
                                                                                             when poor weather affects Luanda.
                                                    ENERGY FOR                                  There are 18 airports and a number of
                                                                                                                                                              international flights
                                                    THE ANGOLA OF                            small landing strips around the country,                         within two years’
                                                                                             and all the provinces are accessible by
                                                    TOMORROW                                 air. “Aircraft are the most frequently
                                                                                             used means of transport in the country,”       company Sonangol, is used to ferry
                                                                                             adds Mr Nunes Junior.                          around oil officials.
                                                                                                A number of state-owned airlines have          AAC carries cargo throughout the
                                                                                             recently consolidated to form a single         region, including the Democratic Repub-
                                                                                             group. The move will add to the opera-         lic of Congo, Namibia and Congo Braz-
                                                                                             tional fleet of national carrier TAAG.         zaville. “We no longer fly to Europe and
                                                                                                The airlines involved are Sociedade         the US,” says general manager Alfredo
                                                                                             de Aviacao Ligeira (SAL), Angola Air           Varo Kaputu. “First we have to consoli-
            EMPRESA NACIONAL DE ELECTRICIDADE - E.P.                                         Charter (AAC) and Sonair. SAL, which is        date here and in the Southern African
                                                                                             51 per cent-owned by TAAG and 49 per           Development Community (of which
                                                                                             cent-owned by state diamond authority          Angola is a member). We hope to restart
                                                                                             Endiama, has nine Beechcraft passenger         international flights within two years.”
                        Prédio Geominas, 6 e 7 andares,
                                                                                             aircraft and a staff of 200, including 50         Back on the ground, Caminho
                         P.O. Box 772, Luanda, Angola.
                                                                                             pilots. AAC is mainly a cargo operation        de Ferro de Luanda (CFL) is seeking
          Tel: (2442) 321-499 / 324-070 / 321-142 / 323-382 / 500-411
                                                                                             while Sonair, an offshoot of state oil         $600 million to rehabilitate the railway


12 World Report ANGOLA
                                                                                                                                                                                  INFRASTRUCTURE



 flooding                                                                         Reconstruction is a herculean task
                                                                                  ❑ Antonio Henriques da Silva,                  “We have cooperated with local
                                                                                  minister of public works and                farmers because they are poor and                        DA SILVA
                                                                                  urbanism, acknowledges the huge             not able to finance their own
                                                                                  task faced by the government in             activities. We invested $15 million in                   ‘We have the materials
                                                                                  reconstructing Angola’s infrastructure.     a European-standard slaughterhouse,
                                                                                                                                                                                       and the potential to
                                                                                     Every province has been affected         and we help the farmers with water
                                                                                  by the civil war to a greater or lesser     supplies, vaccination programmes                         rebuild our country’
                                                                                  degree. But Mr da Silva believes            and trading their livestock.”
                                                                                  the country has the resources to               Daily supplies of meat are flown to
                                                                                  accelerate growth: “In the rehabilitation   the capital, Luanda, and Mr Recio                        JUNIOR
                                                                                  process we are neither at the end nor       says there is scope for the export of
                                                                                  the beginning, but we have the raw          meat. All the cattle are reared on
                                                                                                                                                                                       ‘Privatisation will allow
                                                                                  materials and the agricultural potential    organic feed. And, after all, he adds,
                                                                                  to rebuild our country,” he says.           meat is a renewable resource.                            quicker development of
                                                                                     The privatisation process began in          Tecnocarro has long been involved                     the construction sector’
                                                                                  1987, but few state firms have been         in the social aspects of Angolan life.
                                                                                  sold off and several have failed to         The firm provides more than 7,000
                                                                                  grow because of lack of funds. Mr da        free meals a day, and runs an                            BATAGLIA
                                                                                  Silva says: “For the firms that have        orphanage and a clinic.
                                                                                  not been privatised we are starting an         Mr Recio believes tourism will
                                                                                  intermediate phase in which potential       become a major activity for the                          ‘AMDL supports some
                                                                                  buyers enter a management contract          company in future. Tecnocarro                            government projects in
                                                                                  under a previously agreed programme.        operates a holiday resort near the                       areas such as trade’
                                                                                     “The buyer has to invest until all       Kissama national park, and promotes
                                                                                  the agreed objectives are reached. If       tourism on the Cuanza River.
                                                                                  the investor shows he has the                  In Mussulo, another resort, it has    carry on after we have left.”
                                                                                  capacity and responsibility, we will        built apartments. “We are always           He adds: “We are also in a
                                                                                  accept the privatisation.”                  interested in new areas of business,     partnership to get the Malange rail
                                                                                     The state-owned civil construction       such as Porto Cabinda to serve the oil   corridor working, because it is much
                                                                                  company Geotecnica is hoping to pick        community,” he says. “We function as     cheaper to transport goods by rail
                                                                                  up more work when it is privatised.         a BOT (build-operate-transfer)           than by plane. We have the task of
                                                                                  General manager Elvino Junior says:         company and train our workers to                               continues on p14
                                                                                  “Privatisation is very important, not
                                                                                  only because it would allow for
                                                                                  quicker development of the sector
                                                                                  but because the state alone is

                                                                                  Every province
                                                                                  has been affected
                                                          Photo: Pedro Salvador




                                                                                  by the civil war
                                                                                  unable to properly manage all the
y routes, but transporting materials is especially hard                           [state-owned] firms in Angola.”
                                                                                     Geotecnica specialises in foundation
           infrastructure. So too is the Benguela                                 work for large construction projects
           Railway Company, which operates the                                    like sports stadia, housing and office
           1,340km Benguela line, the longest in                                  blocks, power stations and waterworks.
           Angola. It is also possible that concessions                              Mr Junior adds: “In the privatisation
           will be offered to operator-investors in                               we are planning to sell 70 per cent
           the railways.                                                          of the shares to a foreign investor,
              Angola’s main port is Luanda, which                                 20 per cent to domestic firms and
           handled nearly 1.9 million tonnes of                                   10 per cent to a single investor.”
           cargo last year, an increase of about                                     The private sector is also
           400,000 tonnes on 1999. However, the                                   contributing greatly to the rebuilding
           port is still plagued by difficulties,                                 of Angola’s infrastructure and social
           including broken cranes and warehouses                                 fabric. Tecnocarro, a conglomerate of
           that are in a state of disrepair.                                      companies employing more than
              It needs around $200 million dollars                                2,000 people, has interests in
           to modernise its facilities and, according                             agriculture, tourism, transport, food
           to reports, the number of short-term                                   products and construction.
           private operators is likely to be reduced.                                One of its major activities is
              The Italian government has expressed                                cattle-raising, of which administrator
           an interest in the construction of a new                               Jose Carlos Recio is very proud.
           port at Porto Amboin on the central                                    “We have invested lots of money in
           coast in Kwanza Sul province. The                                      livestock in the south of Angola. In
           provincial authorities have begun to                                   Namibe, Lubango and Cunene we
           rehabilitate the old port, which has not                               have about 2.7 million head of
           been used since 1989. s                                                cattle,” he says.


                                                                                                                                                                       World Report           ANGOLA 13
                                                 OIL & GAS
Reconstruction
continues from p13                               With burgeoning reserves,
organising all the logistics there
and Malange is certainly the biggest             the country has a golden
problem we face, because so much
has been destroyed and there is a                opportunity to become an
lack of skilled human resources.”
   Escom, a company in Portugal’s
                                                 economic powerhouse on
Espirito Santo Group, is also                    the African continent
involved in public works and
transport projects. It has invested



                                                 A
more than $150 million in water                          ngola’s oil revenues contribute
treatment, sanitation projects and                       about 90 per cent of the
hospitals in Angola.                                     country’s income and there is no
   The firm founded African Markets                      shortage of foreign companies
Development Ltd (AMDL) with local                continuing to show great interest in
companies, including Sonangol, to                developing the sector. The country is
make joint venture investments in                sub-Saharan Africa’s second-largest crude
Angola. Some of AMDL’s main                      oil producer after Nigeria, pumping
investments have been made in food               about 750,000 barrels per day (bpd).
retailing. In Luanda it has set up a                With proven reserves of more than
‘cash and carry’ operation for the               seven billion barrels of oil and possibly
distribution of goods through the                up to 12 billion, Angola has the oppor-
country. AMDL also participates in               tunity of becoming a leading economic
mining, fishing and air cargo                    powerhouse on the African continent.
transport, among other investments.              Petroleum minister Jose Maria Botelho
   “We help the government in                    de Vasconcelos says: “We have a
social areas in the provinces of                 destroyed country that needs to be
Cabinda and Zaire,” says Escom                   rebuilt. Oil is the main resource. We
administrator Helder Bataglia. “We               need to assist the people and we need
also support some government                     financial resources to do that.”
projects in areas such as capital                   Production will hit an estimated one
risks and international trade. The               billion bpd in early 2002 as operator
financial support for these projects             TotalFinaElf brings the giant offshore
comes from our banks.”                           Girassol field onstream this year. Mr
   The air cargo firm Air Gemini, the            Vasconcelos says some international
cash-and-carry operation, and the                companies are interested in more
Starfish fishing concern are joint               offshore blocks coming on to the conces-



                                                                                                                            A burning need
ventures with Angolans. Mr Bataglia              sion market in the southern Kwanza and
says: “The idea is to make Angolan               Benguela basins. “There’s no problem in
businessmen the managers of these                getting companies interested, but there’s
so that they gain know-how.”                     nothing solid yet,” he says.
   He adds: “Our investments in                     TotalFinaElf is now developing sev-



                                                                                                                            f o r new energy
distribution have been strategic                 eral more offshore fields near Girassol.
because we want to take our                      The $2.7 billion deepwater project in
                                                                                             Photo: Pedro Salvador




products to all of the country. That             Block 17 aims to pump at a rate of
is why we invested in Air Gemini,                200,000 bpd within six months.
because there are few air cargo                  Girassol alone will hike Angola’s daily
transport firms in Angola. Today we              production rate to about 950,000 bpd.
have a fleet of four Boeing 727s.”                  The project is at the cutting edge of
                                                 deepwater oil drilling technology. The
                                                                                                                     wells operate at a depth of 1,360 metres,       ExxonMobil, Norway’s Statoil and
                                                                                                                     supported by a 1,300 metres riser tower.        Norsk Hydro. The block is the most
                                                                                                                     The giant floating production, storage          potentially lucrative Angolan offshore
                                                                                                                     and offloading (FPSO) vessel above the          zone so far, along with two other areas –
                                                                                                                     tower is able to store two million barrels      the Dalia field and a group of discoveries
                                                                                                                     of crude.                                       centred on Arquidea – estimated to hold
                                        A newly-created entity with the power                                           “It is the tallest structure that has ever   about one billion barrels each. Dalia is
                                        to control Angola’s key diamond                                              been installed in the world, on or off-         expected to come onstream, perhaps
                                        sector, Sodiam is determined to put                                          shore,” says TotalFinaElf deputy general        with an undersea link to Girassol, by
                                        the sparkle back into the lives of                                           manager Olivier de Langavant.                   2005 and Arquidea later.
                                        Angolans. Diamonds in Angola are a                                              Two rigs have so far drilled 11 wells           ExxonMobil is targeting production
                                        serious prospect and the industry’s                                          and are expected to remain on site until        of nearly 600,000 bpd from its discover-
                                        wealth-earning potential has not
                                                                                                                     2003 to complete a further 29.                  ies in Block 15 in the Kizomba field.
                                        gone unheeded. Our reputation rests
                                        on ensuring a substantial part of                                               About 1,200 workers are on board the         Earlier this year the world’s largest oil
                                        the sector’s profits are ploughed                                            FPSO, along with a small fleet of drilling      company launched a $3 billion venture
                                        back into community projects such                                            rigs and accessory ships as the French          to develop one billion barrels of recover-
                                        as schools, hospitals and infra-                                             giant prepares to tap Block 17, estimated       able reserves – the largest deepwater
                                        structure. Thanks to Sodiam,                                                 to hold 750 million barrels of crude.           development off the coast of West Africa.
                                        Angola’s foundations for the future                                             Undersea robots have been used to lay           Kizomba A should start producing in
                                        are set to be as durable as our
                                                                                                                     umbilical pipes carrying power and              2004, with a target output of 250,000
                                        24-carat diamonds.
                                                                                                                     hydraulic fluid to well-heads and mani-         bpd. ExxonMobil plans to develop
                                        Rua Manuel Fernando Caldeira 6B-1 Dt                                         fold stations. Production pipelines             another two fields in the same block,
                                                               Luanda, Angola.                                       between the wells and riser tower were          which will bring total production up to
                                                     Tel: (244 2) 37 02 17 /
                                                                    37 03 11                                         towed 150km across the seabed from a            580,000 bpd. The firm is well under way
                                                       Fax: (244 2) 37 04 23                                         construction site in northern Angola.           with development plans for Kizomba B,
                                                Email: sodiama@hotmail.com
                                                                                                                        Block 17 also includes partners              which has similar levels of reserves and

14 World Report ANGOLA
                                                                                                                                                                            OIL & GAS

                                                 it has yet to decide whether to take
                                                 part in a Texaco-led project. Texaco and       Natural gas flaring                              awarded in 1999. The block adjoins
                                                                                                                                                 Exxon’s Block 15.
                                                 Sonangol, Angola’s state-owned oil                                                                 Meanwhile, Sonangol is the operator
                                                 company, are jointly planning the coun-
                                                 try’s first LNG plant, which is expected
                                                                                                is to be eliminated                              in a consortium that will exploit Block
                                                                                                                                                 34 in the Lower Congo Basin at depths
                                                 to produce eight million tonnes a year.
                                                    Angola has pledged to eliminate nat-        within five years                                of up to 2,500 metres. Sonangol has a 20
                                                                                                                                                 per cent stake, Shell 15 per cent, Norsk
                                                 ural gas flaring within the next five                                                           Hydro 30 per cent, Phillips 20 per cent
                                                 years, instead aiming to sell LNG to the           BP plans to spend between $6 billion         and Brazil’s Petrobras 15 per cent.
                                                 US, South America and Europe. The               and $7 billion in Angola over the next             Sonangol already operates Block 4
                                                 LNG market is likely to be highly com-          10 years. Production from the com-              and holds the concession on Block 3,
                                                 petitive with Nigeria recently announc-         pany’s Block 18 concession, where six           while Petrobras is involved in several
                                                 ing plans for a third LNG project, while        discoveries have been made, is targeted         exploration ventures. The Brazilian
                                                 Saudi Arabia – the world’s biggest oil          to start in 2006. BP is drilling in             company owns a 27.5 per cent stake in
                                                 producer – recently awarded three key           depths of 2,000 metres in Block 31, one         the shallow water Block 2, which cur-
                                                 gas projects to multinationals.                 of three ultra-deepwater concessions            rently produces 63,000bpd. s




will have a production target of 250,000
bpd from 2005 onwards.
   Kizomba A, built by South Korea’s
Heavy Industries, will take drilling tech-             Sociedade Mineira de Catoca, Lda. is a
nology a stage further than Girassol. Also                     A Sociedade Mineira de Catoda, Lda. é uma
in Block 15, Exxon expects the smaller                 competent and well-known company in
Xikomba field to produce 80,000 bpd.                           empresa de reconhecida competência e
                                                       the international mining industry, with a
   The three fields take Block 15’s recov-                     capacidade na indústria mineira internacional,
erable reserves to more than 3.5 billion               great capacity to enhance economic and
barrels of oil equivalent. Add in Exxon’s                      contribuindo para o desenvolvimento
participation in another Girassol block                social development in Angola.
                                                               económico e social em Angola.
and the company will be involved in one
million bpd of Angolan output by 2005.
ExxonMobil owns some 40 per cent
                                ,
equity in the block, with BP Italy’s Agip
and Statoil the rest.
   ExxonMobil holds interests in nine
Angolan deepwater blocks with a recov-
erable resource potential of 7.5 billion
barrels of oil equivalent from 22 discov-
eries. It is still in the exploratory drilling
stage in several blocks.
   ExxonMobil has also participated in
an industry group studying the possible
                                                 Luanda: Rua Major Kanhangulo, 100 - 4º A, Edifício Endiama - Tel: 244 2 390 239 / 244 9502 530 - Fax: 244 9502 531 / 394378 - www.catoca.com
development of a $2 billion liquefied                                                 Catoca: Tel: 244 2 399 394 / 1 917 438 63338 - Fax: 244 2 399 394
natural gas (LNG) project in Angola, but

                                                                                                                                                 World Report             ANGOLA 15
16 World Report ANGOLA
                       Huambo is Angola’s land of plenty. Corn, beans, sweet potatoes,
                       wheat, milo... an astounding variety of natural products are harvested
                       here, attesting to the fertility of the land. Plans to grow the lucrative
                       cash crops of coffee and soybeans are underway, as is a 2001
                       rehabilitation programme for the Huambo-based Institute of
                       Agricultural Research and the University of Agricultural Science,
                       which specializes in the fields of agri-business and food
                       transformation. Clearly, this is a province that knows about growth.
                       And yet Huambo is more than just agriculture. Long a crossroads
                       for travellers by rail, road and air, the central province is making
                       the most of a new era of peace by revamping its transportation infra-
                       structure system and winning back its reputation for efficiency in
                       shipping and exports. At the centre of Angola, Huambo is also at
                       the centre of a nationwide push for modernization and renewed
                       prosperity. With a view to improving provincial health care,
                       education and food production technologies,
                       Hu a m b o i s i n v i t i n g i n ve s t o r s t o d i s c ove r
                       a n e w l a n d o f p l e n t y.




GOVERNMENT OF HUAMBO Tel: (+244) 41-20470, Fax: (+244) 2-395678



                                                                                                   World Report   ANGOLA 17
TELECOMS


                        No more hanging on the telephone                                                                                                                             Glittering
                        ❑ A new era of telecommunications                                                                                                                            The industry suffered during decades
                        was ushered in earlier this year when
                        the government passed legislation that



                                                                                                                                                                                     A
                        brought an end to the monopoly held                                                                                                                                   brighter future lies ahead for
                        by state-owned Angola Telecom.                                                                                                                                        Angolan diamond mining now
                           Four new licences will be issued for                                                                                                                               that the state has gained control
                        fixed-line services but, as elsewhere in                                                                                                                              of the main areas of production
                        Africa, it is inevitable that the cheaper                                                                                                                    and clamped down on illegal trafficking.
                        rollout costs of cellular networks will                                                                                                                         Several international firms are negotiat-
                        make mobile phones the most popular                                                                                                                          ing for exploration and mining rights in
                        means of communication.                                                                                                                                      areas liberated from the Unita rebels by the
                           With the launch of a new GSM (global                                                                                                                      Angolan army. Work is due to commence
                        system for mobile communications)                                                                                                                            this year in Camafuca, an area containing
                        network in April, the state’s monopoly                                                                                                                       diamond-rich geological formations called
                        over cellular telecoms also came to an                                                                                                                       kimberlite pipes, in Lunda Norte.
                        end. New mobile operator Unitel hopes                                                                                                                           Construction work will be carried out
                        to attract 150,000 subscribers this                                                                                                                          by Southern Era Resources of Canada and
                        year – more than the total number of                                                                                                                         Welox of Israel. A study indicates that the




                                                                                                                                                             Photo: Angola Telecom
                        fixed-line users in Angola.                                                                                                                                  area contains more than 23 million carats
                           Unitel is 25 per cent-owned by                                                                                                                            of diamonds, worth $2.5 billion, making it
                        Portugal Telecom. Mercury, a subsidiary                                                                                                                      the world’s largest mine of its type.
                        of Angola’s state oil company Sonangol,                                                                                                                         Russian diamond monopoly Alrosa is
                        has a 25 per cent stake and two other                                                                                                                        negotiating with the Angolan government
                        firms share the remainder.                   Cheaper connections: a new GSM network aims to open up the cellular telecoms market                             to secure access to four diamond deposits.
                           GSM is the most widely used                                                                                                                               A deal should be reached soon on the size
                        telecoms system in the world and                                                          these services operational. We also                                of the stakes in a new joint venture, accord-
                        Unitel’s subscribers will be able to                          RIBEIRO                     have problems expanding our network                                ing to Alrosa vice-president Sergei Ulin.
                        connect to around 400 networks in                                                         to outlying areas.”                                                   South African firm De Beers, which sells
                        more than 140 countries.                                                                     Angola Telecom’s priority is to reach                           two-thirds of the world’s rough diamonds,
                                                                                      ‘The state must provide
                           The first phase of the new system,                                                     all of the provincial capitals and the                             closed all its mines and buying offices in
                        inaugurated by Angola’s president, is a                       – we cannot rely on         most important municipalities.                                     Angola in 1999 following United Nations’
                        $68 million investment and covers the                         private operators alone’    “The state is obliged to provide                                   worries about ‘blood diamonds’ – illegally
                        capital, Luanda, and Benguela. There                                                      telecommunications throughout the                                  obtained and sold by Unita to fund its rebel
                        are plans to extend it to other provinces                                                 country. We cannot depend on private                               war – leaking into the official market.
                        in the near future.                                                                       operators alone,” says Mr Ribeiro.                                    De Beers carried on prospecting for new
                           Angola Telecom’s cellular network                          MATOS                          “At present, our network is                                     deposits in partnership with Endiama, the
                        uses the older and less efficient CDMA                                                    supported by satellite as much of the                              state-owned diamond firm, until May when
                        system which is widely used in the US,                        ‘We need to invest          terrestrial network was destroyed by                               it walked out following disagreement over
                        but the company aims to develop its                           £10-12 million a year to    war. The state is obliged to reconstruct                           marketing rights. But De Beers is optimistic
                        own GSM network.                                                                          those systems, but we will need the                                about a deal which would see its return.
                                                                                      keep services working’
                           Licinio Tavares Ribeiro, minister of                                                   help of private firms. We are conscious                               Diamond exports increased by 28 per
                        post and telecommunications, says:                                                        that we have neither enough money to                               cent last year to $739 million and even
                        “Legislation has opened up the sector                                                     develop our systems alone, nor to pay                              better results are forecast this year by Ascorp,
                        to foreign investors so that, together, we   shown by companies in South Africa,          foreign technicians.”
                        can develop our telecommunications           Japan, Portugal and France.                     Priority has been given to the
                        systems.” No date has been set as yet           The sell-off is likely to be carried      coastal provinces because they enjoy                               Output from most
                        for the privatisation of Angola Telecom,     out in stages, with 49 per cent of the       more security as well as offering
                        but he says interest has already been        shares being offered in the first phase.
                                                                        “We recognise that Angola Telecom
                                                                                                                  greater potential for industrial,
                                                                                                                  agricultural and tourism development.
                                                                                                                                                                                     successful mine
                                                                     must be privatised in order to have
                                                                     better management and efficiency,”
                                                                                                                     Angola is also participating in the
                                                                                                                  SAT3 submarine cable, which links                                  is set to double
                                                                     says the company’s administrator and         South Africa to countries on Africa’s
                                                                     general manager, Jose Gualberto de           Atlantic coast as well as to Portugal.                             Angola’s sole diamond-mining syndicate.
                                                                     Matos. “We have to resolve some                 Postal services in Angola have been                             The increase is a result of the government’s
                                                                     problems before the privatisation –          decimated by the civil war, according                              move to set up a single diamond-buying
                                                                     whenever we sell something, we must          to Madalena de Lemos Neto, president                               agency, Sodiam, in January 2000.
                                                                     sell it in good condition.”                  of Correios de Angola. “We were                                       Alrosa has given the sector a fillip by
                                                                        The state has been investing tens         one of the most destroyed sectors, but                             announcing that it is to double production
                                                                     of millions of dollars in expanding          we are reconstructing some of the                                  at Catoca, Angola’s most successful diam-
                                                                     fixed-line telephony in Luanda, while        infrastructure,” she says.                                         ond mine and one of the world’s largest
                                                                     the construction of a new eight-storey          “At present we can assure the                                   kimberlite pipes, in Lunda Sul. Russian
                                                                     office for Angola Telecom is due to be       distribution of the ordinary mail                                  prospectors estimate reserves of 400-500
                                                                     completed this year.                         service in the coastal provinces,                                  million carats. Catoca’s output last year
                                                                        Mr de Matos says the fixed-line           regional capitals and some important                               was 1.8 million carats, worth $153 million.
Photo: Angola Telecom




                                                                     services of Luanda are modernised and        localities,” she adds.                                                Jose Manual Augusto Ganga Junior,
                                                                     digitalised, although current capacity          The Angola postal service has been                              general manager of the Catoca Mining
                                                                     does not meet demand.                        working for five years in collaboration                            Company, says the increase would move
                                                                        “We have 60,000 fixed lines in            with Express Mail Service (EMS) to                                 Angola from the sixth to fourth-largest
                                                                     Luanda, but this is not nearly enough,”      make operations more efficient and                                 diamond-producing country in the world.
                        Wired up: the state needs more fixed lines   he says. “We need to invest                  commercialised, although privatisation                             “We have 700 known diamond sources.
                                                                     $10-12 million every year just to keep       is still some way off.                                             Some are bigger than Catoca,” he says.

18 World Report ANGOLA
                                                                                                                                                                                                                                   MINING


future ahead for the diamond trade
of conflict, but the government has now gained control of the main areas of production and clamped down on illegal trafficking

                                                                                                                                                                                                   alluvial diamonds. “Our policy is to legalise
                                                                                                                                                                                                   the garimpeiros. We want them to sell their
                                                                                                                                                                                                   production to Ascorp and pay taxes,” says
                                                                                                                                                                                                   Mr Sumbula.
                                                                                                                                                                                                      He says Endiama must start producing
                                                                                                                                                                                                   diamonds on its own: “Up to now, it never
                                                                                                                                                                                                   run a project alone. We would like to see
                                                                                                                                                                                                   this happening and it is a challenge for this
                                                                                                                                                                                                   year. We plan to reduce the size of conces-
                                                                                                                                                                                                   sions for better control of the areas.”
                                                                                                                                                                                                      According to the UN, Unita rebels still
                                                                                                                                                                                                   smuggled about $100 million worth of
                                                                                                                                                                                                   diamonds out of the country last year, but
                                                                                                                                                                                                   Manuel Calado, the administrator of
                                                                                                                                                                                                   Sodiam, says the level is falling.
                                                                                                                                                                                                      “We still have illegal diamonds, but not
                                                                                                                                                                                                   in great quantities,” he says. “We no longer
                                                                                                                                                                                                   fear that diamonds are financing arms for
                                                                                                                                                                                                   Unita leader Jonas Savimbi. He has no
                                                                                                                                                                                                   more diamond areas under his control.”
      Photo: Bernard Gerard/Hutchison Library




                                                                                                                                                                                                      Mr Calado says people who live in the
                                                                                                                                                                                                   mining areas are too dependent on the
                                                                                                                                                                                                   industry and the garimpeiros have no other
                                                                                                                                                                                                   source of income. “To solve this problem
                                                                                                                                                                                                   we should industrialise the diamond areas,
                                                                                                                                                                                                   and develop agriculture and other sectors
                                                                                                                                                                                                   to improve social and economic life.
                                                                                                                                                                                                      “We are deeply concerned about the
                                                                                                                                                                                                   350,000 illegal foreigners exploring for
                                                                                                                                                                                                   diamonds in our country. Obviously, we
                                                Back in business: legal mining is recovering from the war and the government hopes to exploit the country’s vast untapped resources                will not give licences to everyone – just
                                                                                                                                                                                                   Angolans and people willing to work for
                                                   Catoca employs 1,650 workers, includ-         to the raw material and establish a quality   1998. Alluvial diamonds are highly sought           the benefit of those regions,” he says.
                                                ing 120 from Russia and 80 from Brazil.          ‘Diamond of Angola’ mark. “We are con-        after because of their high quality.                   Ascorp president Firmino Valeriano
                                                The Angolan workforce supports about             vinced that we have the best stones in the       Until recently, many diamond conces-             adds: “When we started, many people did
                                                10,000 dependents. “Our objective is to          world and we want to establish a quality      sions have been worked by illegal miners –          not trust the viability of Ascorp. Its creation
                                                assure earnings for every partner in order       label for our products,” says Mr Sumbula.     ‘garimpeiros’ – many from neighbouring              was based on three fundamental objectives:
                                                to form a good and coherent company,”                                                          countries, who panned for high-quality              to fight the illegal traffic in diamonds,
                                                says Mr Ganga Junior. “We have created a                                                       alluvial diamonds along Angola’s rivers.            increase revenues for the state, and to con-
                                                                                                                   SUMBULA
                                                common culture in the firm among people                                                        The government is working on a strategy             tribute to the social and economic develop-
                                                from different countries and cultures.”                                                        to give licences to the garimpeiros to bring        ment of our country.
                                                   Such has been the success of the first                          ‘We are convinced that      them into the official system. Concessions             “Fortunately, we have good relations
                                                phase of the Catoca operation – Alrosa’s                           we have the best quality    are for areas of 3,000 sq km, to make room          with the UN and Ascorp has participated in
                                                dividends from the joint venture amounted                          stones in the world’        for these small-scale operations.                   many international meetings about dia-
                                                to $9.3 million last year – that a second                                                         Total diamond reserves in Angola are             monds. All our government strategies were
                                                phase is being planned which will double                                                       unknown, simply because less than half              supported by the UN, which encouraged
                                                production over the next four to five years.                                                   the country has been surveyed. There are            our resolutions pertaining to the illegal
                                                Investment in the second phase will be                             GANGA JUNIOR                thought to be considerable volumes of               trafficking of diamonds.” s
                                                more than $40 million.
                                                   Government troops have secured a                                ‘Our objective is to
                                                30km security zone around the Catoca                               assure earnings for
                                                mine, but one major drawback remains –
                                                                                                                   every partner’
                                                lack of fuel. Each day, two or three Boeing                                                                      ENP specializes in the
                                                cargo planes loaded with diesel take off                                                                         construction of roads,
                                                from Luanda to Catoca. But Alrosa is ready                                                                       bridges, port and
                                                                                                                                                                 maritime facilities and
                                                to finance and manage a new hydropower                             VALERIANO                                     hydraulic construction
                                                plant on the Chicapa River in Lunda Sul.                                                                         projects. Using the
                                                   The project is expected to cut Catoca’s                                                                       latest technology and
                                                                                                                   ‘All our government                           with the active
                                                fuel costs by a third, saving millions of dol-
                                                lars. Alrosa has already signed a protocol                         strategies were                               involvement of private
                                                                                                                                                                 partners, we aim to
                                                with Endiama to build a dam and hydro-                             supported by the UN’                          ensure that Angola has
                                                electric plant for an estimated $40 million.                                                                     at its disposal a state-
                                                   Antonio Carlos Sumbula, vice-minister                                                                         of-the-art infrastructure
                                                of geology and mines, says discussions are          South African company Mvelaphanda                            network for years to
                                                                                                                                                                 come.
                                                being held with a view to setting up a           Holdings has been reported to be bidding
                                                diamond cutting and polishing factory            for a 33 per cent stake in SDM, an Angolan
                                                in Luanda. At present, Ascorp sells only         alluvial diamond mining firm. Production       ENP Rua do N’Zamba 1, Cazenga, CP 776, Luanda, Angola
                                                                                                                                                Tel: (244 2) 38 11 08/38 06 65/38 23 65 Fax: (244 2) 38 06 59
                                                rough diamonds but it aims to add value          at SDM’s operations in Cuango began in


                                                                                                                                                                                                  World Report              ANGOLA 19
The struggle for power
relies on investment
More than a billion dollars                 cross-border electricity supplies, and on    and to countries in the SADC,” adds
                                            other issues of common interest.             Mr da Silva.
will be needed to rebuild                      Work on the largest-ever civil con-          Gamek, created by the government in
                                            struction project in the country, a dam      1982, is responsible for carrying out
and expand the country’s                    and 520MW hydroelectric plant on the         studies and implementing projects in the
damaged electricity network                 Cuanza River at Capanda, 300km from          Kwanza region. General manager Jose
                                            the capital, Luanda, has resumed. Brazil-    Sonnemberg Fernandes says the first
                                            ian industrial giant Odebrecht is building   unit will start operating in December



S
       lowly but surely, Angola’s power     the multi-million dollar Capanda project     2002 and the final unit will start the
       stations are being rehabilitated,    with Russian technical assistance.           following June.
       providing electricity to areas          Energy and water minister Luis Filipe        “With the construction of Capanda
       which have been without reliable     da Silva says: “Capanda should have          dam, a 164 sq km lake will be created




                                                                                                                                          Photo: ENE
supplies during the years of civil war.     been completed in 1994, but because of       that will used to irrigate the plateau in
More than a billion dollars will be         the war the work stopped. Then Unita         Malange province,” says Mr Fernandes.
needed for reconstruction and expansion     occupied it and destroyed all the equip-     “This is an extremely rich agricultural
works to meet rising demand.                ment and machines. But they did not          zone and it will encourage the develop-                       Back to business: work has resumed on the Capanda
   Nevertheless, despite the enormous       destroy the building itself as it was        ment of livestock rearing.”
task of restoring the infrastructure        already at an advanced phase.”                  Gamek is trying to diversify its activi-                   an extraordinarily good area in which to
destroyed by Unita rebels, Angola could        A further seven hydroelectric dams        ties. “We already have experience in                          create an industrial zone and to develop
one day become a net electricity exporter   may be built between Capanda and             other areas that could be used in the                         agriculture. It is also an area with good
within the Southern African Development     Cambambe (where there is a 180MW             development of the country, such as the                       prospects for the development of
Community (SADC). The country has           power plant) to produce a total of           construction of bridges, roads and facto-                     tourism. There are some enormous and
already signed an agreement with its        5,000MW of power. “We want to                ries, although our main duties are in                         beautiful rock formations at Pungo
southern neighbour, Namibia, to promote     transfer this potential to other regions     Middle Kwanza,” he says. “Capanda is                          Andongo near Capanda.”




                                                                                              Benguela is a province that continues to show great potential for the future of Angola.
                                                                                              Boasting a strategically ideal location, a 2 million-strong population and plentiful natural
                                                                                              resources, Benguela is diversifying its economy. Located on the western coast of Angola,
                                                                                              Benguela is home to Angola s second-largest port, Lobito. The port, combined with the
                                                                                              Benguelan Railways, provide the inland provinces with a vital link to the sea.
                                                                                              The province s main points of interest for further diversifying its economy include its mining
                                                                                              and agriculture riches, petroleum resources, and fishing potential.




                                                                                                    Through the active involvement of the private sector
                                                                                                    and its bountiful technical, human and natural resources,
                                                                                                     Benguela continues to be Angola’s economic giant.


20 World Report ANGOLA
                                                                                                                                                   of power for its $40 million investment
                                                                                                                      FERNANDES
                                                                                                                                                   in diamond mining operations.
                                                                                                                                                      “Until 1996 the power sector was
                                                                                                                      ‘Capanda is an               monopolised by the state, but today the
                                                                                                                      extraordinarily good area    picture has changed,” adds Mr da Silva.
                                                                                                                      for an industrial zone’      “At the moment we are working to create
                                                                                                                                                   an organisation to regulate the energy
                                                                                                                                                   sector so that investors can have more
                                                                                                                                                   confidence in Angola.”
                                                                                                                                                      The state-owned Empresa Nacional de
                                                                                                                       DA SILVA
                                                                                                                                                   Electricidade (ENE) is responsible for
                                                                                                                                                   the generation and supply of electricity.
                                                                                                                       ‘We are working to          Chairman Eduardo Gomes Nelumba is
                                                                                                                       create an organisation      optimistic about the future, but says it
                                                                                                                       to regulate energy’         will take at least five years to fully reha-
                                                                                                                                                   bilitate the sector, and he emphasises the
                                                                                                                                                   need for outside help.
                                                                                                                                                      “Our government has invested, but
                                                                                                                      NELUMBA                      not enough to solve our problems. We
                                                                                                                                                   need enough money to assure the areas
                                                                                                                                                   of production, transmission, distribution
                                                                                                                      ‘It will take at least       and maintenance of equipment,” he says.
                                                                                                                      five years to fully          “ENE will need national or foreign part-
                                                                                                                      rehabilitate the sector’     ners to perform some projects, and it will
                                                                                                                                                   need the help of the international finan-
                                                                                                                                                   cial institutions. Only with international
dam and 520MW hydroelectric plant on the Cuanza River after it had been occupied by Unita rebels     River. “We are interested in foreign          support will we be able to do it.”
                                                                                                     participation,” says Mr da Silva. “All           Most of ENE’s operations are in the
             Mr da Silva adds: “We have been            $500 million and to expand it we need        the conditions for foreign investment,        coastal provinces, where there are more
          reconstructing infrastructure whenever        another $500 million.” Angola is a large     including legislation, incentives, security   people. “Luanda is the single biggest
          areas have been made secure and we            country with a low population density,       and investment guarantees, and the            consumer and demand is growing
          have the finance to do so. But we are         so it is not always easy to spread the       repatriation of money are being created.”     daily,” he says. “The cities of Benguela,
          still very far from the complete rehabili-    investment evenly.                              The Russian Alrosa diamond company         Lobito and Catumbela are also priorities
          tation of the electricity network. Just to       The country has several other potential   is planning to build a hydroelectric plant    because of the industries there, including
          rehabilitate it we will need more than        hydropower sources, including the Zaire      on the Chicapa River to provide a source      the new refinery.” s




                              Republic of Angola
                              GOVERNMENT OF THE
                              PROVINCE OF BENGUELA
                              P.O. Box 2
                              Benguela, Angola
                              Tel: (244) 72-33426 / 34885
                              Fax: (244) 72-34480




                                                                                                                                                   World Report           ANGOLA 21
INDUSTRY


Changing times
for idle factories
T
         hat the ubiquitous Coca-Cola
         company has opened a second
                                               As businesses prepare for
         bottling plant in Angola could be     privatisation, competition
         taken as a sign that the country is
on the road back to normality.                 brings increased opportunity
   When the firm opened a plant in the
capital, Luanda, last year, production of      and firms gain new contracts
Coke went from zero to 14 million cases
a year. This led to the opening of a second
plant in the southern city of Lubango.         government plans to privatise many of
   The big difference between Coca-            the enterprises it owns.
Cola and Angola’s home-grown industry             Businesses scheduled for privatisation
is that the former is in the private sector    include three food companies in Lubango,
while much of the latter is state-owned.       which have lain dormant for more than
   What little industry the country has        10 years. The state intends to retain a
centres on food processing, although           40 per cent share in these companies,
construction materials, steel production       according to reports.
and chemicals are also important. But             Another sign that times are changing
many factories lie idle due to lack of         is that brewing capacity tripled this year
equipment and replacement parts, or            at Nocal, one of the largest breweries in
they are running below capacity or else        Angola along with Cuca and Eka.
irretrievably damaged.                            Among the biggest Angolan steel and       Making headway: Indufer is rehabilitating steel and tube producers Fata and Metang for privatisation in the
   Excluding diamond mining, oil and           tube producers, Fata (Fabrica de Tubos
ancillary services, the manufacturing          de Angola) and Metang (Metalurgica de        partnership by private Angolan firm              education in Luanda, and we have made
industry contributed just 5.5 per cent of      Angola) are being prepared for sale. Both    Indufer, which has been asked by the             investments in hotels and other areas.
the gross domestic product in 1998. This       were established during the Portuguese       government to prepare the two com-                  “Any national or foreign company
situation is set to change, however, as the    colonial era and are now managed via a       panies for privatisation.                        can participate in this privatisation,” he
                                                                                               Indufer president Jose Pinto Dias dos         adds. “The management contract for
                                                                                            Santos Neto says: “The privatisation             rehabilitation, which we have made with
                                                                                            process is far advanced and on course to         the government, allows Indufer to work
                                                                                            be concluded this year.”                         with any partner it desires.”
                                                                                               According to Mr dos Santos Neto, the             The two firms can process an annual
                                                                                            infrastructure of Fata and Metang was            36,000 tonnes of steel. Indufer’s presi-
                                                                                            badly damaged during the war, which              dent says the plants will be working at
                                                                                            was why the government decided to                90 per cent capacity and yield a gross
                                                                                            install private management to revive             income of $15-18 million this year.
                                                                                            them. “We have made several invest-                 “After privatisation we intend to expand
                                                                                            ments to improve the group,” he says.            activities at the plants, and we will open
                                                                                               “When Indufer started to rehabilitate         new lines for the production of larger
                                                                                            Fata and Metang, many activities did             tubes to support the petroleum firms
                                                                                            not exist. For example, today we have a          and for export. We are also going to
                                                                                            school furniture-making plant to support         diversify our activities,” says Mr dos



                                                                                             Drug company needs help to
                                                                                             ❑ Diseases that kill are prevalent in            pharmaceutical companies to come to a
                                                                                             Angola and while international agencies          collective agreement to supply Aids
    On a daily basis you use your PC as an     Insure your success!
    essential tool when facing the more                                                      are making headway against some, the             drugs. Even relatively low-cost drugs
                                               Consult us! We will always find
    pressing demands of your business or       a solution for each specific case:            battle against others remains.                   which could tackle other diseases are in
    activities. Every time you use it, you     adequate insurance for each                      Malaria and sleeping sickness are             short supply in Angola.
    are concerned with saving everything       individual situation.                         two of the major diseases which affect              Some Western firms are making an
    you produce on a regular basis in                                                        the population, whilst Aids continues to         effort to stem the rising tide of disease
    order to avoid any accident resulting                                                    spread. Angolans, like many people in            which is sweeping across some of
    in the loss of time or information.
    And what about your own success?                                                         Africa, now face the prospect of new             the world’s poorest countries. The
    Your success which has taken a lifetime                                                  strains of malaria which have become             Franco-German company Aventis, for
    to build and needs to be protected                                                       resistant to modern methods of control.          example, is donating medicine to fight
    from all eventualities. Now isn’t that                                                      More than 25 million of the                   sleeping sickness in Africa.
    something worth saving?                                                                  estimated 36 million people infected                Incidences of sleeping sickness, a
                                                                                             with HIV around the world live in                parasitic infection transmitted by the
                                                                                             sub-Saharan Africa. The 14-member                tsetse fly, which if untreated leads to
                                                                                             Southern African Development                     death, has risen dramatically in Angola.
                                                ...always developing safely                  Community, of which Angola is a                  There were three cases in 1975 at the
             Av. 4 de Fevereiro, 93, Caixa Postal 5778, Luanda, Angola.                      member, has tried, unsuccessfully                outbreak of civil war; now there are
                    Tel: 3329 90/93/96/99 Fax: 332946 / 338340                               so far, to persuade the world’s major            more than 120,000 cases.

22 World Report ANGOLA
                                                                                                                                                                                                          INDUSTRY

                                                                                 sheets, although they are small businesses       exploration, are turning to Angases              Much of this will be as a result of
                                                                                 compared with Fata and Metang. “Our              instead of importing gas. “It is better       greater oil exploration and development
                                                                                 strategy is to increase output and reduce        for them to work with us because the          in the petroleum sector. Angases is ham-
                                                                                 prices so that we can stay ahead of the          transport costs are lower – therefore the     pered by power failures and water short-
                                                                                 market,” he adds.                                price is lower – so there is no point in      ages in Angola – contaminated water
                                                                                    An exclusive contract to supply Coca-         importing gas from abroad,” he adds.          cannot be used in the gas-making process.
                                                                                 Cola means a stable future for Angases, a           On average the firm makes $300,000 a       This has been partially overcome by stor-
                                                                                 producer of industrial and medical gas.          month, but Mr Araujo expects this figure      ing clean water in huge cisterns.
                                                                                 The 52-year-old firm already has two             to rise. “The real changes will be in 2002       “The industrial sector in Angola is very
                                                                                 production units in Luanda and one in            because we are currently investing signif-    different from how it was in the past,”
                                                                                 Lobito where it makes electrodes. A new          icantly,” he says. “Next year we will be      says Mr Araujo. “There is a need to
                                                                                 gas production plant in Lubango supplies         producing new products.”                      resurrect paralysed firms with no finan-
                                                                                 the Coca-Cola bottling factory there.               There are plans to install another unit    cial capacity so that they can improve
                                                                                    Angases general manager Julio de Melo         for the production of carbon dioxide in       by themselves. Today, about 90 per cent
                                                                                 Araujo says more foreign businesses,             Lubango and several other projects are        of Angolan industries are paralysed,
                                                                                 mainly in petroleum production and               on the drawing board.                         although we are operational.” s
                                                          Photo: Alexandre Rey




future, after which activities will be further expanded

           Santos Neto. “We are installing two
           plants for the manufacture of metal fur-
           niture for schools. We make more than
           3,000 desks a month and we are thinking
           about constructing a factory where we
           can prepare our own wood.”
              Indufer is also engaged in the con-
           struction of accommodation for 400 of
           its workers at Cacuaco, near Luanda.
           The housing complex includes a clinic
           and a football field.
              “The problem we face today is the
           distribution of our products across the
           country,” says Mr dos Santos Neto. “Most
           of the roads are in a bad condition and
           sometimes we have to use planes to trans-
           port our products, which is very costly.”
              Competition is growing as well. Five
           new factories make corrugated metal



 battle disease                                                                       Escom, part of the Grupo Espírito Santo, deals in international commerce and services in developing
                                                                                      countries. In the area of international commerce, Escom specialises in the following services:
              Coimbra Adao Manuel, president and
                                                                                      • Imports and exports                   •   Basic sanitation
           general manager of state-owned drugs                                       • Procurement                           •   Health services management
           producer and distributor Angomedica,                                       • Documentary credit                    •   Education services management
           says that, because of the dislocation                                      • Logistics                             •   Setting up and promoting consortiums
           caused by the civil war, there are no                                      • Trade financing                       •   Strategic partnerships
           reliable statistics on Aids infection.
              Angomedica, which supplies                                              An important investment that Escom has made in Angola has resulted in the joint venture with
           chloroquine for malaria, as well as                                        Angolan partners from which AMDL (African Markets Development Ltd.) was founded. AMDL
           antibiotics and other drugs, is                                            directs all the projects in this market’s sectors, including food industry and distribution, mineral
           desperately underfunded. Mr Manuel                                         extraction, public works and civil construction, fishing and transportation.
           says the company is working at only
           20 per cent of capacity. “To get out of
           this difficult situation, we need great
           investment from the state because we
           need to modernise the firm,” he says.
              “The second choice is to allow
                                                                                                                  Lisbon Branch                                    Luanda
           foreign participation in Angomedica.                                                                   Av. Eng. Duarte Pacheco,Torre 1, 13? Lado 1,     Rua Rainha Ginga, no. 6, 2, Luanda, Angola..
           We would like to have a partner with                                                                   1000 Lisbon, Portugal.                           Tel: 244-2-396579 Fax: 244-2-391819
           know-how and financial resources.”                                                                     Tel: 351-1-381-51-30 Fax: 351-1-381-51-49        www.escom.pt

                                                                                                                                                                               World Report             ANGOLA 23
24 World Report ANGOLA
An Angolan province of exceptional potential, Uíge is now look-
ing to further diversify its economy by taking advantage of its
strategically ideal location, bountiful natural resources and
active population. Located in northwestern Angola, Uíge’s geo-
graphical diversity accounts for its range of economic activity.
From coffee to timber, diamonds to lead, the province abounds
in investment potential, especially in the agrobusiness and food
transformation sectors. Uíge’s coffee output, above all, has
proved the backbone of Angolan agriculture since the 1950s
but the province’s mining and agricultural riches are yet to
be fully exploited, while industry (fridge production and lid
bottling) is transforming Uíge’s economic landscape. Further-
more, thanks to the genuine warmth and hospitality of its
population, Uíge has proved a welcome home for investors with
the vision to share in the province’s future aspirations.




                                   GOVERNO DA PROVINCIA DO UÍGE
         Rua Bembe Casa Nº10, Bairro pop. Nº1, Uíge, Republic of Angola. Tel: +244 22 109 Fax: +244 20 218


                                                                                                      World Report   ANGOLA 25
EDUCATION


Simple projects aim to bring educat
W
            ith 2,500 schools destroyed       The Eduardo dos Santos Foundation, set up five years ago,
            during the civil war, up to two
            million children out of school    works to improve living conditions for poor communities
            and a desperate shortage of
teachers, Angola’s education system is
facing some daunting challenges.              of the normal education system,” says      children have to go to school so they can
   There are 2,000 public and 250 private     Dr da Silva. “The war destroyed many       learn to read and write,” says Dr da Silva.
schools in Angola, serving a population       schools in the country, mainly in the         The stress on education is being
of 12 million. To improve the system,         interior where there are many problems,    reinforced by other relatively simple
education and culture minister Antonio        and about two million children are out     projects to inspire parents to send their
Burity da Silva Neto recently estimated       of the education system.”                  children to school. Fesa provides sewing
that the government needed $500 million          This problem is compounded by an        machines and textiles to cooperatives to
for the current school year.                  acute shortage of materials for pupils –   make school uniforms, while a commu-
   Education is a priority for the Eduardo                                               nity development programme directs the
dos Santos Foundation (Fesa), a non-                          DA SILVA                   construction of school buildings and
governmental organisation set up five                                                    supplies some of the materials.
years ago. Its aim, according to its presi-                                                 “I have travelled to many provinces
dent, Ismael Diogo da Silva, is to lend                       ‘Parents now recognise     and seen the very great interest among
support “in matters that the government                       that their children have   parents who want their children to go to
alone cannot resolve”.                                        to go to school’           school,” says Dr da Silva. “Even in our
   Since its creation, the organisation                                                  furthermost province, Kuando Kubango,
has disbursed $30 million, two-thirds of                                                 I went to a school where 200 pupils are
which has gone into education. Fesa           even chairs have to be imported because    learning French. A new wave of interest
obtains money from large companies,           local production is limited and depends    in culture and education is sweeping
each of whom pay $100,000 a year to sit       on timber from the Angolan enclave of      through the nation.”
on its board of trustees. BP is one donor     Cabinda, which is accessible only by air      The foundation has also provided
firm, and others include foreign non-         or a riverboat crossing.                   money for the rehabilitation of markets,
governmental organisations in China,             Nevertheless, one important change      the restoration of a colonial church, a
Japan and the US.                             has come about thanks to Fesa’s efforts.   sports stadium, health clinics, police
   “Our objective is to support the most      “The mentality of the population has       vehicles, wheelchairs for amputees and
                                                                                                                                       Learning curve: with only 2,000 public and 250 private
vulnerable communities – those left out       changed and parents recognise that their   generators for hospitals. It promotes




                                                                                          Helping the farmers to help
                                                                                          ❑ Angola is rich in land and used
                                                                                          to be self-sufficient before gaining
                                                                                          independence. With 85 per cent of
     POWER                                                                                the working population employed
     Installed power 520 MW                                                               on the land, the government has
     KWANZA RIVER                                                                         embarked on a long-term drive to
     Maximum flow observed                                                                boost agricultural output.
                                                                                             Agriculture minister Gilberto Buta
     3740 m3/s
                                                                                          Lutucuta “First, we have to organise
     Minimum flow observed
                                                                                          the population so that they can form
     125 m3/s                                                                             cooperative associations and then we
     CONCRETE DAM (CCR)                                                                   must boost production. Even before we
     Total Length 1200 m                                                                  begin to increase agricultural production
     Maximum Height 110 m                                                                 we have to provide the population with
     RESERVOIR                                                                            seeds, fertilisers, tractors and a system
     Volume 3700 hm3                                                                      of long-term credit.”
                                                                                             The challenge facing Angola’s farmers
     Unveiling - December                                                                 and the government is exacerbated by         Grass roots: the first step is to organise the people into
     2002                                                                                 the fact that more than two million
                                                                                          people have been displaced by conflict.      livestock farming. “We are trying to
     PHASE 1
                                                                                          Something like a fifth of the entire         attract more investment to this area
     2 Units, 260 MW
                                                                                          population is homeless and depends on        through incentives,” he says. “We need
     PHASE 2                                                                              food aid. “We will give free supplies to     investment in the livestock sector in
     2 Units, 260 MW                                                                      the refugees so that they can start a        southern Angola where we have large
                                                                                          new life,” says Mr Lutucuta.                 areas of land waiting to be exploited.”
     FEATURES                                                                                The authorities aim to provide farmers       One such investor is Tecnocarro.
     Production of electric                                                               with technical support. Angola was once      It started out supplying tyres in 1982
     energy
                                                    GABINETE DE                           the third-largest coffee exporter, but the   and has since diversified into food
     Standardisation of the
                                                    APROVEITAMENTO                        sector went into sharp decline after the     production. “We have invested in
     flow of the Middle
                                                    DO MÉDIO KWANZA                       war broke out. “We are committed to          agriculture, fisheries and livestock
                                                    Caixa Postal 6184
     Kwanza (500m3/s)                                                                     developing coffee production in the          because they are necessary for our
                                                    Luanda, Angola
                                                                                          central provinces,” says the minister.       people,” says administrator Jose Carlos
     Irrigation                                     Tel: (+2442) 445-000
                                                                                             The government would also like the        Recio. “We have invested a lot of money
     Industrial Development                         Fax: (+2442) 447-973
                                                                                          private sector to put more money into        in the livestock business in the south

26 World Report ANGOLA
                                                                                                                                                                                                                                      EDUCATION


ion to all classes




                                                                                                                                                                                                                                                          Photo: FESA
                                                                                                                                                              Life force: working to supply clean water to improve hygiene and help to combat disease

                                                                                                                                                              AIDS awareness and land mine clearance,           The school is supported by Fesa now,
                                                                                                                                                              sponsors dancing and physical fitness pro-     and about 370 young footballers aged
                                                                                                                                                              grammes, and provides toys for children        between six and 21 take part in training
                                                                                                                                                              in very poor families. Currently, Fesa is      sessions. The Fesa teams have played
                                                                                                                                                              running campaigns to combat diseases           abroad several times and returned home
                                                                                                                                                              such as malaria, sleeping sickness, leprosy    with honours, including the African
                                                                                                                                                              and tuberculosis, all prevalent in Angola.     under-20s championship. “We already
                                                                                                                                                                 Fesa also supports the nation’s young       have a basis for a good future Olympic
                                                                                                                                                              footballers. Although the sport has a huge     team,” says Dr da Silva.
                                                                                                                                                              following in Angola, players’ techniques          The foundation is also engaged in
                                                                                                                                                              left a little to be desired, so President      housing programmes, particularly in
                                                                                                                                                              Jose Eduardo dos Santos founded a foot-        Viana, the biggest municipality in
                                                                                                                                                Photo: FESA




                                                                                                                                                              ball school “because he was concerned          Luanda, where several thousand homes
                                                                                                                                                              about the bad quality of Angolan foot-         are to be built. So far, about $16 million
                                                                                                                                                              ball”, explains Dr da Silva. The first         has been spent on land in Luanda for
institutions serving a population of 12 million, funding is urgently required to provide new facilities
                                                                                                                                                              pupils were street children.                   future development. s




themselves                                                                                         for export. It is not easy to compete with
                                                                                                   countries like Brazil, Argentina and
                                                                                                   England because they have more
                                                                                                   experience, better technology and
                                                                                                   conditions,” he says.
                                                                                                      “But we have been helped by the
                                                                                                   outbreak of foot-and-mouth and BSE in
                                                                                                   Europe. Our cattle is raised 24 hours a
                                                                                                   day outside, eating only grass. People
                                                                                                   have lost confidence in European meat.                                                       Angases is Angola’s foremost producer of industrial
                                                        Photo: Peter Moszynski/Hutchison Library




                                                                                                   Angola will surely export meat to Europe                                                   and medicinal gases. As the exclusive supplier of gas
                                                                                                   in the near future.”                                                                         to Coca-Cola Angola, we are always on the lookout
                                                                                                      The country’s historical links with                                                                 for partnerships with petroleum and food
                                                                                                                                                                                                                         transportation companies.
                                                                                                   Portugal have not faded away entirely.                                                                                  Angases offers a wide
                                                                                                   Escom, a Grupo Espirito Santo company,                                                                          range of products, including:
                                                                                                   has been an active player in Angola
                                                                                                                                                                                                                                  • Liquid and Gas
                                                                                                   since the beginning of the last century.
                                                                                                                                                                                                                                Oxygen (Medicinal
                                                                                                      The firm has become involved in                                                                                                and Industrial)
                                                                                                   several water-sanitation projects during                                                                                            • Acetylene
                                                                                                   the last few years and is achieving a                                                                                                 • Nitrogen
cooperative associations and then boost production                                                 growing presence in food retail. “There                                                                                      • Anaesthetic Gas
                                                                                                   will be more investments in this area,                                                                                  • Arc-Weld Electrodes
                                                                                                   and we will develop more,” says Escom                                                                                         • Carbon Dioxide
                                                                                                                                                                                                                                 • Compressed Air
                              RECIO                                                                administrator Helder Bataglia.
                                                                                                                                                                                                                                  • Argon, Helium,
                                                                                                      “Our main concern is the distribution                                                                              Hydrogen, Corgon 20/80
                                                                                                   of goods in the north, centre and south                                                                                • Solders, Accessories,
                              ‘Angola will surely
                                                                                                   of the country. If we don’t make this                                                                                    Fire Material, Hospital
                              export meat to Europe                                                distribution, we are achieving nothing                                                                                 and Surgery Equipment
                              in the near future’                                                  because what people need most is food.”
                                                                                                      Escom’s fisheries operations are
                                                                                                   concentrated in Namibe, where they
           of the country, where our project is the                                                have become a crucial element of the
           third largest in the region.”                                                           local economy. “We have reconstructed
              The company has 2.7 million head of                                                  one of the most important fish-based                                                                     Angases
           cattle and Mr Recio is starting to target                                               industries there, which I am sure will                                                                   Caixa Postal 1040-1088, Luanda, Angola
                                                                                                                                                                                                            Tel: (+244 2) 84 02 39 / 31 05 05
           overseas markets. “This is a great                                                      contribute a lot to the development of                                                                   Fax: (+244 2) 84 03 35 / 31 00 99
           opportunity for Angola to produce meat                                                  Namibe province,” says Mr Bataglia.

                                                                                                                                                                                                            World Report              ANGOLA 27
28 World Report ANGOLA
                                                                         Banco de Comércio e Indústria (BCI)
                                                                         is Angola’s leading bank. Currently state-owned (91%
                                                                         of shares are owned directly by the state and the remainder
                                                                         is divided among state-owned companies) but soon to be
                                                                         privatised, BCI is preparing for privatisation by developing
                                                                         specialised corporate banking services and catering to the
                                                                         business community. With offices in ten provinces and
                                                                         counting, we are expanding both our branch network and
                                                                         our investment profile, as well as increasing participation
                                                                         in profitable companies, diversifying our interests and
                                                                         moving into new fields such as real estate and private
                                                                         sector development.


                                                                         BCI is proud to be building new headquarters in the
                                                                         centre of Luanda which will accurately reflect our modern
                                                                         image and approach. From online banking services to
                                                                         electronic payment methods, we offer our clients the
                                                                         best of today and tomorrow.




                                                                         As 60% of our commercial activity is centred on the
                                                                         import-export business, it is no surprise that BCI is
                                                                         thoroughly international in its outlook. We maintain
                                                                         excellent relations with foreign institutions such as HSBC
                                                                         and Citibank and are eager to develop closer ties with UK
                                                                         banks. At BCI we believe that we have a crucial role to play
                                                                         in Angola’s development and we invite international
                                                                         investors to participate in present and future opportunities.




                                                           BCI - Banco de Comércio e Indústria
Avenida 4 de Fevereiro 86, Caixa Postal 1395, Tel: (+2442) 33 36 84 / 33 14 98, Fax: (+2442) 33 38 23
                                                                                       Luanda, Angola



                                                                                                   World Report         ANGOLA 29
TOURISM

New work is being done to
restore the capital’s former
colonial attractions and
develop its wildlife parks




T
        ourism agencies are unlikely to
        mention Angola as a holiday
        destination and no amount of
        hyperbole is going to alter the



                                                                                                                     A resort in
current view that danger and difficulties
continue to linger in this poverty stricken




                                                                                                                                                                                               Photo: Peter Moszynski/Hutchison Library
African nation.
   Yet there are signs that, as a fragile
peace returns to the country, attempts to



                                                                                                                        waiting
attract visitors are paying off. The coun-
try now has 100 travel agents, up from
just two in 1982.
   Hotels and tourism vice-minister
Paulino Baptista says that 50,000 for-
eigners have visited Angola in the past
year, generating $7.2 million in revenue.
   According to Mr Baptista most visitors
have been from former colonial ruler               line the city’s peninsula, called the Ilha,   you stay will have air-conditioning, hot        “During 26 years of war it was almost
Portugal, as well as from Brazil, France,          and hotels are being spruced up.              and cold running water, a choice of menu        impossible to attract tourists to Angola
Britain and the US. Tourism is limited                Many destinations in the country are       and international dialling.                     and therefore no tourism industry was
mainly to the capital, Luanda, and a               accessible only by air; others are reached       Common sense and patience are a pre-         developed. But the situation is changing.”
handful of resorts along the coast.                only after hours driving over bone-jarring    requisite for all visitors. A visit to Angola      For example, he points out: “This year,
   Efforts are being made to renovate              dirt tracks which become impassable in        cannot be compared with one to Kenya,           the provinces of Luanda and Kwanza Sul,
Luanda’s remaining colonial buildings              the rainy season. It is simply not possible   South Africa, Tanzania and other African        some private operators, hoteliers, travel
and the palm tree-fringed promenades               to walk into your local travel agent and      states where tourism facilities are far         agencies and the Kissama Foundation
which drew visitors before the outbreak            book a fortnight’s package holiday to         more advanced. Yet there is much to dis-        got together to promote tourism in the
of war in 1975. Upmarket beach resorts             Angola with a guarantee that everywhere       cover, scenically and culturally.               country for the solar eclipse.”
                                                                                                    Angolan writer and dramatist Jose               Kissama, 50 miles south of Luanda, is
                                                                                                 Mena Abrantes says: “Angola is experi-          one of 11 national parks in Angola. Years
                                                                                                 encing a fresh start in the development         of illegal hunting have reduced the
                                                                                                 of all cultural sectors. But we recognise       number of elephants and rhinoceros, but
                                                                                                                                                 the foundation is re-introducing species.

                                                                                                 As a fragile peace                              It has also beefed up anti-poaching
                                                                                                                                                 patrols, although this is not easy over an
                                                                                                                                                 area of one million hectares with limited
                                                                                                 returns, efforts to                             resources.
                                                                                                                                                    “We are trying to get as much invest-

                                                                                                 attract visitors are                            ment as possible to promote tourism in
                                                                                                                                                 the area,” adds Dr Karim.
                                                                                                                                                    With the government giving the 18
                                                                                                 starting to pay off                             provinces greater freedom to pursue
                                                                                                                                                 programmes of economic regeneration,
                                                                                                 that there is still much to be done and         more of the country is being opened up
                                                                                                 much to achieve.”                               to tourism. The southern province of
                                                                                                    Mr Abrantes, media adviser to the            Namibe, with its unique plant life and
                                                                                                 president, was among a number of lead-          extraordinary desert rock formations, is
                                                                                                 ing intellectuals and politicians who           one of the most accessible.
                                                                                                 pushed for the creation of a national              Angola is one of the 14 member states
                                                                                                 prize for arts and culture, now in its          of the Southern African Development
                                                                                                 second year. Each prize in five separate        Community (SADC), which is reinforc-
                                                                                                 categories is worth $30,000, a colossal         ing its cooperation in the tourism sector.
                                                                                                 sum of money for any Angolan. “There is         Earlier this year, the SADC-affiliated
                                                                                                 no ceremony in Angola that is not accom-        Regional Tourism Organisation of
                                                                                                 panied by music or dance,” he adds.             Southern Africa agreed to a five-year
                                                                                                    Some investment is now being made            strategy to develop sustainable tourism.
                                                                                                 in tourism projects. A few institutions,        One item on the agenda was a proposed
                                                                                                 even though their budgets are very lim-         system allowing tourists to visit all the
    At Angola Telecom, we believe in the power of communication. With 90% of our                 ited, are making firm efforts to establish      SADC countries on a single visa. s
    fixed-line network digitalised, we are currently expanding our nationwide mobile             policies and drive up standards.
         system to meet growing consumer demand for state-of-the-art services.                      Omar Silva Karim, president of the
       Angola Telecom is also looking forward to the imminent completion of SAT3,                Kissama Foundation, says tourism is still                        ABRANTES
          an ambitious fiber-optic link project that will unite Africa and Europe.
            With privatisation on the horizon, we invite foreign investors to join               embryonic. The foundation is the admin-
               Angola Telecom in this promising new stage of development.                        istrator of Kissama national park, and is                        ‘This is a fresh start for
                                                                                                 involved in education and social welfare                         the development of
                 Rua do 1 Congreso do MPLA, 26 - 2nd Andar, C.P 625, Luanda, Angola
                                                               .                                 programmes throughout the country.
            Tel: (+244) 2 397517, Fax: (+244) 2 391688, E-mail:infor@angolatelecom.com                                                                            all cultural sectors’
                                                                                                    “Tourism is just starting in Angola and
                                  www.angolatelecom.com
                                                                                                 there is a great deal to do,” he says.

30 World Report ANGOLA
       s Angola’s top diamond-producing province, Lunda Norte’s potential shines the
  A    world over. Welcoming foreign investors from all over the globe, Lunda Norte not
  only shows great potential in the diamond industry, but also in agriculture, hydroelectric
  power and civil construction. Boasting fertile lands and a tropical climate, the province
  offers opportunities in the cultivation of rice, corn, cassava palms and bananas. With for-
  eign investment, the goal of the agricultural sector is to go beyond self-sufficiency and
  expand into export-oriented production. The hydroelectric plant at Dundo is currently
  capable of producing 6 MW of power. The provincial government of Lunda Norte is also
  looking closely at the social aspect of the province and has recently launched a vast
  program to construct new houses and modernize existing infrastructure. The priority of
  this new project is on education and training. A new library is already in the works and
  new sports facilities have already been built.

Working together to make Lunda Norte as polished as a diamond



              Provincial Government of Lunda Norte, Dundo, Lunda Norte
                                                         Tel: 244-396-319
                                          www.ebonet.net/gov.lundanorte
                                       E-mail: gov.lundanorte@ebonet.net


                                                                 World Report        ANGOLA 31
Whatever you may have heard, beauty’s never only skin deep. In the case of Angola’s coastal province of Namibe, an ultra-modern infrastructure net-
work has enabled investors and tourists alike to share in the province’s many treasures. A state-of-the-art international airport, a railway system linking the
province to eastern Angola and a harbour capable of mooring ships of up to 150,000 tons are examples of Namibe’s economic potential. Further efforts
are being channelled into diversifying Namibe’s commercial vocation, taking advantage not only of its unsurpassed natural resources, but also of its strate-
gic location as the gateway to the southwestern Africa. These include developing the already vibrant agriculture and fishing industries (Namibe is Angola’s
top agricultural producer and accounts for 65% of Angola’s fish production) while looking to areas such as
mining – the province is rich in diamonds, mica, marble, granite and gypsum amongst others. What’s more,
its location on the west African coast provides Namibe with an excellent climate that, combined with the mile
upon mile of uncrowded beaches and the ecotourism paradise of IONA National Park, makes for prime oppor-
tunities for tourism development. It is little wonder that in such a setting peace has prevailed.
Namibe: catch the wave while you can.



                                                                                          PROVINCIA DE NAMIBE
                    Namibe, Angola, Tel: +244 64 600 63 Fax: +244 2 39 62 90 E-mail: governo.namibe@netangola.com


  This supplement was produced by World Report Limited Inc, who are solely responsible for the content

				
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