• Key facts (Worldbank 2011)

- Population – 18.5 million (estimated)- Urban population % - 58- GDP per capita - $5900- Foreign reserves $28,3 billion (December 2011) - Luanda most expensive city in the world 2011(Mercer)- Labour force 8,24 million - Economy depends on two main resources; oil and diamonds - Strong focus on diversification at the present (Agriculture, Services, etc)

- Focus on Political Stability (Rule of law, freedom of speech and association)

- Focus on Macro Economic stability (Financial crisis of 2009/2010)

- Focus on Rehabilitation / Mobilisation of Basic Infrastructure

(access to water, sanitation, electricity)

- Focus on Sound Financial System

Strengths

- Mid-term political stability – not seen same level of insurgences North Africa

- Extensive natural resources, from oil to diamonds to other minerals and agriculture

Weaknesses

- Weak institutional framework

- Low human development (continuous HR development/training is a requirement)

Opportunities

- Very good geographical positioning (West Africa, on major sea routes)

- Large young and dynamic population (post war generation)

Challenges

- Creation of a non oil robust private sector

-Efficient use of non renewable resources(African Dev Bank)

SWOT analysis

• Agriculture - Angola- Agriculture has tremendous potential - Potentially rich agricultural country, with fertile soils, a favourable

climate, and about 57.4 million ha of agricultural land - Before independence in 1975, Angola had a flourishing tradition of

family-based farming and was self-sufficient in all major food crops except wheat

- The country exported coffee and maize, as well as crops such as sisal, bananas, tobacco and cassava

- Expanding due to growth of foreign investment in the sector

• Business environment- Difficult place to do business (language, business culture, bureaucracy)- Language is Portuguese even though international presence exists- Challenging Bureaucracy (scored 43,4 points EFI under business freedom)- General lack of capacity (human resources, products, services, logistics)- Highly ineffective Commercial Dispute resolution mechanism- Expensive place to do business – residential rentals as high as $20000 pm- Banking sector needs a lot of improvement – access to credit difficult

- Numerous opportunities with great returns however risks are very high - Corruption is still a huge problem (Government drives anti graft policy) - Logistics is a nightmare, road infrastructure, ports, railway- Electricity is not always available, same with water- Time (Tomorrow is certainly just another day) - And yes it is still very much about who you know

• Angolanization

- Understand your market completely first (do thorough research)- Familiarise yourself with business culture- Dress properly (a suit means you have respect, you are successful, serious) - Ensure you understand basic greetings etiquette (learn a few Portuguese phrases)- Use business consultants with experience to assess your particular industry - Do not just fly into country unprepared, you will leave empty handed, poorer- Find a local partner with correct skills and personality- Provide continuous training and marketing support- Abide by normal standard internationally accepted business rules (due

diligence etc)(Group 5 and Super Group are examples of how it can go wrong)

- To fully become integrated in Angolan culture you need to persevere

Daniel Swanepoeldaniel@danieljohn.co.za+27 82 325 3658 mobile+27 21 403 6384 office