Birth of a New Era Birth of a New Era

Transcription

Oil
Finance
Page 6
Economic stability
and market
liberalization is
leading to great
foreign investment
prospects
Page 7
The nation’s
numerous rich oil
fields provide a
resource ripe for
exploration and
global export
Tourism
Page 13
Peace has brought the chance to place
Angola’s attractions in the international eye
OurWorld
This supplement to USA TODAY was produced by United World LTD.: 4410 Massachusetts Ave NW, Washington - DC 20016 - Tel: 1-202.347.9022 - Fax: 1-202.347.9025 - www.unitedworld-usa.com
WEDNESDAY, DECEMBER 3, 2003
Angola
Birth of a New Era
Over one and a half years of peace
have brought new prosperity to a
country eager to grasp every
opportunity
■ “THE worst has passed and now gola entered a new era and the counwe have to look ahead,” reflects try was finally in a position to exAngolan Minister of Assistance ploit the tremendous potential of its
~ Bap- natural wealth.
and Social Reintegration, Joao
tista Kussumua.
Ayear and a half later, prospects
Few countries have experienced for continued peace are solid; UNIas sustained and violent a conflict TA has disintegrated as a national
as Angola. The country’s indepen- fighting force and works in tandem
dence on November 11, 1975, was with the MPLAgovernment as the
preceded by a 14-year
leading opposition parDevelopment ty. Reconstruction of the
struggle against Porand
country has now become
tuguese colonization.
reintegration the national priority.
At independence, AnIt won’t be easy. It will
gola became embroiled are key issues
take a long time and conin one of the deadliest
on the
civil wars of the Cold
government’s sistent effort to erase the
social and economic
War era. The conflict
new agenda legacies of a war that
between the forces of
the Popular Liberation Movement killed a million people and uprooted
of Angola (MPLA) and the Na- a third of the population.
tional Front for the Liberation of
Much of the country’s infraAngola (UNITA) would last 27 structure was destroyed, non-oil
long years.
sectors of the economy were ravOn April 4, 2002, six weeks af- aged, and poverty became wideter the death of longtime UNITA spread. Although progress has been
leader Jonas Savimbi, his insurgent made in the last year, President José
group and the MPLA government Eduardo dos Santos still faces a
signed a cease-fire. With this, An- long road ahead.
As Minister Kussumua states, “I
think it would be humanly impossible to organize a country that has
been at war for 30 years in one year.
We are facing a difficult situation,
which is the reconstruction, rehabilitation, and development of the
country, as well as the reintegration
of four million people.”
In the past year, in addition to demobilizing excombatants and resettling
1.8 million displaced Angolans, President dos
Santos and his administration have implemented a national plan for
addressing the nation’s
other pressing concerns.
Minister of Planning
Ana Dias Lourenço
elaborates, “The government’s 2003/2004
program defines its
strategic goals as peace
and national reconciliation, political and economic stability, the fight
against poverty, and the arrangements for the next elections.”
Deputy Prime Minister Aguinaldo Jaime says that the government
task of reconstruction is complicated by the accompanying need for
economic stability.
“We face contradicting challenges,” he explains. “On the one
hand, we have to stabilize the economy and bring the deficit and inflation down, but at the same time,
we have to rebuild the country; to
rebuild infrastructure and increase
the level of health and education.”
As the government is aware that
it cannot face this challenge alone,
it is counting on the participation of
the international community and
the private sector, and plans for partnerships between the private and
public sectors have been established.
“In the next ten years Angola has
the capacity to become a completely
different country, but we need to
unite hands between the government, civil society, the private sector, and international partners. We
have the capacity to do it – there is
political will, strong partnerships, and
material and financial resources,”
Minister Dias Lourenço adds.
U.S. Ambassador to Angola
Christopher Dell agrees that Angolans are up to the task ahead of
them and believes President dos
Santos’ administration deserves
credit for having maintained national unity throughout the difficult
past few years.
“Something we need to recognize is that Angola has had a terrible time and has been subjected to
pressures. It is a huge achievement
and one that needs to be recognized,
that they have succeeded in maintaining the regime despite all that,”
he states. “Angola is doing a lot of
the things it needs to do.”
President
José Eduardo
dos Santos is
implementing
a national
plan for
economic
and political
stability
AMBITIOUS PLAN
New laws
to attract
American
investment
■ AS evidence of the Angolan
government’s commitment to
economic reform and sustainable development, solid investment laws have recently been
passed to protect investor interests, and a new government
agency, the National Private Investment Agency (ANIP), has
been created to facilitate the investment process.
Angolan legal scholar and
academic Carlos Feijó says that
the new laws arose from the
government’s awareness that
economic development and judicial reform in Angola have to
be undertaken simultaneously.
He states, “The most important
thing now is to create the legal
framework for the public and
private partnership.
“The non-intervention and
deregulation process of the
state must be accompanied by
judicial regulation for public
and private partnerships. The
investor needs to have confidence in the judicial system.
This is obviously the only solution for Angola.”
Following on the heels of the
private investment law enactment was the creation of another new law for investor
incentives that simplifies the investment process in Angola.
Mr. Feijó elaborates, “The legal environment here is that we
have a very attractive investment law, a law devised especially for simplifying procedures
and decreasing state intervention
in the private investment
process. We also have a private
Continued on page 3
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Our World
Distributed by USA TODAY
Wednesday, December 3, 2003
2
POLITICS / New constitution is first step on the path to Angola’s transformation
The consolidation of democracy
The National Assembly is implementing new legislation
to promote peace and stability
■ POLITICAL REFORM is part
and parcel of the initiatives now
taking place in Angola. Transformation from a country long ravaged by civil war into a fully
functioning democratic, multi-party state where tolerance and political diversity reign is the goal of all
Angolans, but one that will take
some time to fully achieve.
On President dos Santos’ political agenda at the moment are the
drawing up of a new constitution,
the debate on the new national flag,
and the holding of national elections.
The U.S. government has been
actively supporting this democratic transformation in Angola as U.S.
Ambassador to Angola, Christopher Dell, explains.
“The essence of democracy is really about people being actively engaged in drawing decisions about
how their lives and country should
be run. They do that by competing
INTERNATIONAL DONORS CONFERENCE IS A TOP PRIORITY
President dos Santos eager to host
conference to address development needs
■ FOLLOWING the signing of also like the participation of the
the peace agreement in 2002 and international community in the
the subsequent political stability rehabilitation of basic communithat has reigned for the last year and ty infrastructures.”
a half, the Angolan government
In preparation for the conference,
intends to hold an
the government has been
IMF and
international donors
implementing the necWorld Bank essary economic meaconference in the near
requirements sures to meet donor
future to discuss the implementation of the prirequirements as set out
are priority
ority phase of its targets in the in IMF and World Bank
Post-Conflict Rehabilstabilization recommendations.
itation and ReconDeputy Prime Minisprocess
struction Program.
ter Aguinaldo Jaime elabThe conflict in Angola has had orates, “Obviously we rely on the
widespread social repercussions assistance of the donor communiand the processes leading to ty because they had a very imporprogress will be hard-fought. The tant role during the war. At the
country ranked 161 out of 173 on moment, there are some inforthe Human Development Index for
2002, and over two thirds of the population live in poverty. President dos
Santos is aware that this reality calls
for a long-term strategy of international engagement.
Minister of Planning Ana Dias
Lourenço states, “The fight against
poverty is very important for this
conference. Data indicates that
Angola’s poverty level is around
63%, and 23% of this is registered
as ‘extreme poverty’, which means
living on less than US$1 per day.
“Primarily this conference is
important to seek support for government efforts to reinforce peace
and national reconciliation in an
organized and coordinated way,
as well as for the reestablishment
and social reintegration of people
affected by the war. We would
mal consultations going on between
the Angolan government and the
donor community because it is important that we meet all the required
conditions for the donor conference. So we have been exchanging
views with the donor community
and I think they are pleased with the
steps we have been taking.”
Governor of the National Bank
of Angola, Amadeu de Jesus
Castelhano Mauricio, adds, “A
good relationship with the IMF
is necessary and our points of
view converge on many issues.
We believe that we need economic stabilization policies that
will encourage the development
of the country.”
for offices, positions in the government, or by organizing the community. All these are democratic
activities that we are trying to be supportive of in Angola. We are trying
to help create this political space and
to expand on it.”
FERNANDO DA PIEDADE
DIAS DOS SANTOS
Prime Minister Fernando da
Prime Minister of Angola
Piedade Dias dos Santos (widely
known as “Nando”) emphasizes the
government’s commitment to an
open political arena in which parties work together, and says that
the government believes this is the
path to ensuring a strong and stable political climate for the future.
He comments, “Peace has arrived and it is definitive. However,
the ending of war does not mean
peace is complete. It is necessary
to consolidate the National Reconciliation Program in order to have
a spiritual peace and reinstate
virtues, a spirit of civil service, and
the habits of solidarity, all of which
are traditional characteristics of
the Angolan people.
“To do this, all of the politISAÍAS SAMAKUVA
President of UNITA
ical forces and all of the political parties need to feel
involved. We all need to de- after the signing of peace accords
fine the principle objectives in 2002. He explains, “We have takfor the improvement of An- en every possible measure to ensure
gola and work together, even that there will be everlasting peace
if we have different political and there will be no turning back.
platforms and ideas. All of We are seriously engaged in building a new Angola established on
this is underway already.”
~
peace. We have embarked on aidAccording to Mr. Joao
Lourenço, SecUNITAwith its transA Reconciliation ing
formation into a normal
retary General
Program
is
~
political party.
for the ruling
ensuring
all
“We strongly desire the
party, the Popular Liberation political parties peace process and we
earnestly believe that this
Movement of
are fully
A n g o l a involved in the is the only way that we
can build a stable envi(MPLA), nanew peace
tional reconronment in the country
ciliation and reintegration of whereby all Angolans can prosper.”
The MPLA Convention, which
excombatants are top priorities of the Angolan gov- is to be held this month, will furernment and two of the first ther consolidate future political stratissues that were dealt with egy as national elections loom on
Agostinho Neto was
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3
Our World
NOVEMBER 11, 2003
President dos Santos
celebrates peace
28 years of independence
■ ANGOLA’S independence has
contained challenges for the country, with discord among the key
leaders of the liberation struggle
causing conflict, and Cold War sponsorship and monopolized resource
exploitation sustaining it.
During the final months of Portuguese rule in 1975, the various proindependence factions were unable
to develop a united front. The Pop-
ular Liberation Movement of Angola (MPLA) allied itself with the
Soviet bloc and Cuba, while the
National Front for the Liberation of
Angola (UNITA) sought support
from South Africa and the United
States. Throughout the conflict the
MPLA controlled Angola’s expanding oil fields while various alluvial diamond deposits fell under
UNITA’s control.
the horizon, and augurs dramatic changes for the party.
UNITA has also taken responsibility for its own reorganization, as the unification of its
two competing wings and the
party’s recent conference have
shown. UNITA President Isaías
Samakuva reaffirms the party’s
commitment to ongoing peace
and the further democratization
of Angola.
“Everything that needs to be
done in Angola can only be accomplished if there is democracy, so UNITAhas decided to work
hard towards the democratization of our society. To do so, we
thought we should begin by democratizing our own party and the
party conference in July was the
first step towards this goal.
“We would like to continue
and deepen the process and, in this
sense, we need the assistance of
the international community. One
of the steps that is important to
us is the holding of general elections, and for this we need assistance in personnel training and in
creating the right conditions.”
Although the government estimates that elections could be
held as early as 2005, there are
structural and institutional obstacles to be overcome before they
can take place. After Portuguese
colonial rule and 30 years of postcolonial warfare, there has been
virtually no investment in the development of state administration
at the national, provincial, or municipal levels and this must be
minimally improved before elections are possible.
Deputy Prime Minister
Aguinaldo Jaime says, “We need
to create the conditions for holding presidential and parliamentary
elections since we have a lot of
internally displaced persons who
need to be resettled first, and we
don’t have administrative machinery in every province.”
STABILITY / Humanitarian agencies are working with the government to bring a lasting social improvement
believe that we have a very good
package to offer with these new
laws and incentives.”
In order to promote Angolan investment opportunities in the United States, ANIPhas a representative
office in Washington, D.C.
CARLOS FEIJÓ
Legal Scholar
and Professor
aging Director of the External Intelligence Service says, “The security services in Angola have
a very important role, especially in this transition phase, in the
consolidation of peace.”
The government is aware that
it is in its own best interests to
address the country’s humanitarian needs as quickly as possible. Minister of National
In its fight against poverty,
the Angolan government recently approved a US$20 million infrastructure investment
program in each province. Minister of Planning Ana Dias
Lourenço elaborates, “The Ministry is involved in strategic
preparations for the fight against
poverty, and the PRSP is a document that we consider to be
very important. The provinces
have a program to implement in
2003 and 2004 in order to begin to put this into effect.”
An important participant in
Angolan educational development is the Eduardo dos
Santos Foundation (FESA),
whose mission is to assist in
the general social development
of the country.
General
KUNDI PAIHAMA
Minister of
National Defense
Brigadier General
FERNANDO GARCIA MIALA
Managing Director of the
External Intelligence Service
ISMAEL
DIOGO DA SILVA
President
of FESA
Defense Kundi Paihama comments, “To consolidate peace, it
is not enough just to stop firing
guns. It requires a psychological, social, and moral adjustment
on the part of the people. We are
aware that problems need to be
solved both in the short-term
and in the long-term, and that
furthermore, this is the politically intelligent route, as when
a person feels totally abandoned
they will revolt, so peace consolidation is only
possible through
meeting the needs
of the people.”
In addition to an
interim Poverty
Reduction Strategy Paper (PRSP),
the Angolan government has prepared a postconflict Rehabilitation and Reconstruction Program,
which is divided
into two phases.
The first ‘priority’ phase, to be implemented between
2003-2005, is part
of the interim PRSP
and focuses on consolidating the
peace and reestablishing state
administration throughout the
country. More particularly, the
program aims to assist returning
IDPs and refugees, enhance food
security, improve rural life and
service delivery, reestablish critical transportation links, and expand government capacity at the
provincial and district levels.
In addition, a follow-up ‘stabilization and recovery’program,
to be implemented between
2005-2010, will aim to accelerate growth in the non-oil/nondiamond economy, rehabilitate
infrastructure, support the construction of community infrastructure,
and
deepen
institutional and policy reforms.
“We are aware of the problems
in the country, the returning and
resettlement of the population,”
~ Baptista Kussumua,
relates Joao
Minister of Assistance and Social
Reintegration. “To date, the government has spent more than
US$125 million in reintegration efforts, US$55 million of which was
allocated for the social integration
program for UNITA soldiers.”
SONANGOL P&P
■ WHILE political issues such
as the demobilization of armed
forces were handled immediately after the peace accord in Angola, the humanitarian situation
has remained serious. Hundreds
of communities were displaced
as part of deliberate war strategies aimed at depopulating the
countryside and depriving combatants of food and other forms
of social support.
Humanitarian agencies have
found that in 70% of the newly
accessible areas, people either
have low levels of food security or are at risk of serious hunger.
In half the areas, malnutrition
levels and child and maternal
mortality rates are critical. Very
few children attend school and
only 38% of the population has
access to clean drinking water.
It is in this fragile environment
that Angolans have to begin the
process of reconciliation, rehabilitation, and reconstruction.
Urgent priority areas are the
reintegration of UNITA ex-combatants, resettlement of Internally Displaced Persons (IDPs)
and refugees, and removal of
landmines. More than 400 national and international NGOs
and 24 U.N. agencies are helping, but government leadership
will be imperative to avoid sowing the seeds of future conflict.
The war is over, but now the
peace must be won.
The national armed forces
have been assisting in the government’s humanitarian relief
measures. As Brigadier General Fernando Garcia Miala, Man-
New laws to attract
American investment
Continued from page 1
golans’ credit, significant progress
was made on both fronts. The armed
conflict ended formally on April 4,
2002, with the signing of the Luena Accords. Angolan armed forces
commander General Armando da
Cruz Neto and rebel commander
General Abreu Kamorteiro embraced after signing the agreement,
while hundreds of thousands of Angolans took to the streets to celebrate.
The war may be over but a definitive
peace has not yet been won
Reforms at
national,
provincial,
and
municipal
levels will
ensure that
the treasured
new peace
stays firm for
future
generations
development law that seeks to eliminate bureaucracy. Our idea is to
create a one-stop, one-shop situation – an office where the investor
goes and sees all his problems
solved. This is the idea that we have
for ANIP.”
Mr. Ari Carvalho, ANIP Administrator, emphasizes the need
for economic diversification in
Angola and says the new incentives are also designed to promote
employment and correct regional imbalances.
He explains, “Our responsibility is to attract more embedded investment into Angola. The new law
provides specific incentives for investments in those areas where it is
most needed. As well as protecting investor interests, the laws are
trying to recognize those areas that
have suffered because of the war,
have a low presence of industry,
and need development. I strongly
Peace talks began in 1988 when
Cuba and South Africa agreed to
withdraw troops from Angola and
the former USSR turned its attention toward its own domestic problems. Since the early 1990s Angola
has been struggling to achieve a
complex double transition: from war
to peace, and from a state-controlled
to a market economy with greater
popular participation. To the An-
FESA President Ismael Diogo da Silva explains, “The foundation emerged from the
inspiration of its sponsor, President dos Santos, and a group
of people interested in and connected to the social cause, who
aimed to transmit a spirit of solidarity by helping those who
have less.
“Our social objectives manifest themselves in aspects such as
education, health, technology and
scientific development, culture,
and sports. However, we are particularly concerned with education. We believe education is
fundamental for the growth of a
country and its people.”
FESA’s achievements to date
include the construction of 65
schools in the country, the establishment of training programs for teachers, and the
creation of an exchange student
program with Brazil. The organization has also formed
agreements with various U.S.
universities for an exchange of
expertise in the areas of health
and education training.
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Our World
4
RELATIONS / American businesses are expanding trade links with a forward-thinking and internationally-focused Angola
Angola strengthens relations with the States
In 2001, Angola was the U.S.’
■ ALTHOUGH relations were
strained between the U.S. and An- second largest non-OPEC (Orgola during the Cold War, today ganization of Petroleum Exthe two countries maintain solid porting Countries) supplier of
commercial and diplomatic ties. crude oil. The increasing imIn 2002, 42% of Angolan exports portance of Angolan oil to Amerwent to the United States and An- ican interests, and more
gola accounts for 16.7% of all specifically interests based in
U.S. imports from Africa. Fur- Houston, the energy capital of
ther strengthening of these ties is the nation, was evidenced by the
likely in the future as the U.S. in- visit of Houston’s mayor, Mr.
creasingly chooses Angolan oil Lee P. Brown, to Luanda in September 2003.
over Persian Gulf options.
Ambassador Dell remarks,
The U.S. officially recognized
the MPLA (Popular Movement “With all the statistics and facts,
for the Liberation of Angola) as Angola is the destination for
the legitimate government of An- U.S. foreign investment now,
gola on May 19, 1993 and since more than any other place on
then has been actively involved the continent. It’s the hot player in the petroleum industry in
in Angola’s transition to peace.
In October 1999, the Clinton the world today.”
San Francisco-based ChevronAdministration inaugurated the
Bilateral Consultative Commis- Texaco operates Angola’s most
sion with senior Angolan offi- productive oil patch in the northcials, with the aim of expanding western enclave of Cabinda, and
the U.S.-Angolan relationship. is the largest foreign company in
U.S. Ambassador to Angola the country. ChevronTexaco has
Christopher Dell says, “Angola, had a presence in Angola since
having chosen the path of democ- 1930 and has been involved in
many aspects of the
racy and a macroChemicals,
country’s social and
economy for itself,
needs partners in or- minerals, and economic development.
In alliance with the
der to transform a metals are just
some of the U.S. Agency for Interclear intention into a
reality. The role we exports finding national Development
play is in helping
their way to and the United Nations
Development Program,
them to do that.”
the U.S.
ChevronTexaco has reTrade between the
two countries is substantial; in ad- cently committed US$10 million
dition to oil, U.S. imports from over five years for the support and
Angola include chemicals, min- training of enterprise developerals, and metals. In 1998, U.S. ment in Angola, especially priexports to Angola totalled ap- vate sector agricultural initiatives.
Managing Director James
proximately US$351.6 million,
among which figured trans- Blackwell elaborates, “For us,
portation equipment, machinery, community affairs have always
and agricultural and electronic been a big part of our compaproducts. The U.S. private sec- ny heritage here, and especialtor has invested more than US$4 ly now with peace we have been
billion to date in Angola, mark- pushing our projects into the
ing the country as one of the U.S.’ interior and trying to make our
largest investment sites in all of impact more visible. We are focusing on things like education
sub-Saharan Africa.
SONAIR’S Houston Express is the only regular passenger flight between Angola and the U.S.
and micro-businesses to help
the country diversify. We are
starting to take a look at sustainable development type initiatives – trying to see how we
can get businesses started here
that are self-sustaining. It’s a
huge country with not too many
people and with all kinds of resources, so there is a lot of potential here to diversify.”
Further signs of deepening U.S.Angolan relations are the recent establishment of a direct air link
between Luanda and Houston, as
well as Angolan participation in the
U.S.’ Safe Skies initiative. SONAIR operates the Houston Express
- the only regular passenger flight
between Angola and the U.S.
SONAIR President António
dos Santos Domingos states,
“The Houston Express reinforces relations between the two
countries. It’s vital that Texans
from Houston know Luanda and
people from Luanda know
Houston. If you come to Luanda, you will see that Angolans
are making a tremendous effort
to change the country into a better place to live.”
INDUSTRY / Sustained growth in exports brings hope of renewed vigor in future
Moves to broaden commercial
base meet with success
■ A REGIONAL industrial
powerhouse prior to the war,
Angola is now facing the challenge of reconstructing its industrial sector after three
decades of decline.
In the 1970s, Angola was the
world’s fourth largest coffee
producer and 80% of its exports
were composed of a wide range
of commodities such as fish,
flour, cotton, corn, timber, and
iron. Over the last 25 years, however, economic activity has all
but collapsed in most sectors
except oil and diamonds, leaving the Angolan economy heavily dependent upon imports and
highly vulnerable to shocks from
fluctuating oil prices.
Production in the coffee industry – Angola’s chief export
earner after oil and employer
of over 6% of the population –
has plummeted from 400,000
tons per year in the early 1970s
to around 2,000 today. Agricultural production as a whole
fell from 29% of GDP in 1991
to just under 6% in 2000, and
the country will need to import
more than 725,000 tons of cereals in 2003.
Nevertheless, the agricultural sector, as well as the construction, manufacturing, and
services sectors, registered double-digit growth in 2002, a testament to the benefits of peace.
Angolans are confident that they
can regain their industrial standing, according to Mr. Ari Carvalho, Administrator with the
National Private Investment
Agency (ANIP).
“Angola is a country full of
history, which has to a large extent been built upon the character of its people. Even after all
they have gone through, when
you wander around the streets
of Angola in any province you
see hope on the faces of the people,” he affirms.
“We went through colonization and civil war and now Angola is a country ready for the
next stage. We have great natural
resources, but the most important thing we have is the Angolan persistency and ingenuity.
Not many countries that have
gone through what Angola has
gone through are in as good a
shape as Angola is right now,
and I think that is 90% to do with
the character of the people.”
Two Angolan companies leading the way in the new industrial initiative are Angases and
Sonamet. Angases was founded in 1949 to produce industrial and medical gases and has
more recently been granted an
exclusive contract to supply Coca-Cola with gas for their Angolan bottling company. The
company also does business
across the country for Sonamet,
Petromar, the Port of Lobito,
and various beer companies.
Sonamet was created in 1997
to support the oil industry and
has since built oil platforms for
all of the major international
The One Stop Shop offers concise information for investors in
order to reduce bureaucracy and simplify the investment process
Industrial and medical gas company Angases is building on an
illustrious reputation with lucrative new national contracts
Oil services company Sonamet, renowned for quality and safety,
has worked with all major international oil operators in Angola
oil operators in Angola, including ChevronTexaco and
Exxon Mobil. Sonamet’s mission is to provide state-of-the
art fabrications, as well as subsea and survey services, and is
recognized as a manufacturer
that insists on quality and safety. The company is also committed to being a leader in
Angola’s development through
the employment and training of
local staff. Sonamet has set up
a school in Luanda to implement a training program for local technicians and surveyors,
and is helping build a ‘Made in
Angola’ image that is synonymous with quality and good
business practices.
5
Our World
BUSINESS / Steps taken to ensure stable
commercial environment
Economic
success
depends on
business
transparency
■ THE ANGOLAN economy
While the government has
has been at the mercy of civil made progress in bringing inwar since 1975 and the effects flation down, from 325% in 2000
of this are widespread. Although to about 106% in 2002, subagriculture was a driving force stantial investments in post-conin the country’s economy prior flict reconstruction have
to the conflict, providing the impeded the ability to fully immain livelihood for 85% of the plement International Monetary
population, today oil produc- Fund reforms.
Regional economic imbaltion and its supporting activities
are keeping the country afloat. ances remain a concern for the
The sector currently repre- government. As Mr. Carlos Feisents about 45% of
The Angolan jó, Angolan legal
GDP and over 90%
scholar and academic,
of export revenues, government is says, “The economical
and increased oil attempting to factor is fundamental
streamline
production should
in the unity construction process of the nabring about 6%
investment
GDP growth in procedures for tion. Development
must have a national
2003. Consequentbusinesses
dimension. It must
ly, Angola’s positive
GDP growth rates are due pri- avoid inequalities among the dimarily to the strength of its oil verse regions of the country and
sector, which has very few among the diverse populations.”
linkages to other sectors of the
President dos Santos and his
administration are aware that ineconomy.
Unemployment affects more creased transparency is key in
than half the country and much their reform efforts. The Anof the country's food must still golan Audit Court, which has
be imported. To fully take ad- recently been granted increased
vantage of its rich natural re- autonomy, was created in order
sources - gold, diamonds, to address corruption and transextensive forests, Atlantic fish- parency issues within an appro~ framework.
eries, and large oil deposits - priate legal
Angola will need to continue
Mr. Juliao António, President
reforming government policies. of the Audit Court, elaborates,
YOUR PARTNER
IN ANGOLA’S GROWING
Advances in infrastructure are being matched by advances in international and accounting standards
“The fundamental objective of
the Court is to control the application of public resources by
all those who are employed in
the public finance administration and those who are engaged
in managing public funds. We
have been operating for two
years now and, although the
training takes time, I would say
that we are off to a good start.”
Increased transparency has also been taken seriously in the national petroleum company,
Sonangol, which has taken measures to adopt international accounting standards.
Manuel Vicente, President and
CEO of Sonangol, states, “For a
long time, there were joint accounts
between the state and Sonangol,
but as Sonangol no longer makes
payments in the name of the state,
we have closed the joint accounts.
We are also now respecting international accounting standards and
in 2004, we shall formally enter
IAS (International Accounting Standards).”
MANUEL VICENTE
President and CEO
of Sonangol
As well as ensuring that all
foreign companies are treated
equally, the new private investment law allows investors
to transfer profits and dividends
resulting from the sale of investments abroad, and simplifies and speeds up investment
procedures. Mr. Ari Carvalho,
Administrator with the National Private Investment
Agency, says that ongoing government efforts to improve the
business climate in Angola will
be maintained.
“We are continuing to build
an infrastructure for the investor so that when he arrives,
there are fewer complications
with visas, permits, etc. Basically, we are committed to getting the basics together on how
to treat a potential investor in
our country.”
ANGOLA
OIL INDUSTRY
SINCE 1997, FALCON OIL HAS BEEN VIGOROUSLY DEFENDING ANGOLAN
INTERESTS, WORKING TO ENSURE THAT PETROLEUM SMOOTHES THE WAY FOR
ECONOMIC DEVELOPMENT AND PROSPERITY FOR THE ANGOLAN PEOPLE.
FALCON OIL HOLDING’S EXPERIENCE WITH 10% PARTICIPATION IN BLOCK 33
ALONG WITH PARTNERS ESSO, SONANGOL, TOTAL, NIR AND PETROGAL,
MEANS THE COMPANY BOASTS THE KNOW-HOW OF THE MARKET AND MAJOR
PLAYERS IN THE FIELD. OUR MODERN PHILOSOPHY PLUS OUR DEDICATION TO
GROWTH MAKE US THE PERFECT EXAMPLE OF THE NEW DYNAMIC ANGOLAN COMPANY.
LET’S UNITE YOUR AMERICAN
ANGOLAN EXPERIENCE IN THIS
THIS INDUSTRY, TOGETHER.
The United States has been
helping in this reform process
by providing technical assistance to the Angolan judicial
system. U.S. Ambassador to Angola Christopher Dell also
stresses the importance of recent initiatives on the part of the
Angolan government to secure
a stable investment climate in
the country and to ensure that
all investors are treated alike.
“An economy shouldn’t work
on the basis of a series of exceptions; you want it to be one
set of rules for everybody to
ensure predictability and stability in the business climate,”
he remarks.
“The government understands
this and they are attempting to
streamline the procedures that
are required to establish a business here.”
BLOCK 33
TECHNOLOGICAL KNOWLEDGE WITH OUR
INDUSTRY AND BUILD THIS COMPANY AND
Falcon Oil Holding S.A.
Falcon Oil U.K. Office
4th Floor, Rainha Ginga Bldg.No. 406
Joaquim Ernesto Figueiredo St.
Luanda, Republic of Angola
Tel. 00 244 2 372024, Fax. 00 244 2 372058
falconoil@ebonet.net
97-99 Park Street, Mayfair
London W1Y 3HA
England
Tel. 00 44 207 4090291
Fax. 00 44 207 6293344
Our World
6
FINANCE / Banking sector showing signs of revitalization due to wide-reaching institutional reform
Expansion of insurance and finance sectors
AGUINALDO
JAIME
Deputy Prime Minister
of Angola
AMADEU DE JESUS
CASTELHANO MAURICIO
Governor of the National
Bank of Angola
MÁRIO ABILIO M.
PALHARES
President and Chairman of
the African Investment Bank
■ RESTORING and maintain- in the Angolan economy. The undergoing expansion as new
ing macroeconomic stability is banks themselves are diversify- banks enter the market and longa key consideration for President ing their activities and the total standing institutions amplify
dos Santos and his administra- number of banks has increased. their services.
One of Angola’s most estabtion as Angola seeks to rebuild This means that we are already
experiencing
signifilished
banks is the Commercial
its economy, and the
Liberalization
cant changes in the fi- and Industrial Bank (BCI). In the
liberalization of the financial sector will and increased nancial system, which past, BCI’s competitive advanplay a crucial role in efficiency levels will influence other in- tage was hindered to some degree
are attracting dicators such as the in- by its status as a state-owned The African Investment Bank (BAI) is one of the The National Bank of Angola (BNA) has noticed
this process.
a sector diversification, and is concentrating on
flation rate, the level bank. However, due to changes most successful private institutions in Angola,
Deputy Prime Minforeign
and
justly
proud
of
its
recent
growth
further reducing inflation levels
in
legislation,
the
enterprise
is
of
reserves,
and
the
ister Aguinaldo Jaime
investment
now
regulated
by
the
same
laws
low
level
of
average
says that institutional
influxes
income nationwide.” that govern the country’s com- from the state is disappearing. and ranking in the market.”
and economic reform
activities. Future plans involve
Due to the civil war, Angolan mercial banks and BCI is enjoy- Now the demands placed on pubis vital both for attracting forIn the last two years, BCI has the real estate sector; the bank is
eign investment outside the oil in- banking and finance have been ing the new opportunities this lic and private commercial banks expanded its activities to include currently set to launch a housing
are the same and we must follow partnerships in car dealerships, project of 200 residences.
dustry and luring back Angolan limited in their diversification allows them.
BCI President Generoso Her- the same regulations as private participation in a telecommunicapital that has been invested and largely dedicated to currenAnother key player in the Anabroad. As a result, the govern- cy arbitrage. With peace, the An- menegildo Gaspar de Almeida commercial banks. We are opti- cations company and involve- golan finance sector is the
ment has developed a two- golan banking sector is states, “The burden that we had mistic about our future projects ment in agricultural sector African Investment Bank (BAI).
pronged approach in order to
increase the level of private capINSURANCE
ital within the country and in turn
stimulate economic growth.
Deputy Prime Minister Jaime
explains, “Through a combination of the two policies, we hope
■ The insurance sector in An- vated numerous international
to increase capital and economgola has reflected the country’s partnerships in reinsurance, broic efficiency, as well as bring
transition from colonization to kering, and staff training, ennew technology into the Angolan
Cold War interests and internal abling it to keep pace with trends
market. This is how we see the
conflict, and finally to peace and in the industry.
stabilization process with reIn 1999, the Angolan govdemocracy. Before 1975, the secgards to the reconstruction of
tor was flourishing, with more ernment passed legislation
our economy.”
than 20 agencies providing the opening up the insurance secDue to the predominance of
country’s coverage.
tor as part of its pledge
the oil industry in the Angolan
With the onset of civto reform the country's
New
economy and the high levels of
il war, these compa- subsidiaries are crippled economy and
inflation in the country, priorinies either closed or
helping ENSA in line with recomties for the country’s central bank,
from the
left Angola.
diversify into mendations
the National Bank of Angola
The national state
International Monetary
more varied Fund and the World
(BNA), include strengthening the
insurance entity, the
kwanza, while reducing inflation
Angolan National In- and progressive Bank.
and the economy’s dollarization.
surance and ReinThe reform of the inareas
Measures have been implementsurance sector ended
surance Company
ed to permit banks to expand their
(ENSA), was created in 1978 ENSA’s 21-year monopoly and
credit operations in kwanzas and
and enjoyed over two decades paved the way for an eventual
to reduce market liquidity in orof monopoly in the sector. As sell-off of a large stake in the
der to bring inflation down.
the company’s monopoly coin- state-owned company, in addiBNA Governor Amadeu
cided with the boom in oil ex- tion to stipulating that foreign
Mauricio says that the sector is
pansion in the country, ENSA’s investors would have to find loalready beginning to show signs
primary activity became centered cal partners to move into the
of revitalization: “The succeson insuring the oil sector, which market. Furthermore, the Insive increase of credit levels is a
until recently has continued to be surance Supervision Institute
sign that there is a significant in- ENSA specializes in insuring the future and well-being of the Angolan people
the company’s focus. Also dur- was created to oversee the seccrease in the level of confidence
ing this time the company culti- tor’s development.
National firm ENSA leads the way in the insurance sector
Behind all these thorns and a three
centimeter-thick waxy covering, there
may be a source of pure water.
However, it is necessary to know which
species hold potable water, as there
are plants of this family that are
poisonous. As a result of such local
knowledge, many African tribes are able
to secure access to water even during
long droughts.
7
Our World
Founded in 1996 as the first and management of risk. Alprivate bank with primarily An- though its core business will
golan capital, BAI is now one continue to be meeting the needs
of the most successful in the of Sonangol, the national oil
country, registering growth of company, and other petroleum
over 90% in 2002. Although companies, AAA has also beBAI was originally founded as gun to expand in other direcan investment bank, the An- tions. President São Vicente
golan conflict inhibited the cre- says, “We already have fire,
ation of a properly structured work, accident, liability, life,
financial market. Consequent- and aviation insurances. Obvily, BAI adapted its core busi- ously, our main business is oil
ness to become a full service industry insurance, since the
commercial bank.
base of the Angolan economy
President and Chairman is oil and diamonds, and we reMário Palhares says that as a flect this. However, we believe
private bank BAI has had a that the future is in the other
competitive edge over state types of insurance, although
banks and continues
still need to be
Decentralized they
to do so, due to a
developed some.”
Banking sector
strong commitment regulations and
to IT and personnel high economic reform has also retraining. “We offer stability mean duced investment
what other banks in
international risk in Angola.
Angola have yet to investments are Strengthened insticapacity,
offer. BAI is a dymore secure tutional
namic new bank that
decentralized reguoffers new products, new com- lations, and higher levels of
puter solutions, and inspires macroeconomic stability are
faith in young people with ini- ensuring increased investtiative. All of these factors have ment security.
served to improve the state of
According to Ari Carvalho,
the Angolan banking system Administrator with the Nationoverall,” says Mr. Palhares.
al Private Investment Agency,
Things are also looking up in there is no higher risk in setting
the Angolan insurance sector up business in Angola today
as new foreign investment be- than there is for a company
gins to flow into the country. moving from New York to MinCompanies that have tradi- nesota. Mr. Carvalho believes
tionally had the majority of that the only disadvantage for
their business in the oil sector American investors is the
have begun to extend activity longer-term payback. He adto other areas.
vises, “American companies
One such company is AAA coming into Angola need to
Financial Services, which spe- think locally and not look at
cializes in the administration short-term returns.”
TOTAL is investing heavily in Angola’s oil with the Girassol rig, which has won numerous prizes for advanced technology
ECONOMY / Still reaping the benefits of substantial oil and diamond deposits
A land blessed with riches
■ THE bulk of Angola’s revenues comes from two sources –
oil and diamonds. These are both
enclave sectors, with minimal
linkages to the rest of the economy, a situation that President
dos Santos and his administration
are intent on modifying.
The government aims to gradually integrate the sectors into the
mainstream economy, whether
through the increase in the provision of Angolan products and services in the oil industry, or through
The Angolan National
Insurance and Reinsurance Company
(ENSA) offices in Luanda
the reduction of the informal market, as is the case of the diamond
industry. Revenues from these sectors will continue to play a fundamental part in rebuilding the country,
and major international players in
Angola are also contributing to the
new peace agenda of reconstruction
and rehabilitation.
In the meantime, the country’s
main sectors continue to flourish.
Angola currently produces an estimated 1 million barrels per day of
crude oil. Block Zero, located in
the province of Cabinda, provides
the majority of Angola's oil, but
production from these fields will
be eclipsed by deepwater production further south in the Kwanza
Basin scheduled to come on-line
by 2007.
As the purchaser of more than half
of Angola's petroleum, the United
States is by far the largest importer,
but Angola also exports to markets
in Europe, Latin America, and Asia,
where exports have grown rapidly
in recent years, particularly to China. In the diamond industry, which
currently generates some US$800
million per year in revenues, the recapture of mining sites formerly
under UNITA control and the
launching of a new mine are expected to increase official production substantially in the near future.
OIL AND GAS
International
operators
supporting local
companies
Angola is the second largest oil producer in sub-Saharan Africa after
Nigeria, with reserves estimated at
12.4 billion barrels. Oil currently accounts for 90% of Angolan exports,
50% of its GDP, and 80% of its tax
revenues. Crude oil production has
increased 600% since 1980.
Total production is expected to
reach two million bpd by 2010 as
new production from ultra-deepwater blocks comes onstream.
The industry is also set to benefit from an estimated US$23 billion that will be invested in
Angola’s oil sector over the next
five years.
Block Zero, located off shore
the enclave of Cabinda, accounts
for the majority of Angola’s crude
oil production, although large new
reserves have also been discovered at other offshore sites.
Minister of Petroleum Desiderio Costa elaborates, “During the
last six years, Angola has had a
huge volume of discoveries in
deep and ultra-deep water blocks.
This caused approximately 30
huge commercial discoveries that
are in the development phase at
the moment, which are set to provoke a substantial production increase in the country.”
Continued on page 8
©2003 ChevronTexaco Corporation. ChevronTexaco is a trademark of ChevronTexaco Corporation.
CMYK
We’re developing much
more than energy.
Since 2002, ENSA has undergone massive restructuring
and has implemented an ambitious strategy for the expansion
and diversification of its activities. The company has been divided into three parts: the
holding company ENSA Group,
the insurance company ENSA
SARL, and the reinsurance company Angore, the first to be established in Angola.
Further branching off is
planned through the creation of
subsidiaries of these three main
companies. ENSA CEO Bernardo Makombe relates, “The ENSA Group was established as a
result of the study by a commission created to launch a new
strategy for progress. From ENSA, new companies will be
formed for the participation in
and management of ENSA
Group investments.”
The company’s new expansion
plans are partly due to the oil
boom in Angola, which has been
reflected in the growth of ENSA.
According to Mr. Makombe, starting capital investments for the
new base companies will be
US$50 million for ENSA Group,
US$20 million for ENSA SARL,
and an initial US$15 million for
Angore, which will later be increased to US$50 million.
As well as the increased development of life and personal
insurances, ENSA Group will diversify and expand into non-insurance sectors such as property
development and medical clinics, primarily as a support for its
insurance activities.
Mr. Makombe elaborates, “The
strategy and objectives in light of
the diversification of the insurance activity will give place to the
creation of ten more companies,
which will be subsidiaries and
groups of small companies, for
example, car workshops, medical clinics, etc. that will not be
directly involved with the insurance activity but will support it.”
ENSA Group and the two main
companies of ENSA, SARL and
Angore, will continue to be the
main focus and provide the company’s core business, but they
will also manage the new subsidiaries. The role of the subsidiaries, as Mr. Makombe
explains, is secondary support
for ENSA Group’s expansion
through the reduction of the costs
associated with casualty. The
BERNARDO
MAKOMBE
CEO of ENSA
company plans to set up medical
clinics in order to support its
health and personal insurance
and has already acquired two Angolan hospitals for this purpose.
Regarding car insurance, the
company intends to open its own
garages where cars insured with
ENSA can be repaired. Mr.
Makombe explains, “We intend
to establish car workshops and
the establishment of contracts
with some concessionaries or
car import companies, as a way
of reducing costs with the casualties and making car insurance
more profitable. These cars could
also be incorporated into other
companies that will also emerge
from ENSA Group, like a renta-car company and a car assistance company.”
ENSA is actively seeking new
foreign partnerships as it enters
this new stage of its development
according to Mr. Makombe, who
says that the company is currently
reviewing proposals from four
assistance and risk management
companies for medical assistance,
managing clinics, and the supply of hospital equipment.
Mr. Makombe urges American investors to consider the
new opportunities opening up
in all sectors in Angola as the
country has abundant resources
and offers many possibilities.
He also believes that Angolans
can benefit from international
partnerships and the exchange
of technological know-how
with the U.S.
“During wartime, Angola was
divided into two sides. Now we
have peace and the two sides
are one, we are a nation, a new
country, and one people. We are
thinking now about new elections and a new government chosen by the people. We have the
conditions for seeking new foreign investment, cooperation,
new businesses, and experiences,” he states.
“We have a saying here that
when God walked about the
earth distributing resources, he
arrived in Angola and the bag
he had that was labeled ‘Wealth’
burst, so he said, ‘You keep it’.
Today all the rich resources of
Angola can benefit from American technology, while improving the lives of Angolan people.”
In over 50 African nations, we’re creating new opportunities and building lasting relationships while working
in the energy industry. In Angola, we’re supporting the country’s plans to grow its economy by focusing on
infrastructure development and helping to rebuild its agriculture and fishing industries. ChevronTexaco believes
that lasting peace in Angola brings tremendous opportunities for the future. We’ll be there more committed
than ever to help the people of Angola realize them.
chevrontexaco.com
Our World
8
LOCAL BUSINESS SUCCESS
Falcon Oil forges partnerships with international players
■ Oil exploration and production agreements in Angola’s different petroleum blocks are
structured according to a system
that was established by the government more than 20 years ago.
Angola’s national oil company, Sonangol, was founded
in 1976, and a hydrocarbon law
was passed in 1978 making the
company the sole concessionaire for exploration and production in the country. From
this base, associations with foreign companies are in the form
of joint ventures or production
sharing agreements (PSA).
In addition, in each of the
country’s petroleum blocks
there is a main operator, as well
as a group of equity partners
who share in the cost of the ini- bil’s subsidiary Esso, Falcon
tial signature bonus to procure Oil retains a 10% equity share
the block, and later contribute of the field.
to development costs. As the
Esso is the head operator for
field becomes active and pro- the ultra deepwater block with
duces oil, profits are
a 45% share, and its
divided according to A bright future other partners are Sowith major
the equity stakes.
nangol (20%), TOfirms
Esso,
This setup has conTAL (15%), NIR
tributed to the sucAngola (5%), and PetSonangol,
cessful development
rogal (5%).
TOTAL, NIR
of smaller privately
Although initial exAngola, and
plorations have come
owned Angolan oil
Petrogal
firms and their partup dry in the block,
nerships with larger interna- the companies are reconsidertional players in the country’s ing their exploration strategies
oil sector.
in the region. The first well was
Falcon Oil is one such com- drilled on geological targets that
pany. Granted a PSA in 1999 for were very large, but that had a
the development of Block 33, relatively low chance of findin conjunction with Exxon Mo- ing oil. The license for Block
33, however, also contains geological structures whose seismic images show "flat spots",
indicating that prospects for future discoveries are promising.
Falcon Oil Holdings is currently the only wholly private
African oil company and intends to go public in the medium term. It is part of the António
Mosquito Group (GAM). Mr.
António Mosquito, founder and
president of the Group, is an
Angolan success story. An entrepreneurial prodigy, Mr. Mosquito overcame his humble
origins in a village in the central province of Huambo, where
he was involved in his family’s
small business, to single-handedly build what is today one of
the most important private
groups in Angola.
With central offices in the
nation’s capital, Luanda, GAM
is now a fully diversified group
with a range of activities that
include Audi and Volkswagen
dealerships, an agricultural
equipment company, construction, transport, and mineral exploration. GAM also
maintains active partnerships
in various banks and a chemical company.
GAM has recently been experiencing extensive restructuring that will be significant for
the company’s development. A
new strategic business plan concentrates on four main areas for
future expansion: both the up-
ANTÓNIO MOSQUITO
CEO of Falcon Oil and
President of Grupo António
Mosquito (GAM)
stream and downstream sectors
in the oil industry; agriculture
and fishing; general commerce;
and education and training.
A land
blessed with
riches
One company to benefit from a
recent new deepwater discovery
is TOTAL. Until now, TOTAL’s
most important site has been the
award-winning Girassol platform,
but according to Deputy General
Manager Arnaud Breulliac, the
new deepwater discoveries are exciting new developments.
He comments, “Today’s technology can quite accurately determine the amounts that are below
the seabed and with my 10 years
experience at the top end of the oil
industry, I am quite confident that
these discoveries will be tapped
and production will proceed. It is
very promising.”
Competing with the larger international oil companies in the
country is Sonangol P&P, an Angolan company dedicated to exploration and production. Sonangol
P&P, which was created in 1991,
is the production arm of the stateowned oil giant, Sonangol. The
company’s superior understanding of the local market and the region’s geology, as well its
knowledge of the ins and outs of
Angolan bureaucracy, makes it an
ideal partner for investors looking
to enter the sector.
Sonangol P&P President Sebastião Gaspar Martins says, “Our
vision is to become an operator
based on efficiency and competence and we intend to have a competitive position in Angola as an
Cabinda Gulf Oil Company (CABGOC), ChevronTexaco’s operating unit in Angola,
has been in the country since the 1930s
DESIDERIO COSTA
Minister of Petroleum
active producer. Over time, we
aim to be a big influence throughout the region.”
At the moment, there is only one
major oil refinery in Angola, but
plans for a second are moving forward. The new refinery will be located in the central coastal city of
Lobito and will be primarily for regional exports. Commencement of
the project is expected as early as
the end of 2003, with the refinery
coming onstream by 2007. Sonangol is seeking financing for the venture, which has an estimated cost
of US$3 billion, but the government is looking for other partners
as well.
Minister Costa explains, “The
State-owned Sonangol oversees the country’s offshore and onshore oil operations
upstream sector in our country is
quite developed, but we have
large loopholes in the downstream sector. Due to this fact, the
need to build a new refinery in
the central zone of the country
emerged, which will treat 200,000
barrels per day. The refinery in
Angola is important within the
context of the South African Development Community.”
The Angolan government is also committed to developing the
country’s abundant natural gas reserves. Although the majority of the
gas is flared, the government is developing strategies to reduce this
and increase commercial usage.
Sonangol President and CEO
Manuel Vicente remarks, “We are
working with the main operators in
Angola to implement natural gas
projects and we are convinced that
this will consume a good part of the
gas reserves that are being burnt.”
ChevronTexaco and Sonangol
have agreed to build a LNG (liquefied natural gas) plant at Soyo
that will convert natural gas from
offshore oil fields to LNG for export. According to Managing
Director James Blackwell,
ChevronTexaco has invested
US$600 million to date in the project, which is now 70% complete.
He says, “The Soyo Gas Condensate project is one we started with
a view to getting Block Zero extended and it is a big investment
for the future.”
ChevronTexaco has had a presence in Angola since the 1930s and
is now the country’s largest petroleum producer, with a combined
yield of approximately 600,000
barrels per day. In addition to a recent initiative between ChevronTexaco, the United Nations
Development Program, and the
U.S. Agency for International Development aimed at stimulating
small enterprise growth in the agricultural sector, the company has
also led the way in oil sector social
contributions through its policy of
employing Angolan staff, an effort
that has been well received by local government authorities.
Governor of Cabinda Anibal
Rocha comments, “There is an
‘Angolanization’ policy in some
companies to train Angolan staff.
Sometimes I visit ChevronTexaco and I am moved to see Angolans there handling high
technology oil equipment.”
Deputy Prime Minister Aguinaldo Jaime adds that ChevronTexaco has also been one of the largest
investors in local services. He states,
James Blackwell, Managing Director of ChevronTexaco, meets
with Anibal Rocha, Governor of Cabinda Province
“Chevron is one of the companies
that is really investing, that is really giving some credit to the local
companies.”
DIAMONDS
Peace helps to
create a
transparent
industry
Angola is the world’s fifth largest
diamond producer, with an estimated 8% share of world export
value. Although the exploration of
alluvial reserves has traditionally
dominated the sector, this is only the
tip of the iceberg in terms of Angola’s diamond mining potential,
as only 1% of diamond zones in the
country have been explored.
According to the Vice Minister
of Geology and Mines, Samuel Tito
Armando, diamond mining is one
of the sectors in the Angolan econ-
omy with the most growth potential and new exploration projects in
the planning and development stages
are spread throughout the country.
The Minister also states that exploration of other mineral reserves
will be increased.
He says, “We have a new perspective now in the area of mining development in Angola. In
addition to diamonds, we also have
other minerals, such as iron ore,
copper, and gold. One of the priorities that the Ministry has established at the moment is the
reactivation of the mining sector
in an interlacing program for the
exploration of all these minerals.”
The onset of peace in Angola has
benefited the diamond sector considerably, as witnessed by the sector’s 6.6% growth in 2002. With
the recapture of mining sites formerly under UNITA control, official production is expected to
increase substantially.
However, the government is still
dealing with the problem of illegal
Catoca Project accounted for 69% of Angola’s
total diamond production in 2002
Source: Catoca
9
Our World
REGION / The driving force behind Angola’s oil industry is looking to develop new areas of interest
Cabinda, much more than black gold
■ THE enclave of Cabinda, separated from Angola by about 25
miles of a narrow strip of the Democratic Republic of the Congo,
is the driving force behind Angola’s oil industry.
Petroleum production from
large offshore reserves began in
1968 and now accounts for the
majority of Angola's output. The
province produces 60% of the
entire national production, and
generates nearly all the country’s
foreign exchange earnings. Despite recent deepwater discoveries off mainland Angola, it is
quite clear that Cabinda will continue to be the country’s oil mainstay in the foreseeable future.
President and CEO of Sonangol, the state-owned oil company, Mr. Manuel Vicente,
comments, “The northern part of
the country will continue to have
a fundamental role in the oil activity for a very long time, and the
largest part of the production continues to come from Cabinda.”
Minister of Petroleum
Desiderio Costa says that the
new refinery planned for the
city of Soyo will increase the
value of Cabinda’s fields as the
oil produced there is heavy and
acid. Minister Costa believes
that refining this oil is a way for
Angola to gain, and the government is looking for partnerships in carrying out the project.
He says, “The project will be
carried out through partnerships
with certain countries of the region, either through the government or through private
companies.” The ChevronTexaco subsidiary, Cabinda Gulf Oil
Company (CABGOC), is the op-
IN BRIEF
Cabinda customs
■ The people of Cabinda are
of Bakongo origin. Ibinda is
the common language, and it
has strong links to the Kikongo language, which was widely spoken throughout the
region when it was part of the
Kongo Kingdom.
There is a wealth of wonderful works of wooden, stone,
and ivory sculpture to be found
in Cabinda. A peculiar local
custom is the sculpting of decorative figures on tombstones,
which provides a fascinating
tourist attraction. The tombs
of the Kings of Cabinda have
been intricately sculpted.
Weaving is also a traditional
craft and local artisans use raffia, a fiber from the ananaseiro
leaf, in their creations.
Natural wealth
Oil revenues are being reinvested in Cabinda’s infrastructure to develop the province and improve living standards for its people
erator in Block Zero, located offshore Cabinda, with a 39.2%
share. The block has been operational for decades now and accounts for the majority of
Angola’s crude oil production.
As a result of this historical
JOSÉ MANUEL AUGUSTO
GANGA JUNIOR
General Manager of Catoca
operated by a private company of
the same name, looks set to continue to be Angola’s main revenue
earner in diamonds. Catoca currently has a 60% share of the market in Angolan diamond
production and General Manager
José Manuel Augusto Ganga Junior, who says that the diamond
sector is set to experience a boom,
expects revenues to reach US$1
billion by 2007.
He states, “Catoca not only
represents 70% of formal production volume in the country,
but 40% of Angola’s global earnings as well. However, Angola
is an unexplored country. There
are at least 800 species of kimberlite of which only one is currently being explored. We think
that by the end of 2004, we shall
be the fourth largest diamond
producer in the world.”
Cultural history
■ When the Portuguese arrived
in 1482 on the Zaire coast in
search of a new route to India,
they came into contact with the
Kongo Kingdom for the first
time. Powerful and structured,
this Kingdom extended from
what today is eastern Democratic Republic of the Congo, over
Cabinda, southern Congo (Brazzaville) and a part of Gabon.
Organized into six provinces,
the Kongo Kingdom encompassed a large number of ethnic
groups who had adopted the
Kongo culture. Thus, the Sundis,
Bembes, Yombes, and Vilis,
whose common language was
Kikongo, formed this large collection of people still known today as "Bakongo". The ancient
Kingdom of Kongo, with Mbanza Kongo as its capital, was probably founded at the end of the
14th century.
Endiama
diamond smuggling. Despite increased corporate ownership of diamond fields, much production is
currently in the hands of small-scale
prospectors, who often operate outside the legal channels. In response,
the government has made an increased effort to register and license
these prospectors and now legal
sales of rough diamonds may occur only through the government's
diamond-buying parastatal, Sodiam.
An export certification scheme
consistent with the Kimberley
Process has also been established
to identify legitimate production
SAMUEL TITO ARMANDO
Vice Minister
and sales, and the initiative has
of Geology and Mines
been well received internationally. Managing Director of the External Intelligence Service, development, and prosperity. Dr.
Brigadier General Fernando Gar- de Sousa Calado elaborates, “Hiscia Miala remarks, “The diamond torically, our diamonds have been
issue is still a national security mat- referred to as ‘blood diamonds’, but
ter but it is a problem that will be this is the past. The diamonds will
never again be used to finance the
resolved soon.”
Dr. Manuel de Sousa Calado, destruction of Angola. They will be
used for rebuilding and
President of the stateIllegal
developing the country.”
owned National Diasmuggling is
mond Company of
Endiama Group has
Angola, Endiama, is being stamped also recently created
concerned with the in- out to improve Endiama P&P as its
new production arm.
ternational image of Anthe global
President and Chairgolan diamonds, which
image of
have often been associManuel Watangua
Angola’s gems man
ated with the war in the
is in charge of doubling
country resulting in the lowered Angola’s diamond production in
success of the Angolan diamond on the next few years and Endiama
P&P is currently looking for ininternational markets.
Consequently, Endiama intends terested investors to participate
to launch a promotional campaign in the expansion of the diamond
in the United States so that Amer- mining sector.
In the short term, however, the
icans begin to associate the diamonds with peace, harmony, established Catoca mine, which is
Blackwell, remarks, “One of our ulate the growth of new areas
concerns is our community de- such as tourism.
Governor of Cabinda, Anibal
velopment projects. They are a
big part of our business here and Rocha states, “Our future strategy is the development of Cabina big investment.”
Cabinda became a Portuguese da’s other riches. In addition to
protectorate in 1887 after the the wood sector, we have agri1884 conference in Berlin, culture and livestock breeding,
which saw European colonial as well as deep sea and contipowers scrambling to divide the nental fishing activities. There
African territories. Governed as are also other mineral resources,
such as gold.”
a separate colony for
Although not
Cabinda faces a situover 60 years, Cabindestined for ation similar to the
da was incorporated
into Angola by the independence, Niger Delta states in
Portuguese in 1956.
the province Nigeria. Political tensions are high in some
On independence in
may gain a
areas of the province, as
1975, the Alvor Accertain
cords were signed
separatist groups, priautonomy
marily the Front for the
stating that the
province was to remain an in- Liberation of the Cabinda Enclave (FLEC), demand a greater
tegral part of Angola.
The province has an area of share of oil revenue for the
2,800 square miles, roughly the province’s population.
Since the early 1990s, the govsize of Delaware, and offers an
equatorial climate in addition ernment of Angola has impleto a sizeable rainforest. Before mented various measures in
the war and before the oil order to appease the groups,
boom, the Cabindan economy such as encouraging FLEC
was based on timber, cocoa, members to lay down their arms
and coffee and local govern- and join the administration, a
ment authorities are imple- move that has met with at least
menting measures to revitalize partial success. Managing Dithese sectors, as well as stimContinued on page 10
partnership with the Angolan
government, ChevronTexaco has
been deeply influential in the
development of the province, a
continuing focus for the company. Managing Director of
ChevronTexaco, Mr. James
■ The forest reserve of Kakongo houses the great forest of
Maiombe, described by locals as
the ‘vegetable sea’. The reserve
covers some 290,000 hectares,
including its almost impenetrable forests in their rich tones of
luxuriant green.
The forest grows right down
to the sea, with enormous trees
bending into the water and waves
lapping the greenery, as gorillas
and chimpanzees whoop from
the high branches. Rare tropical
hardwoods are found in the reserve, such as African sandal and
ebony. Surrounded on three sides
by the Luali and Inhuca rivers,
Kakongo is flanked to the north
by the Congo and is home to a
multitude of bird species.
The Vice Minister of Geology and Mines, Samuel Tito Armando, sees an enormous potential for
growth in the country’s diamonds and minerals such as iron ore, copper, and gold
Our World
Cabinda,
much more
than
black gold
rector of the External Intelligence Service, Brigadier General Fernando Garcia Miala says
strong, organized FLEC forces
are now non-existent.
He explains, “The situation
in Cabinda is under control and
the most important task now is
to reintegrate the people who
ANIBAL ROCHA
Governor
of Cabinda
surrendered into the society. The
soldiers of FLEC will be integrated into the national armed
forces, some into the provincial
police, and others into municipal, district, and provincial administrations. The government
is also ready to negotiate on
matters related to autonomy.”
The Angolan government has
also taken heed of complaints
from Cabinda’s population
about the lack of infrastructure
and development in the region
and now reinvests 10% of the
province’s oil revenues back into the enclave. This is beginning to improve living standards,
a crucial element in defusing
the conflict, according to Governor Rocha.
He states, “We believe that
the solution of the Cabinda
problem will emerge from resolving the socio-economic
problems of the population.
Cabinda receives a percentage
of oil profits, which amounts
to US$6 million and is channeled back into the effecting of
work programs.”
In September 2002, the Angolan government announced
that it was prepared to open
talks with Cabindan separatist
groups and offer the province
some measure of autonomy, but
ruled out the prospect of complete independence.
INFRASTRUCTURE / A new government investment agency is
targeting Angola’s reconstruction and rehabilitation needs
state-owned National Electric Company (ENE), through the rehabilitation of its hydropower stations.
Further plans include creating a
national grid by linking the three
current regional electricity grids
and establishing linkages with
The government of Angola has an- neighboring countries. This pronounced plans for a major rehabil- ject, coupled with the power plant
itation of its power sector rehabilitation, could provide the
infrastructure. Significant portions basis for Angola becoming a reof the country’s generation and trans- gional exporter of electricity.
Minister of Energy and Water,
mission facilities were damaged
during the civil war and conse- José Maria Botelho de Vasconcequently there is no distribution net- los, states, “The scene constitutes a
work outside the capital of Luanda. great challenge because the counApproximately 15% of the country has experienced a long war and
try has access to electricity, as the the energy infrastructures were not
current capacity is 586 megawatts saved from destruction.
for 13 million inhabitants.
“We are now in a reSubstantial
construction and restoraIn comparison, Illinois, a
state with approximate- energy sector tion phase. We know
investments that the solution to the
ly the same population
could lead to energy problems in the
as Angola, has an energy capacity of almost exportation of country will only be possible by integrating pub30,000 megawatts.
electricity
lic investments with
Although capacity is
resources
evenly split between
private partners. At the
thermal and hydroelectric units in moment, especially in energy and
the country, hydroelectric facili- water sectors, Angola is a country
ties generate more than two-thirds of opportunity.”
However, the energy sector is
of Angola’s electricity.
However, of the country’s six hy- closer to rejuvenation than statisdroelectric stations, only three are tics imply, due to the reconstruccurrently functioning. The govern- tion of the Capanda dam. This will
ment has proposed a US$500 mil- soon be supplying the country with
lion investment over twenty years a further 260 megawatts and is due
in the construction and restoration to reach its full capacity of 500
of power facilities, of which US$200 megawatts by 2007.
million would be spent on recovState company Gamek has overering the production capacity of the seen construction on the dam since
ENERGY AND WATER
Two sectors
ready
for overhaul
10
Attempts to broaden Cabinda’s commercial base are leading to the development of the timber, cocoa, coffee, and tourism sectors
Rebuilding a country
■ DESPITE Angola’s vast resources, decades of attacks on civilian installations and inflated military
spending have left the country’s infrastructure in decay and the new
government with the enormous task
of reconstruction. Only 30% of the
country has access to clean drinking water while telephone lines
reach only 5 out of 1,000 people.
No road repairs have been carried
out since the 1970s. Lack of domestic investment during the war
has led to urgent demands and great
expectations of President dos Santos’ peacetime administration.
As part of its response, the government has established an agency
to review investor applications and
promote private investment. One of
the main tasks of the National Private Investment Agency (ANIP) is
the selective targeting of foreign
investment that will facilitate economic and social development and
the reconstruction of Angola.
Mr. Ari Carvalho, ANIP Administrator, elaborates, “Our objectives are to promote investment
on a long-term basis in those areas that have suffered because of
the war, where there is a low presence of industry and where development is needed.”
The agency’s task is greatly aided by the fact that Angola is potentially one of Africa’s richest
sub-Saharan countries and offers investment opportunities in areas as
diverse as the newly-liberalized financial sector and agribusiness.
Escom
TRANSPORT
Improved
connections are
kickstarting
commerce
Thirty years of war have imposed
a heavy toll on Angola’s transport
infrastructure. Destruction or lack
of maintenance of roads, bridges,
and railways, aggravated by the
presence of land mines, has resulted in the isolation of large
parts of Angola’s vast territory,
which is approximately twice the
size of Texas.
Consequently, the government
has implemented an immediate
short-term emergency infrastructure program and a broader
15-year development plan.
Minister of Transport, André Luis
~ comments, “The transBrandao,
portation sector for any country
is always its backbone. In Angola, when we speak of transportation, we speak of two main areas:
on the one hand, the immense deteriorated state that the war left infrastructures in, and on the other,
Angola’s Ministry of Transport is focused on the
modernization of ports, roads, airports, and railway networks
the normal wear and tear that
comes with time and usage.
its conception in 1982 and Gener- opment in the industrial sector. In“The government has already
al Manager José Sonnemberg Fer- dustrial development cannot exist initiated an emergency program
nandes stresses the importance of without electrical energy. When Ca- for rehabilitating the infrastrucrebuilding the energy sector.
panda begins producing energy, the tures, which will guarantee the
“Even though Angola is a po- country’s industrial parks can real- circulation of people and goods
tentially rich country, it will not ly start to develop as they will have throughout the country. Howevmake progress if there is no devel- a constant power supply.”
er, we are also aware of the imThe U.S. has also taken an ac- provement and modernization
tive interest in the development needs of the main transport areas
of the energy sector as U.S. Am- and will provide for them in the
bassador to Angola, Christopher longer term: basically, new ports
Dell, explains.
with capacity, the opening of air“In my view, energy should be ports for regional and internathe motor of economic develop- tional activity, and also the repair
ment for Angola. The country has of the national railway system.”
an abundance of energy resources,
Another effect of the transport
not just petroleum, but also natur- infrastructure breakdown is the
al gas, as well as a huge
to distribute
A reduction in inability
hydro potential. Therecommodities within the
fore I have suggested import reliance country, which has conthat we assist by devis- is forecast with tributed to making Aning a national energy the continued gola highly dependent
strategy to make the improvements on imports.
most effective use of the
An enhanced transof national
various resources.”
port network would
transportation help in the creation of
Another area facing
the challenges of post-conflict domestic industries. The estabrestoration is the water supply. lishment of proper links between
Mr. Lucrécio Costa, President of provinces would also unleash the
the Board of Directors for EPAL, agricultural potential of the counthe public water company in Lu- try as Mr. Ari Carvalho, Adminanda, says that extensive repair istrator with the National Private
and investment is needed in both Investment Agency, points out.
water processing and in distrib“We are looking for what I call
ution networks. However, Mr. subsidiary investment – in food
Costa remains optimistic and al- and cargo. For example, in
so stresses Angola’s capacity as Benguela they are throwing tomaa regional provider.
toes away right now because they
“Angola is estimated to have do not have the transport means
an abundance of water for the to bring them to the city.”
next twenty to thirty years. I
Benguela, a city located on the
think that Angola’s development south coast of Angola and the
will be sustainable and it will country’s second largest urban
need to provide services for its center, is home to the famous
own population, and for its Benguela railway, originally conState company Gamek predicts the Capanda dam will reach its full energy-providing capacity of 500 megawatts by 2007
neighbors as well.”
Continued on page 12
25
years
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In every case, ENSA has the appropriate
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Av. 4 de Fevereiro, 93 - Luanda
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Tel: +244-2-671-671
Fax: +244-2-671-672
e-mail: segurado@ensa.co.ao
SEGUROS DE ANGOLA, SARL
Yesterday, Today and Always!
Our World
12
Rebuilding
a country
structed to transport ore from
the Congo and Zaire in the early 20th century. Situated some
18 miles north of Benguela is the
Port of Lobito. Considered in
world navigational circles as
one of the best ports on the
African continent, its natural
deep bay conditions and strategic location provide access to
central and southern Africa and
to both the Atlantic and Indian
Oceans. The Port of Lobito is also thought to be the most efficient port in Angola.
Director General José Carlos
Gomes hopes to one day see the
Benguela railway extended to the
Democratic Republic of the Congo, as the “imports and exports
will really begin.” In preparation,
Dr. Gomes has ensured that the
Port of Lobito has the capacity and
equipment to effectively deal with
the increase in activity.
“We have already installed infrastructure to correspond with
every type of merchandise that
may arrive in the future. Regardless of what we will import
or export, we are ready. We have
been preparing.”
The Port of Lobito ran at 15%
capacity during the conflict years
and is now up to nearly 50%. The
continuing stability of the country’s political climate will most
definitely allow the port to increase capacity further and become a regional transport hub.
There are approximately 2000
stevedores working at the port,
which is fully equipped with upto-date IT, machinery, and storage facilities, in addition to a
medical center.
TELECOMMUNICATIONS
Liberalization
has led to an
increasing cell
phone market
The telecom sector in Angola is
beginning to mobilize, especially in the nation’s capital, Luanda. Although land lines
currently reach less than 1% of
the population, an increasing
number of inhabitants have access to cellular phones. This
phenomenon has taken less than
The Port of Lobito is considered to be one of the best ports on the African continent due to its strategic location providing access to both the Atlantic and Indian Oceans
UNITEL is one of Angola’s flagship companies within the
growing telecommunications sector
two years to achieve. Laws governing the liberalization of the
sector were passed in 2002,
bringing an end to the monopoly of state-owned national telephone company Angola Telecom
and allowing the entrance of
new operators, who are actively seeking foreign partnerships.
Four additional landline operators have now been licensed, in
addition to the expansion of the
cellular phone market. As Angola Telecom continues to dominate the landline market, these
four new providers are tending
to concentrate on niche markets,
as is the case with Mercury, a
company originally founded in
1999 to provide support for the
state oil company, Sonangol.
Granted a landline license in 2002,
Mercury now intends to offer
its expertise in petroleum
platform markets to other oil
companies in the country,
while extending the range
of services it has been providing to Sonangol.
Regulations governing
the liberalization of the Angolan telecom sector are
contained in the White Book, a
plan drawn up by the government
to outline the future of the sector.
A government priority, reflected
in the White Book’s liberalized
market conditions, is the extension of telephony and related services to all the provinces.
As National Director of
Telecommunications Aristides
Safeca explains, “The White
Book defines a mission for the
sector; to take telecommunications to all areas of the country,
while ensuring quality and good
prices.” This focus on development is repeated by National Private Investment Agency
Administrator, Ari Carvalho.
“Angola started anew as of April
last year with new laws, and it is
a country with a lot of potential,
people, and natural resources.
It is also a country that
needs nurturing,
and for someone to come in, not rently has over 100,000 clients,
for a quick return but to help de- and aims to increase this numvelop the country,” he says.
ber to more than 500,000 withThe governing and primary li- in three years.
Assistant General Manager
censing body for the new telecom
sector is the National Institute of Amilcar F. Safeca elaborates,
Communications (Inacom). Min- “We are focused in the area of
ister of Posts and Telecommuni- mobile telecommunications, as
cations Licínio Tavares Ribeiro we consider it to be the one that
have the largest
states, “Inacom is the
New operators will
growth in the next few
department that will
are working years. There is no
control the market:
with foreign question that the celestablish rules, the
lular phone will play
prices, and the links
partners to
between operators.”
increase the an important role in
The launching of a nation’s mobile Angola as the fixed
line situation is very
new GSM (global
options
complex. The cellular
system for mobile
communications) network in phone has more advantages so
April 2002 also ended the state’s we believe it will be the main
monopoly on cellular telecoms. motor for telecommunications
Currently, there are two mobile in Angola.”
Another new operator on the
phone providers: Angola Telescene is Telesil/Nexus, which
com and UNITEL.
Angola Telecom uses the older is focused on providing InterCDMA cellular system while net services, and hopes to connew mobile operator, UNI- nect 12,000 lines within the
TEL, is GSM-based. next few years.
CEO Rui M. dos Santos says,
Consequently, UNITEL, founded in “Our niche market is basically
2001, now has the combination of services not
66% of the provided by Angola Telecom, or
m a r k e t at least not provided
share. Par- with the same level of
tially owned quality. This mainly
by Portugal includes Internet
T e l e c o m , services, together
UNITEL cur- with voice service.”
The Ministry of Posts and
Telecommunications is working with new
operators such as Mercury to provide
support for state oil company Sonangol
and other oil enterprises
COMMERCIAL PORT OF LOBITO
Avenida Independencia, Nº16 Lobito, Benguela, Angola
Tel: +244 722 2711/8 Fax: +244 722 2719 www.eplobito.com

Birth of a New Era Birth of a New Era

Transcription

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