user's avatar
and Economic StagePosted
ANGOLA: New Political and Economic Stage
The Republic of Angola, upon completing its 44 years of independence on November 11th 2019, is aware of the major 메이저사이트추천 challenges that lies ahead.

Since 2017, after August Angola's elections, in which Angolan electors entrusted their vote to the MPLA party and the new President of the Republic of Angola, Joao Manuel Goncalves Lourenco, the nation has entered into a new political cycle, with the deepening of its democratic process and reinforcement of its openness to the outside world. Through a new vision for closer and more permanent dialogue, concertation and collaboration with international financial organizations, the Angolan Government has been creating conditions to privilege the role and importance of the business sector in the national economy and its openness to foreign private investment.

While in 2014, having started an economic and financial crisis, caused, among other factors, by the drop in oil prices in the international market that still occurs today, this reduction in monetary inflows has triggered, not a standstill, but a slowdown in the country's economic and social development process.

The government's 2017-2022 five-year program, planned to deal with the situation, whose motto "improve what is good and correct what is wrong" is focused on promoting the well-being of Angolans. The motto itself leads to infer that it is a sequel of the National Development Plan (NDP) which in 2012 started a new cycle of the history and experience of Angola's planning system.

However, it should be noted that the implementation of the 2012-2017 and 2018-2022 NDPs, as part of the long-term National Development Strategy "Angola 2025", was seriously affected by the international crisis caused by the low oil prices in the international market. Therefore, the growth strategy is currently being secured by the Production Support, Export Diversification Program (PRODESI), which is an appropriate instrument to effectively accelerate the diversification of national production and wealth generation in a set of specific productions and lines to be integrated in clusters with greater potential for value creation and export and import substitution, namely: Food and Agro-Industry, Mineral Resources, Oil and Natural Gas, Forests, Fisheries, Textiles, Clothing and Footwear, Tourism and Leisure. In addition to trying to address the various constraints that hindered the success of previous Government initiatives, PRODESI also has as its peculiar characteristics, highlighting a strategic alliance between the State and the private sector in pursuit of its objectives.

This five-year macroeconomic framework aims to consolidate stability and ensure the conditions for economic growth. To this end, its key factor is the reduction of public expenditure, the sustainability of public finances and the doubling of non-oil sector revenues. Angola is rich in mineral, energy and agricultural resources and the Government is very sure that with a more open and competitive economy it will be possible to transform the huge potential of Angola into real wealth. For this reason, the objectives of the policy of promoting and diversifying Angola's economic structure as part of the National Development Program 2018-2022 are based on the following priorities:

? Angola will continue to strive for respect on the most elementary principles of international law on which State relations are based;

? Transparency in the management of public affairs, as one of the biggest objectives of the Angolan Government which aims to make State institutions good examples of action to defend the public interest;

? Legal measures to facilitate bureaucratic processes, movement of persons and the fight against corruption and impunity;

? Adoption of economic and financial reforms for macroeconomic stabilization. As an example, the National Bank of Angola continues to strive to consolidate exchange rate stability, control inflation and, lately, to create clear rules for the functioning of a strong financial market;

? Approval of new legislation on foreign investment and competition and the fight against monopolies, namely the Private Investment Law and the Competition Law, as well as the new foreign exchange policy;

? Legal protection for foreign investors, allowing them to transfer their dividends, profits and repatriation of capital abroad. In this sense, a new type of visa was approved, the investor visa, which facilitates all those investing in Angola to have a different treatment in terms of entry and stay in the country for timely monitoring of their projects;

? The Government of Angola has been doing its best to respond to major endemics, especially the HIV/AIDS epidemic, by observing and respecting international milestones and goals, because it is aware of the harmful effects of these diseases, both on the economy and strategic national objectives.

These progresses have been gradually achieved and the Angolan Government is conscious that they are still far from the desirable, and for this reason, there are priorities such as the tourism industry, as it has enormous potential, the agricultural production, given its availability of arable land and its climatic conditions, and the attention to youth as it constitutes the majority of the population that predominates in all sectors that will transform Angola.

The status of oil producing country, especially in this phase in which Angola, due to lack of internal refining capacity, imports about 80% of the oil products it consumes, forced the Angolan Government to also place among its priorities the readjustment of the organization of its oil sector.

Therefore, the defined strategy began this year with the establishment of the National Agency of Oil, Gas and Biocarbons. Within this strategy, there is also the need to boost and intensify the substitution of reserves to alleviate the sharp decline in oil production, ensuring self-sufficiency of refined products through the construction of new refineries and the expansion of the existing one and improving the network distribution of fuels and lubricants all over the national territory, through increased storage capacity.

In this regard, it is worth mentioning as a major note in the diversification strategy that the diamond industry also plays a primordial and determining role. Accordingly, a new legislation was recently established, ending the existing monopoly and opening the sector towards foreign direct investment, offering advantages and facilities.

Cooperation Relations between Angola and South Korea

The Diplomatic relations between the Republic of Angola and the Republic of Korea were established on January 6th , 1992. The Republic of Korea opened its Embassy in Angola in 2007 and the Republic of Angola opened its Diplomatic Mission in South Korea in 2008.

Both countries have always had an excellent relationship with mutual advantages. There were always exchanges of visits at various levels and regular consultations on national and international issues of bilateral interest, such as the election of both countries to non-permanent Members of the UN Security Council.

The two countries signed the General Agreement for Economic, Technical and Scientific Cooperation in 1993 and on the basis of which they established a Technical and Economic Commission (Bilateral), which began its first working session in 2004 in Luanda and the second, in 2009 in Seoul. As a result of the negotiations so far, more than 11 Agreements, Protocols and Memorandum of Understanding have been signed in the various fields of mutual interest between the two countries. Furthermore, other legal instruments for cooperation are under negotiation, including the Reciprocal Investment Promotion and Protection Agreement.

From 2016 to 2019, there has been recorded intense movement of companies and entrepreneurs from both countries, who travel for market research and intent on private direct investment.

At a time when Angola is committed to attracting investment, promoting partnerships and business in all segments, the Government of Angola is aware that it needs interested and mutually beneficial participation of Korean partners to make medium and long term investments in these key sectors of our economy, with cutting-edge technologies and know-how that only foreign private investment can guarantee.

In the framework of our relations, intended to be more privileged and strategic, the Angolan Government invites all companies, enterprises and businessmen to participate in this development effort that will certainly be mutually beneficial for both countries.
and Economic StagePosted

and Economic StagePosted