The current oil crisis has affected many countries in the world, and Angola, being the largest oil producer in Africa is now suffering from a very shaken economy.
Having more than 80% of its GDP dependent on oil production, Angola’s economy has being greatly affected by the lower oil prices that are now prevalent. This situation has prompted the government to analyse the countries economic activities in an attempt to find different industries that can help the country’s economy just as oil used to.
Decades of amassing billions of dollars from the production of oil, have led the government and its people to forget that the country possess other very lucrative industries in which the country used to rely before its independence.
Believe it or not, but Angola, this little known country in Africa, used to be the world’s third largest coffee producer, its oranges and apples used to exported to Europe ( mainly Portugal), its cheese production was high enough to supply the whole country as well as many other agricultural products from which the country used to be known for.
Since Angola gained its independence in 1975, the country plummeted into a civil war that only ended in 2002; and from 1975 up until now, Angola’s economy was confined to a strict exercise of exporting crude oil and importing every single product that one can imagine, form pencils, toys, clothes, food, meat, chicken, rice, cooking oil, cookies, electronics, cars, everything.
Now, unable to import products due to lack of US Dollars or as they are now known here “petro dollars”, the government is now providing incentives for the dynamization of the industries such as mining, agriculture and tourism.
For the pessimist, it might sound as if Angola is the last place on Earth to visit at the moment, but for those who have an entrepreneurial spirit will quickly understand that this is the most appropriate time to invest in the country.
For those who possess strong foreign currencies such as Euros or US Dollars, Angola is now among the cheapest countries in the world due to our local currency’s depreciation.
Land, houses, and used cars are now very cheap if its price is converted to a stronger currency. This creates the ideal atmosphere to invest in the country’s promising agriculture and mining industry.
Please take into consideration that Angola has the necessary natural resources to surpass more than ten times its current oil-dependent GDP; in the last two years Angola produced 7 962 330 carats of diamonds, and there are more diamond areas to explore. In addition to diamonds, we have huge reserves of gold, iron, copper, uranium, zinc, manganese, granite, marble, fluorite, phosphates, quartz and many more minerals.
In the agricultural side, foreign investors need to bear in mind that there are 26 million inhabitants in Angola who are willing to buy any agricultural product that is offer to them as the current supply does not satisfy the local demand yet. Currently, there has been an increase in production of bananas and tomatoes, leaving the other thousands of products to the importers.
Please remember that although Angola’s food production is too small at the moment, there are millions of people in the Republic of Congo, Zambia, Namibia, and the Democratic Republic of Congo importing into their countries Angolan products. For this reason, investors need to always have in ind that in terms of agriculture, they will not only profit locally but also internationally by supplying products to Angola’s neighbouring countries.