Angola’s improving business dynamics

Angola

Luís Borba Rodrigues, managing partner of LBR Advogados, talks to The Energy Year about the attractiveness of Angola for international investors, the key challenges the company can help investors navigate and the dynamics regarding new investors entering the market. LBR Advogados specialises in Angolan commercial and corporate law.

How attractive do you think Angola is for international investors?
I think that Angola is very attractive. It will double in population in the next 25 years. Moreover, Angola is integrated into the African Free Trade Area, where we will, in the future, have access to a market of 55 countries with a total population of 1.3 billion people. The development of the SADC [Southern African Development Community] will also make a positive economic impact on the potential of Angola. This means that Angola will have access to a huge market in terms of consumers.
I’ve looked at the opportunities. There are many initiatives that can be taken and many sectors that can be developed. Regarding our economy, you have a competition authority that has been very active, and this will put pressure on the economy to ensure competition on a more equal basis, allowing the economy to develop.
If investors wish to be here for the long term, I think that Angola presents many incentives and opportunities. There are challenges, but you can navigate them. They have been addressed. They do not change from one day to the other. It is a process. However, I’m confident in that process.

What are the key challenges that law firms such as LBR Advogados can help investors navigate?
We can help them to know the market and how institutions work. There is a current effort to simplify procedures and licensing, but sometimes reality does not reflect what the law says, so we have to sometimes assist, explain and go through the whole process with investors based on the actual reality. This is what we have to offer: knowledge of the reality, knowledge of the law and protection of investments made in the country.

What are the dynamics you’ve been seeing in terms of new investors entering the market?
There is a growing number of investors interested in entering the country – some from the oil industry and others from other areas. 2023 was not a very good year, mainly due to the devaluation of the currency. There were also shortages of foreign currency in the market, which certainly affected foreign investors. The previous year was an election year, so people were also somehow on standby.
Nevertheless, I think that 2024 will be a better year, and we’ll see an increase in investment in the country. There is also an effort from AIPEX [Angolan Agency for Private Investment and Promotion of Exports] to increase investments. Their approach is investor friendly, which is good.
In terms of entering the country, the government also sent a positive signal with the removal of tourism visas for citizens of many countries. This is a good sign. It does not allow work, but it allows people to come, visit the country, discuss business opportunities and so on. We are witnessing a new environment, a more business-friendly country.

What are LBR Advogados’ key goals for 2024?
We have experienced very significant growth. We simply want to maintain our path, solidify our structure and continue our growth, particularly in the energy sector (but also in the infrastructure, financial and ESG areas). Within five years, we’ll be recognised as one of the main players in the market. I’ve always had enthusiasm for Angola. Investing in Angola is certainly a good investment. Investors know they must be well accompanied, also from a legal standpoint. Therefore, the message I give is that LBR is here to assist them in this process.

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