Angolan Embassy in Canada

The industrial sector in Angola was devastated by the departure of the Portuguese on independence in 1975 and the subsequent civil war (1975-2002). The sector now began wholesale restructuring and modernization.

There are significant industrial business opportunities for investors in many areas of activity Existing industries include manufacture of consumer goods, the processing of local agricultural raw materials, oil refining, metal-working, cement production, textiles and pharmaceutical production.

There is significant potential to expand food processing and light industry with an infusion of capital, technology and training. The Government plans to privatize many of the sate-run industrial enterprises.

Under Portuguese colonial rule (before 1975), the manufacturing sector was dominated by light industries that produced consumer goods, especially the food processing industry, which accounted for 46% of the value of manufactured output in 1973. In contrast, heavy industries accounted for only 22% of output. By 1976 only 284 out of 692 manufacturing businesses were operating under their old management. In March 1976, the Government nationalized all of the abandoned businesses. In 1985 industrial production was only 54% of its real value in 1973.

By 1986 only approximately 180 companies were operating in the manufacturing sector, and their output was equal to about 13% of GDP. Of that amount, state-run companies accounted for 56%.

The strategy of the Angolan Government to relaunch its industrial sector is based on a series of measures that include reinforcing the banking sector and the creation of new taws and incentives for private investment, new incentives granted to productive sectors and changes import duties.

In April 2009, the Angolan Government at the National Conference on Transforming Industry announced to invest Usd 8.6 billion in the implementation of its Executive Programme for the Transforming Industry for the 2009/2012 period.

Meanwhile, the amount Usd 4.1 billion will be used in the substitution of imports and foment of exports, while 71.2 million will go for institutional capacity building, whereas 4.2 billion will be spent in the structuring industries.

Construction of three pharmaceutical plants in Luanda, Benguela and Dondo (Kwanza Norte province).
Rehabilitation of a fish-processing factory in Namibe.
Installation of a television assembly line.
Expansion of the Luanda steel complex.
Construction of a shipyard and seaport in Cabinda province.
Construction of a new brewery.

The Angolan Government approved in 2004 a new law granting significant tax incentives to foreign and national investments, which will contribute to the development of manufacturing industry and other priority sectors.

In March 2003, Angolan Government agreed to adhere to the SADC Free Trade Protocol that seeks to harmonize and reduce tariffs by establishing regional policies on trade and customs duties. In September 2004, the government announced reduced customs duties on imported goods and in December the same year exempted entities in the enclave of Cabinda province from all customs duties. These reductions and exemptions do not apply to the oil industry.

The industrial sector is currently growing from a low base industrial production growth in 2004 was 13,5% industry in Angola accounts for 65,8% of GDP (Gross Domestic Product), although most of this is oil production or related (approximately 50% of GDP).

The main industrial sectors are petroleum, diamonds, cement, basic metal products, fish processing, food processing, brewing, tobacco products, sugar, textiles and ship repair.

Major investments are planned for the next few years in key industrial sectors, such as cement, oil refining, sugar production, construction materials, oil-related industries (chemicals and steel works), beverages, food processing and mining.