In this page: FDI in Figures | What to consider if you invest in Angola | Procedures Relative to Foreign Investment | Investment Opportunities
According to UNCTAD’s World Investment Report 2024, FDI flows to Angola FDI flows to Angola remained negative for the sixth consecutive year in 2023 (-USD 2.08 billion) as companies in the oil sector continued to repay loans. Similarly, the stock of FDI in the country decreased significantly to USD 12.17 billion from USD 14.26 billion in 2022. The petroleum sector remains the main destination for FDI flows. Most FDI in Angola comes from the Netherlands, France, China, Portugal, and Brazil (IMF). The vast majority of foreign investment is directed towards the region of the capital Luanda (Angola’s Private Investment and Export Promotion Agency – AIPEX).
Rich in hydrocarbons, minerals, fisheries, and agricultural land, Angola also has significant hydroelectric potential. The government is striving to improve the business climate and has adopted favourable legislation in recent years, including a new Private Investment Law reducing the minimum capital requirement, facilitating capital repatriation, and eliminating the requirement that local investors have a 35% stake; a Competition Law; a Privatization Law; and a law allowing the creation of free trade zones. A single contact mechanism enables investors to obtain the necessary permits in a simplified manner. The AIPEX aims to stimulate economic growth, diversify the economy, and expand private sector participation in Angola's economy. Although known for its challenging business environment, Angola is endeavouring to enhance its investment climate and make strides in anti-corruption measures, democracy, governance, and human rights. Nevertheless, a sluggish and non-transparent judicial system poses a deterrent to investment and occasionally hampers contract enforcement efficiency. Likewise, the perception and occurrence of corruption continue to concern investors, especially outside the extractive industries. In September 2024, the EU-Angola Sustainable Investment Facilitation Agreement (SIFA) entered into force. It aims to attract foreign investment for sustainable development by improving the Angolan business environment, increasing regulatory transparency, promoting e-government, and enhancing stakeholder involvement. The agreement should benefit both foreign and local investors, particularly small and medium-sized enterprises. Angola ranks last among the 133 economies on the Global Innovation Index 2024 and 118th out of 177 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
---|---|---|---|
FDI Inward Flow (million USD) | -1,866 | -4,355 | -6,142 |
FDI Stock (million USD) | 21,595 | 20,861 | 14,719 |
Number of Greenfield Investments* | 17 | 9 | 5 |
Value of Greenfield Investments (million USD) | 3,437 | 2,594 | 359 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
The main assets of Angola are:
Among the factors that are detrimental to foreign investment are:
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Latest Update: May 2025