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Angola: An untapped Export Destination

Located on the Atlantic coast of West Africa, Angola has a thriving economy and is one of the fastest growing economies in the world with an average real GDP growth rate of 11.6% over the past decade.
With a population of 20.8 million, the country has made enormous progress since the end of the civil war.

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Doing Business in Angola

Download presentation by Mr Emanuel Chibesakunda of Munich Advisors Group – on 1st July 2014 at Domaine les Pailles, Pailles 

Angola is a somewhat a difficult market to penetrate initially but patient exporters will definitely be able to find the necessary niche to tap into.
This section provides an insight on doing business in Angola.

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About Angola

The country has been transformed from an agriculture-based economy to one of sub-Saharan Africa’s major oil and mineral producers. Moreover, relative political stability alongside a young dynamic population, growing domestic consumption and strong foreign investment, have transformed Angola’s market size to one of the largest in sub-Saharan Africa, providing businesses with relative market opportunities.

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The Angolan Consumer Market

Angola’s population is estimated at 20.8 million with an average annual growth rate of 2.7% which is above the average of the African subcontinent.
The field visit revealed that only 5% of the Angolan population comprises of the high income. The middle income segment consists of 10% of the Angolan population and currently developing at a very fast rate. The low income segment accounts for 85% of the population.

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The Angolan Agro Industry

The Agro-processed sector in Angola is still very under-developed. Although local production in agriculture and food processing is expanding, it is important to note that the country imports majority of its food and has almost no industrial capacities to process what it produces into agricultural consumer goods.

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The Textile and Apparel Market in Angola

In 2013, imports of textile and apparel products stood at USD 45 million, predominately from China, India, Portugal, Brazil and South Africa. The textile value chain in Angola is limited to cotton processing only. Moreover, for the past ten years the Textile and Apparel sector has faced a number of challenges that have halted the production of cotton, thereby forcing the country to rely heavily on imports of clothing.

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The Angolan Furniture Market

According to Trademap, Angola’s imports of furniture amounted to USD 350 million in 2012, representing an increase of 31% from previous year. Portugal is Angola’s largest import market accounting for 35.9% of its exports of furniture.

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The Angolan Chemical Market

Our research has revealed that in general terms, local competition in the soap and detergents sectors in Angola is low.
According to Trademap, dishwashing liquid & hand washing liquid is the fastest growing segment with 39.3% followed by Laundry Soap at 22.4%.

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Trade between Angola and Mauritius

Although Angola forms part of the SADC regional bloc, goods entering the country is subject to the normal MFN duty since it hasn’t ratified the SADC Trade Protocol.

In 2012, domestic exports to Angola stood at Rs 730,167. Over the period 2010-2012, exports of textile and apparel increased considerably.

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Angola -External Trade

Import volumes are estimated to have grown by 11.2% in 2012, more than doubling their 2011 growth rate of 4.7%. The rise in imports is due to the expansion of fixed capital imports related to oil production and consumer goods imports financed by oil-related income.

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