Private investment by Brazilian companies in Angola has totaled US$10.1 million over the last five years, a values considered “little significant”.
Brazilian investment amounts to USD 10.1 million
Luanda – Private investment by Brazilian companies in Angola has totaled US$10.1 million over the last five years, a values considered “little significant”.
According to data from the National Agency for Private and Foreign Investment (AIPEX), this amount is linked to three investment projects in the provinces of Luanda, Benguela and Cabinda, used in sectors such as services and civil construction.
AIPEX added that there has been a significant decrease in Brazilian investment in Angola in recent years, influenced by several factors, such as political and economic.
In Angola, there is a significant presence of Brazilian companies in sectors such as infrastructure construction, mining and steel, through the production of pig iron, investments made in previous periods.
As example, the source mentioned among the large companies the construction company Odebrecht, which participates in various projects with emphasis on the New Luanda’s international Airport, the Port of Barra do Dande, the Cabinda Refinery, the Biocom sugar factory, after completion the works of the hydroelectric developments of Laúca and Cambambe.
Angola has reached the peak of USD 1.5 billion
In terms of investment by Angola in Brazil, after a “peak” of US$1.5 billion in 2013, Angolan capital investment in Brazil stood at US$65 million in 2021.
This figure is equivalent to a reduction of 95%, compared to the beginning of the decade, according to April 2023 data, from the Brazilian Export and Investment Promotion Agency (APEX), published by Lusa.
“Some economic factors may have contributed to this reduction: economic crisis in Angola, due to the drop in oil prices, from 2014, Angola’s main export product, economic recession in Brazil between 2015 and 2016”, justifies APEX.
The flagged “greenfield” projects include Angola Cables, in the telecommunications sector, the construction of a “data center” in Fortaleza (Brazil), estimated at US$134 million, in 2019, and, therefore, the announcement of its expansion estimated at US$40 million.
“The linguistic and cultural similarities can be an important bridge for investments between the countries”, said APEX.
The Brazilian President, Luiz Inácio Lula da Silva, is expected this Thursday night, in Angola, to reinforce cooperation between the two countries.
Lula da Silva comes straight from Johannesburg, South Africa, where he is participating in the BRICS Summit.
After Angola, the Brazilian President will travel to São Tomé and Principe to participate in the conference of heads of state and government of the Community of the Portuguese Speaking Countries
Source: Angola Press News Agency (APNA)