Angola passes law to become economically attractive again
The Angolan Parliament unanimously adopted a bill to encourage the arrival of foreign investors, in order to revive the economy. Thus, the obligation of a foreigner to associate with a local partner is removed.
This framework law must still be debated in committee, to know the precise modalities. But it is already a signal sent abroad.
This is the major flaw of the Angolan economy, according to a former head of the African Development Bank (ADB): it is locked and also the bill passed on Thursday by Parliament is a revolution.
Until now, a foreign investor who wanted to settle in Angola had to partner with a local partner. Over the years, the ruling MPLA’s nomenklatura has thus parasitized the private sector, according to one analyst, which has led, for example, organizations like the ADB to no longer finance the private sector.
Moreover, since the oil crisis of 2014, foreigners could not get more than 10 000 dollars from the country. Little by little, foreigners, starting with the Portuguese, left for other skies.
The government of Joao Lourenço wants to reverse this trend and restore confidence. The law adopted with great unanimity goes in this direction. MPs will work in committee to set specific provisions, such as taxation and the level of repatriation of profits.
The overall philosophy is of liberal inspiration, which satisfies Unita, the main opposition party that voted for. Hoping, as MP Raul Danda says, that it will make it possible to abolish the economic dynasties, that of the MPLA and the Dos Santos family.
