Identifier
Created
Classification
Origin
09LUANDA17
2009-01-09 13:20:00
CONFIDENTIAL
Embassy Luanda
Cable title:  

IMPROVING ANGOLA'S INVESTMENT CLIMATE

Tags:  ECON EFIN EINV ETRD AO 
pdf how-to read a cable
P 091320Z JAN 09
FM AMEMBASSY LUANDA
TO SECSTATE WASHDC PRIORITY 5262
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L LUANDA 000017 


WASHINGTON: ALSO FOR USTR
GABORONE: ALSO FOR TRADE HUB

E.O. 12958: DECL: 01/09/2019
TAGS: ECON EFIN EINV ETRD AO
SUBJECT: IMPROVING ANGOLA'S INVESTMENT CLIMATE

Classified By: Ambassador Dan Mozena for Reason 1.4 (b) and (d).

C O N F I D E N T I A L LUANDA 000017


WASHINGTON: ALSO FOR USTR
GABORONE: ALSO FOR TRADE HUB

E.O. 12958: DECL: 01/09/2019
TAGS: ECON EFIN EINV ETRD AO
SUBJECT: IMPROVING ANGOLA'S INVESTMENT CLIMATE

Classified By: Ambassador Dan Mozena for Reason 1.4 (b) and (d).


1. (C) Summary: During a January 7 meeting with Ambassador
Mozena, President Dos Santos's recently designated pointman
for improving Angola's investment climate, Aguinaldo Jaime,
acknowledged that corruption is a significant barrier to
attracting investment to Angola. In his role as chairman of
the GRA commission overseeing the restructuring of Angola's
National Association of Private Investment (ANIP),Jaime is
crafting a comprehensive strategy to make Angola more
appealing to investors. The Ambassador offered suggestions on
how Angola and ANIP could better meet the needs of American
business looking for opportunities in Angola. Jaime said his
commission hopes to present its recommendations to President
Dos Santos in March. End Summary.


2. (SBU) The Ambassador's January 7 discussion was at the
invitation of Aguinaldo Jaime, who was the head of Angola's
economic team before assuming his current responsibilities
late last year. Jaime solicited the Ambassador's views on
how best to address the needs of foreign investors looking
for opportunities in Angola. The conversation was frank and
wide ranging. Jaime thanked the Ambassador for the Embassy's
continuing engagement with the GRA on improving the
investment climate, noting that Prime Minister Paulo Kassoma
had passed to him a read-out of his (Kassoma's) earlier
meeting with the Ambassador, when the two had discussed
improving the investment climate to attract U.S. non-oil
businesses to Angola.

--------------
Ah yes, the facilitation fees
--------------


3. (C) When Ambassador Mozena raised concerns by U.S.
investors over corruption, Jaime paused and said, "Ah yes,
the facilitation fees." He told of his struggles with old
guard thinking within the GRA by which individuals used their
positions of power to frustrate investors until "facilitation
fees" are paid. Jaime said the issue is difficult to tackle
due to the vested interests of those who benefit from the
status quo, but he, nonetheless, believed he was making
progress in tackling the problem. Jaime said it will take
time to change the environment in some ministries, adding,
"You can be right, but only when it is the right time."
While he did not identify any particular ministry on
corruption, Jaime shared his frustration with the Ministry of
the Interior and its continued excessive focus on national
security over business facilitation. Jaime said a key goal
of his revamped ANIP is the elimination of direct investor
interaction with other ministries or offices, thus avoiding
the places where corruption often takes place.

--------------
Visas and the Airport
--------------


4. (SBU) The Ambassador raised visas as a major deterrent to
potential investors, and suggested that Angola either exempt
investors from needing visas, facilitate visa issuance for
investors, or issue them at the airport upon arrival in
country. He also suggested that ANIP staff a welcome desk in
the airport's international arrival area to facilitate
immigration, hotel arrangements and local transportation for
businessmen. Jaime responded positively to the suggestions,
and was especially interested in the idea ANIP's offering a
fee for service package that could include visa facilitation,
airport transfers, and the booking of hotel rooms.

--------------
Improving the Doing Business Index
--------------


5. (SBU) The Ambassador also suggested that Angola engage
immediately on improving significantly at least one of the
World Bank's Doing Business Index indicators to demonstrate
the GRA's commitment to reform. Jaime agreed that Angola
must improve its investment climate and acknowledged that the
international business community views the World Bank Index
as a key indicator of commercial maturity.

--------------
Comment
--------------


6. (C) Our meeting with Jaime was a great opportunity to talk
brass tacks with an influential member of Angola's cadre of
reformers. Jaime was frank and acknowledged that Angola
confronts significant challenges as it seeks to diversify its
economy by attracting foreign investment. He told the
Ambassador that Angola's courtship of China is at best a
short term solution to Angola's development needs and that
U.S. and European investment is essential for the job
creation and technology transfer that Angola needs for
long-term development. Despite Jaime's commitment to the
endeavor, reforming Angola's investment climate is a tough
nut to crack, and we should not expect a total fix overnight.
That said, we intend to keep the pressure on the GRA, as the
country can in fact take some meaningful visible steps in the
short term to improve the investment climate here if there is
the political will to do so.


MOZENA