Angola has earned second place in the ‘Africa Investment Risk Report 2019’. The list is crowned by Ethiopia, and after last year’s first place, EXX Africa considers Angola to be a prime target for immediate opportunities in the oil sector in 2019.
EXX Africa believes the Angolan economy will grow in 2019, due in part to the $3,7 billion International Monetary Fund (IMF) aid program and the prospect of a production increase in the oil sector.
The IMF aid program further reinforces trust in President João Lourenço’s sweeping reforms. The fund’s presence also assures a focus on the private sector facilitating the business climate, which will lead to more investment and expansion.
The main risks are considered to be the banking sector and the debt levels of national oil company Sonangol. The Angolan National Bank shut down two smaller banks for non-compliance with new rules at the start of 2019. The general expectation is for a banking sector consolidation round.
The report also considers that President João Lourenço’s anti-corruption campaign and the promotion of a platform for economic reforms destined to dilute the dominion of the old political and economic elite might put some big infrastructure projects at short term risk of being revised or canceled.