Investment Promotion Agreement Between Angola and China Comes into Force
On 29 June 2024, the Promotion and Mutual Protection of Investment Agreement (#PMPIA) between China and Angola came into effect. This follows the signing of the agreement by Angola Foreign Minister Tete Antonio and China Minister of Commerce Wang Wentao in Beijing on 6 December 2023.
Commenting the milestone event, the Angola Private Investment and Export Promotion Agency (AIPEX) CEO Neide dos Santos expressed hopes for increased Chinese #FDI which will bring more jobs and revenues to Angola.
The PMPIA is a version of what is generically known as an Investment Promotion and Protection Agreement (#IPPA) that two countries typically sign in order to boost investment and the confidence level of investors.
“Large-scale investments bring better jobs and higher revenues for companies and our country. For businesses, they mean a more stable and predictable market with greater security for Chinese investments.”
AIPEX CEO Neide dos Santos
It is worth noting that China already ranks as the 6th largest source of #FDI into Angola during the past few years. Chinese enterprises operate in a variety of sectors such agriculture, fishery, infrastructure, health, mining, oil & gas, and trade.
According to statistics compiled by AIPEX, Angola has registered 48 expressions of interest for investment from China since 2018, which eventually materialized into a cumulative #FDI of nearly USD 300 million.
Angola publicized its National Development Plan (NDP) 2023-2027 at the end of 2022 and approved by Presidential Decree 225/23 on 1 September 2023. The #NDP complements the Long-Term Strategy of Angola 2050 (#LTS).
Among the flagship projects, we may note the Luanda Metro Project and the exploitation of Angola’s vast reserves of petroleum. However, the #NDP also calls for a diversification of the economy away from hydrocarbons in order to avoid over-reliance on a single sector.