Angola has been an oil-led industry for decades, but reforms and policies are changing the business landscape to facilitate more investment in the country. If your organisation is planning a move to Angola, you may be faced with a few challenges from a legal, cultural, and employment perspective and this may be time-consuming for you.
International companies and organisations expanding into new territories often engage reliable local partners who specialise in business process outsourcing, including employment outsourcing solutions where resources need to be employed in-country and paid correctly. At Africa HR Solutions, our experts with local insights are here to help you with all the Angola outsourcing support you may need to ensure your successful expansion.
Gross Domestic Product (GDP): $72.55 B
GDP Growth: 0.7%
Foreign Direct Investment (% of GDP): -3.5%
Unemployment Rate: 8.5%
Currency: Angolan kwanza
Languages: Portuguese, French, English, Bantu
Angola is known to be abundant in minerals, fisheries, agriculture, and hydrocarbons. The country’s oil industry covers one-third of GDP and with crude oil constituting more than 90% of total exports. In 2018, a private investment law in the country was ratified – the law aims at minimising capital requirements, facilitating the repatriation of capital, and abolishing the requirement that local investors hold a 35% stake.
With regards to boosting economic growth, diversifying the economy, and increasing the participation of the private sector, the National Agency for Investment Promotion and Export (APIEX) is working towards this growth model to ensure the smooth transition of Angola from a state-led oil country to a private sector-led one, whilst ensuring the oil industry still holds a fundamental role to grow the economy and creates more employment.
Out of 190 countries, Angola was ranked 177th in the World Bank’s Ease of Doing Business 2020. In 2019, a flexible exchange rate policy contributed to lighten the impact of reduced oil prices on international reserves, while a V-shaped recovery is expected going forward as fundamental pre-pandemic plans have been implemented.
The capital, Luanda, has consistently been ranked as one of the world’s most expensive cities for expats to live in.
Angola is the 7th largest country by land area in Africa and the world’s 24th largest.
Angola is the 2nd biggest crude oil producer in Africa and the world’s 14th biggest.
The country is known to have one of the youngest populations in the world with a median age of 15.9.
Angola’s local dishes are mostly stew-based. The ingredients mostly used are rice, sweet potato, okra, tomato, beans, chicken, fish, pork, and a variety of sauces.
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The Angola economy is one of the largest economies in Lusophone Africa. The country is oil and gas-led with significant opportunities for skilled talent in this sector. Over the last decade, the building of roads and materials factories contributed to a boost of the construction sector in the country. Angola has a developing education and healthcare sector, and prospective employees usually examine the medical and security packages being offered.
Employees in Angola are entitled to vacation, sick, and parental leave. From a termination perspective, they are generally entitled to a notice period of 1-2 months. Taxation rates vary – both employers and employees have to contribute to a social security fund: 3% and 8% of their salaries respectively. Income tax rates are progressive, ranging from 0% to 25%, with an added fixed progressive fee. Corporate tax is 25%.
When recruiting locals or hiring expats in Angola, establishing an employee benefits system can be challenging due to existing legislation, complex procedures, and customary practices. By partnering with a specialist firm such as Africa HR Solutions, a relevant and competitive employee benefits scheme can be designed, always taking into consideration the country’s regulations and best practices in the market.
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