Misanet / The Zambezi, 16 October - Now that the "guns have fallen silent" in southern Africa, it is time for economic reconstruction. Angola, having been haunted by a civil war that lasted almost three decades, is now looking to neighbouring countries for an economic boom. Investments are coming from South Africa.

A number of South African companies are exploring opportunities for investment in the oil and diamond rich country. Large investments into the country could see Angola become one of the economic giants in the region and the world.

From being South Africa's seventh investment destination, it has become third after Mozambique and Zimbabwe, according to South Africa's 'Business Day' newspaper.

South African Foreign Direct Investment (FDI) to Angola was US$ 42 million with that to Zimbabwe at US$ 47 million and to Mozambique at US$ 1.82 billion, according to the Business Map Foundation.

- The government has oil revenue, and is beginning to spend a lot more money on infrastructure, services and goods. There will be a massive boom, predicts Paul de Souza, a director on the KPMG Africa Board and senior partner in its Angolan and Mozambican operations.

South African and European investors often team up with Angolan entrepreneurs to do business in Angola, where US$ 250,000 is needed to register a company.

- We are already seeing a very significant pickup in the number of South Africans visiting Angola looking for opportunities, says Mr de Souza. "But Angolans are savvy, and have already camped on many interests, like concessions, waiting for a foreign investor with big bucks."

Tourism and fishing also offer potential, and Tourism Minister Jorge Valentim promises to assist South Africans wanting to invest in the tourism and hotel industries. He says the number of mostly "business tourists" has risen from about 9,000 a year to 100,000 annually, many of them from the US, France, Japan, Korea as well as South Africa.

- We have more than 1600 km of coast and abundant wildlife. We need to build our hotels, from five-star accommodation through to affordable hotels, the Tourism Minister told the 'Business Day'.

By 'The Zambezi' staff writer

© Misanet / The Zambezi

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