The FAO estimates over three million hectares of arable land exist. There are also large areas for pasture, especially in the southern part of the country.

Traditional sustainable crops - cassava, beans, and sweet potatoes are found in the country's north, with corn in the central provinces, and small corn and sorghum in the southern areas. We would also mention other crops such as banana, rice, sugar cane, palm oil, cotton, coffee, sisal (hemp), tobacco, sunflower, citrines, and other fruits and vegetables.

Coffee, which up to 1973 was Angola's major export, is well worth looking at, as it could once again become a very important factor in the Angolan economy.

With the idea of launching an agri-business policy, as part of the government's social and economic program for 2000, it was decided that the main effort should focus on those zones defined in the agricultural program, and on the production of the following basic staples: cereals, roots and tubercles, beans, fruits, vegetables, oil seeds, and specialty products such as green products, small ruminants, cattle breeding and meat processing, pig farming and the rearing of poultry and other birds.

Areas of interest in existence for private investment:

Waterworks Maintenance & Management;
Consultant Engineering ;
All kinds of Production /Marketing Technical & Material Assistance;
Agricultural Mechanization & Technical Assistance;
Industrial Poultry Breeding;
Cattle & Pig Breeding;

Provinces	Zones	Area (ha)	Crops
BENGO	Bom Jesus Caxito	1,300 3,000	Roots and tubercles, cereals, horti-fruiters Roots and tubercles, cereals, horti-fruiters
CABINDA	Vale do Yabi (Yabi Valley)	5,000	Roots and tubercles, fruiters, cattle breeding
KWANZA NORTH	Mucuso Lucala	315 250	Roots and tubercles, cereals, horticultural crops Roots and tubercles, cereals, horti-fruiters
LUANDA	Vale do Bengo Kiminha/Funda	25,000	Roots and tubercles, cereals, horti-fruiters
BENGUELA	Cavaco Catumbela	4,1 4,5	Roots and tubercles, cereals, horti-fruiters and tobacco Roots and tubercles, cereals, horti-fruiters
HUÍLA	Humpata Matala Chibia	1,000 3,000 1,000	Roots and tubercles, cereals, horti-fruiters Roots and tubercles, cereals, horticultural crops, fruiters, cattle breeding Roots and tubercles, cereals, horti-fruiters
NAMIBE	Carunjamba, Giraul, Bero and Curoca	600	Grapes (wine) and citrines Tubercles, cereals, horticultural crops, industrial crops, cattle breeding
CUNENE	Manquete, Xangongo, Quiteve/Humbe (Ombandja), Cova do Leão (Kahama)		Tubercles, cereals, horticultural crops, cattle breeding, olives

Angola boasts one of Africa's richest coastlines, especially in the country's south. There the cold Benguela current creates a special environment for a great variety of fish, principally mackerel, sardines, tuna, and shellfish.

The government's immediate objectives are to reactivate productive fishing processes, increase fish-conservation activities, and renew catch capacities, as well as increase and rationalize existing cold-storage capabilities. It also plans to revamp and equip naval shipyards, dock areas and fishing ports, while improving the commercial distribution of fish on a national level. Providing technical assistance to entrepreneurs, management training, and scientific investigation is also slated.

Previously state-owned, various small fishing enterprises have already been divested to the private sector as part of a privatization program. Currently, preparation for the privatization of larger enterprises is underway.

Angola has substantial deposits of diamonds, iron ore, gold, phosphates, manganese, copper, lead, zinc, tin, tungsten, marble, and granite, among others.

In the wake of the country's Independence, these activities have become restricted to the mining of diamonds in the Lunda North and Lunda South zones in the northeast, and, on a much smaller scale, the extraction of marble and granite in the southwest.

Angola is one of the world's major producers of diamond gems, and after oil, diamonds are the country's most important export.

Any increase in production will depend upon the recovery of the main mining areas in the Cuango River Valley. In fact, various foreign companies are interested in this sector.

The prospect of strong growth in the mining sector (oil, diamonds, and other minerals) is bound to generate the interest of foreign companies, both upstream and downstream.

Angola boasts substantial energy resources, having vast oil deposits, abundant hydroelectric potential and natural gas reserves.

Crude oil, which in 1973 became its prime export and having been on the increase since then, is the mainstay of the Angolan economy.

Angola is the second largest oil producer in sub-Saharan Africa (after Nigeria) with a production of 1 million barrels a day having been projected for 2000/2001.

After Independence, among other measures, the government created the Oil Ministry, adopted legislation specific to the sector, and set up a state enterprise called SONANGOL – Sociedade Nacional de Combustíveis de Angola. This was done as a means to defining a clear national oil policy. The state took over all oil fields and gave SONANGOL the exclusive concession for their exploration and production. Simultaneously, it was authorized to go into partnership with foreign enterprises in order to obtain both the financial and technical resources needed.

In 1996, a series of newly-discovered oil wells resulted in an increase in production, pushing Angola to a more prominent status as an oil-producing country.

Recognition of its vast energy potential led to Angola being appointed the Energy Sector Coordinator for the SADC.

Some 80% of energy production is hydroelectric. Supply is assured by three major schemes, linked to three important hydro basins - those of the Kuanza, Catumbela and Cunene rivers.

The remaining 20% comes from electrical power plants, with investments having been made to increase output capacity for Luanda, which is responsible for more than half the country's electricity consumption.

Before Independence, the manufacturing sector carried some impact. It accounted for 16% of GDP in 1973, essentially contributed by foodstuffs and other consumer goods. In 1975, production had decreased by some 75%, with 43% of manufacturing companies forming part of the public sector by 1987. Ten years later, in 1997, manufacturing accounted for 4.4% of GDP, primarily reflecting the oil refining, drinks, and cement sectors.

In response to the above situation, the Angolan Government started to take remedial steps by approving, in 1994, the Master Program for the Reindustrialization of Angola (PDRA), whose chief objective was to re-energize the private-manufacturing sector, focusing on the following:

• Private-sector participation
• Upgrading industrial equipment
• Training human resources
• Attracting foreign direct investment
• Promoting the export of national finished products
• Concentrating manufacturing activities in industrial development areas (PDI)

At the same time, and because most Angolan industrial equipment is over 25 years old, the PATIA program (mentioned in Section II) was created. Another incentive to make the Angolan industrial sector expand is the putting in place of privatization policies. We would highlight the enactment of Law 8/98 of September 11, 1998 – Basic Industrial Law, whose main objective was to promote a standard industrial policy and create a favorable atmosphere for entrepreneurs, as well as to motivate the development of national resources.

In 1998, the construction sector accounted for 4.8% of GDP, with several foreign companies operating on the market. The country offers great opportunities in terms of public works.

As to infrastructure, such as roadways and railways, there is an urgent need for the rehabilitation of highways, bridges, railways, and dams, etc., in order to ensure connections between the country's provinces.

There is also an enormous need for social infrastructure, such as school compounds, and housing and hospital complexes.

Services present exciting prospects, since trade and tourism are expanding. The transportation and communication sectors point to high potential, while banking and insurance began coming to the fore, especially after 1991.

In 1999, 10 banks were in existence, of which four were private ones and two the representative offices of foreign banks. Only a single state-controlled insurance company operates - Empresa Nacional de Seguros de Angola. Studies are, however, being performed to look into ending its monopoly.

Ensuring the availability of essential consumer goods, hindered by low national production, calls for the setting up and development of a solid commercial structure, integrating the production, import, transportation, and distribution segments.

Angola is potentially a country ripe for the development of the tourism sector, offering the following:

• 1,650 km. of coastline, a long summer season and beautiful, natural sandy-beaches with excellent conditions for swimming and water sports.
• Rich and varied fauna with a system of parks and natural reservations.
• Fantastically beautiful, poster-inspiring, landscapes boasting mountains and waterfalls.
• Rivers with waterfalls, rapids, and lakes - some navigable.

National game parks and natural reserves constitute hubs of attraction for investment.

National Parks & Natural Reserves

Name	Province	Area (km²)	Main Species
Quissama National Park	Bengo	9,960	Manatee, Red Palanca, Pacaça
Bikuar National Park	Malange	630	Black Giant Palanca, Red Palanca
Kangandala National Park	Huíla	7,900	Elephant, Buffalo
Iona National Park	Namibe	15,150	Zebras, Guelengue, Lion, Ostrich
Kameia National Park	Moxico	14,450	Cacu, Boi-Cavalo
Mupa National Park	Cunene	6,600	Giraffe, Cahoma
Chimalavera Nat. Park	Benguela	100	Cabra de Leque
Luando Natural Reserve	Malange/Bié	8,280	Black Giant Palanca
Ilhéu Natural Bird Reserve	Luanda	2	Migratory Birds
Moçâmedes Natural Reserve	Namibe	4,450	Ostrich, Cabra de Leque
Mavinga Natural Reserve	Kuando Kubango	5,950	Elephants, Palanca, Southwestern Palanca
Luiana Natural Reserve	Kuando Kubango	8,400	Elephants, Palanca.
Bufalo Natural Reserve	Benguela	400	Southwestern P., Rhino, Black Bufalo

About 50% of the hospitality sector's infrastructure needs to be revamped. Of 105 hotels of varying categories, only half are active, and even so, these are all located along the country's coastal areas.

Law 10/94 of August 31, 1994 establishes the general rules governing the privatization of state-owned small, medium and large companies, and other state properties. An exception is housing owned by the state, regulated by Law 19/91 of May 21, 1991.

Under this law, privatization can be either total or partial. It encompasses both the transfer of the ownership and/or divestment of operations, assets, or capital stock of the companies to be privatized.

Before privatization takes place, an appraisal is performed by a duly accredited entity.

Privatization goes ahead in the following manner, either individually or cumulatively:

• Divestment of assets
• Divestment of company stock or shares
• Capital increase

Privatization takes place, as a rule, through an IPO, albeit bidding may be restricted in exceptional cases.

• Organization of an IPO and the ensuing process are controlled by a negotiating committee appointed for each case, composed of a representative of each of the following:
• Ministry of Finance (coordinator)
• Entity overseeing company management
• Office Managing the Entrepreneurial Restructuring Program (GARE)
• Institute of Foreign Investment (whenever foreign investment is potentially available)
• The company

The Minister of Finance is responsible for ratification of the evaluation, as well as of the results approved by the negotiating committee, independent of an enterprise's size. Final approval for execution of the privatization operation has to be given by the Cabinet in the case of large enterprises, and by the Minister of Finance in the case of small- and medium sized companies.

The same rules governing the divestment of state enterprises and other state-owned assets are applicable to agreements to reassign business operations. A management agreement per se is not considered a privatization operation, and its validity is subject to the following cumulative conditions:

• A favorable opinion by GARE, to whom management should have previously sent the agreement
• Ratification of the management agreement by the Minister of Finance

Law 13/94 of September 2, 1994 - Economic-Activity Sector Restrictions - establishes those areas of activity prohibited to private enterprise. It safeguards them in unconditional or comparative exclusivity as the state's reserve, and they can only be operated with its intervention and/or participation.

The description "reserved for the state" is taken to mean a series of economic activities whose ownership or management can only be exercised provided the state or other entities belonging to the public sector intervene or participate in them.

There are three types of reserved areas:

Exclusive Reserve

This group covers areas where economic activity can only be exercised exclusively by the public sector:

• Production, distribution, and commercialization of military materiel
• Banking, as far as the functions of a central and issuing bank are concerned
• Administration of ports and airports
• Telecommunications, as far as the basic national network and fundamental services infrastructures are concerned

Controlled Reserve

This includes the following economic activities that can be exercised by companies arising out of partnerships with public-sector entities, but where it is mandatory that the latter shall have a majority controlling position in the new enterprise:

• Scheduled international air passenger and cargo transportation
• Scheduled domestic air passenger transportation
• Regular postal service
• Long-distance maritime transportation
• Qualified Reserve

Companies or entities not belonging to the public sector, when based on temporary concession contracts, can conduct the following economic activities:

• Basic sanitation
• Production, transportation and distribution of electrical energy for public consumption
• Uptake, treatment and distribution of water for public consumption through fixed networks
• Operation of port and airport services
• Rail freight
• Coastal shipping
• Public transportation
• Chartered air transportation of passengers and cargo (national)
• Supplementary postal and telecommunications services

The exploration of all natural resources, which according to the Constitution are the property of the state, can only be made under a concessionary or some other arrangement provided it does not involve the transfer of ownership.

According to principles defined under the Constitution, all land is at the outset the property of the state. Furthermore, the state is solely responsible for establishing the conditions under which land can be the subject of a concession, while protecting the country's national interests and development. It also demands proven capacity from a petitioner to develop land efficiently, as well as the offering of guarantees to the people who originally lived on and cultivated it.

Land concessions for use and exploration are granted through official licenses issued by the Ministry of Agriculture & Rural Development and the provincial governments concerned. Licenses may be either granted for a limited period (up to 45 years) or be limitless.

In the case of foreign investment being made in land forming part of territorial waters and the continental platform, or for land being used by the rural population, and areas deemed economically or militarily strategic, approval is required by the Cabinet.

Land earmarked for housing, trade, industrial operations, and facilities for social activities do not yet have their own specific legislation. For that reason the disposal of such property must be determined by the Ministry concerned and the respective provincial government on a case-by-case basis.

PETROLEUM

Greater production and greater source of Foreign currency. Recent industry using advanced technology it reaches high levels of profitability.

COFFEE

Product of excellent quality, it benefits from the exceptional climate in some regions.

DIAMONDS

In Angola one can find the best diamonds-jewellery and Lunda is one of the most important diamond's area in the whole world.

FISHING

Angola has a long Coast rich in crustaceans and famous varieties of fishes. It has a dynamic industry with developing infrastructures.

CITY LIFE

People used to doing business and to living together inside and outside the country with people of the five continents. Intense air traffic of nationals and foreigners. BUILDING CONSTRUCTION/PUBLIC WORKS An entire country to rebuild.

FORESTS

Rich forests in tropical wood. AGRICULTURE Thanks to a good hydrographic distribution and a varied ecological picture, Angola has a large production of tropical and sub-tropical cultivation.

CATTLE-RAISING

Big natural resources. Developing projects of species and the production of milk and its products give life to this sector. COMMERCE AND INDUSTRY In restructuring adaptation to international standards. Big gaps in many sectors of activity.

Angola is a gifted country since it has great diversity of natural resources.

The mineral resources are the biggest richness of the country leaving petroleum as the leader followed by the diamonds.

There are others such as iron, manganese, copper, phosphate, granite, marble and rare minerals.

The main petroleum wells are situated near the coast, in the Provinces of Cabinda, Luanda and Zaire (Soyo).

The diamond's area of Lunda is considered one of the most important of the world and they are highly admires for their quality.

The fish is also one of the biggest richness of Angola. With a coast of 1650 km, Angola has a rich sea in fish, mollusc and crustaceans.

The biggest activity is situated in the province of Namibe where the species of cold water are predominant.

The tropical species appear in the North, in the province of Benguela where the fishing has also an important role.

The forest resources are other richness and are situated mainly in Cabinda ( Maiombe forest) where is wood of great economic value such as black-wood, rare-wood, iron-wood, ebony and African sandalwood.

The energetic potential so the Angolan river is enormous.

It is said that just Kwanza River would allow 30 thousand million km per year production.