Angola government in talks with Volkswagen and Ford to open production lines
14-01-2019 07:34:00 | by: Bob Koigi | hits: 5208 | Tags:

Angolan authorities are negotiating with Volkswagen and Ford managers, two of the 12 leading automobile brands in the world, to open production lines in Angola.

With these negotiations, led by the Luanda-Bengo Special Economic Zone (ZEE) Development Society, the country plans to set up locally and stop importing these brands, in addition to generating jobs.

According to the president of the Special Economic Zone, António Henriques da Silva, the intention is also to increase the export radius of these companies in the World.

If the agreement is reached, the local production of these brands will lead to the emergence of companies producing spare parts in the country.

To that end, António Henriques da Silva will travel to South Africa in the next few days, where he will meet with Volkswagen officials.

The eventual installation of these reference marks in the country will serve as a "decoy" so that other companies of world reference can settle in Angola and contribute to the diversification of the economy.

"The important thing is to start and build confidence in our capacity to host these kinds of activities and improve the business environment, which has to have a legal framework and favorable tax benefits," he said.

He said that the negotiation process has already taken place for a long time, hence the need for a dynamic for the initiative to be implemented, taking into account the role that these industrial units can play in the country's economy.

At the end of 2018, three investment promoters signed an investment agreement with the Development Company of the Luanda-Bengo Special Economic Zone, investment contracts for projects of stoves, electrodes, sunscrews, iron pipes, detergents and dairy products, as well as automobile assembly line.

As a result of the sale of surface rights to these investors, the Luanda-Bengo ZEE has collected around 1 billion and 700 million kwanzas for the implementation of these projects, whose investment is estimated at 11 billion, 936 million, 611 thousand and 962 kwanzas (USD 33.8 million), which will allow the generation of 1,110 jobs.

The factories, according to the source, will come online within two years.

With 281 industrial units installed, of which 131 were operational, the Luanda-Bengo ZEE received a total of 2.4 billion kwanzas in 2018, resulting from the sale of infra-structured spaces, collection of exploration fees and other services.

Compared to the same period of the previous year, there is a disparity in terms of numbers, since in 2017 610 million kwanzas and 2016 were collected, a value of 476 million kwanzas.       

"There is a positive movement. When analyzed these data indicates that we have had a positive quantitative increase and shows that with greater commitment the results may be even better, "he said, by holding that with these results it is possible to pay off accumulated debts with suppliers, amounting to 150 million kwanzas .

At least 52 manufacturing units of various branches, of the 281 that are paralyzed in the Luanda-Bengo Special Economic Zone, will be privatized, starting this year, a process that is underway and conducted by the Ministry of Finance through the IGAP- Assets and State Participations.

In advance details, the Luanda-Bengo ZEE manager, the process will begin with the privatization of a total of seven industries to be announced soon.

"This is a good sign, because it will move into a framework of inoperability for an operational framework and a positive reflection that will manage jobs and revenues for the national economy," he said.

In terms of infrastructure, he said the space has adequate conditions for the implementation of industrial projects, lacking work to improve the quality of energy supplied, taking into account the operational costs that result from the use of alternative energy that end up having the competitiveness of products.

Given the importance of this space, the President of the Republic, João Lourenço visited on August 15, 2018, learned about the current status of the Pole, with a view to giving a new impetus to the Luanda-Bengo Special Economic Zone (EEZ) through the implementation of more efficient policies.

At the time, the President noted the functioning of Vedatela, Mangotel, Ninhoflex, Mecametal, Medvida, Angola Cabos, Galvanang, Coticash, Inducarpim, MTBT, Indupackage and CSG, respectively, engaged in the manufacture of metal towers, mattresses, metal material, hospital support material, production of electrical cables and assembly of automobiles.

Created in 2009, the Luanda-Bengo EEZ, with 8,000 hectares and an infrastructure area of 421 hectares, is a physically demarcated space with fiscal benefits and competitive advantages.

It has adequate infrastructures for the installation of companies, national and foreign, capable of fomenting internal production, generating employment, with competitiveness and innovation.

The Luanda-Bengo EEZ is owned by the State, comprising twenty one (21) flexible reserves, seven (7) Industrial Reserves, six (6) Agricultural Reserves, and eight (8) Mine Reserves, distributed among the municipalities of Viana eight thousand hectares), Cacuaco (twenty thousand hectares) and Icolo e Bengo (thirty thousand hectares), in the province of Luanda, and in the municipalities of Dande and Ambriz (total of one hundred and twenty thousand hectares) in the province of Bengo.

The EEZ can contribute to the reduction of imports of products essential for national development, creation of a platform for job creation and diversification of the economy, absorption of knowledge, the possibility of synergies resulting from its privileged geographic location, a vehicle for the promotion of through the attraction of new investments, among others.

Between 2011 and 2014, the State invested through Sonangol $ 472 million and $ 953,000 for infrastructure, while operating costs totaled $ 385 million and $ 779,000, to which $ 8 million and $ 165,000 .

In the EEZ there are factories linked to metalworking, metal packaging, taps, plastic bags, galvanization and metal pavilions, furniture manufacturing, mattresses, among others.