A review of factors affecting the attractiveness of Angola to private equity (PE) investments
Journal Article
2014
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Authors
Journal Title
South African Journal of Economic and Management Sciences
Journal ISSN
Volume Title
Publisher
AOSIS
Publisher
University of Cape Town
Series
Abstract
Angola's attractiveness to PE investors and the potential to increase PE investments in the country are explored. Primary data were collected using a survey of 18 PE funds that invest or have considered investing in Angola, followed by 10 expert interviews to gain deeper insight into the country's institutional and economic environment, and its potential for PE investments. It is found that most PE funds are attracted to Angola by its rapid economic growth and high potential returns. The country is also vastly under supplied, and many key economic sectors are fast developing, presenting exciting opportunities for investors. Nevertheless, PE in Angola remains limited, mainly owing to the difficulty of doing business in Angola, and owing particularly to the unfavourable regulatory environment. There is no regulation or process when it comes to the registration of PE funds in Angola, and any new regulation that applies to foreign investments is marred by unnecessary red tape, making it difficult for the investment to enter the market. Only two funds are authorised to operate in Angola: Fundo de Investimento Privado de Angola (FIPA), and BESA Activ. Streamlining regulation is critical to increasing PE flows to Angola in order to advance the country's economic and social objectives
Description
Reference:
Jover, E., & Mlambo, C. (2014). A review of factors affecting the attractiveness of Angola to private equity (PE) investments. South African Journal of Economic and Management Sciences. 17(5):609-623.