Business Corruption

The issuing of licences generally suffers from non-transparent and time-consuming bureaucratic procedures, although new licensing regulations in some sectors and the establishment of the Companies' Portal, a one-stop shop for investors, illustrate a degree of political will on the part of the government to simplify investment procedures to the benefit of companies. According to the World Bank & IFC Enterprise Surveys 2010, companies report that they expect to give gifts in order to obtain access to public utilities, such as water and electricity connections. A considerable number of companies also cite that they frequently give gifts in return for licences necessary for establishing and operating a business, such as construction permits and operating licences. The payment of bribes to public officials in charge of issuing permits and licences is fuelled largely by a costly and time-consuming bureaucracy.

Another area for corrupt practices is the business inspections conducted by government officials. Thus, Global Integrity 2010 reports that business inspections by government officials to ensure public health and safety standards are in practice carried out in an arbitrary and ad-hoc manner, and bribes are paid by companies in return for favourable treatment or expedited processing.

Political Corruption

In April 2010, five high-level immigration officials were convicted with fraud and corruption by the government. These officials were suspected of embezzling funds and accepting bribes in immigration services in exchange for USD 300 to USD 1,000, according to the US Department of State 2010. However, in September 2010, the Constitutional Court overturned the the convictions - citing an unfair trail. To further complicate matters, the press reported of a conflict of interests in the ruling - with the president of the court and one of its judges owning the law firm that defended the accused.

In February 2010, ten officials were arrested at the Ministry of Finance and the Central Bank on charges of embezzling over USD 100 million, according to a 2010 article by Reuters.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the government administrative requirements (permits, regulations, reporting) in Angola a score of 2.1 on a 7-point scale (1 'burdensome' and 7 'not burdensome').

The World Bank & IFC: Doing Business 2012:
- Companies can expect to go through 8 administrative steps to start a business, taking an average of 68 days at a cost of 119% of GNI per capita.

- Building a warehouse in Angola requires a company to go through an average of 11 administrative procedures, taking an average of 321 days and costing 180% of income per capita.

The World Bank & IFC: Enterprise Surveys 2010:
- 54% of companies expect to give gifts to obtain an electrical connection.

- 50% of companies expect to give gifts to obtain a water connection.

- 48% of companies expect to give gifts to obtain a construction permit.

- 39% of companies expect to give gifts to obtain an operating licence. All are above the average for Sub-Saharan Africa.