Angola Country Profile

Licences, Infrastructure and Public Utilities

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 Portal das Empresas, 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 2006, companies report that they expect to give gifts in order to obtain access to public utilities, such as telephone, 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.

The selling of work visas by the Angolan Immigration Service led the government to replace all positions in this institution from top to bottom in 2006.

Political Corruption

The volume of infrastructure projects in Angola is rapidly growing, with many large projects being financed by Chinese oil-backed loans and with Chinese companies operating as subcontractors. Some observers doubt the sustainability of these projects and have also raised concerns over the vulnerability of mega-projects to corruption. The credit line from the China International Fund - the construction arm of Beiya International Development, which imports oil from Angola - is managed by the Office for National Reconstruction, an opaque special cabinet directly controlled by the President and headed by his close ally and former security adviser, General Vieira Dias Kopelipa.

Frequency

The World Bank & IFC: Doing Business 2010:
- Building a warehouse in Angola requires a company to go through an average of 12 administrative procedures, taking an average of 328 days and costing 597% of income per capita.

The World Bank & IFC: Enterprise Surveys 2006:
- 13% of companies expect to give gifts to obtain a phone, electrical or water connection.

- 20% of companies expect to give gifts to obtain a construction permit.

- 10% of companies expect to give gifts to obtain an operating licence.