Regulatory reform to hurt Angola business recovery

Significance

Firms tolerated the country's difficult business environment when oil prices were high and profits more certain. However, the price slump has hurt firms across the economy, including non-oil sectors. Together with mounting regulatory burdens, this has caused many to begin to re-evaluate their plans.

Impacts

• Diamond output could rise thanks to the government's renewal of Lucapa's licence, potentially boosting Angola's largest alluvial project.
• However, extensive landmine coverage -- left over from the 1975-2002 civil war -- will hamper further exploration.
• Heavy military presence in areas surrounding the Congo River basin will ensure security for firms, potentially helping confidence.
• The Brazilian court finding that Odebrecht utilised slavery-like labour practices in Angola will undermine its SSA infrastructure projects.