Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: Africa's economic growth will not be found across the Atlantic or Indian oceans in international markets. Growth will not be achieved by simply giving away state assets in large privatisation transactions. Growth will also not come from giving away valuable concessions to scarce natural resources or handing out investment incentives to resource seeking foreign investors. Governments and policy makers need to accept that drivers to sustainable economic growth, lies much closer to home. Not in greater domestic savings by that average man in the street (who, in Africa's poor economies, often would need to forego a daily meal in order to save), but even closer. The policies for economic growth in Africa need to be focussed on flrst achieving production and allocative efficiencies at home. The real drivers to achieve growth are to be found in the primary responsibilities of the state: Political stability though good governance Stable macroeconomic environments Good working infrastructures Educated and trained labour forces Sizable market through regional cooperation (eg. SADe) African leaders and policy makers would be well served by a change in policy and attitude. Searching for solutions from within, rather than from abroad, will provide more sustainable growth. Requests for international debt relieve, complaints about (and excuses based on) the wrongs of the colonial past, demands for international trade concessions and efforts to secure international investment; may only result in a shift in the focus away from the basic problems at home. At the same time, a committed and disciplined focus on political and macro-economic stability; an efficient infrastructure, quality labour and bigger markets will naturally lead to substantial increases in international trade (while at the same time provide for better platform for negotiating international trade dispensation), will generate foreign investment and will reduce the importance of debt relieve. In addition, an stable environment combined with a reliable infrastructure and a quality labour force provides fertile grounds for local African entrepreneurs to excel and in time create opportunities for domestic savings and organic growth. This study does will not convey a popular message. No quick fixes exist and Africa will have to turn their focus inwards. Africa will have to stop blaming past rulers and stop pleading with current the world leaders. International political and economical leaders will not come to the rescue of Africa, however wrong the past has been. Africa will have to pick itself up by its own bootlaces. / AFRIKAANSE OPSOMMING: Ekonorniese groei in Afrika sal nie gevind word oorkant die Atrlantiese of Indiese oseane in intemasionale markte nie. Groei sal nie behaal word deur eenvoudig staatbates weg te gee in groot privatiserings transaksies nie. Groei sal ook nie bewerkstellig word deur waardevolle konsessies tot skaars natuurlike hulpbronne uit te deel of deur toegewings vir die aansporing van beleggings aan hulpbron soekende intemasionale beleggers te maak nie. Owerhede en beleidmakers moet aanvaar dat die drywers vir volhoubare ekonomiese groei veel nader aan die huis Ie. Nie in groter huishoudelike besparings deur die man in die straat nie (wie Afrika se arm ekonomie waarskynlik 'n maaltyd sal moet prysegee om te kan spaar.), maar selfs nader. Die beleid vir ekonomiese groei in Afrika moet gefokus wees daarop om eerstens produksie en allokasie effektiwiteit in die plaaslike ekonomie te behaal. Die drywers om dit reg te kry word gevind in die primere vernatwoordelikhede van die staat: -Politieke stabiliteit deur goeie regering -Stabiele makro-ekonomiese omgewing -Goeie werkende infrastruktuur -Opgevoede en opgeleide werkersmag -Redelike grootte markte deur samewerking op streeksvlak (bv. SAOG) Afrika leiers en beleidmakers sal baat by 'n verandering in beleid en houding. Die soeke na oplossing van binne eerder as in die buiteland, sal eerder volhoubare groei bied. Versoeke vir intemasionale skuldverligting, klagtes rakende (en verskonings gebaseer op) die foute van die koloniale verlede, eise vir intemasionale handelskonsessies en pogings om internasionale beleggings te lok; al hierdie aksies lei waarskynlik slegs daartoe dat die fokus en aandag wegskuif van die basiese probleme in die plaaslike ekonomie. Terselfdertyd sal 'n toegewyde en gedissiplineerde fokus op politieke en makroekonomiese stabiliteit, 'n effektiewe infrastruktuur, hoer kwaliteit arbeidsmag en groter markte verseker oor die lang termyn weI lei tot 'n wesentlike toename in intemasionale handel (terwyl dit ook gelyktydig 'n beter platform skep om te onderbandel vir 'n meer voordelige intemasionale handelsdispensasie), meer intemasionale beleggings en sal die belangrikheid van skuldverligting laat afneem. Verder sal 'n stabiele omgewing, gekombineerd met 'n betroubare infrastruktuur en 'n bekwame arbeidsmag 'n vrugbare omgewing daar stel vir plaaslike Afrika entrepreneurs om uit te styg en te presteer. Dit sal oor die lang termyn geleentheid skep vir huishoudelike besparing en organiese groei. Hierdie studie bring nie 'n gewilde boodskap nie. Geen kitsoplossings bestaan nie en Afrika sal hul fokus inwaarts moet verskif. Afrika sal moet ophou om die koloniale heersers van die verlede te blameer en moet ophou om by huidige internasionale leiers te pleit vir hulp en toegewings. Intemasionale politieke en ekonomiese leiers sal nie tot die redding van Afrika kom nie, hoe verkeerd die verlede ookal was. Afrika sal homself moet optel aan sy eie skoenveters.

This thesis focuses on Foreign Direct Investment (FDI) in Angola and on constraints encountered by investors. It discusses the new Investment Law, resulting from a comprehensive law reform in 2003, as well as investment incentives destined to attract FDI into the territory, furthermore: the legal definitions of FDI and of &ldquo / Investor&rdquo / the Angolan private international law / the main constraints (investment barriers) encountered by investors, after and before entering the Angolan territory / the legal protection afforded to investors, and some examples of FDI and their implications in Angola.<br /> <br /> The author also analyses investment and intra-trade within the Sub-Saharan region, Angola under modes 3 and 4 of GATS, and other aspects of foreign (as well as private) investment, including on what has been done and what should still be achieved under the SADC Trade, Finance and Investment Protocol from 2005 onwards. This analysis, it is hoped, will contribute to the better understanding of the implications and benefits of FDI in Angola, considering the recent increase of inflows of FDI, as well, as to what extent and how the Government should continue to control and direct, as well as encourage FDI. To conclude, the impact (positive -negative) of FDI in the Angolan society, economy and for the environment will be discussed. Together with the chapters describing the legal framework for FDI, these parts are intended to provide a better insight into the legal, economic and social background for investing and for doing business in Angola, and what type of protection investors can expect from the country, whilst information and academic materials on this subject matter continue to be scarce and difficult to access.

This thesis focuses on Foreign Direct Investment (FDI) in Angola and on constraints encountered by investors. It discusses the new Investment Law, resulting from a comprehensive law reform in 2003, as well as investment incentives destined to attract FDI into the territory, furthermore: the legal definitions of FDI and of &ldquo / Investor&rdquo / the Angolan private international law / the main constraints (investment barriers) encountered by investors, after and before entering the Angolan territory / the legal protection afforded to investors, and some examples of FDI and their implications in Angola.<br /> <br /> The author also analyses investment and intra-trade within the Sub-Saharan region, Angola under modes 3 and 4 of GATS, and other aspects of foreign (as well as private) investment, including on what has been done and what should still be achieved under the SADC Trade, Finance and Investment Protocol from 2005 onwards. This analysis, it is hoped, will contribute to the better understanding of the implications and benefits of FDI in Angola, considering the recent increase of inflows of FDI, as well, as to what extent and how the Government should continue to control and direct, as well as encourage FDI. To conclude, the impact (positive -negative) of FDI in the Angolan society, economy and for the environment will be discussed. Together with the chapters describing the legal framework for FDI, these parts are intended to provide a better insight into the legal, economic and social background for investing and for doing business in Angola, and what type of protection investors can expect from the country, whilst information and academic materials on this subject matter continue to be scarce and difficult to access.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: The increasing global demand for and dependency on oil provides tremendous opportunities for oil-producing countries. Supported by the unprecedented economic growth in developing countries such as China and India, the global demand for oil is estimated to increase by 50% from the present 83 million barrels a day to 120 million barrels a day by 2025. This increased demand for oil provides the African oil industry with vast possibilities. Countries such as Angola, Cameroon and Nigeria are already experiencing a large increase in direct foreign investment, a higher Gross National Product en more favourable balance of trade. The logical conclusion from the abovementioned advantages of oil-rich countries would seem to imply a sharp rise in the standard of living for the citizens of these countries in the recent past. The purpose of this report is to determine if Angola, as the world’s fastest growing oil-producer in terms of increased production of barrels per day, offers its citizens an economically prosperous future. Points highlighted by the report include the inevitable problems caused by Angola’s colonial history and the recent twenty seven year long civil war. Angola faces internal and external problems caused by • “Dutch Disease” • Fluctuating oil prices • Poor governance • Institutional capacity China now plays an important if somewhat controversial role in Angola’s prosperity by providing finance and aid with less stringent conditions than Angola’s traditional sources. With Chinese aid Angola is now undertaking the rebuilding of its infrastructure which is essential to counteract the negative aspects of the country’s dependency on oil resource exploitation. There is still significant corruption within the oil industry and it seems clear that any attempts by international companies and non-governmental organisations to counteract the problem will have limited success unless the governments and all concerned parties take note of and accept new ethical and socially responsible codes of behaviour. Africa however is entering a new phase of accepting responsibility for its own internal problems. The democratisation of the continent is setting new standards for the fight against corruption. Finally the report indicates that there are lessons to be learned from other countries about using income from natural resources to benefit future generations. Countries such as Botswana (diamonds) and Norway (oil) use investment funds to limit their dependence on the resources and to counteract the effect of fluctuating prices of the commodities. Bearing in mind the above considerations, Angola cannot be expected to achieve success overnight, but the country has all that is required to eventually assume its rightful position on the continent and become another African economic success story. / AFRIKAANSE OPSOMMING: Die wêreld se toenemende vraag na- en afhanklikheid van olie bied tans geweldige geleenthede vir olie-produserende lande. Daar word beraam dat die wêreldwye vraag na olie, gesteun deur ongekende ekonomiese groei in ontwikkelende lande soos China en Indië, met meer as 50% van die huidige vlak van 83 miljoen vate per dag teen 2025 tot 120 miljoen vate per dag sal toeneem. Die moontlikhede wat hierdie verhoogde vraag vir die oliebedryf in Afrika bied, is legio. Lande soos Angola, Kameroen en Nigerië ondervind reeds ʼn groot toename in direkte buitelandse investering, ’n verhoging in bruto binnelandse produk en gunstiger handelsbalanse. In die lig van bogenoemde voordele vir lande wat ryk is aan oliehulpbronne, sou die logiese afleiding wees dat die lewenstandaard van die burgers van hierdie lande die afgelope paar jaar drasties moes verhoog het. Hierdie verslag het dit ten doel om te sien of Angola, wat die wêreld se vinnigs groeiende olieprodusent in terme van verhoogde produksie in vate per dag is, werklik sy burgers ekonomiese voorspoed vir die toekoms bied. Belangrike punte wat in die verslag na vore kom, is die onvermydelike probleme waarmee Angola te kampe het weens die land se historiese agtergrond en die onlangse burgeroorlog van sewe-en-twintig jaar. Interne en eksterne probleme wat Angola teister is die gevolge van • “Dutch Disease” • Skommelende oliepryse • Swak staatsbestuur • Institusionele kapasiteit China is ’n nuwe, hoewel ietwat kontroversiële, faktor in Angola se vooruitgang en stel minder beperkende voorwaardes as Angola se tradisionele bronne vir finansiering en hulpverlening. Met Chinese hulp is Angola nou besig met die heropbou van sy infrastruktuur, wat noodsaaklik is as hy die negatiewe aspekte van die land se afhanlikheid van olie-ontginning wil afskud. Korrupsie binne die oliebedryf is egter nog beduidend en dit is duidelik dat die pogings van internasionale maatskappye en nie-regeringsorganisasies om die probleem die hoof te bied, beperk sal bly tensy die regerings en alle belanghebbende partye kennis neem van nuwe etiese en sosiaal verantwoordelike optredes en dit aanvaar. Afrika gaan deur ’n nuwe fase waar die vasteland self verantwoordelikheid aanvaar vir sy interne probleme. Die demokratisering van die vasteland behels die aanvaarding van nuwe standaarde ten opsigte van die bekamping van korrupsie. Ten slotte noem die verslag dat daar lesse te leer is van ander lande wat hul inkomste uit hulpbron-ontginning tot voordeel van toekomstige geslagte aanwend. Lande soos Botswana (diamante) en Noorweë (olie) maak gebruik van beleggingsfondse om die land se afhanklikheid van die hulpbron te beperk en om die uitwerking van prysskommelings van die kommoditeit teen te werk. Met inagneming van bogenoemde oorwegings kan nie verwag word dat Angola oornag ekonomiese sukses sal behaal nie, maar die land het alles wat nodig is om mettertyd sy regmatige plek op die vasteland in te neem en na vore te tree as nog ’n ekonomiese suksesverhaal uit Afrika.