WHY EXPORT

Angola’s relationship with other countries, along with the competitive insertion of the economy in the international framework, constitutes an important element for the sustainability of its development process.

Export: Activity which consists of trading goods and/or services between countries, that is, selling to other countries. Therefore, export is a strategic activity which increases productivity and the insertion of Angolan businesses, products and services in the international market.

Angola is part of the international trade system, which is why this country receives products from several world countries, allowing its residents to fulfill their own needs regarding the use of products and services not produced by Angola. For instance, Angolan consumers buy cars, TV sets and mobile phones produced in other countries; this is also the case Internet services. Those countries’ businesses increase their own market in order to trade their products, selling them inside and outside the country.

As part of this international trade system, products produced in Angola by private or public sector businesses can also be traded in other countries, which is the case of crude oil and diamonds.

As part of this international trade system, products produced in Angola by private or public sector businesses can also be traded in other countries, which is the case of crude oil and diamonds.

Angola aims to trade its goods and services with other countries: agricultural, forestry and derivatives, fishing, mining and industrial products, as well as transport, financial and telecommunication services.

Angola prioritizes a diverse production of goods and services, not only for domestic consumption, but also for export.

Aiming to ensure the implementation of a set of policies that support and promote export, the Angolan government institutionalized the Agency for Investment, Promotion and Export (APIEX-ANGOLA) as a connecting link between the Angolan State, Angolan businesses and the international market, in order to make it easier to trade Angolan products abroad.

The Importance of Exporting

For businesses (the following stand out):

  • Diversify and increase the trading of products and services
  • Increase productivity and scale gains
  • Receive in foreign currency
  • Increase the technical and technological expertise and lower production costs
  • Increase new-product research and development capacity
  • Improve the quality of the products
  • Reduce dependency risks regarding a single market (domestic)
  • Improve design and packaging techniques in order to adapt to the demands of the import market
  • Brand establishment and development of an international name
  • A more regular sale distribution
  • Establishment of alternative markets
  • Improvement of the company’s marketing
  • Participation on fiscal and credit incentives
  • Decrease of financial costs through the attainment of incentives and other benefits (special credit lines).

Institutional support through APIEX-ANGOLA

  • Fiscal incentives.
  • Attending international trade fairs and exhibitions in order to present and advertise Angolan products and businesses.
  • Decrease administrative procedures through the Single Window.
  • Use the Exporter’s Logistics and Support Center, which contributes to the decrease of logistics costs.
  • Training in international trade.

For the State (the following stand out):

  • Increase the growth of the country’s gross domestic product.
  • Improve the trade balance.
  • Improve the balance of payments by objectifying a superavit.
  • Increase the sustainability of public accounts through fiscal contributions.
  • Increase the job offer in the economy.
  • Increase the redistribution of national wealth.

The exporting activity can promote productivity scale gains, encourage innovation and the training of the workforce, strengthen the conditions of economic competition and resilience among the businesses involved, and create positive externalities for the economy as a whole.

Under a more comprehensive point of view, a strong export sector creates better results for the trade balance and for the service account; it allows a greater sustainability for the payment balance, encourages domestic investments in the technological production and development, allows the creation and rise of employment and income standards, and encourages the economy’s vitality and dynamism.

Supporting a national production outside the oil sector, which is not only enhanced through the promotion of better internal disposal, but also through a greater integration of Angola in international markets, is very important, given the country’s exposure to two main risks:

– On the one hand, the risks implied by the dependence on a source of income, which is the case of the oil industry – a product that exposes Angola to a growing volatility of external shocks as the exploration of this finite resource progresses over time.

– On the other hand, the existence of a conditioned international market capable of enabling a limited growth of the country’s productive activities.

Therefore, the government established a Strategy for the Promotion of Angolan Exports, aiming to support the success of the National Development Plan (NDP), develop a balanced and competitive economy that will boost the growth potential of the activities of the Angolan entrepreneurs, outsider the oil industry, and level the livelihoods of Angolan entrepreneurs.

Angola must overcome structural challenges, aiming for the sustainable development of exports and the successful implementation of the Strategy abovementioned, namely:

– The need to create a productive superavit which is not consumed by national demand and which enables its export.

– The strengthening of the competitiveness of national production, thus ensuring the assertion of its general productive strands in international markets.

Internationalization leads to the development of businesses, since they are forced to modernize, whether it’s to conquer new markets or preserve their own positions in whichever market they work with.

The importance of exporting thus grows, not only for the entrepreneurs who wish to grow as such, but also for the national economy, through foreign exchange and the creation of jobs and income.