Ekurhuleni Business Initiative Evening meeting Summer Place, Boksburg 7 May 2007

1. Ekurhuleni Business InitiativeEvening meetingSummer Place, Boksburg7 May 2007 Presentation to EBI members and guests on Business opportunities offered by Angola Roger Ballard-Tremeer Hon Chief Executive South Africa – Angola Chamber of Commerce rogerbt@sa-acc.co.za mobile 0824347276

2. 25000 to 30000 businesspeople visit Angola from South Africa every year • They visit: • To maintain or develop business • To trade in goods or services • To invest in productive capacity • They represent: • Between 8000 and 10000 entities • South African entities and non-South African entities • Most either fail completely or spend too much time and or money in achieving success

3. Those that succeed: • Recognize the huge cross-cultural business diversity gap that exists from the outset: • Ease of Doing Business Index SA = 29 Angola = 156 • Global Competitiveness Index SA = 45 Angola = 125 • Networked Readiness Index SA = 47 Angola = 120 • Strive to bridge the gap by: • Going far beyond the business environment research norm before they visit – seeking to be sufficiently well informed to bridge the gap • Consulting much wider than usual to strengthen their knowledge base and ability to manage the business risk effectively (government entities are very inhibited in this area) • Honing their Angola-specific solutions and skills with vigor (including language and governance) • Ensuring total compliance with both South African and Angolan Codes and Laws • Ensuring that their social accountability is in place and is working • Engage in business in good faith

4. Some external success factors: • 2005 South Africa – Angola Investment promotion and protection Agreement signed • 2006 Angola signed SADC Trade Protocol – operational in 2008 • Avoidance of Double Taxation agreement now being negotiated

5. Some external success opportunities: • Angolan State: • GDP = highest in Africa by far = 30%+ • 2007 / 2008 budget • US $ 7 billion for public works alone • China projects • Angolan Parastatals: • SONANGOL – some projects • AngolaLNG = US $ 8 billion • SONAREF = US $ 3 / 4 billion • Palanca Cimento = US $ 200 million

6. The South Africa – Angola Chamber of Commerce: • Speaks for Angola-related business • Gives you a voice • Promotes Angola-related business knowledge and business leads • Facilitates visas and work permits • Provides translation and interpreting services • Facilitates accommodation and transport • Participates in shows and exhibitions on your behalf • Mentors SMMEs and BEEs • Mediates

7. Choice business opportunities right now: • SMMEs - Export your technology and expertise to Angolan entrepreneurs • BEEs - Piggy-back your supply of goods and services on large projects

8. New – forestry-related business opportunities: • Natural and plantation forests = sustainable harvesting of timber • Forestry-related nurseries = establishment / operation • Harvested logs / timber = transport and adding of value • Certified wet cut planks = purchase of teak / kiaart / rosewood • Forest products = production of charcoal / honey / wax • Agro-forestry = establishment / operation of e.g. coffee plantations / ferti-forestry • Forestry-tourism = establishment / operation of forest lodges • Forestry-related training = establishment / operation of facilities • Certification = training • The Angolan authorities now insist on screening potential business partners – to reduce the predations of the fly-by-nights - access these opportunities through the Chamber

9. Thank you

11. Photographs with acknowledgement to the Centre for African Studies Lisbon