AIA - ASSOCIATION INDUSTRIAL OF ANGOLA - AIA

1. AIA - ASSOCIATION INDUSTRIAL OF ANGOLA- AIA A N G O L A BUSINESS OPPORTUNITIES INVESTING And PARTNERSHIPS C O N S I G O... A N G O L A V A I C R E S C E R!

5. Platform

6. Marginal

7. "THE CHALLENGE IN ANGOLA" GENERALFor a better understanding produced this little short, which might have some value for the less informed and all done without the pretension of drain the material. For example: 1. Infrastructure: The 30 years of conflict, worsened after the 1st s general elections in 1992 led to the destruction or degradation of the technical infrastructure with particular focus on roads and bridges, the railways, energy systems and water and compounded by the migration of millions of citizens of the field to the cities for security reasons, in addition to the weakening in schools and clinics. Hence the current and encouragement of many great works of reconstruction and new. started with the recent peace that involves the largest part of the PIP (Public Investment Program) led by the Public Works Department and Office of National Reconstruction. They are partners in weight according to Chinese companies credit lines of USD 6.0 billion and with 3 billion and Brazilian, Portuguese, German, Spanish, Belgian, those of lesser stature. They concentrate on roads, bridges, dams, electricity and drinking water networks , extraction and distribution of for irrigated agriculture perimeters and farm mechanization as well as hospitals and educational establishments. • 2. Diversification – In view of the WFC (World Financial Credit) the Govern is now pushing for the diversification of the economy based on others natural recourses beside the oil and diamond

8. 2. Hooves city: They are overcrowded, to require major rehabilitation and upgrading of projects of immense neighbourhoods. In Luanda (5 million inhabitants, almost 1 / 4 of ourpopulation)we are witnessing the construction of buildings in size (more than 100 arelicensed) and many condominiums and popular districts and several markets in place of informal, one the largest in Africa (Roque Santeiro). Luanda, Malange, Uige, Cabinda, Lobito, Benguela, Lubango, Huambo, Bie, Namibe, Sumbe cities were more structured. For better integration into the urban reality seek characterize the different sectors in • 2.1 Water and Electricity; such services are not yet capable as necessary but seeing the works of great impact in Luanda and Benguela province and a program of "Water for All" Presidential initiative for communities. • Law permits the private activities for both sectors.Prices are highly subsidized. • Luanda has reduced some difficulties of electricity with the recent start of the last turbine of the dam of Capanda (led by Brazil's Odebrecht cooperation with Russia) and the conclusion of the 3rd line of transport. Meanwhile the two neighbour Kwanza river dams, Capanda and Cambambe begin to show not enough for the demand for Luanda and others cities in the northern region. There are others three important dams in the centre and the south to be rebuilded. . 2.2 Sewerage: the situation was dramatic,but in the last two years the services haveimproved considerably and agree to the proposal of AIA for its privatization by several companies, although there is still much to do.

9. 2.3 Urban Roads: were in poor condition, but there is a program of retraining with the intervention of Portuguese Chinese and national companies, in every city, but still a big lack o maintenance The traffic in Luanda is difficult with or chaotic day, which is increasing with the importation of 80 000 cars a year, mostly of occasion. The Provincial Government is being assisted by a German firm to review the framework The Central Government pays great attention to ways having made recent contracts with a funding of one billion dollars with Brazilian companies and the Provincial Government to rehabilitate secondary roads in very bad conditions. • 2.4 Services and Leisure: The offer is still weak, with: • 2.4.l. Taxis: about 20 000 illegal and with old cars. Very few and expensive. "rent a car" • 2.4.2. Hotels and Restaurants: are expensive and the offer far below the demand ; There are plans for another twenty hotels in Angola and there are some restaurants of quality . • 2.4.3. Health: expanding the private clinics, and improvements in state hospitals to stop the high mortality. Malaria (mosquito) diarrhoea ( water) and AIDS (!) should be in line with caution.

10. 2.4.4 Telecommunications: still faces the gap for a good nevel in spite of investments at the two mobile operators, one with a Chinese partnership and a private. The Internet with some servers is still slow and expensive. The cable television expands into Luanda. A fibber optic cable Is being launched along the road Luanda to Benguela 2.4.5 Safety: the improved policing, with no higher fears today. 3. Transports: The system is still a strong constraint to the economy: 3.1 Roads - is underway a ambitious plan for reconstruction of thousands of Km with Chinese Portuguese, Brazilian companies, and a few national. 3.2 Navigation: the country has no company flag. The only official can not get out of a crisis. • 3.3 Ports: the situation is characterized as: • - Luanda: very difficult because of the congestion, due the increase of import that hampers economic activity and cause high demurrage. Are ongoing measures such as the use of dry ports or 2nd row terminals. The management of the container terminal now with Maersk and inside railway reconstruction will interact with it. • There are many opportunities to invest here,

11. - Lobito: in the centre, works well, but feeling now because importers are using the same as alternative for Luanda port, since the road "Luanda-Lobito" is nearly rebuilt. With the reconstruction of Benguela Railway(CFB) it will serve Congo and also Zambia in this casewith a new ramal • - Mocamedes: further south, work deficit, and with little movement. - Cabinda: small and north, have difficulties by silting.. • New portsand Investments There is a project for new ports in Luanda and Cabinda and there are many opportunities to invest in the logistic and equipment systems. • 3.4 Railways: in reconstruction the three ones (Benguela, Luanda and Mocamedes) by Chinese companies with partial funding from Angola. Indian participation with some equipment and workshops for Namibe one. There projects to build up other ones. 3.5 Air transport: • 3.5.1. International routes: the state TAAG "has organizational difficulties" even with Boeing's latest generation planes forbidden to fly over Europe, It does daily flights to Lisbon with SAA planes , with week 5 flights to Brazil (Rio), 4 to South Africa, 2 to China. and 2 to United Arab Emirates, and week flights to Sao Tome, Senegal, Cameroon , Kenya, Mozambique and Congo. Sonair (Sonangol) flies to the United States and supports the oil sector passengers. 3.5.2 Inside fligths:TAAG, Sonair and other private companies provide daily flights to the capital of the province. On the past there were dutch Friendships planes.

12. 3.5.3 Airports: the Luanda one has shortcomings, in terms of passengers and goods and the slow clearance of passengers. Meanwhile follows the rehabilitation In the Luanda and others 20 ones. There is a new airport project under building in Luanda and heavy works in Benguela, Lubango and Cabinda also for international alternative • 3.6 Roads and bridges – Angola has near 12 000 Km of roads and thousands of bridges to be rebuilded. • 3.7 Trucking: multiple initiatives of some domestic companies, along with many individual operators (used trucks), now that roads are under reconstruction. The market is very big. 4. Macroeconomics: The rate of growth of GDP one of the highest in the world (18%),in 2008 and probably 6% for 2009.inflation fell from three to two (12%). The external and internal debt was negotiated, the interest rate remains unchanged in 12%, foreign exchange reserves grew in2008 because oil prices and national currency, the Kwanza, has been stabilized. • 4.1 IMF / world Bank: the government has a cooperation program with rounds of talks.  4.2 Foreign exchange reserves is feeling now in view of the WFC ( World Finance Crise) even more investments on oil deep water platform and in the field of diamonds. 4.3 External Debt: The Government has successfully negotiated on a bilateral basis to overcome the difficulties with the Paris Club .

13. 4.4 Financial Services – Bank system is improving with new ones with Portuguese and Angolan capital and with the extension of new balconies and services all over the country • 4.5 Liquidity -There is a excess of about USD 6,0 billions because of a lack of projects. • 4.6 BDA (Banco de Desenvolvimento de Angola) with diamond and oil revenues to finance productive projects in the medium and long term soft loans mainly in farming and in building materials • 4.7 BNA (National Bank of Angola) monitorize the financial system as a central bank and regulator of monetary and foreign exchange reserves. Reserves of USD 20 billions • 4.8 Insurance: newcomers, expecting the compulsory insurance for cars. . • The system is monitored by an Office, which also governs the Pension Funds

14. 4.8 The stock exchange is in organization but also having difficulty accounting for failure of many companies. • 4.9 Customs: successfully completed the process of modernization with foreign assistance, working with three local boards in the north (Luanda), Centre (Lobito) and South (Namibe), having been introduced to international Harmonized Tariff and a new Code Customs Universal, • There now possibilities to create Bondered Warehouses. • Foreign Dependence – Angola is importing 85 % of the needs.4.10Taxes - A new Table Customs for a period of 4 years in accordance with the standards and methodologies of SADC, economic and social pact of the Southern Region of Africa, of which Angola is a member, but with different rates. • Zero rate for raw materials, subsidiary, materials, parts and spare parts for production or for filling lines of products or to assembly lines of machines, equipment and vehicles. • 2.0% Maximum rate for machinery, equipment and new trucks • 20.0% Maximum rate for consumer goods has a great ability to increase the national offer ; • 30.0% Maximum rate of for water-table (plus 10.0) and alcoholic beverages to encourage investment and competition. Eg fuels, lubricants, gas;

15. Local Final Transformation Incentives for filling lines with the importation of goods in bulk and spare parts to assembly lines, giving even more benefits to import basic ones to transform or wrapping and in the country against products already packed or assembled creating new jobs, and increasing the local content Building Material – Cement, steel and ceramics needs new plants because we are importing 60% of our needs. • -Imports and exports: they are free and licensed by the Ministry of Commerce, and the only one "bulletin” for the opening of credit, foreign exchange control and control of goods. Some goods are still required to preview inspection, which is no longer a monopoly.. The consumer goods and medicines should be mandatory with labels in Portuguese. - "OGE - General State Budget" was adopted to 2008, Normally they are submitted to Council of Ministers and later the National Assembly and the Council for Dialogue that the AIA is a part. • - LocalPurchases by the State: it is still the main line of AIA claims because they are so small. • - ANIP -National Agency of Private Investment is under a deep reformulation to eliminate constrains in the different systems with emphasis on the visas of work to boost economic growth with a police of very strong tax incentives • Investments – AIA is purposing to the Government to apply more and more the BOT systems. • GUE - Single Guichet - Some difficulties still prevail on the procedures to forming companies in spite of some improvements.

16. -Pricing Policy: established by law under the principle of maximum trading margins on the costs and overhead costs (based), being 15.0 and 20.0% for the wholesaler and retailer, respectively. Coffee and maize prices AIA claims of not being adopting a clear policy and disclosed in minimum prices for coffee and for maize, which could stimulate the producer to produce and (the coffee spoon), particularly the thousands of peasants, • These ones live in well uncertainty whether or not the sale of their crops in which Angola has been the fourth world exporter in the coffee and self sufficient and exporter of maize. • The State should buy, for if this is necessary and if and when the private sector not to purchase based on that minimum price at a minimum. Competition: There was created instruments to regulate the supply and demand on basic products and "Our Super" for the retail, this also with a view to providing better service to consumers, Very recently was approved the Law of competition.

17. SMN - National Minimum Wage: from USD 100 from farming to oil sector with 250 . • Social Security - As the SMN Is monitored by MAPESS (Ministry of Public Administration and Social Security) that has under its umbrella the INSS - National Institute of Social Security, which are affixed to the contributions of employers (8%) and employees (3%) per account of others. • - Strikes - There are no movements of relief strikers and demonstrations are very rare. • 5. Regional Markets • The country has strategic challenges to facilitate our efficient and effective integration not only in the SADC region, with 200 millions consumers but also on Africa's West with others 200 with a total of 400 million consumers,

18. Justice: the need for urgent improvement of the judicial system and of protective and notaries with a modernization project which even could get international aid in order to remove themselves procedures and situations affecting the image, growth and development of the country • Agriculture and Fisheries: potential as stated before these two sectors must have the boldness to be that after the oil grow faster from 2010 and never less than 25.0% year to what the policies should be adopted more convenient, contributing to the occupation of the desert territory, diversification of exports (coffee included), agro-industrial development and end hunger, and that Angola is also a food reserve in Africa. • Energy: survey points of taking power for micro turbines that are close to population or economic objectives. It is replacing the existing thermal generators in addition to the reactivation of dams as Lomaum (Benguela) Gove (Huambo / Bié), Matala (Huila) and other, yet to rebuild • Mining: launch of a business program with external powers to regulate and ordered mining of diamonds and minerals rich in order to recover them and do their business with them and the occupation of the territory in the fight against ilegal explotation. The reactivation of iron and marble and granites mines in Huila / Namibe and copper Maquela of Zombo (Uige) are in line with the priorities - Transport: give transparency to the system of urban public transport that now seriously affect the economy and in the aviation field to analyze the efficiency of the two national companies, the TAAG, the flag company and Sonair (Sonangol) integrating the TAAG in the international system of tariffs and ensure efficiency to the port of Luanda because they are all strong constraints on the economy.

19. Office of National Reconstruction - reconstruction of the railways. - Telecommunications: entry of a third mobile telephone operator, with mixed capital to encourage competition and with that in a balanced manner and reduce tariffs to the consequent increase in national efficiency. - Public Works: definition of the "White Paper of Bridges and Roads" to accelerate its reconstruction until 2010 opening the participation of international groups, either engineering or finance, can discuss is the last thing based on interests by side. - Oil: restructuring of Sonangol for the outsourcing of many services for domestic companies while the first line in the interests of his paintings and with accepting challenges of competition from multinational distribution in adjusting the prices gradually so as to reduce itself allowances current extremely damaging to the economy and the interests of the most disadvantaged.

20. A View From The Colonial Past • Angola in the past was a colonial territory of strong GDP growth with an average of 25.0% for years, one of the best performances for the country then known as "underdeveloped". Major contributions were, first, in products of export: the agriculture, such as coffee (4 producer worldwide) wood, cassava (crueira) beans, sunflower, peanuts, maize, banana, leather, wax and others; Agri -industry as sisal (3rd world producer) cotton (7), tobacco, raw sugar, extracts of fruit and wood pulp, fisheries and fish meal and oil (2nd largest world producer), dried fish (biggest producer in Africa ), Frozen fish, canned fish and coal mining, diamonds (2 worldwide producer), iron, granite, marble, not forgetting the strong influence of international CFB (Camino de Ferro de Benguela) and the port of Lobito (in the centre of country), as logistic bases of Congo (Shaba) of major mineral riches It also ensured self-sufficiency and use of assets of 90.0%, with a metal industrialise aggressive in-mechanical light and heavy materials and basic construction and finishing, a very dynamic construction by about twenty cities, and in Luanda , The capital, the 2nd largest city with growth in that the Portuguese colonial empire and the construction of 5.5 km of paved roads per day, about 1 500 km per year.

21. The deep-water ports of Luanda, Lobito and Namibe and the railways (2 500 km) which served as foreheads and excellent mesh of roads at various levels allow the easy flow of production and efficient provision of technical services and logistics the agriculture, agro-industry and creation of livestock and fishing industry. The Camino de Ferro de Benguela, the only international, crossing the whole territory in the center with about 1350 km and linking, and served the Democratic Republic of Congo and Zambia, while its preferred route for export of its vast mineral resources and the import of their needs through the port of Lobito, serve them beyond the diamond areas of the country, where the provinces of Lunda the northeast. The Agriculture and Fisheries, and even the construction of roads, obviously as the manufacturing industry operated 24 on 24 hours, since it gained self-sufficiency, Angola would encounter the foreign market. In terms of investment The ANIP (National Agency for Private Investment) has recently established information of macroeconomic framework and organizational and it is up to us, too anxious to encourage investment, but also the external partnerships and knowing a history of strong growth and our potential and opportunities at the moment, for power, this symbiosis, organize some sectors and segments for a definition of strategies for cooperation between entrepreneurs of our two countries. So, here select the following segments in alphabetical order, that list may still be increased to other sectors or segments, then the document is not static. However clear that the factories are technically and technologically outdated excluding beverages.

22. For better understanding we placed them in alphabetical order. Thus: 1. Sugar and Alcohol / Ethanol 2. Mineral water 3. Cotton 4. Aluminium 5. Beekeeping 6. Rice 7. freezers and fridges 8. Articles of Paper 9. Tiles, mosaics and glassware 10. Batteries 11. Fermented beverages 12. Mixers, and Car Dumpers hand 13. Bicycles and Motorbike 14. Biscuits 15. Rubber and Tire 16. Electronics cables and Telephones 17. Coffee beans 18. Coffee to drink19. Shoes and Leather 20. Beef

23. 21. Carpentry and sawmills 22. Ceramics 23. Beer 24. Sheets of zinc and Lusalite 25. Cigarettes and Tobacco 26. Cement 27. Cement glue 28. Mattresses for springs 29. Fuels and Lubricants 30. Compote and Confectionery 31. Production and Textiles 32. Preserved 33. Plywood 34. Shipbuilders 35. Cutlery 36. Detergents 37. Packaging 38. Roads 39. Foams, and padding Naps 40. Wheat flour 41. Beans 42. Agricultural Tools and Hardware 43. Wire and Rope 44. Coniferous forests

24. 45. Diapers and Dressings 46. Chickens and Eggs 47. Fruits and Industry 48. Cassava of cornmeal 49. Corn meal 50. Casting and Steel 51. Bovine 52. Gas cylinders 53. Industrial Gases 54. Graphic 55. Granite and Marble 56. Housing 57. Inert 58. Milk 59. Assembly Lines 60. Madeira 61. Industrial Maintenance 62. Building Materials 63. Materials and components for cars 64. Materials and Petroleum Services 65. Machinery and Equipment 66. Material and Equipment for School 67. Mini-hydropower plants 68. Oil Food 69. Bakery 70. Popes food

25. 71. Paper, pulp and eucalyptus 72. Fishing 73. Fish 74. Bridges 75. Skins of Cattle and goats 76. Diets 77. Soft drinks 78. Soap and toothpaste 79. Sal Marino 80. Sausage 81. Steel 82. Sisal 83. Swine 84. Paints 85. Tubes 86. Candles 87. Wines

26. STRATEGY • 1. SUGAR AND ALCOHOL / ETHANOL - Angola was self-sufficient in sugar with four factories: two in the Bengo (north of Luanda) and two in Benguela province, they then the most important, the smallest at 40 km from Benguela, the only possible on condition that use either of the Dombe Grande (municipality of Baia tired). The country is now importing to 100% in almost all of Brazil, via the ports of Luanda, Lobito and Namibe. • Angola as well as self-sufficient in sugar-exporting the "green" for a refinery in Matosinhos via Portuguese port of Lobito port and a bowl in Benguela province (Cuio), where the sugar despachava to Luanda and other points in boats loaded off from barges. • Because the country, with excellent facilities such as land, water and climate conditions to meet a large producer, in addition to the possible revaluation of the Sugar Dombe Grande (doubt), is recommending new refineries in the provinces of Benguela, Malange and Kwanza Norte, they served by the railways, dams and ports and consumer markets in the hand.

27. The possibilities are more the order because in this region and linked the region's barrage of Capanda, given the great possibilities of land and an irrigation project in which Odebrecht will be involved. The project involves the production of sugar and ethanol, counting course with its power and has the largest market for consumption more closely, in case the Luanda also be served by Rail of Malange. Note that the sugar production necessarily follows the production of alcohol important for the spirits industry through the distillation of molasses. As mentioned the province of Benguela seems to be one of that at this stage is also able to do so at around 100 000 (one hundred thousand) Km2 with land and water available. the average distance of 180 km from the port of Lobito and served by CFB and roads that are being fixed. • The industries of sisal in Benguela with large plantations where the cane is also developing very well, wish to involve itself in production of sugar cane for supply to a major refinery that can be installed in the region. Satisfied the national sugar market, farmers could increase the area under cultivation of sugarcane for the possible production / export sugar or alcohol / ethanol. • In his disadvantage may have the issue of electricity, unless the dam's Lomaum be rehabilitated, as proposed by AIA or if you take Queve resources of the river in the province of Kwanza Sul.

28. 4. ALUMINUM - The area of Malange has major deposits of bauxite and the energy of Capanda (2nd phase) can be of blast furnaces to produce them. The country was self-sufficient in household articles, produced with an emphasis in the cities of Luanda, Benguela, Lobito and Lubango. In the new customs tariff it is expected that the rates are compounded for foreign products, since this activity is generating many jobs and not capital intensive. Today we can say is that there is nothing (except small buildings), which is why the market is very interesting. The sheet or pre-cast are all on imports. China and India are major suppliers. • Fuels and lubricants - The small capacity of the existing refinery in Luanda and the significant increase in the car park to require large imports. There is an intention to draft a new refinery in the city of Lobito, with the AIA concerned about the environmental issue because that city is taken as a tourist pearl.

29. The distribution, under a monopoly (Sonangol) is deficient. The AIA has already proposed the reformulation of the policy • SHIPBUILDING - Apart from a yard in Lobito, more than maintenance, the others are small, the yards were situated in Benguela - Luanda area and stronger, with construction of wooden-hulled trawlers and each with a metal yard average, of which today exists only the Lobito, privatized, but without production of this type and semi-paralyzed. The Shipyard of Luanda was to be destroyed a building project, why is the ability of the country is very low. Today there are only a few "career" (where you put the boats) in Benguela, Namibe, Kwanza-Sul and Cabinda, but without any technical relevance. In Luanda and installed with Indian investment is a small plant in small boats in support of fiberglass and that the country today is to import the hundreds in India. Thus the country remains dependent on imports especially from China and Portugal, with imports of hundreds of millions of dollars, according to figures recorded in the Daily Republic. • Coniferous forests - As can be read in paragraph of the paper is the central forests of eucalyptus (saligna) of considerable importance over and around the CFB (Camino de Ferro de Benguela), and may expand to the north.

30. The AIA proposed that the Government is continuing with the policy of expansion of Portuguese reforestation, subsidizing private. This proposal aims to transform the country into a global lung taking advantage of excellent conditions for growth of the trees (2.5 times faster than in cold climates) can get subsidies to the international community. • This policy would give him strong economic returns from 5 to 7 years with the industrialization of timber, diversifying itself with pine and cedar, whose experiences were excellent indicators in the area served by CFB. • As the tropical see the Timber Section. • Casting and Steel- The Steel steel of Luanda, albeit in small capacity can be reactivated The other foundries are very small are in Luanda (four) Benguela (two) and Huila and Huambo (one each), today only do work subsidiary of steel, bronze, zinc building is little use of them, who were very involved the production of agricultural tools, pumps' water, currents of nozzles and plow, and so on. • STEEL - There is only a small scale and old, now managed by Chinese, but without impact on the market, which is big importer, as can be seen in the paragraph of the "Casting".

31. INFRASTRUCTURE • Swine - He had great size, but the lack of rations for lack of maize has led the industry to standstill as their own poultry, even with this small production of chickens and eggs. • HOUSING - Despite the recent entry into operation of several real estate and construction companies in the supply of housing is far short of demand that is exponentiated by the high population density of the city in the face of immigration arising from the war, hence resulting in prohibitive price of 4 to 5 times the price of international or even regional market. • 67. Mini-hydropower - The regions of the north and centre, it is specifically the provinces of Uige, Kwanza Norte and Bengo, with a gap of about 1800 m at a distance of 250 km and with many courses of water as a wet tropical region promote their deployment, without invalidating that will be widely available in other provinces. • It should be borne in mind that the people in our country is very rarefied and therefore can not bear the distribution costs of transport networks and to their maintenance. Efficient management of the farms of colonial time relied heavily on the availability of such energy.

32. BRIDGES - There are thousands who disappeared or by action of war or lack of maintenance that period. This condition suggests that the AIA is done "The Bridges of the White Paper of Angola" through an international tender for then they open competitions for its reconstruction / construction in the next 3 to 5 years with financial engineering alone or regional based on partial concessions Operating with the benefit of the contractor and also to ensure the occupation of territory, he very little of concern, leading to serious structural problems and even of sovereignty. It has been much media the possible construction of a bridge, perhaps the longest in Africa, to connect the two banks of the River Congo (or Zaire), Angolan and Congolese, which would allow for the road link with the Province of Cabinda, via Congolese territory, as the links today are possible only by sea or air • CONSTRUCTIVE MATERIAL • Tiles, mosaics and glassware - There is no domestic production of the first two and mosaic started very recently on the outskirts of Luanda the 1st factory with Portobelo of Brazil. This Portugal and dominate the market. • Carpentry and sawmills - had them for several municipalities in the country but very efficient craft units, which it doors, windows and other carpentry for the construction boom in the years 60-75.

33. The industrial mills, suppliers of carpentry, were located in Cabinda, Benguela, Moxico and Luanda with the use of tropical timber. Today we are in Cabinda, Luanda and Caxito, but with supply far short of needs, assisting It is also paradoxically the import of sawn wood and works of carpentry despite ta surcharges (30.0%) There imperiosidade of new investments. • CERAMICS - The factories of brick were scattered through almost the whole territory, and in Luanda, Kwanza-Norte, Benguela, Huila and Huambo. The production of tile, like Marseille, had strong production in most of the ceramics, all of red clay. They lent great impetus to the construction, as witnessed in the colonial era. • Sheets of zinc and Lusalite- These building materials are manufactured in Luanda and Benguela (lusalite), the first with rolls of sheet iron imported. They have great difficulty in competing with imports, as they are not ta very favorable. • The Lupral, a group of Belgian-Portuguese capital owns the two plants of lusalite. • CEMENT - The two factories (Luanda and Lobito) only provide about a third of market needs, assigned to cover the difference by massive imports from China, Pakistan, Egypt, others.

34. There are three projects being implemented: the first increase in the capacity of New Cimangola of Luanda (4 oven) and two new factories in Lobito (Benguela), a partnership with American and other investment Portuguese. CEMENT - COLA - Three factories in Luanda, but there is strong imports, with emphasis on Brazil and Portugal. EMBROIDERY - There is only one production line for a spring mattress in Benguela, with the market mostly provided by imports. • Plywood - The country has two production lines already obsolete and half-stops, one in Luanda and one in Cabinda, both now with many years, partly viable, with the existence of specific timber in Cabinda and therefore with lower logistical difficulties that Luanda Given the current situation of the ports, and this Tuesday the timber by hand. • INERTES - The rapid growth in construction and civil engineering works have exponential greatest needs and the supply less than demand. • WOOD - The northern provinces of Bengo, Kwanza-Norte, Uige and Cabinda are forests with good potential for extraction.

35. Dealers seek partnerships not only for logging, but also for processing. • The needs are growing, including for the construction and sleepers for the rail system, which has a program for the reconstruction of 2,500 km with other future developments. • Exports for lack of means of extracting and processing are still low. • The investments are doing in timber trucks and heavy machinery on the farm, and sawmills and carpentry in the semi-processing. • The plywood factory in Luanda today with new production lines, big producer of sawn and export of rolled steel, with the Cabinda demand for partnership for the reconstruction of the line of plywood. • Building Materials - A country emerged from a long war of destruction and recession, imposes the mandatory revitalization of the industry of building materials.

36. They are no surprise to see that this segment is one of the biggest programs meet the needs of reconstruction that the government has launched throughout the country, not only in infrastructure but also in structures of health and education, as well as the need for heavy large housings. As slots to be filled in alphabetical order are: - Asphalt - Zinc plates - Cement - Roofing - Bricks - Tubes - Wood - Electrical equipment - Mosaic and tiles • The country imports cement from Mexico, China, Pakistan and Egypt has two cement and IRAS, in Luanda and Benguela (Lobito), and clear the space for two more cement IRAS in the centre - south, where the deposits of limestone and gypsum are remarkable , With projects already underway

37. In the ceramic industry she was slight and deployment of firewood and was located in most towns, allowing for development of then leader in Africa, which still can be seen in spite of many years of war and stress that the Government wishes to see resumed. Angola needs about 100 small municipal ceramics for 20 to tile and brick, according to AIA's vision for the development of housing construction and overcome the shortcomings in hospital facilities and education. • The demand for sleepers of the railways, concrete and wood, as well as inert is very much against the reconstruction of the tracks, where preference is given to the concrete by a lack of supply of wood, despite the availability of wood hard to exploit for this purpose. • There is no production of electrical equipment with the exception of plastic tubes to drive, or tiles or mosaics. • To review and evaluation of building materials is the LEA - Engineering Laboratory of Angola, attached to the Ministry of Public Works, which requires be strengthened in their powers and responsibilities. Emphasized to the AIA, for example, checking the quality of imported cement applied to important works.

38. The extraction of inert subject to licensing by the Ministry of Geology and Mines and of building materials to the Ministry of Industry, cement when the policy is the responsibility of the Ministry of Public Works. • PIPES - Two factories for stitching with iron pipes and galvanized in Luanda and a tube of polyethylene and a hard line of black pipe for irrigation, all in Luanda, but with very strong external competition. • ALIMENTARY CONSUME • Mineral water - The country is the largest import of table waters of Africa, especially in Portugal, but also from Spain, Greece, Sweden, Italy, Morocco and others. • Imports remain very large, despite being heavily penalized with a total of 40.0% of taxes, the Customs (t) with the Consumption Tax. • Already installed five factories, apart from a handful of lines of treatment with distribution in cans, but still far short of needs. There are several sources available in the nearby provincial large market (Luanda) and Kwanza-Norte, Benguela and Huambo, with some mineral characteristics.

39. COTTON - The country had raw cotton in its 3rd product of agricultural export after coffee and sisal production in the regions of Bengo and Malange (centre-north) of Kwanza-Sul (Center) and the provinces of Benguela and Huila ( Central-south). • The cotton was considered of excellent quality, mostly "white and long grain", especially the downtown Cassange in Malange, so also called "white gold". • The ginning units were in Malanje, Bengo, Kwanza-Sul and Benguela, are exporting bales of branches by the ports of Lobito and Luanda, transported by rail from Malange and Benguela and Huila by road (200 km) • The then ginning units, except that of Catete, the smallest and rudimentary, no longer exist. • The textile production was concentrated in Luanda, in Dondo (Bengo) and Benguela. • The seed cotton which gives an excellent cooking oil was processed by factories in Benguela and Luanda, the l have already totally obsolete • The cotton continues to be a product of high global demand and prices very stimulating. Clearly the domestic market need for a small portion of that production.

40. It is an ongoing agro-industrial project of great size in the province of Kwanza-Sul with South Korean capital. Farmers in Kwanza-Sul. Bengo and Malange and agricultural entrepreneurs in Benguela and Huila have a considerable know-how in production, requiring funding for the retrofitting of tractors on treadmills (for deforestation) and light and for agricultural crops. • ARTICLES OF PAPER - Very few of paper products manufactured locally, including toilet paper, napkins and handkerchiefs and with only two small companies. • The market is dominated by products from Portugal. • Fermented beverages - based on the fermentation of juice and pineapple or orange, then provided by large plantations, the first in the areas of the Kwanza-Sul, Uige, Benguela and Kwanza-Norte and the second in Huila, Huambo, Bie and Benguela. They are obsolete. • The factories had vats, filling lines and high-capacity washer. • The facilities are available, but no doubt that equipment is mostly obsolete.

41. The distribution and marketing of so-called "fruit wines" were made in glass bottles so-called "five star" of 1.5 liters produced in Luanda. • The returnable bottles circulating in plastic boxes of 12 bottles. • Biscuits - The three factories failed, like most of the business sector, after the change of economic model in 1992 and today have only a symbolic expression in the production, they aggregate the production lines of bodies. • Two small lines, one in Lubango and one in Luanda, with some products with quality, but without quantitative expression. • Was recently installed in a factory with equipment at Lobito, but with serious difficulties in getting off the ground. • The main imports come from Brazil, Portugal, Spain, France, Denmark.

42. FOOTWEAR AND TANNERY - The footwear industry has never had great development face the charges restrictions on Portuguese politics, which in Angola was one of its major market. • Meanwhile, processing and marketing of hides, which then had strong words quickly can win big expansion in Cunene, Huila, Benguela and Namibe. The factories there, while old, in Luanda and Benguela. • Angola exported hides and skins for Portugal, Spain and Japan, particularly the port of Namibe, since the stronger the livestock area is the southern region (Cunene and Huila), but with a strong presence in the area south of Benguela and in the area north of Namibe. • Today there are thousands of skins that ruin if only for lack of basic care. • BEER - The production continues to record levels of growth: in Luanda. CUCA and the NOCAL, linked to the same group of French origin (BGI) associate of SOBA (Benguela) and EKA. in Dondo. (Kwanza-Norte)

43. The 5th factory, the Ngolo, is in Lubango (Huila) area of good water with South African capital of the SAT, the 3rd largest brewer in the world. with a synchronized with the management of Coca Cola factory next door. • It is expected the production of beer Sagres (Portuguese), coupled with a financial group which has wide range of the market by negotiating group Refriango with the (Luanda) and for rebuilding the factory or CUCA (Huambo), the only unit that has not yet been rebuilt. In implementing a project along the river Kwanza and two other smaller in Cabinda and Lunda. • The majority of production is in amber glass bottle produced in Luanda (Vidrul). • The production of beer in cans, the latter imported, is made by-Cuca BGI, in Luanda. • However, with great expression, there are several foreign brands in the market with an emphasis on the Portuguese, followed by Dutch, Belgian, German, Namibian. Are the basis of malt and all raw materials are imported, including sugar, given the collapse of sugar production.

44. The capsules and the labels that were once local production is now imported. Begins to look is a need for a plant in cans. • Mattresses for springs- there is only a small production line in the city of Benguela. The market is provided by imports from Brazil, Portugal and Italy. • Compote and Confectionery - The semi-abandonment of the orchards (tree fruit) meant that they disappear entirely. • The factories there, but the equipment requires replacement • Of the two plants of tin in Benguela still the only existing investment while also paralyzed and in 1985, today is obsolete. • Candy and gum from Lobito and Luanda in chocolate, are no longer produced. The production of jam and confectionery were more prominent in the provinces of Huila, Benguela and Huambo with a predominance for the apple, quince and guava. There is to revive the fruit trees, especially in Huila.

45. TEXTILES AND CONFECTIONS - one of the most dynamic sectors of industrial processing factories with about 100 recipes for the most parades across the country can be assumed that only mattered fabrics and garments of high quality. • In the 80 tested to export to the United States of America. • The production of textiles and uniforms is now very low, with some of the few units to survive on the uniforms of work for security companies. • The quality of fabrics were imported from Portugal (Angola was the booking of the market, as in shoes) and others, such as cotton, produced in the country, in Luanda, with 4 factories, in Dondo, and even the two plants constructed in 1985 also failed and now are obsolete. There are the buildings. • They were fed by cotton produced in Malange, Kwanza-Sul, Benguela and Huila, with ginning factories, 4, whose large surpluses were exported to the United Kingdom and Portugal.

46. Cutlery - There is a small factory in Luanda, is quite matter-of Brazil, India, Portugal, Spain. • FOOD - The country now has three factories in liquid detergents and a line of filling of detergent powder in Luanda. • There is no production of solid detergents or abrasive. •   Consumption still largely depends on imports • MEALSCorn meal - It is the food basis of the majority of the population, today only with factories, one in Luanda, two in Huila, one in Benguela, one in Lobito and one in Huambo, in addition to having many mills the hammer, also possible to manufacturing.

47. Two or three other industrial projects being implemented in the province of Kwanza-Sul, Benguela and Huambo, but the country needs to develop its production with more factories Given the great needs of the country despite peace is still a large importer and therefore the government is encouraging the production of maize and its • transformation. The country has large producer of corn and even exporter, it has excellent weather conditions in most of the territory, particularly in the center - south to produce them, or peasant, or business, where we are seeing a trend. Maize has rotation technique for oxygenation and beans in soil fertilization. • MEAL MANDIOCA - For a north and east and in the Uige, Bengo, Malange, Kwanza-Norte, Zaire and Cabinda and Kwanza-Sul and Lunda., Provinces to which it is the food base, as in the south is cornmeal of corn, the potential is very large and should beware of so that their production is not so extensive but intensive, to avoid demage of forest or coffee.

48. There are some projects of industrialization in the study face major national needs and international market for its wide application in food industry and animal feed. • Unfortunately there is no tradition of incorporating it into bread, but its fermentation as a mass of banana leaf and food like bread. • Since there is broad outlines of its production is made by grinding the hammer mills with three exceptions. • . MATERIAL AND EQUIPMENT SCHOOL - All it is imported, except part in notebooks, books of the Basic Education portfolio and, packages that are of interest, with some factories to attend, though none of them, is of great ability. • The biggest customer is the state, which is why the AIA proposed to the government that orders started to be delivered throughout the year and, not seasonal and delivery in short periods of time (three months), as it is today, which represents the only national factories can sell no more than one quarter of its capacity, which has not been significant ultimately make its insignificant volume of deliveries, giving space to increased imports.

49. Given the size of the market with annual requirement for thousands of field partnerships. • Cooking oil - Angola lost its entire production and self-sustainability with the collapse of agricultural production and customs policies (incongruous in favour of imports) against the state of war. • The productions included the peanut oil, sunflower, cotton and corn, with major productions of oil in the provinces of Uige, Malange and Kwanza-Sul and then processed cotton seed in Luanda and Benguela. • With the collapse of agricultural production factories resorted to the import of seeds of peanut, but because it manufactures the only man who survived started to import crude oil and refine it in Luanda. Today the line is paralyzed, the same happened with another company bottler of Italian-Angolan capital by distortion of t that favour the importation of oil for retail sale • However now launched a line of refining in Luanda, so importing crude oil in bulk

50. The country also needs to see the response capability of producing margarine, whose factory in Benguela was destroyed by a fire during the war. • The country spends many millions of dollars to import oil and margarine in particular Malaysia, Brazil, Portugal and Holland. • It is clear that Angola can be self-sufficient if revived the production of cotton, sunflower and groundnut (this already exists in rural) for which there are tens of thousands of hectares of good land and good rainfall for that purpose. • The introduction of soy appears to be feasible in Huambo and Malange with good experience. • The cake's oil production is an excellent base for the production of animal feed. This, given the collapse of oil production, no longer exists and she died with the production of chicken meat and pork, that the country has become a major importer, which is why the revival in the production of edible oil will enable the production of feed and consequently of chickens and eggs and also to pigs, without having to resort to import.