The rapid economic expansion of Angola and Brazil is bringing inbound and outbound investment opportunities for Portugal
Angola, Brazil and Portugal increasingly form an Atlantic investment triangle, says Miguel de Avillez Pereira, Head of Corporate at Abreu Advogados in Lisbon, which since 2007 has operated in Luanda through FBL Advogados.
“Businesses from each country are finding new opportunities in the other. Companies are expanding to find new markets, financing and project opportunities, and capitalising on the obvious cultural and language similarities.”
Angola’s economy growth rate is among the fastest in Africa. GDP is expected to grow by 7.5 percent this year and 11.1 percent in 2012. The Government is however now looking to attract larger-scale investment, with the focus on infrastructure development alongside the mining and services sectors.
“But Angola is also emerging as an investment corridor into sub-Saharan Africa. It echoes Brazil, which is now the South American super power, and both countries are home to a growing tier of ambitious, and capital rich, businesses that are already active in their neighbouring markets and ready to expand further.”
Portugal’s economy may not be as dynamic as its former trade colonies but it does still offer blue chip investment opportunities in the energy and banking sectors and full access to the European Union. Portugal’s two largest takeover battles of recent years both involved Brazilian investors or targets.
“We have already seen Angolan investment in companies like Galp and BCP, but there has also been considerable activity in the media and communication sectors. The Brazilians have been active in the construction sector while Portuguese telecoms, energy companies and banks are focusing on Brazil.”
The Portuguese Government’s planned privatisation programme offers new opportunities, he adds. “There is a sense that Brazilian and Angolan investors are already exploring options, and collaboration, and are among the few with ready access to the capital required.”