Sample Thesis Paper
Angola is one of the richest countries in the Sub-Saharan region in respect of minerals and other natural resources. They have been experiencing double digit growth figures where in 2005 real GDP growth rate was 11.70%, in 2006 it was 19.90%, then 15%, 16.30% for 2007 and 2008 successively.
In Angola, the national agency of FDI (ANIP) has been established and they offer various financial and fiscal incentives, as well as areas and opportunities of investment for foreign investors. The areas however that seem to be receiving most FDI are the financial sector through financial intermediaries like banks. The petroleum, agricultural, infrastructure, real estate sectors, diamonds and other natural resources are also being showered with FDI and also domestic investments.
The constraints that Angola imposes on FDI are still far from being resolved. Parallel markets, crime, corruption, and slow judicial department have been a worry indeed.
The Angolan economy presents a positive picture as its economic growth rate is around 25 percent and the forecasted figures present an even better picture. The main reason for this has been the oil sector which presented a positive performance despite some downturns in the oil prices and the delays experienced in the infrastructural investment. Even the non-oil sectors showed a positive growth trend line making Angola one of the leading exporting African nations.
The oil sector continued to play a dominant role in the economy even as the non-oil sectors picked up pace in terms of productivity. The non-oil sectors have continued to exert greater and greater influence on the economy of Angola such as the agricultural, construction, electrical energy sectors which represented great growth rates.
The relationship between FDI and Angola remained consistent as the favourable international framework aids in establishing the favourable economic climate of Angola.
The productive capacities of Angolan oil sector rising presents a huge incentive in attracting foreign investors who come to the African region for the purposes of oil. The fact that the Angolan government has taken the initiative to construct even more refineries speaks volumes for the production capacity of Angola and the sort of positive signal that it would be sending to the external investors. The dynamism of this sector can be viewed in terms of the successive findings and disclosures of the new discoveries which outline an optimistic picture of this African state.
The oil sector investment rising to more than 46 billion Euros in it speaks volumes for the sort of government initiatives that are being undertaken.