29 Apr Interview with Dr. Manuel Pedro, Chairman of the Board of Directors of The Luanda-Bengo SEZ, Angola
Could you describe the history of the Special Economic Zone and explain why it was established? What specific needs or challenges led to its creation?
The Special Economic Zone was established in 2009, when the government identified the need to create a clearly defined area to host a range of industries. This was part of a broader effort to diversify the national economy. The goal was to encourage investment by creating a space with unique conditions and infrastructure rarely found in other parts of the country.
The SEZ operates as a public company with the mission of supporting increased national production, promoting exports and generating employment by facilitating the installation of industries within its perimeter. We welcome all types of economic activity, not just industrial, because industrial development is interconnected with other sectors. For example, logistics is essential for handling raw materials and finished goods, while areas like retail, food services and support industries also play an important role.
Today, the SEZ hosts 205 economic operators engaged in a wide variety of sectors. These include several branches of industry, such as pharmaceuticals, food processing, cosmetics and household appliance manufacturing. This demonstrates the growing diversity of activities already established within the SEZ.
How do companies get in touch with the SEZ and what are the main advantages of setting up there?
Setting up a business in the SEZ is straightforward. The entire process takes place within the SEZ, so there’s no need to travel to other locations. We function as a one-stop shop where every step can be completed quickly and efficiently.
The process begins when an investor submits a letter of intent. We respond to this by inviting the investor to visit the site to view the available land, infrastructure, or, in the case of leasing, a pre-built industrial unit. If the investor decides to move forward, we request a basic set of documents. These include the company’s registration documents, a feasibility study and an executive project summary describing the proposed development.
Once we receive the necessary materials, we can assess the project and, if everything is in order, proceed with signing the contract. This may involve a lease agreement, a transfer of rights, or surface rights. The speed of the process depends on how complete the documentation is. If all required information is provided, everything can be finalized within a week.
We have experienced and efficient teams in place. We also offer an investor support desk, which brings together essential public and private services to help guide each investor through the setup process. This means investors do not need to leave the SEZ to handle administrative or operational matters. We continue to improve the services available and have space to accommodate more partners that could help simplify the investor experience even further.
Thanks to our international outreach strategy, we have successfully raised the profile of the SEZ around the world. This has led to strong interest from investors across multiple continents. We are currently in contact with investors from China, Europe, the United States, the United Kingdom, Brazil and several African countries. This growing interest reflects increasing global confidence in the SEZ and its potential for business development.
What is the role of the SEZ in Angola’s subregion?
Africa has enormous potential and collaboration is key to strengthening our region. We must open our borders and foster stronger ties within the subregion. There’s no need to look to Europe or the United States for products or services when neighboring countries can offer the same quality. Strengthening these ties can streamline business processes and foster growth. We believe that improving cooperation between countries and opening borders will strengthen business relationships. This will positively influence business activity, so we support stronger relationships between African countries, including within Angola’s subregion.
As members of the African Free Zone Organization, we actively engage in discussions about strategies and models for promoting regional integration. Our goal is to make business operations easier, attract investment, support technology transfer and facilitate the sharing of knowledge and experience. We focus on strengthening cooperation on a regional level, particularly within the Southern African Development Community. We recently signed an agreement with the World Free Zone Organization to establish its regional office in our Special Economic Zone. This office will help address key challenges and needs across Angola’s subregion and sub-Saharan Africa.
Angola has expressed interest in attracting private and foreign investors from Japan. Have you engaged with any potential Japanese investors?
Yes, we have. We’ve had the opportunity to connect with Japanese companies and investors, mainly through our participation in international events. One example was our international fair in Luanda, which saw strong international attendance. These events help us build relationships and we want to turn that interest into concrete investment partnerships. Strengthening those ties is a priority for us.
Once a project or a foreign investor is approved, how is the training process for the local workforce handled?
One of our main priorities is to ensure that investment leads to meaningful and sustainable employment opportunities for Angolans. From the outset, we work closely with investors to align their workforce needs with our strategy for creating local jobs. To support this goal, we developed a digital recruitment platform known as the Opportunity Pool. Through this platform, investors share the specific profiles they are looking for and we use that information to connect them with qualified local candidates. The platform is open and accessible, allowing young professionals to apply directly for available positions that match their skills.
In addition to recruitment, we actively partner with training institutions to prepare the workforce in advance. Before a factory even begins operations, we collect information about the skills it will require and organize training programs so that suitable candidates are ready when the hiring process begins. This approach allows us to generate jobs while also improving the quality and relevance of the local talent pool.
To date, this strategy has helped generate over 8,700 direct jobs. The Special Economic Zone currently manages two major areas: the Uala agro-industrial reserve, which spans approximately 2,800 hectares and the Viana reserve, where our headquarters are located, covering about 4,700 hectares. Viana still has an occupancy rate below 50 percent, which leaves considerable space for future expansion.
Our focus is on attracting labor-intensive projects that can create significant employment. In 2023, for example, we approved 27 projects expected to bring in over $5.6 billion in investment and generate more than 25,000 jobs.
We are also promoting stronger ties between industry and local agriculture. Some of our food processing plants, such as pasta factories, depend on ingredients like corn. We are supporting partnerships between these industries and local farmers to ensure a stable supply of raw materials. This strengthens rural economies and creates new job opportunities outside the urban center. Another notable project involves the Italian company Eni Energy, which is building a bio compost plant that uses sunflowers as its main input. We are encouraging local farmers, especially young ones, to grow sunflowers. This initiative creates jobs and opens new markets across the entire value chain.
One of the largest projects underway is a commercial city development that will include retail spaces, supermarkets and logistics infrastructure across 600,000 square meters. With an investment exceeding $1 billion, it is expected to create up to 50,000 jobs when fully operational. We are building a system where investment supports inclusive local development. This includes direct employment and the creation of supply chains and industries that retain value within the country and benefit communities in a lasting way.
What makes Angola an attractive destination for foreign investment, particularly from Japan?
Our message to Japanese investors is simple: Angola is a country with enormous potential and real opportunities. We are diversifying our economy and shifting our economic structure, with a strong focus on producing many of the goods and services we currently import. This is a very ambitious phase and we are open to welcoming all investors who want to produce in Angola.
The first reason to invest here is our domestic market. Angola offers opportunities to produce and sell goods locally, as well as to export them. In addition to the local demand, our strategic location gives companies access to broader markets, such as those in the Southern African Development Community and across the continent.
Another key point is the Angolan government’s ongoing efforts to improve the business environment. It has become easier to set up industries here. We already have the basic infrastructure needed to start operations, including access to energy and water. Angola has some of the lowest energy and water costs in Africa, which helps reduce production costs and makes final products more competitive, even internationally.
We are located near the new international airport within the Special Economic Zone. This opens up a range of investment opportunities, particularly in logistics and aviation. We are directly connected to the airport and have space to host companies in the aeronautical sector.
We are also especially focused on attracting investment in food processing, transforming agricultural products into industrial goods. In addition, there are opportunities in the production and assembly of agricultural machinery, fishing equipment and automobiles.
Recently, we hosted three groups of Japanese companies, including Toyota. Toyota is a major international player and holds a significant share of the Angolan car market. This strong brand presence makes Angola a promising place for Japanese automotive investment.