Passed: Trade Mission Angola

Most of these were metal and metal products (varying around 40-50%), machines (about 30-40%) with plastic and rubber materials a distant third at about 7%. The record on imports is even less impressive, as declining purchases of vegetable products and plastic and rubber materials has seen their value drop from 20.3 million euros in 2006 to just 7.8 million euros last year. These figures are all the more disappointing when one considers that in the last 10 years the Grand Duchy’s total imports and exports have risen by around two-thirds. The Maghreb accounts for about a quarter of exports to Africa, South Africa around 20% Nigeria around 10%.

Most of the recent interest in Africa has centred on raw materials, with China particularly keen to look across the Indian Ocean for the wherewithal to power its growth. Demand has dipped in the last six months, with the African Development Bank estimating that African export revenues will decline by as much as 40% this year. The continent will turn to the developed world for aid to bridge the gap, an endeavour which should be helped by the increased resources granted by the G20 to the International Monetary Fund. Eventually growth should return, with China likely to be at the forefront as it continues to expand thanks to rising domestic demand. In both scenarios there will be opportunities for European and Luxembourgish businesses to supply goods and services. In recent years, economic management has improved hugely in many countries and there has been increased investment in social and physical infrastructure. It is also encouraging that the continent has largely avoided the banking crisis which has so troubled the developed world. Economic improvement had seen a rise in domestic as well as foreign investment and a trend towards a reversal of the brain-drain.

Africa has been badly affected by the downturn, but the recent ten years have shown the possibility of economic success. Of course it is a challenging place in which to do business, but the fundamentals point to a promising future. Luxembourg’s businesses could do worse than investigating this potential in readiness for the resurgence.

Trade mission organised by the Ministry of the Economy and Foreign Trade & the Chamber of Commerce.

Official programme to be published soon. 

Brochure