Download PESTEL analysis of Angola PDF

TitlePESTEL analysis of Angola
TagsTypes Business Economics
File Size118.4 KB
Total Pages8
Table of Contents
                            Labour laws: Availability of labour, labour cost and labour law also can affect the organization profit and operations. If there is scarcity of labour or labour cost is high then it decreases the profit but Angola has one of the cheapest labour forces in the world which make it stand on 57th rank out of 179 countries. So, to protect the labour rights the government has made a law called Labour laws Article 1/99D (2). According to this law 7-hour workdays and 40-hour workweeks, with one 30-minute rest period for each 4 hours of work is legal in Angola. One day of rest weekly also mandatory in Angola. In April 1992, the Government of Angola signed a Memorandum of Understanding with the International Labour Organization under the International Program for the Elimination of Child Labour (IPEC) where the minimum working age is 14 years. (Angola’s General Labour Law (Law No. 2/00), 2009)
Key Issues in Angola Private Sector, Retrieved from The World Bank:
                        
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PESTEL analysis of Angola

P rime lending rate : If we talk about their commercial Bank prime lending interest rate it is

quiet decent which is 12.41% which is 17,71% in 2007 and their Central bank discount rate is

19.83% . (CIA, 2009) It shows that an organization can get the loan easily at low interest rate

and it has to pay less interest.

Business or individual tax system: Angola’s tax system is also persisting foreign companies

to invest in Angola or establish their manufacturing plant in Angola. Angola government has

divided their cities in to three zones where if any company starts business in 1st zone then they

will get tax redemption for 15 years. If they invest in 2nd or 3rd zone then the government will

give 12 year and 8 year redemption in tax. (Anglo Chamber of Commerce, 2009)

Economical factors:

Angola is considered as a one of the fastest developing economy country. Due to the government

policies and treasure of national resources, their GDP growth has been increasing rapidly from

last few years. They spend 23.5% of their GDP to develop their nation. According to last

announced budget it had revenues $28.62 billion and out of this it spent $21.88 billion to grow

the economy in 2008. They have hub of natural resources such as in Oil production, it has 17rd

rank, in natural gas production and in export it is on 12th position. Angola is on 1st position in

industrial production growth rate which is 14.5%. (CIA, 2009)

GDP : Angola has made significant economic advances through last years. Angola's debt-to-GDP

ratio in recent years has declined because of increasingly robust GDP growth which was 21%

($100.9 billion) in 2007 compare to 18.5% ($82.1 billion) in 2006 and compression to the world

Angola is on the5th position in GDP growth. 9.2% of GDP earning from agriculture, 25.5% from

service sector and the major part 65.1% comes from industry. (The World Bank, 2009)

International Business Project Page 4

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