Angola Banking & Financial Services Q1 2019
Despite its prospects improving this year, Angola's banking and financial services industry remains in its infancy. Theindustry's development has been held back by its exposure to the struggling oil sector and to corruption. The outlook for the sectorfor 2019 and beyond is far better than previous years, given that global crude prices are trading higher and the newly electedAngolan president has so far demonstrated a greater commitment to reform and tackling corruption than many expected. Positivecontributions so far have seen the amendment of Angola's exchange rate regime, which will ease FX liquidity and bring much reliefto the domestic banking sector, as well as the February 2018 announcement that the selling of a minority share in AngolaTelecom (the state-owned telecoms company) would most likely be the Angolan bourse's first IPO. While the overall outlook hasimproved, we caution that longer-term growth opportunities within the commercial banking (which is the most developed of thefour sectors on a comparative basis), insurance and asset management sectors will likely be significantly limited until their exposureto the oil sector is reduced and household incomes have risen. Furthermore, other pertinent structural barriers are hindering growthopportunities within these sectors such as remaining local partnership requirements in the finance sector for foreign players.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook