Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.

Angola’s business environment is still maturing at just 17 years post-civil war.  As a result, distribution channels for most products and services are limited to a handful of key players. Luanda, the capital city, holds one-quarter of the population, and is followed by a limited number of secondary cities: Benguela/Lobito, Huambo, and Lubango, with Soyo and Cabinda as oil industry-focused cities.  With this market concentration, it is very reasonable to appoint only one distributor or representative to cover the entire country.  While a number of legally established distributors and representatives of international products exist in Angola, many products, and especially consumer goods, are sold through resellers.  These resellers purchase products internationally and sell through retail points of sale often using the logo of the international company to attract business.

A southern Africa regional distribution approach to Angola is challenging since it is a Portuguese language country surrounded by English and French speaking markets.  The exception is Mozambique, which with Angola shares in common Portuguese colonial history and language.   A significant amount of business in Angola still flows through distributors in Portugal due to the language and historical ties, but increasingly those Portuguese companies most successful in Angola have established a local presence.  South Africa is a major regional commercial hub for Southern Africa, including Angola.  However, other than for products manufactured in South Africa, these distribution patterns are starting to change in response to increasing competition in Angola.  The Angolan market is demanding better pricing and delivery time directly from international manufacturers, as well as improved after-sales service, spare parts, and maintenance that can be better offered by a local distributor. 

While it can initially be cost efficient for U.S. companies to use other Portuguese language countries such as Portugal to lower market entry costs into Angola, U.S. companies can be most competitive in Angola by establishing distribution and representation directly with an Angolan company that can provide in-country services and support.

Distribution infrastructure within Angola continues to be challenged by poor road quality, time consuming customs entry processes that the World Bank ranks among the slowest worldwide, and limited though expanding warehousing and cold chain capacities.  Railroad expansions currently underway aim to provide intermodal transportation throughout the country.

In the petroleum industry, there is increased enforcement of long-standing regulations by Angolan government pushes for “Angolization” of the supply chain and increased local value to be provided by Angolan companies. Angolan regulations require most international companies to provide products and services to the petroleum industry, and to work with Angolan distributors who can provide in-country value-added services.  Exemptions exist for complex services, but the regulation does not explicitly indicate which activities are covered by this exemption.  The section in this report on “Leading Sectors for U.S. Exports - Oil and Gas Equipment” provides further details about this regulation.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.