Economic Diversity in Angola
The volatility of oil production is recognized as a threat to the sustainable development of the Angolan economy. This highlighted the need to accelerate the GoA’s economic diversification agenda, which aims to develop and grow the non-oil sectors and reduce the importance of and reliance on petroleum products.
ACP’s investment objectives in response to the challenge of economic diversification in Angola is to stimulate the growth of non-oil sectors in the Angolan economy. To achieve the above outcomes, ACP invested in the printing and media sector through Special Edition Holding. The Special Edition group of companies provide integrated media products and services including outdoor media, large format digital printing, advertising and promotions, media buying, events management and media materials manufacturing. Through its advertising, brand awareness campaigns and events businesses, the company creates critical exposure to businesses to reflect their unique products or services in a professional and innovative way. The innovative and creative approach to advertising lays a strong relational foundation and creates momentum for future growth through repeat business. Big Media, the largest entity in the Special Edition group, provides more than 1,000 outdoor, printing and specialist services per annum, which equates to more than 6,000 services during the investment period.
ACP’s decision to invest was based partly on the fact that both Special Edition and Big Media offer a vast range of labour-intensive services to increase the visibility of a diverse client base. Through their services, the two companies positively contribute to increased brand awareness that leads to increased sales volumes for customers who make use of their services. Hence, both Special Edition and Big Media offer a considerable contribution to increased economic diversity within the non-oil sector.
Increased SME growth similarly has a direct effect on GDP growth due to increased output, value add and profits. The relationship between increased SME and GDP growth is touched upon in a 2008 World Bank report: “If entry, growth, innovation, equilibrium size, and risk reduction are all helped by access to and use of finance, it is almost inescapable that aggregate economic performance will also be improved”.
Support and investment in the SME sector and its consequential growth also impacts GDP indirectly, through increased innovation and macro-economic resilience of the overall economy. Finally, a stronger SME sector can bolster a country’s resilience by broadening and diversifying the domestic economy, thereby reducing the vulnerability to sector-specific shocks and fluctuations in international private capital flows .