Interview with Isaac Marshall
INVESTOR, TLG CAPITAL
Lives in: London, United Kingdom
Isaac Marshall, from Africa-focused investment firm TLG Capital, discusses the opportunities and challenges in Angola, one of the continent’s major oil producers with a population of about 38 million. For the full interview, watch the above video.
Highlights from the interview include:
- Why Luanda is one of the most vibrant cities in Africa that Marshall has visited
- Unlocking Angola’s tourism potential
- Agri-processing opportunities
- Capitalising on marine services prospects
- Dealing with Angola’s currency-related challenges
- Strategies for not losing money in Africa
Vibrant Luanda
Marshall describes Luanda as one of the most vibrant cities in Africa he has visited.
“Luanda is a city where you can feel an energy, an excitement about the future … There’s a vibe to the city. It’s colourful, the architecture is beautiful, there’s bustle in the streets, young people are trying to build things, banks are excited to do business. There’s a sense of flourishing and activity that I think is exciting to see,” he says.
Marshall also highlights significant improvements in Angola’s business climate and governance. The country, with a history of corruption, has undergone substantial changes in recent years. “In just the last couple of years, there’s been a bit of a turning point in the dynamics around the economy where suddenly you’re seeing banks that are very, very keen to attract international investors. Local entrepreneurs are seeing economic growth kind of pick up to greater and greater degrees … And frankly, I think that there was also a big clean-up in the country. [I] think that certain systems are cleaner than they were in the past from a governance perspective in the country. And all of that sort of sets the groundwork for a good opportunity to bring capital in at this moment.”
Agri-processing for local consumption and export
Marshall is bullish about Angola’s agri-processing sector. The country imports a significant volume of goods that could be produced locally. There is also potential to export agricultural produce to neighbouring countries such as the Democratic Republic of Congo (DRC) and beyond.
(Read more: DRC’s food market – export potential for Zambia and other neighbours)
Unlocking potential in tourism
He also sees promising opportunities in the tourism industry. Despite the country’s diverse attractions – such as beaches, wildlife, and deserts – Marshall notes that Angola has never been recommended to him as a tourist destination. He points out the country’s relaxed visa policies but stresses the need to develop essential tourism infrastructure.
“The cities are beautiful. The food is incredible … There’s safari, there’s beach, you have the deserts of Namibe – such a wide variety of landscapes. And there’s lots of tourism that happens nearby in Namibia, right? But no one is talking about doing their safari in Angola,” he says, adding that the tourism industry has the potential to generate much-needed dollar-based revenue.
Marine services opportunities
Marine services, driven by oil and gas operations and shipping traffic, is another sector that presents numerous opportunities, according to Marshall. He highlights the potential across the entire marine services ecosystem, from ship repair to catering and food services for vessels.
Currency troubles
One of the main reasons relatively few foreign investors are interested in Angola is due to currency-related restrictions. Since most sectors are not allowed to transact in dollars, it has created an artificially high demand for the kwanza, which has overvalued the local currency, according to Marshall.
“It means that if I’m a dollar investor and I have to convert to kwanza to enter the country, I’m beginning at a loss because I enter being out of the money. I enter into an overvalued currency. So regardless of the value of the underlying investment, I’m starting off on the wrong foot. So that’s been the issue,” he explains.
Marshall says TLG Capital has started conversations with various stakeholders to address this challenge.
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