Business Corruption

Companies encounter cumbersome and non-transparent procedures when clearing imports through the ports and customs services of Angola. Global Integrity 2010 reports that customs and excise laws are not always enforced uniformly or without discrimination in practice, and some that groups are more likely to evade customs and excise laws due to their connections. The report assesses that although some improvements have taken place within the customs administration in recent years, customs service continues to be a barrier to economic growth in Angola.

Similarly, according to the World Bank & IFC Enterprise Surveys 2010, a significant proportion of companies in Angola report that they expect to give gifts in order to obtain import licences. The customs administration's propensity towards corruption is fuelled largely by costly and time-consuming import and export procedures, which increase the likelihood of successfully extracting bribes and facilitation payments from importers and exporters.

Political Corruption

The US Department of State 2011 reports that bureaucracy and port inefficiencies complicate customs procedures, particularly imports, for companies in Angola. Most imports pass through the Port of Luanda, which is considered to be plagued by inefficiency, corruption, and high costs, according to the USAID Trade Assessment Angola 2003. The cumbersome and costly bureaucracy in customs administration means that Angola performs poorly in trading across borders on the World Bank & IFC Doing Business 2012, with imports and exports taking longer to clear customs than the regional average. This is a major obstacle for diversifying the Angolan economy, as it deters investors from sectors with potentially lower returns on investments than the oil and diamond sectors.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Angola a score of 2.7 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Doing Business 2012:
- A standard export shipment of goods requires 11 documents and takes 48 days at a cost of USD 1,850 per container.

- A standard import shipment of goods requires 8 documents and takes 45 days at a cost of USD 2,690 per container.

The World Bank & IFC: Enterprise Surveys 2010:
- 36% of companies that trade identify customs and trade regulations as a major constraint on their business activities.

- 55% of companies expect to give gifts to obtain an import licence, considerably higher than the Sub-Saharan average of 17%.

- It takes 11 days on average to clear imports from customs.

- It takes 6.7 days on average to clear customs for exports.