Angola’s White-Collar Crimes Pose Significant Risks to Businesses
Security Challenges in Angola
The security landscape in Angola is fraught with challenges, making it a high-risk destination for foreign businesses. The country’s underperforming security profile, particularly when compared to its regional counterparts, deters foreign workers and necessitates substantial investment in private security measures to protect business assets.
Risks of Organised Crime and Financial Crimes
- Rise of organised crime: Weak anti-money laundering and counter-terrorist financing measures create an environment conducive to serious financial crimes, leaving businesses vulnerable to exploitation.
- Online attacks: The lack of a robust cybersecurity apparatus exposes companies to online attacks, making it essential for them to have robust defence systems in place.
Exacerbating Factors
The situation is further exacerbated by rising living costs, which have led to an uptick in disruptive protest action since mid-2023. The heavy-handed state security response has only served to worsen the situation, creating a volatile environment that poses significant risks to businesses and foreign workers alike.
Long-Term Security Risks
Structural sociopolitical issues such as corruption and inequality are also long-term security risks for Angola. The country’s proximity to critical instability in the Democratic Republic of the Congo adds to its already fragile security profile, making it essential for businesses to have a thorough understanding of the risks involved before investing in the region.
Utilising BMI’s Crime and Security Risk Index
In response to these challenges, BMI’s Crime and Security Risk Index provides a comprehensive assessment of the crime and security risks faced by foreign business travellers and other expatriates operating in Angola. The report examines the country’s defence expenditure and trade, as well as its vulnerability to crime, conflict risk, and business crime. It also provides detailed research and data on the localisation policies that may affect business operations, highlighting potential reputational risks from corruption and money laundering.
Conclusion
Angola’s white-collar crimes pose significant risks to businesses operating in the country. The lack of robust anti-money laundering and counter-terrorist financing measures, combined with the rise of organised crime and a volatile security environment, makes it essential for businesses to have a thorough understanding of the risks involved before investing in the region. By utilising BMI’s Crime and Security Risk Index, companies can make informed decisions about their operations and investments in Angola, minimising the risks associated with white-collar crimes and ensuring a successful business outcome.