It is important to increase the availability of brokers that provide Angolans access to international financial markets, experts argue, as the national market currently offers few instruments for Angolan families and investors. The disparity between the evolution of global financial markets and the national market, combined with low levels of financial literacy and banking access, hinders access to international financial markets, which is only possible through other financial intermediaries such as brokers, which in most cases operate via online platforms and applications, increasing the risks of fraud.
Therefore, it is important to increase the supply of Angolan brokers that provide access to international financial markets, experts argue, as the Angolan financial market still offers few savings instruments for families and investors, who, lacking alternatives, end up turning to the informal market.
Currently in the country, it is only possible to invest in bank term deposits, treasury bonds, and stocks (which represent less than 2% of transactions in the capital market), as there are only four listed companies. Treasury bonds and term deposits, which are the most used alternatives, have real interest rates that, when adjusted for inflation, are negative.
The latest data from the National Bank of Angola shows that, until October, for a 90-day term deposit, banks paid an average of only 7.3%, while for 180 days the rate was 10.2%, and for deposits over 1 year, the rate was 11.9%, according to figures from Expansão based on monetary and financial statistics. As for treasury bonds, short-term treasury bills (1-year bonds) reached a maximum of 19.0% in 2024, while non-adjustable treasury bonds (medium and long-term bonds) reached 24% for a 4-year maturity. Nevertheless, these rates are below the year-on-year inflation rate of 28.2% in November, having already reached 31.1% in July, nationwide, and 42.8% in Luanda (June).
However, explains financial markets expert and co-founder of AirTrading Portugal, Bernardo Barcelos, that in global financial markets, there are numerous investment possibilities beyond bonds, stocks, and securities. There is the possibility to trade in indices (indicators reflecting the performance of a specific group of financial assets), commodities, cryptocurrencies, currencies, and others.
In Angola, only banks, by the nature of their activities, are exposed to the foreign exchange market, but in the global market, where there are international platforms, individual investors also have access to this market and can make trades. As for other types of assets like commodities or cryptocurrencies, for example, these do not exist in Angola because there are no platforms that allow trading in these instruments.
Thus, according to Bernardo Barcelos, it is possible to access the financial instruments available in global markets through financial intermediaries (Brokers), as outside of Angola there is plenty of supply and many financial institutions. “There are people in Angola who have accounts with financial intermediaries that provide access to these global markets. There are many financial intermediaries with access to international exchanges,” he pointed out.
Still, the expert noted that there are also cases of fraud. “So it is important to be careful and pay attention when choosing financial intermediaries,” he warned.
Low Levels of Financial Literacy and Banking Access
On the other hand, Tiago Dionísio, chief economist at Eaglestone, argues that it is necessary to address the levels of financial literacy and banking access in Angola, as only 24.7% of the population has adequate financial literacy, with a financial inclusion rate of 49.4% and a banking access rate of around 31.5%. “It is necessary to intensify efforts to improve these indices given their importance in the development of the country and its economic agents,” he said.
This low level of knowledge about financial markets means that many Angolans also have difficulty investing abroad.
“There are people in Angola who have difficulty opening an account with an international broker, but if we look at the niche of people who already have accounts in dollars or euros in other banks outside the country, the process of opening an account with a broker is easier and consequently access to international markets,” explains Bernardo Barcelos. However, he argues that it is important to have oversight of investments, considering that international markets offer various financial instruments with different risks and exposures, and there may not be good risk management due to insufficient knowledge to manage it. “The international market requires a lot of knowledge from those who are going to trade,” he concluded.
Source: Expansão
