Why This Matters
Every day you hold Kwanza in a shoebox or a zero-interest current account, inflation chips away at its value. With Angola’s inflation rate at 15.7%, Kz 1,000,000 today buys roughly Kz 720,000 worth of goods in just one year. Investing is the act of putting your money into assets that can grow faster than inflation — turning idle cash into a wealth-building engine.
What Is Investing?
Investing (investimento) means using money you have today to buy something that you expect will generate more money in the future. Instead of spending all your income on immediate needs, you set aside a portion and place it into assets — stocks, bonds, real estate, or businesses — that have the potential to grow in value or pay you regular income.
Think of it this way: when you deposit Kz 500,000 into a savings account at BAI paying 14% annual interest, the bank pays you for the privilege of using your money. After one year, you have Kz 570,000. Your money worked while you slept, ate, and went about your day. That is investing at its simplest.
But investing goes far beyond bank deposits. Angola’s financial markets now offer several ways to put your money to work.
How Investing Works in Angola
Angola’s capital markets have expanded significantly since BODIVA (Bolsa de Dívida e Valores de Angola) launched equity trading in 2022. Today, Angolan investors can access multiple asset classes:
Bank Deposits (Depósitos Bancários) — The simplest starting point. Commercial banks like BAI, BFA, and BCGA offer term deposits paying 12-18% annually. Your money is relatively safe but may not beat inflation after taxes.
Treasury Bonds (Obrigações do Tesouro) — The government issues bonds through BODIVA with yields of 20-22% for Kwanza-denominated instruments. These are considered the lowest-risk investment in Angola since they are backed by the state. The BNA base rate of 17.5% sets the floor for these returns.
Stocks (Ações) — Five companies now trade on BODIVA: BAI, BFA, BCGA, ENSA, and BODIVA itself. When you buy shares in BAI at Kz 100,500 per share, you become a part-owner of Angola’s largest bank. If BAI grows and earns more profits, your shares become more valuable and may pay dividends.
Real Estate (Imobiliário) — Property in Luanda and other cities can appreciate in value and generate rental income, though it requires significantly more capital to start.
The Key Concept: Making Money from Money
Every investment works through one or both of two mechanisms:
Capital Appreciation (Valorização) — The asset increases in price. You buy BAI shares at Kz 100,500 and later sell at Kz 1,500. The Kz 250 difference per share is your capital gain.
Income (Rendimento) — The asset pays you regularly. A treasury bond with a 20% coupon on Kz 1,000,000 face value pays you Kz 200,000 per year. A stock may pay dividends — a share of the company’s profits distributed to shareholders.
The best investments often provide both. A BAI share might appreciate in price while also paying quarterly dividends.
Worked Example: Your First Kz 1,000,000
Maria is a teacher in Luanda earning Kz 450,000 per month. She saves Kz 100,000 monthly for 10 months and accumulates Kz 1,000,000. She considers three options:
| Option | Expected Annual Return | Value After 1 Year | Value After 5 Years |
|---|---|---|---|
| Under the mattress | 0% (loses to inflation) | Kz 1,000,000 nominal / ~Kz 722,000 real | Kz 1,000,000 nominal / ~Kz 195,000 real |
| Bank term deposit at 15% | 15% | Kz 1,150,000 | ~Kz 2,011,000 |
| Treasury bond at 20% | 20% | Kz 1,200,000 | ~Kz 2,488,000 |
Under the mattress, Maria’s money loses nearly 80% of its purchasing power in five years due to 15.7% inflation. With a treasury bond earning 20%, her money more than doubles in nominal terms — and actually grows in real purchasing power.
This is the fundamental reason to invest: to protect and grow the value of your hard-earned money.
Key Takeaways
- Investing means putting money into assets that can grow — stocks, bonds, deposits, or property
- Inflation at 15.7% erodes idle cash rapidly; investing is defense against this
- Angola’s markets offer accessible options starting from bank deposits to BODIVA-listed stocks
- Returns come from capital appreciation (price increase) and income (interest, dividends)
- Even modest regular savings, invested consistently, can build meaningful wealth over time
Common Mistakes
Waiting for the “perfect” time — Many Angolans delay investing because they think they need a large sum or perfect market conditions. Starting with small amounts regularly (even Kz 50,000/month) is far better than waiting.
Confusing saving with investing — A current account paying 0-2% is saving, not investing. With inflation at 15.7%, your purchasing power actually shrinks. True investing means earning returns that at least keep pace with inflation.
Following informal schemes — Unregulated “investment” schemes promising 50-100% monthly returns are scams. Legitimate investments through BODIVA and licensed banks offer strong but realistic returns of 15-22% annually.
What’s Next
Now that you understand what investing is and why it matters in Angola, the next lesson explores the different types of assets available to you — from the safety of government bonds to the growth potential of BODIVA stocks.
Next Lesson: Types of Assets — What Can You Invest In?
Try the Investment Simulator to see how your savings could grow. Learn more about BODIVA and Angola’s capital markets.