Angola is one of Africa’s largest producers of crude oil, along with Nigeria and thus attracts foreign MNCs to its shores. Angolan government’s policies and practices have historically had a significant impact on the way in which MNCs operate and thus strategically manage their own human assets in the country. MNCs are under increased pressure to localize their workforces as work permit regulations are seemingly tightened, thus restricting the number of expatriates companies are able to deploy to Angola. Such barriers carry implications for the success of knowledge transfer processes in MNCs and potentially places increasing pressure on MNCs to send local employees abroad for training rather than relying primarily on expatriates to transfer skills and know-how to their local counterparts. The dynamic is further complicated and made topical by the acute shortage of local skilled professionals (Kreeft, 2009) as a result of Angola’s 27-year civil war that only ended in 2002 and the rapidly growing oil business. Talented and experienced Angolans appear to be in short supply and high demand.

A number of interlinked factors have been identified in contributing to current talent management and development practice in the Angolan oil economy. First, the nature of Angola’s struggle for independence from its Portuguese colonial rulers and subsequent declaration of independence in 1975 resulted in a mass departure of Portuguese professional and semi-professional settlers, leaving a severe lack of skills and abilities across industries (De Oliveira, 2007; Hodges, 2004). Second, the subsequent civil war between Angolan nationalist movements has resulted in the destruction of much of the country’s original subsistence industries (mainly agricultural), and had severe economic and developmental consequences for the country’s other sectors such as education, healthcare, tourism, retail and communications. Thus, the development of Angola’s infrastructure is highly reliant on oil exports, foreign direct investment in exchange for concessions and oil-backed loans creating a path dependency (eg Buckley and Casson, 2001). A shortage of educated and skilled Angolans is a consequence of the lack of access and the quality of education to name two problems and this is proving a major resourcing challenge not only for MNCs operating in Angola, but also for national companies. The lack of skills supply and restrictions on expatriate quotas could potentially slow down economic growth by making the economy difficult for foreign investors to invest in.

Furthermore, accessibility to educational and career opportunities in Angola has to an extent traditionally been determined by ethno-linguistic divisions (Oyebade, 2007). From a cultural perspective, family obligation, often perceived as nepotism in the West, is practised in Angola and thus the socio-economic position of one’s family, in many cases rooted in ethnic heritage, can be a significant determinant in accessing educational and career opportunities.

The Angolan government is driving forward a nationalization agenda, referred to as ‘Angolanization’ and thus foreign MNCs are having to put into practice strategies that will develop local talent to meet their operational needs. ‘Angolanization’ has been associated with the development of future leadership potential, not only for its practical implications of developing technical expertise, but also in increasing corporate capacity for local knowhow to establish ‘constructive relationships’ with local stakeholders and the Angolan government (Ernst & Young, 2004). However, Angolanization has been criticized in the media and online forums for its limited and short-term scope (Kreeft, 2009; Paulo, 2006) and bias towards foreign-educated Angolans, implying that the agenda in itself is selective (Paulo, 2006) and perhaps perpetuates the social and economic divisions that are prevalent in Angolan society.

Nationalization in this sense is generally examined from a corporate perspective. In other words, what does nationalization mean for organizations, business performance and the nature of the labour market? The employee perspective is overlooked. Research carried out by one of the authors of this chapter in to the career development experiences of Angolan professionals working in the oil industry suggests that the Angolanization agenda carries many more personal implications for individuals who are being talent managed in this context. Participant narratives suggest that although the development of local talent is seen as a positive concept in principle, it is also accepted in practice with a degree of scepticism. MNCs’ perceived inability to treat people as individuals is contradictory to the Angolan cultural value of human relationships. Western transactional approaches to employment relationships in the Angolan context seem counterproductive. Narratives suggest that a perception exists among some Angolan professionals that their Angolan nationality has been a factor when being recruited by foreign MNC. This realization has led to feelings of cynicism and of being used, which in turn has implications for organizational loyalty and motivation. It is therefore easy to see that if individuals feel that they are merely a resource to their organization, there is a greater likelihood that they will move between companies in search of the most financially rewarding deal for themselves. The positive side of the Angolanization agenda that has been acknowledged is the increased training and development opportunities for local talent and rapid career progression. Although status and position are highly valued in Angola, rapid career progression is also met with a degree of scepticism and it is questioned whether promotions are based on skills and merit or governmental pressure on MNCs to localize at management level.

Discussion questions

● Can you think of other countries where differences between local and typically Western cultural values inherent in MNCs may influence the way talent management or development practices are received by the individuals that have been identified as somehow talented? Discuss using examples.

● How would you define ‘talent’? Using cross-cultural management knowledge, can you recognize any characteristics in your definition that would reflect your specific cultural values?

● What kind of qualities and skills do you think MNCs are looking for in their high potential employers? What kind of similarities do you see in your definition of talent and in the qualities and skills you think corporate leaders of MNCs are looking for?