This paper focuses on the characterization of the various dimensions of Foreign Direct
Investment (FDI) and its impact on the Angolan economy and in Huambo province in
particular. It is performed an analysis to support FDI theories and it is analyzed the
evolution and impact of FDI in the Angolan economy. In accordance with the literature
review on the issue of FDI, we validate the existence of various mechanisms through which
FDI affects the economic and social development of the recipient country. We identify the
presence of a negative flow of FDI in Angola in recent years which may indicate the
repatriation of profits of subsidiaries causing the outflow of funds. Our study highlights that
almost all private and foreign investment made in Angola is centered in the province of
Luanda. In 2013, private investment made in Huambo only account for 0.6% of total
investment in Angola and 0.3% of FDI. The analysis of the information collected did not
allow to validate the existence of any policy or instrument specifically designed to attract
foreign investment in a decentralized way to the different provinces.