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Doing Business in Angola


To improve existing telecommunications network To develop hospitality & tourism industry To construct and revamp transportation ... Property Transfer Tax ... – PowerPoint PPT presentation

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Title: Doing Business in Angola

Doing Business in Angola
Angolan National Private investment Agency
Angola National Private Investment Agency
  • is the only government entity responsible for
    the execution of the national policy on private
    investment, its promotion, coordination,
    evaluation, approval and supervision.

  • Angola lays on the west coast of Southern Africa
    and it is
    bathed by the Atlantic Ocean
  • It covers an area of 481,354 square miles
    (1,246,700 Km²)
  • 1,025 miles (1650km) of coastline
  • Borders with Congo Brazzaville,

    Democratic Republic of Congo,
    Zambia and Namibia
  • 20,9 million inhabitants (est.)
  • Portuguese is the main language
  • The main religions are Catholic and Protestant
  • The highest geographical point is Mount Moco
    with 2,620 meters in height in the province of

Advantages of Investing in Angola?
  • It boasts 12 of Africas Water resources ,
    Angola owns one of the greatest hydrographical
    network in all of Africa and its main rivers are
    Kwanza, Zaire, Cunene and Cubango.
  • Rich in flora and fauna
  • Diverse mineral ores diamonds, iron, gold,
    phosphates, manganese, copper, lead, zinc, tin,
    wolfram, tungsten/vanadium, titanium, chrome,
    beryllium, kaolin, quartz, gypsum, marble,
    granite and uranium.
  • One of the worlds fastest growing economies
  • 7.4 million hectares of arable land and
    pastures, from which less than 3 are
  • Microclimates
  • Political and economic stability since 2002
  • Angola lays on the west coast of Southern
    Africa and it is bathed by the Atlantic Ocean

Why to Invest in Angola?
  • To improve existing telecommunications network
  • To develop hospitality tourism industry
  • To construct and revamp transportation
    infrastructure, services and equipment
  • To create more new jobs with the implementation
    of new industries even though the National
    Industry growth in 2010 had been of 19
  • The Program of Public Investments (PIP)
    2011/2012 worth USD 16 billions (2,000 projects
    to promote the rural development and reduce

2012 Macroeconomics Indicators
Annual Oil Production (million barrels) 662,7
Oil price per barrel USD 77
GDP growth () 12,8
- Non-oil GVA growth rate 12,5
- Petroleum GVA growth rate 13,4
Inflation Rate () 10
Revenues (OGE)  
Public Deficit  
Source http//
Macroeconomics Indicators
  2007 2008 2009 2010 2011 2012
Premises of the Economic Policy          
Annual oil production (million/bbl.) 619.8 695.5 694 696 620.5 662,7
Oil Price (USD/bbl.) 70.8 93.6 60.9 77.9 95.37 77
Goals of the Situation            
General rate of growth of GDP 23.3 13.8 2.41 3.4 1.7 12,8
Non- Petroleum GVA growth rate 20.4 15.0 8.3 7.8 8.1 12,5
Petroleum GVA growth rate 25.7 12.3 -5,1 -3 -8.8 13,4
Annual inflation rate 11.8 13.2 13.99 15,3 12.00 10
Fiscal (Percentage of GDP)            
Revenue 40.8 40.8 34.6 43.7 42.2  
Expenditure 35.7 35.7 39.5 36.5 33.4  
Public deficit 8.3 7.8 9.1 2.90 1.4  
Source http//
How to Invest in Angola
Requirements and Process
Exception It is not considered (or applied) the
private investment regime when Private Companies
have shares in Public Companies where the State
owns 50 or more of the share capital (stock
Required Documentation
  1. Presentation of Proposal Form (description of
    investment, inventory of equipment )
  2. Draft Articles of Incorporation for Creation of
  3. Certificate authorizing company name
  4. Annual Financial reports for the last 3 years
  5. Power of Attorney (if necessary )

Investments in individual name 4.1. Certificate
of financial capacity 4.2. Certified criminal
1.1. Bylaws If investor is shareholder of an
already existing company
After Approval
Final Step
Incentives are given to Priority Areas
(No Transcript)
Capital gain tax benefits
Development Zones Development Zones Development Zones
Zone A Luanda, principal municipalities of Benguela, Lobito, Huila and Cabinda From USD 1 million up to USD 10 million, transfer of dividends at the 3rd year From USD 10 million up to 50 million, transfer of dividends at the 2nd year From USD 50 million, transfer of dividends at the first year. The rates of the dividends to be transferred are negotiated on a case by case base and must be part of the investment articles of incorporation.
Zone B remaining municipalities of Benguela, Cabinda, Huíla, Kwanza Norte, Kwanza Sul, Bengo, Uíge, Lunda Norte and Lunda Sul From Usd 5 million dividends transfer at the 1st year From USD 1 million to 5 million dividend transfer at the 2nd year The rates of the dividends to be transferred are negotiated on a case by case base and must be part of the investment articles of incorporation.
Zone C Huambo, Bié, Moxico, Kuando Kubango, Cunene, Namibe, Malange and Zaire To be Negotiated The rates of the dividends to be transferred are negotiated on a case by case base and must be part of the investment articles of incorporation.
Industrial tax incentives
  • Profits resulting from private investment may be
    eligible for tax exemption or reduction of
    industrial tax, when implemented in
  • - Zone A, for a period ranging from 1 year to 3
  • - Zone B, for a period ranging from 1 year to
    6 years.
  • - Zone C, for a period ranging from 1 year to
    9 years.
  • In Zone C the subcontracts could also be
    eligible for tax exemption and reduction.
  • The tax incentive is granted after the
    implementation of the project and at least 90 of
    the estimated work force being in place.
  • The reduction in the percentage of the
    rate of tax may not exceed 50.

Tax Incentives
  • Tax incentives and benefits do not constitute a
  • They are not automatically granted, nor for an
    indeterminate period of time.
  • - When considering the proportion and scaling of
    tax and customs incentives and benefits to be
    granted, the criteria must take in account
  • - The type and value of investment
  • - The investment insertion into the countrys
    economic development strategy
  • - Perception of direct and indirect capital
  • - Complexity of investment
  • - Estimated time required for a return on
  • - Type of technology to be utilized
  • - Commitment to reinvestment of profits

Tax Incentives
  • - Tax incentives or tax reduction are granted
    after a negotiation case by case.
  • - An extraordinary tax incentive could be granted
  • - Investments declared highly relevant for
    strategic development
  • - Investments capable of creating at least 500
  • - Investment capable of contributing to a major
    boost in technological innovation and scientific
  • - Annual export that could exceed USD 50 million
  • - Investment projects evaluated at above USD 50

Incentives are given as well to
  • Incentive the growth of the economy
  • Promote the economic, social and cultural
    well-being of the people
  • Enhance the capacity of the national productivity
  • Encourage the partnership between national and
    foreign investors
  • Transfer technology and improve productivity
  • Promote job creation
  • Increase the countrys Exports- Decrease Imports
    to improve foreign currency reserves
  • Help supply the Internal Market with goods and
    services under competitive conditions.
  • Promote technological development and local
    product quality
  • Promote incorporation of national raw materials
    and add value to national products
  • Rehabilitation, expansion and modernization of
    basic infrastructure

Transfer of Dividends
  • The dividends or profits can be transferred
    after the payment of taxes
  • Corporate Tax Rate 35 and a reduced rate of
    20 for rural areas
  • Sales Tax / VAT Rate 10 and,
  • Property Transfer Tax Rate (Sisa) 2 to 10 .
  • The repatriation of dividends is proportional to
  • a) Investment value
  • b) tax reduction or tax exemption concession
  • c) customs incentives and benefits
  • d) investment period
  • e) profits effectively realized
  • f) socio-economic impact of investment
  • g) influence on the reduction of regional
  • h) impact of the repatriation of dividends
    on the balance of payments.

  • - National Constitution of 2011
  • - Basic Private Investment Law (LBIP - Law 20/11,
    of May 20,2011)
  • - Commercial Companies Law (Law 1/04, of February
    13, 2004)
  • Investors Protection
  • - Access to courts and right to defense
  • - Monetary restitution in event of expropriation
  • - Private investments are not nationalized if
    this occur, the Government ensures all investor
  • - The law guarantees professionalism, privacy and
  • - Reciprocal Protection of Investment Agreements
    (based on Bilateral Cooperation Agreements).

Corporate Structure
  • Branch
  • Unlimited Company
  • General Partnership
  • Limited Partnership
  • Private Limited Company
  • Foreign investors are allowed to create 100
    private companies except in the diamond and oil
  • Note Representation Office only before the
    approval of the proposal.

  • - Necessary registrations
  • Taxpayer identification Number,
  • Commercial
  • License as importer or exporter
  • Social Security (for employees)
  • Commercial and/or industrial operating license
  • - Bank account must be opened
  • - Deposit funds required for capitalization
  • - Proof of deposit must be presented to Notary
    Public when drawing up companys Deed of

Reciprocal Protection of Investment Agreements
Africa Europe Latin America
Cape Vert France Cuba
Guinea Bissau Germany  
Namibia Great Britain  
  The Netherlands  
Business Opportunities
The Transportation Sector
  • Strategy
  • -Introduction of a role for privatization, so
    that resources managed by the state can be
    transferred to the private sector
  • -Integration of Angolan transportation network
    into the SADC network
  • - Creation of authorities on an institutional
    level for the planning of the road network
  • Creation of public institutes as regulatory
    bodies for different transportation subsectors
  • - Develop the 3 main corridors originating from
    ports by regenerating rail companies
  • - Revamp the shipping sector, bringing in private
    enterprise and an adequate administration to
    re-establish the competitiveness of national
  • - Revamp and modernize ports
  • - Institutional reorganization and strengthening.

Areas of Investment
  • Road Transportation
  • - Urban public transportation
  • - Inter-provincial and inter-municipal passenger
  • - Medium and long haul transportation of goods
  • The implementation of incentives for investments
    in a personalized taxi system is being studied
  • Railways
  • - State ownership and operation, through the CFL,
    CFB and CFM
  • - Open to private investment in the concession
    process, arranging of funds, technical assistance
    and repairs, and supply of rolling stock,
    communications, etc
  • The government has approved a preliminary study
    called Ango Ferro, to refurbish, upgrade,
    construct and extend the whole of Angolas rail
  • Corridors
  • - Malange, Lobito and Namibe
  • - It is the governments view that the 3
    corridors warrant the same degree of priority and
    constitute an open area in which both public and
    private investment can operate, since they act as
    a support for the development of the national
    economic, access to the sea for land-locked
    countries, and stimulate regional development.

Areas of Investment
  • Ports
  • - Open to private investment in the concession
    process, arranging of funds, , technical
    assistance, supply of equipment, communications,
  • - Leasing port Luanda
  • Operating port Lobito, Namibe, Cabinda, Soyo and
    Porto Amboim
  • Shipping
  • Both coastal shipping and international maritime
    transportation in Angola are liberalized
  • Aviation
  • - Liberalized activity for domestic aviation
  • - International air transportation is an activity
    conditioned by the exercise of traffic rights to
    be negotiated with the national flag-carrier
  • - Private investment is possible in the
    infrastructure-refurbishment process and
    provision of service

The Transportation Sector
  • Projects
  • Increase road-transportation capacity
  • Refurbishment of Luanda Railway (CFL), Benguela
    Railway (CFB) and Mocamedes Railway (CFM)
  • Implementation of the SITLOB project
  • Refurbishment of the Port of Lobito, of Namibe,
    Amboim and Soyo
  • Construction of Viana Dry Dock
  • Acquisition of Marine Navigational Aid equipment
  • Regeneration of aeronautical infrastructure
  • Acquisition of Aviation Navigational Aid
  • Profession Training

The Telecommunications Sector
Delimitation of sectors of law Law number 5/02 of
April 16th, 2002 Absolute Reserve of State
Basic telecommunications network Relative
Reserve of State Telecommunications services for
public use and Economic activities liable to be
engaged by entities not belonging to the public
sector, by way of a concession agreement. Challen
ges Increase competition in telephony
market Improve internet services offer and
universalize it Improve corporate segment
offer Develop National and international
backbone Regulate pay-tv duopoly
The Telecommunications Sector
  • Major Liberalized Market Operators
  • Cellular Telephony Business UNITEL and MOVICEL
  • Landline Service Licenses Mercury (Sonangol
    Subsidiary), Nexus, Wezacom and Mundo Startel
  • Data communication licenses Multitel and ACS
  • Ten authorized ISPs

Regulatory Framework
  • Basic telecommunication law (law number 8/01 of
    May 11th, 2001)
  • Regulations governing access to business of
    providing telecommunications services for public
    use, initially (Decree n 18/97 of March 27th,
    1997 and updated by Decree n 44/02 of September
    6th, 2002)
  • Regulations governing telecommunications services
    for public use (Decree n 45/02 of September 10th,
  • Regulations governing Prices of
    Telecommunications Services for public use
    (Decree n 03/04 of January 9th, 2004)
  • General regulations governing interconnection
    (Decree n 13/04 of March 12th, 2004)
  • National Numbering Plan
  • National Frequencies Plan (Decree n 10/03 of
    March 7th, 2003)
  • Constitution of INACOM (Decree n 115/08 of
    October 7th, 2008)
  • Foreign individual persons or corporate entities
    cannot be majority shareholders in the capital of
    public service telecommunications operators
    (Article 18 of Law n 8/01 of May 11th, 2001)
  • The direct or indirect stake of a
    telecommunications operator in the capital of
    another to provide the same service cannot exceed
    10 (Article 17, of the same law)

The Power Sector
  • Initiatives
  • Upgrade, modernize and expand electricity
    production capacity
  • Promote development of the national electricity
    grid, including the Northern/Central and
    Central/Southern systems
  • Promote development of local sources, such as
    small hydroelectric power plants for
    electrification of rural zones
  • Start to put in place the national
    Electrification Program which includes the
    development of new sources of energy
  • Increase and diversify the production of
    electricity by using energy derived from water,
    solar, wind and biomass sources
  • Institutional reorganization of the electricity
    sector, with the possibility of creating private
    companies for the production and distribution of

The Power Sector
The Water Sector
  • Angola is the second most endowed country in
    Africa in terms of water resources with intense
    rainfall in almost all the country
  • 60 of Angola records an average annual rain of
    about 1000mm.
  • Only 50 of the population has access to potable
    water, but only 16 has piped water
  • - Its worth to see the cities infrastructure,
    stretching grids, water treatment ,supplies and
    the sewage system.

Agriculture and livestock sector
  • Advantages
  • Internal market potential ,
  • 3 million hectares of arable land,
  • Favorable climatic conditions,
  • Biodiversity
  • Existence of abundant water,
  • More irrigated areas, Bengo, Cabinda, Luanda, e
  • Major Crops. Tubers, cereasls and fruits

Agriculture and livestock sector
  • Government programs
  • Promotion of agro-business
  • Agro-industries
  • Sustainable exploration of forest resources
  • Veterinary and health regulatons
  • Constrution and rehabilitation of infrastructures
    in irrigated areas, warehouses and silos
  • Research and development
  • Training and Education
  • Promotion of rural credit

Invest in the future, Invest in Angola!
PowerPoint by Ana Karina Silva, Processed by T.
Veiga Revised by Maria Luísa Abrantes,
Translation Lynn de Albuquerque
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