1. Doing Business in Angola
Angolan National Private investment Agency

2. 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.

3. Angola
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 Huambo.

4. Advantages of Investing in Angola?
It boasts 12% of Africa’s 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 world’s fastest growing economies
7.4 million hectares of arable land and pastures, from which less than 3% are cultivated
Microclimates
Political and economic stability since
Angola lays on the west coast of Southern Africa and it is bathed by the Atlantic Ocean

5. 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 poverty)

6. 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)
Expenditures
Public Deficit
Source:

7. 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
34.6
43.7
42.2
° Expenditure
35.7
39.5
36.5
33.4
° Public deficit
9.1
2.90
1.4
Source:

8. How to Invest in Angola

9. Requirements and Process
≥ From 1 million
ANIP’s Application Form
USD 250
APPROVAL
CONTRACTUAL SCHEME
(ANIP)
Up to USD 10 million (65 days maximum)
(Cabinet Council)
Over USD 10 million = 65 days (maximum )
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 capital).

10. Required Documentation
Presentation of Proposal: Form (description of investment, inventory of equipment )
Draft Articles of Incorporation for Creation of Company
Certificate authorizing company name
Annual Financial reports for the last 3 years
Power of Attorney (if necessary )
Investments in individual
name :
4.1. Certificate of financial capacity
4.2. Certified criminal record
1.1. Bylaws
If investor is shareholder of an already existing company

11. After Approval ANIP Issues CRIP and sends it to: BNA
Authorizes foreign capital transactions,
Custom Authorities
For customs incentives;
Regulatory Ministeries
To monitor taxes.

12. Final Step Investor should: Register company
Publish bylaws in State Gazette (Diário da República);
Obtain business activity license (Ministry of Commerce)
Register with tax authorities (Ministry of Finance).

13. Incentives are given to Priority Areas
Infrastructures
Industry
Transportation;
Agriculture and cattle breeding;
Energy and water;
Telecommunications;
Fishery
Industrial hubs and free zones;

14. Reserved for the Government Government must be major shareholder
- Production and distribution of war material;
- BNA (central bank) and currency
- Ports and airports
- Basic infrastructure for telecommunication networks
Government must be major shareholder
- Basic Telecommunications System
- Postal Services

15. Capital gain tax benefits
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;
Zone C:
Huambo, Bié, Moxico, Kuando Kubango, Cunene, Namibe, Malange and Zaire
To be Negotiated

16. 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 years.
- 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%.

17. Tax Incentives Tax incentives and benefits do not constitute a rule;
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 country’s economic development strategy;
- Perception of direct and indirect capital gains;
- Complexity of investment;
- Estimated time required for a return on capital;
- Type of technology to be utilized;
- Commitment to reinvestment of profits;
- Volume of goods or services to be produced;
- Creation of production lines.

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

19. 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 country’s 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

20. 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 the:
a) Investment value;
b) tax reduction or tax exemption concession period;
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 asymmetries;
h) impact of the repatriation of dividends on the balance of payments.

21. Legislation
- National Constitution of 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 rights - The law guarantees professionalism, privacy and confidentiality - Reciprocal Protection of Investment Agreements (based on Bilateral Cooperation Agreements).

22. 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 industries
Note : Representation Office only before the approval of the proposal.

23. Procedures - 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 company’s Deed of Incorporation

24. Reciprocal Protection of Investment Agreements
Africa
Europe
Latin America
Cape Vert
France
Cuba
Guinea Bissau
Germany
Namibia
Great Britain
Italy
Portugal
The Netherlands
Spain
Switzerland
Russia

25. Business Opportunities

26. 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 companies;
- Revamp and modernize ports;
- Institutional reorganization and strengthening.

27. Areas of Investment Road Transportation - Urban public transportation;
- Inter-provincial and inter-municipal passenger transportation;
- 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 Angola’s rail network;
Corridors
- Malange, Lobito and Namibe;
- It is the government’s 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.

28. Areas of Investment Ports Shipping Aviation
- Open to private investment in the concession process, arranging of funds, , technical assistance, supply of equipment, communications, etc.
- Leasing port: Luanda;
Operating port: Lobito, Namibe, Cabinda, Soyo and Porto Amboim;
Shipping
Both coastal shipping and international maritime transportation in Angola are liberalized activities;
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;

29. 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 equipment;
Profession Training;

30. 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.
Challenges
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;

31. 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;

32. 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, 2002);
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);

33. 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 electricity;

34. The Power Sector Energy Production
The sector is going from its current installed capacity of MW to reach MW within 5 years;
The government plans to hand over to private operators, by means of public tenders, for construction and operation based on the BOT system;
Public-Private Participation
A review of the general Law on Electricity is currently underway to make it possible for private entities to engage in electricity sector-related activities.
Those include the production and distribution of energy by private entities under Government concessions;
Angolan Generation System
The North system covers Luanda and provinces of Bengo, Malange, Kwanza Norte and Kwanza Sul;
The centre system covers the provinces of Benguela and Huambo;
The south system covers the provinces of Huila and Namibe;

35. 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;
- It’s worth to see the cities infrastructure, stretching grids, water treatment ,supplies and the sewage system.

36. 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 Huila.
Major Crops. Tubers, cereasls and fruits

37. 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

38. 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