1. Doing Business in Angola 1 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. 2

3. Angola 3  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? 4  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 less than 3% are cultivated  7.4 million hectares of arable land and pastures, from which less than 3% are cultivated  Microclimates  Political and economic stability since 2002  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) 5

6. 2012 Macroeconomics Indicators 6 Source: http://www.minfin.gv.ao/docs/dspOrcaCorren.htmhttp://www.minfin.gv.ao/docs/dspOrcaCorren.htm

7. Macroeconomics Indicators 7 Source: http://www.minfin.gv.ao/docs/dspOrcaCorren.htmhttp://www.minfin.gv.ao/docs/dspOrcaCorren.htm

8. How to Invest in Angola 8

9. 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 capital). 9

10. Required Documentation 1.1. Bylaws If investor is shareholder of an already existing company Investments in individual name : 4.1. Certificate of financial capacity 4.2. Certified criminal record 1.Presentation of Proposal: Form (description of investment, inventory of equipment ) 2.Draft Articles of Incorporation for Creation of Company 3.Certificate authorizing company name 4.Annual Financial reports for the last 3 years 5.Power of Attorney (if necessary ) 10

11. After Approval 11

12. Final Step 12

13. Incentives are given to Priority Areas 13

14. 14

15. Capital gain tax benefits 15

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%. 16

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. 17

18. Tax Incentives - 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. 18

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 19

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. 20

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

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. 22

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 23

24. Reciprocal Protection of Investment Agreements 24

25. Business Opportunities 25

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. 26

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. 27

28. Areas of Investment Ports - 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; 28

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; 29

30. The Telecommunications Sector Delimitation of sectors of law Law number 5/02 of April 16 th, 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; 30

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; 31

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 27 th, 1997 and updated by Decree n 44/02 of September 6 th, 2002); Regulations governing telecommunications services for public use (Decree n 45/02 of September 10 th, 2002); Regulations governing Prices of Telecommunications Services for public use (Decree n 03/04 of January 9 th, 2004); General regulations governing interconnection (Decree n 13/04 of March 12 th, 2004); National Numbering Plan; National Frequencies Plan (Decree n 10/03 of March 7 th, 2003); Constitution of INACOM (Decree n 115/08 of October 7 th, 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 11 th, 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); 32

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; 33

34. The Power Sector 34

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. 35

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 36

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 37

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 www.anip.co.ao www.anip-us-angola.com 38