The Angolan government actively seeks foreign direct investment (FDI) through its investment promotion and regulatory body, the National Agency for Private Investment (ANIP).
In 2011, the minimum amount required to qualify for investor status incentives was increased from USD100 000 to USD1 million, while investments of between USD10 million and USD50 million must be approved by the Council of Ministers. Investments above USD50 million require the approval of an ad hoc presidential committee.
Investors must enter into an investment contract with ANIP, which establishes the conditions for the investment as well as the eligible incentives. Incentives that are negotiated with ANIP and other local ministries on a case-by-case basis include the repatriation of funds for foreign investments, tax deductions, and exemption from certain taxes and duties.
When determining whether to grant incentives, consideration is given to the economic and social impact of your investment, according to the economic development strategy set by the Angolan executive.
Companies investing outside of the petroleum industry and in the country’s least-developed geographic areas are offered the most generous benefits.
It’s important for you to note that Angola’s private investment law prohibits private investment in the following areas: Defence, internal public order and state security, banking activities relating to the operations of the central bank and the treasury, the administration of ports and airports, and other areas where the law gives the state exclusive responsibility. However, it is common for Angolan companies to partially or completely subcontract an entire project to foreign companies.
Investment in the petroleum, diamond, and financial sectors is governed by sector-specific legislation, and Angola’s foreign exchange laws require all companies operating in Angola to make all payments through locally domiciled banks using the Angolan kwanza (AOA). This law aims to strengthen demand for the AOA, thereby building the capacity of Angola’s relatively underdeveloped financial sector.
The Angolan government intends to privatise selected state-owned enterprises (SOEs). It commenced with this process in 2013 with the privatisation of two textile factories. In addition, the Angolan government plans to open the entire electricity sector to both foreign and domestic private companies.