Angolan economic stability and sustainable growth requires the diversification of its business fabric through Private Investment, in particular through Foreign Direct Investment (FDI), which has become a critical vector for a diversified growth of the country’s economy.
In this sense, the Agency for Private Investment and Export Promotion – AIPEX, a superintendent branch of the executive supervised by the Ministry of Economy and Planning of Angola, is strongly committed to maximize Angola´s national investment and FDI while promoting the internationalization of Angolan national companies, foster local production and increase the exports of national products.
AIPEX’s main responsibilities are:
- Promote and attract Private Investment;
- Ensure the reception, evaluation and monitoring of private investment proposals to be made in Angola;
- Create favorable conditions for the realization of private investment;
- Supervise and control the execution of approved private investment projects;
- Implement policies and programs to replace imports with increased exports; and
- Coordinate with other institutional bodies of the executive, such as Ministries, Service of Foreign Migration (SME) and Angolan Central Bank (BNA).
Besides the effect of attracting PI in Angola, that would not only increase economic diversification but also minimize the need for imports, in coordination with the state policies, AIPEX aim is to increase the flow of foreign currencies in the country and improve national productivity while allowing it to result in an increase in GDP, employment, fiscal revenues and competition.
In this context, AIPEX is focused on increasing exports of products and services from Angola, supporting and facilitating more (internal and external) private investments, and accelerating the internationalization of Angolan companies, which is essential to break the cycle of Angola´s economic dependence on oil and accelerate the recovery and growth of products and services from the Priority Clusters and Structuring Sectors in Angola:
Angola has a high potential to leverage its economy and position itself as one of the main destinations to invest in Africa, considering the diverse characteristics inherent to a promising market:
1) High Internal Market Potential
- A market of more than 28 inhabitants with a GDP per capita of US $ 3,440;
- Investment in the priority sectors carries the possibility of replacing imports in the amount of US $ 3 3 billion.
2) Diverse and Abundant Natural Resources
- Posses 38 of the top 50 minerals used in various industries, such as diamonds, iron, gold, phosphates, manganese, copper, lead, zinc, volphamium, tungsten, titanium, chromium, marble, granite and uranium;
- Presence of several microclimates allows for a varied agricultural production during the 12 months of the year, with an arable land area of 35 million hectares, of which only 14% is being used;
- 69 million hectares of forestry extension comprised of woods of great economic values such as ebony, African sandalwood and rosewood, and commercial plantations of pine and eucalyptus trees;
- Access to 1,650 kilometers of coastline with abundant stocks of fishery products such as mackerel and tuna, shellfish, sardines, and seafood among others.
3) Important Gateway to Access Southern Africa
- Its geo-strategic position allows investors access to the regional market (SADC) of 16 countries with a total GDP of US$ 600 billion with more than 200 million consumers;
- Access by sea, with four neighboring countries: D R Congo, Congo Brazzaville, Zambia, and Namibia
4) Socioeconomic Stability with Young and Cohesive Population
- Young and growing middle-class workforce;
- Political and economic stability since 2002;
- Estimated growth of 5% per year up until 2025
5) Angola is Driven to Attract Investment and Improve its Business Environment
- Long-term strategy (LTS 2025) foresees important infrastructure investment projects that constitute major business opportunities;
- Bilateral agreements on the promotion and protection of investments with several countries, with an emphasis on Germany, Spain, Great Britain, Italy, Portugal, Russia, Switzerland, South Africa and Guinea Bissau;
- Attract private investment through investment incentive and diversification programs such as PRODESI, which establishes the parameters inherent to the processes of sustainable economic development;
- Private Investment Law – Law 10/28 of June 26, 2018, is designed to facilitate the attraction of Foreign Direct Investment and contribute to the improvement of business environment. The following elements stand out:
- No minimum investment amount is requires to invest;
- No obligatory partnerships to invest in Angola;
- Guarantee of transferring profits and dividends after effective implementation of the project;
- Automatic granting of tax benefits;
- Exemption from payment of duty and dues for any requested service, including customs by a non-corporate public entity, for a period not exceeding 5 (five) years, for projects under the Special Regime.
The Private Investment Law 10/28 of June 26 was designed to simplify the application procedural while reducing the time and cost for registering investment proposals. Among the measures, the following stand out:
- The possibility to submit the investment proposal online from anywhere in the globe through the Electronic Private Transaction Processing System (SETIP);
- Establishes maximum limit of 72-hour for the registration of private investment proposals;
- Monitoring of investment proposals until their effective implementation, through the investor support services.
The tax and customs benefits are granted to private investment projects, depending on the investment Regime in which they are framed:
1) Previous Declaration Regime: applies to private investments made outside the sectors considered as priority for the purposes of the private investment law tax incentives:
- Sisa Tax: for the acquisition of the real estate destined to the office and to the establishment of the investment;
- In the Industrial Tax: reduction of 50% on the final settlement rate and the provisional settlement rate by 20%, for a period of two (2) years;
- In capital gains tax: a reduction of 25% in distribution of profits and dividends for a period of two (2) years;
- In the Stamp Tax: reduction of the rate for half, for a period of two (2) years.
2) Special Regime: applies to privates investments made within the priorities sectors and indicated development zones for the purposes of the private investment law tax incentives:
Zone A: Province of Luanda and the municipalities that shelter the provinces of Benguela, Huíla and the municipality of Lobito;
Zone B: Provinces of Bié, Bengo, Cuanza-Norte, Cuanza-Sul, Huambo, Namibe and other municipalities in the provinces of Benguela and Huíla
Zone C: Provinces of Cuando-Cubango, Cunene, Lunda-Norte, Lunda-Sul, Malange, Moxico, Uige and Zaire
Zone D: Province of Cabinda.
AIPEX offers on the Special Regime Investments, expedited and simplified procedures for the following services:
- Registration of a legal, fiscal and social security nature;
- Registration of licenses and administrative services necessary to carry out investment projects;
- Registration of intellectual property, movable property and real estate properties;
- Procurement of activity licenses, building permits, environmental licenses and others;
- Contracting of energy and water services;
- Procurement of visas and residence documents.
How to Start Investing in Angola
The process to invest begins with the application for registration of the Investment Proposal, which may be done through SETIP, or through direct contact with AIPEX services that must present the following documents for the due effect:
- Letter requesting registration of the private investment proposal;
- Form of the Investment Project Declaration and its annexes duly completed (available at the AIPEX service counters, and website aipex gov ao);
- Copies of the applicants’ identification (identity card or passport), in the case of individual persons;
- Copy of the Commercial Registration Certificate, in the case of a legal entity;
- The deliberative record of the decision to register the investment project;
- Document proving the existence of funds or other forms to carry out the declared private investment project (bank statement, if made in monetary means, and the original document duly certifying the asset from an assessment entity, in case of machinery and equipment);
- Training plan, and gradual replacement of foreign with national workforce;
- Power of attorney, if the applicant is represented.