PRIVATE INVESTMENT AND PROMOTION OF EXPORTS AGENCY
Angola’s stable and sustainable growth requires the diversification of its business fabric, with Private Investment (PI), and in particular Direct Foreign Investment (DFI), a critical vector for the diversified growth of the country’s economy.
In this sense, the Government and particularly AIPEX—Angola’s Private Investment and Export Promotion Agency—is strongly committed to maximize the national investment and DFI as well as promote the exports and internationalization of Angolan companies.
AIPEX, supervised by the Ministry of Economy and Planning, is the sole inter-locutor with the investor in all phases of the investment process. AIPEX’s main responsibilities are:
• Ensure the receipt and monitoring of private investment proposals to be implemented in Angola;
• Create favorable conditions for private investment;
• Supervise and control the execution of approved private investment projects;
• Implement policies and programs to replace imports with increased exports;
• Make institutional announcements with other ministerial bodies, banks and others.
The effect of attracting PI in Angola would not only increase economic diversi-fication, but also minimize the need for imports. It would also increase the flow of foreign currencies in the country and improve national productivity, resulting in an increase in GDP, employment, fiscal revenues and competition.
The promotion of Private Investment in the country is essential to break the cycle of economic dependence of the oil sector and accelerate the recovery and growth of prod-ucts and services from the Priority Clusters and Structuring Sectors in Angola.
|Priority Clusters||Structuring Sectors|
|Agriculture and Agro-industry||Education|
|Fish, shellfish and their derivatives||Health|
|Animal products||Energy and Water|
|Ornamental rocks||Construction of infrastructures|
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.
That is why 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.
WHY INVEST IN ANGOLA
1) High Potential of the Internal Market
• Angola possesses a considerable market of more than 28,831,463 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) Diversity and Abundance of Natural Resources
• Access to 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 used;
• Sixty-nine 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,
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 Determined 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;
• Capturing private investment through investment incentive and diversification programs, such as PRODESI, which establishes the parameters inherent in a process of sustainable development;
INCENTIVES TO INVEST
The tax and customs benefits are granted to private investment projects, depending on the investment status in which they are framed.
1) Prior Declaration Regime: applies to private investments made outside the sectors considered as priority for the purposes of the private investment law.
Benefits of the Prior Declaration Regime
2) Special Regime: applies to the investments made in the priority sectors. The tax benefits are allocated according to the development of the zone in which they belong.
Benefits of the Special Regime
|Term||Zona A||Zona B||Zona C||Zona D||Other benefits Zonas B,C or D Years|
|*2 Years||*4 Years||*8 Years||*8 Years|
|Industry||20%||60%||80%||40%||Reduction by 50% for a 4-year period
of Depreciation and Reintegration rates.
|Real Estate Transfer Tax||50%||75%||85%||42,5%|
HOW TO INVEST IN ANGOLA
The process begins with the application for registration of the Investment Proposal, which may be done through SETIP, or through direct contact with AIPEX services, and 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 the e-portal 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.
From investiments Guide