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Investment & Legal Framework
Angola ranks among the countries with the high-
est growth potential in Africa. It has the capacity
to produces 1,7 million barrels of oil daily and has
estimated reserves of 10 billion barrels. It also has
diamonds, 3 million hectares of arable land, many
valuable minerals, and one of Africa’s largest water
reserves, which gives it massive potential for pro-
ducing electric energy and fishing.
This country was once the world’s fourth-largest cof-
fee producer, a major iron ore producer and an ex-
porter of high-quality marble, food and sisal. The in-
dustrial sector produced food, beer, textiles, cement
and much more. Now, following the advent of peace,
the government wants to resume development in
order to rebuild and restore Angola to its former posi-
tion in the business world.
Inflation has been kept in check in recent years,
and there is a confirmed downturn. The government
is carrying out a program to privatize state-owned
companies and opening up the oil business to inter-
national firms.
TheAngolan Government has approved a new Private
Investment Law, Law 20/03, that revokes Laws 11/03
(former Investment Law) and 17/03 (concerning Tax
and Duties Incentives). However, these laws are still
enforceable for investment projects approved under
them.
I. Basic principles of the new Investment Law
1. Internal and external investments
Under the terms of this new Law, the concepts of in-
ternal (national) and external (foreign) investment, as
well as internal and external investors, are clearly dis-
tinguished.
Investments that are considered internal/national con-
sist in the utilization of capital, technology and know-
how, along with equipment, goods and other items, in
specific economic projects, through resources located
in Angola or resulting from external financing (where
that financing is reimbursed through Angolan ex-
change funds which are, essentially, funds generated
in Angola).
On the other hand, external/foreign investment con-
sists on the utilization by non-resident corporate enti-
INTRODUCTION
INVESTMENT FRAMEWORK
ties or individuals, within the Angolan territory, through
resources that are based inside and outside Angola,
of capital, technology, know-how, equipment and other
items in specific economic projects. For the purposes
of the above, please note that non-resident capital
resulting from external funding should be liquidated
through funds not generated in Angola.
In the same way, an internal investor is considered to
be any legal entity or individual ForEx resident, irre-
spective of its nationality, that realizes investments in
the country, by using capital located in Angola or exter-
nal funds that do not entitle the repatriation of capital
overseas. In the case that the capital is to be imported
from overseas, a loan agreement should be licensed
in advance, according to the ForEx regulations. An
external investor is any entity or individual, irrespec-
tive of its nationality and ForEx residency that realizes
investments in the country by using capital located
outside Angola, which is entitled to transfer profits and
dividends overseas.
2. Different forms of investment
a. Internal investment
An act of internal investment may consist in:
a) Utilization of own capital
b) Availability of funds in Angolan Bank accounts, even
if these funds have been financed through overseas’
loans
c) Utilization of machinery, equipment, tools and other
fixed assets
d) Incorporation of credits and other assets owned by
the investor, eligible to be applied in the project
e) Incorporation of technology and know- how, pro-
vided that these represent a value added to the project
and are subject to a pecuniary evaluation
b. External investment
External investment may comprise any of the following
acts, whether alone or cumulatively:
a) Transfer of capital from overseas
b) Application of funds in foreign currency that are de-
posited in Angolan non-resident bank accounts and
are therefore subject to repatriation, according to the
ForEx regulations in force