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Investment & Legal Framework
On the way to Rio Longa
5. Direct and indirect investment
This Law distinguishes between indirect and direct
investment. Indirect investment is considered to be
all internal or external investment that comprises,
solely or cumulatively, any type of loans, including
shareholders’ loans (suprimentos), additional en-
trances of capital equity (prestações suplementares),
licensed technology, technical processes, secrets and
industrial models, franchising, trademarks, technical
assistance and other forms of utilization access, ir-
respective of whether these are licensed exclusively
or though restrictions to specific geographic areas or
industrial/commercial sectors. Direct investment is
all acts that do not fall under the definition of indirect
investment.
Taking this definition into consideration:
Loans (shareholder’s included) and capital-equity
(prestações suplementares) are treated as indirect
External loans which are to be reimbursed through
funds generated in Angola are considered as inter-
nal operations
The minimum investment that allows each inves-
tor to qualify for the right to repatriate profits and
dividends is one million US dollars
We understand that the only possible way to invest
in companies (branches excluded) through the incor-
poration of new companies and or the acquisition of
shares is to consider the one million US dollars as
share capital, which is the only possible qualification
for direct investment.
In this regard, it is important to emphasize that, al-
though the current Licences to Import Capitals (LICs),
issued by the Central Bank have a validity period of
six months, the new law clearly establishes that the
full share capital should be paid within 90 days of the
issuance of the licence, otherwise the license will be
cancelled and the acts towards the incorporation of
the company may be considered as null and void.
II. Special investment regimes
The oil, financial and diamonds industries are ruled by
special legislation. In the case of foreign investment,
the entity that approves projects in these industries
(the Central Bank, the Council of Ministers and the
Ministries of Geology and Petroleum) should notify
ANIP (the National Agency for Private Investments)
within 30 days of the respective approval. As a result
of that, ANIP will have to issue the corresponding in-
vestment certificates, as regulated in Law 20/11, ap-
plicable only as a supplementary regime.
III. Tax incentives
1. Entitlement
Under the terms of this Law, the entitlement to incen-
tives and other benefits is allowed provided that such
operations are executed in priority sectors, as well as
in Special Economic Zones (ZEE – Zona Especial
Económica) or Duty-Free Areas (Zonas Francas).
The following sectors qualify as priorities*:
Agriculture and cattle
Manufacturing of packs and cans, machinery,
equipment, tools, recycling of iron products, tex-
tiles, clothes and shoes, wood and its components,
food, construction materials and IT equipment
Roads, railways, harbours and airport infrastruc-
tures
Telecommunications
Fish industry, including construction of vessels and
fishing nets
Energy and water
Social housing
Health and Education
Tourism
In addition to the conditions stated above, the granting of
incentives will have to take into consideration social and
economic objectives, attending to the nature, strategic
insertion in the Country’s development plans, direct and
indirect perceived value, complexity of investments and
the estimated recoverable capital of the projects. For
that purpose, the Law is clear in defining that incentives
are neither automatically granted nor indefinite.