2. “… “… ‘... a whole country of …” opportunities …” Republic of Angola

3. National Agency for Private Investment Investment Oportunities in Angola Round Table Presentation, London 2012-02-22 By: José Sala/ ANIP

4. Summary: 3 I – ANIP PRESENTATION II – LEGAL ASPECTS OF PRIVATE INVESTMENT III – SOME INDICATORS OF THE EVOLUTION OF INVESTMENT

5. 4 What ANIP is  ANIP – ANIP is the Angolan State institution entrusted with carrying out national policy on appropriate private investment and promoting, orienting and supervising private investment.  Its purpose is to contribute to the implementation of government policies aimed at supporting national economic growth.

6. 5 ANIP’s Duties ANIP’s Duties  Actively promoting propitious conditions and support for attracting private investment;  Coordinate the CNFI and the incentives applicable for private investment projects;  Monotoring private investment projects aproved and / or being carried out;  Representing all the administrative bodies involved, without prejudice to their own specific powers (a single interlocutor).

7. Private Investment system in Angola Private Investment Legislation 1. General (Law on Private Investiment); 2. Oil Industry (Law on Petroleum); 3. Mining Industry (Mining Code); 4. Financial Institutions (Legislation on banking and insurance); 5. Capital Market (Legislation on Capital Market). 6

8. 7 Legal Provision for Private Investment Law on Private Investment (Law No. 20/11 of May 2011)  This law establishes the general basis of private investment and sets out the principles and conditions for access to incentives and other facilities to be granted by the State for this type of investment.

9. 8 Private Investment: The use on national territory of capital, technology and knowhow, equipment and other goods for specific economic projects, the use of funds for the purpose of creating new companies, groups of national or foreign private companies or the full or partial acquisition of existing Angolan companies, with a view to implementing or continuing a given economic activity in accordance with its social purpose, provided that these investments are qualified to be such under article 3 of Law No.20/11 of 20 May 2011 (Law on Private Investment). Private Investor – Any individual or group, whether resident or not, who makes an investment in the country in accordance with the above provisions. Qualified Investment - Investments of a total amount equal or greater than US$100,000 or its equivalent in national currency in the case of a domestic investment..

10. 9 Investment Procedures  All private investment projects are subject to the investment procedures, a single system.

11. 10 Ways and Means of Making Investments  Alocation of own funds;  Transferring funds from abroad;  Alocating and introducing mashinery, equipment and other fixed material;  Acquiring shares;  Setting up of new companies or branches;  Transferring technology know how,  Using resources resulting from loans;  Acquiring real estate in Angola if part of investment projects.

12. 11 Investors Guarantees and Rights  Status of Angolan company;  Equal treatment;  Protection of rights;  Transfer of profits and dividends;  Non- nationalization of property investors;  No public interference in the management of private companies or in the establishment of prices, except in cases specifically provided for by law;  No cancellation of licences without prior legal or administrative procedures;  Direct imports of goods from abroad and the independent export of goods produced by the private investors;  Recourse to internal or external bank loans.

13. 12 Priorities, Purposes and Priority Sectors of Investment Policy a)Priorities  (Re) construction;  Development b)Purposes  Investment in Productive Sector;  Investment in Human Resources (health and education);  Investment in Infrastructures (Roads, railways, ports, airports, telecommunications, electricity and water).

14. 13 c) Priority Sectors  Agriculture and livestock production;  Processing industry;  Fisheries and derivatives;  Railway, road, port and airport infrastructure;  Telecommunications and information technology;  Electricity and water;  Social housing;  The hotel industry and tourism; e  Health and education.

15. 14 Repatriation of capital and access facilities  After completion of the project, the right to repatriate the following is guaranteed : Dividends and profits distributed after payment of taxes; Dividends and profits distributed after payment of taxes; Income from the liquidation of investments; and Income from the liquidation of investments; and Any other sums owing after payment of taxes. Any other sums owing after payment of taxes.

16. 15 Criteria for repatriation of dividends and profits timescale Zone A I < $ 10 M → 3 years after effective completion I ≥ $ 10 M < $ 50 M→ 2 years after effective completion I ≥ $ 50 M → no restrictions Nb: there are no timescale restrictions for investment of more than$ 50 M Zone B I < $ 5 M → 2 years after effective completion I > $ 5 M → no restrictions Nb: there are no timescale restrictions for investment of more than$ 50 M

17. 16 Zone C Nb: there are no timescale restrictions for investment of more than$ 50 M

18. 17 Access to Incentives and facilities – Economic Requirements a) Agriculture and livestock production

19. 18 b) Processing Industry

20. 19 c) Railway, road, port and airport infrastructure

21. 20 d) Fisheries and derivatives, including boats and nets

22. 21 e) Electricity and water

23. 22 f) Social housing

24. 23 g) Telecommunications and information technology; h) Health and Education; and i) The Hotel e Tourism. There may be special concessionary incentives in the following cases: If the I > $ 50 Million; If it is regarded as important to Angola’s economic development strategy; If more than 500 jobs are created for Angolans; If it makes a large scale contribution to technical innovation; If direct exports are more than $50 million.

25. 24 For tax incentive purposes, the following development zones have been established in the country: Zone A Luanda Province, the provincial capitals of Benguela, Cabinda and Huila, and the municipality of Lobito. Zone B The remaining capitals of the provinces of Benguela, Cabinda and Huila, and the provinces of Bengo, Kwanza Norte, Kwanza Sul, Malanje, Namibe and Uije. Zone C The provinces of Bié, Cunene, Huambo, Kwando Kubango, Lunda Norte, Lunda Sul, Moxico and Zaire.

26. 25 A – Taxation Incentives 1 – Industrial Tax Zone A From 1 to 5 years Zone B From 1 to 8 years Zone C from 1 to 10 years Reduction of percentage of industrial tax to be paid to subcontractors employed NB: The period of exemption/reduction is counted from the start of work of at least 90% of the planned labour force, without prejudice to specific legislation (Decree No. 5/95 of 7 April 1995)

27. 26 2 – Tax on application of capital Zone A Up to three years Zone B Up to six years Zone C Up to nine years 3 – Conveyance Tax Exemption or reduction for the acquisition of land or buildings related to project

28. 27 Criteria for benefitting from maximum limits: Zone A If the projects are > $50 million or create a minimum of 500 jobs for Angolans Zones B and C If the projects are > $20 million or create a minimum of 500 jobs for Angolans.

29. 28 Decisive factors for private investment Decisive factors for private investment 3.1 Political Factors: N. O Area200920102011 1Legal Less Bureaucratic 2 Setting up Companies Bureaucratic Less Bureaucratic 3 Socio-Political Environment PeacePeacePeace 4 Macro- Economic Climate StableStableStable

30. 29 Economic Factors N.OArea200920102011 1 Availability of Natural Resources SubstantialSubstantialSubstantial 2 Economic Infrastructure (roads, electricity and water) BadImprovingImproving

31. STAGES OF INVESTMENT PROCESS A.N.I.P.B.N.A.B.C.G.U.E. LICENCE GRANTED Presentation of investment proposal Negotiation (CNFI) and approval (CRIP) (45 to 60 days) Issue of licence to import capital (LIC) (15 days) Opening of account in commercial bank in Angola Registration of Companies (24 hours) Acquiring authorisation for the planned activity from the appropriate public institution (ministry) (30 days) TIMESCALE: 90 TO 105 DAYS 12345

32. III Evolution of Investments in Angola Source: ANIP Reports 31

33. Investments approved by sector of activity Sector 2008200920102011 Agriculture, livestock production, forestry 1314155 Fisheries 11 Extractive industry 98121 Processing Industry 12814911434 Production and supply of electricity, gas and water 21 Construction 1271839634 Wholesale and retail trade 14012817054 Accommodation and restaurants 410147 Transport, storage and communications 2824302 Financial activities 131 Real estate, lettings and services 13411610139 Education 4292 Health and social services 4341 Other activities 8640 32

34. Investments approved by sector of activity – Britain 2008200920102011 Processing industry 1222 Construction 0001 Wholesale and retail trade 1410 Accommodation and restaurants 0100 Transport, storage and communications 1001 Real estate, lettings and services 6322 33

35. END OF PRESENTATION END OF PRESENTATION THANK YOU FOR YOUR ATTENTION www.anip.co.ao E-mail: gamasala@hotmail.com@hotmail.com Telephones: + 244 222 331252/391434 Fax: + 244 222 391434/393833