Angola: Investing

FDI in Figures

The country is rich in hydrocarbon, minerals, fisheries and agriculture; it also counts with a significant potential in hydroelectricity. The territory of Angola is endowed with a high potential wealth.

The country seeks to promote foreign investment. A new law for FDI was enforced in 2003 in order to create a more positive atmosphere for investors. However, this law is subject to decrees and regulations issued by the ministries. Given the case that Angola has a poorly developed financial system, it is listed as the 15th most corrupted country in the world.

During the past few years, encouraged by the exceptional high prices, investments have rushed into the oil sector, reactivating the projects of oil exploration and drilling at a time when profits were low due to the drop in prices. Despite of a slowdown on FDI's flows incurred in 2010-2011, due to the effect of the global recession, FDI inflows in Angola should remain very important in 2012.

The oil sector is the main destination of most of FDI. The majority of FDI in Angola comes from the United States, France and the Netherlands.

Country Comparison For the Protection of Investors

	Angola	Sub-Saharan Africa	United States	Germany
Index of Transaction Transparency*	5.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	6.0	3.4	9.0	5.0
Index of Shareholders’ Power***	6.0	5.0	9.0	5.0
Index of Investor Protection****	5.7	4.4	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	16,581	11,672	9,942
FDI Stock (million USD)	12,880.0	15,086.1	25,027.7
Performance Index*, Ranking on 141 Economies	6	5	-
Potential Index**, Ranking on 141 Economies	64	-	-
Number of Greenfield Investments***	35.0	33.0	-
FDI Inwards (in % of GFCF****)	123.2	-5.0	-
FDI Stock (in % of GDP)	15.2	24.0	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

Value Added Tax (VAT): Standard rate is 10%. A reduced 2% applies to foods and medical supplies. Increased rates of 20% and 30% apply to certain luxury items.
Company Tax: Taxpayers paying corporate tax are divided into 3 groups. The standard rates are 35% (group A and C) and 25% (group B).
Withholding Taxes: 10% for dividends, 15% for interest and 10% for royalties.
Bilateral Agreement: Angola and Lebanon are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 8%

Country Comparison For Corporate Taxation

	Angola	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	31.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	282.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	53.2	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Angola.
Useful Resources: National Investment Agency of Angola
Economic Developments and Prospects in Angola - African Economic Outlook

Business Setup Procedures

Setting Up a Company	Angola	Sub-Saharan Africa
Procedures (number)	8.00	8.90
Time (days)	68.00	45.20

Source: Doing Business.

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