uk – angola investment forum

UK – Angola Investment Forum

Pieter van Welzen

London 24 May 2012

Investing in Angola: legal aspects

Overview

Perspective: foreign investorBackground and trendsLegal framework for investing

London 24 May 2012 2UK – Angola Investment Forum

Background and trends

Foreign investment = regulated activity:State plays important role in economic

activityLegal framework and infrastructure

influenced by:Portuguese colonial periodCivil war/ ideologyOil boom



Result:Still laws from colonial periodAd-hoc regulation and arrangementsRegulations often outdated in terms of contents

and enforceabilityAngolan legal doctrine and analysis to be

developed Process to modernise legal framework and

infrastructure and make it more up to dateMore emphasis on enforcement



Sectors:Oil and gas (exploration/ production)Mining (exploration/ production)Financial servicesOther sectors

Integration of oil/gas and mining sector into local economy

More stable and modern legal environment


Legal Framework for investing

Private Investment LawForeign exchange regulationsTaxesLocal content requirementsSector specific rules: e.g. oil/gas, mining,

financial services International legal framework



Private investment lawapplies to all investments in Angola and any establishment in

Angola (excluding oil and gas exploration, mining and financial institutions)

minimum amount to be invested: USD 1 million form of foreign investment:

– transfer of funds from abroad– application of moneys held by non-residents in foreign

currency accounts in Angola– reinvestments– import of machinery, equipment, etc.– technology and know-how



application process with ANIP– detailed proposal to be submitted to ANIP– assessment of proposal by ANIP– negotiation of investment conditions (commission with

representatives from tax authorities, custom authorities and BNA);

– approval– result: investment contract with ANIP (published)



investor has guarantees and can obtain incentives– guarantees:

– repatriation of capital and dividends (subject to BNA rules/availability forex)

– protection of rights– incentives:

– tax benefits– custom benefits

– tax exemptions and reduction (duration and size dependent on location of investment)



Foreign exchange regulationsScope

– General rules– Specific rules for oil and gas sector

General: forex transactions require authorisation of BNA

Certain transactions:– Local bank monitor compliance



TaxesModernisation of fiscal systemIndustrial tax (rate being reduced from 35% to

30%): also applies to companies without a presence in Angola

Transfer pricing rulesStamp dutyCapital application tax (10-15%)



International legal frameworkAngola is not a party to NY Convention on

arbitration (but local arbitration under international rules is possible)

Bilateral investment treaties: only treaty with Cape Verde has been ratified)

No double taxation treaties (but discussions with The Netherlands and Portugal)



World Bank Doing Business rankingsProtecting Investors:

– Angola has a higher ranking than France, Spain and The Netherlands.


Clifford Chance Contact

Pieter van WelzenClifford Chance LLP Droogbak 1a 1013 GE Amsterdam The Netherlands Direct dial: + 31 (0)20 7119154 Mobile : + 31 (0)65 0285809 [email protected]

With thanks to FBL Advogados

mailto:[email protected]

Clifford Chance, Droogbak 1A, 1013 GE Amsterdam, PO Box 251, 1000 AG Amsterdam

© Clifford Chance LLP 2012Clifford Chance LLP is a limited liability partnership registered in England and Wales under number OC323571. Registered office: 10 Upper Bank Street, London, E14 5JJ. We use the word 'partner' to refer to a member of Clifford Chance LLP, or an employee or consultant with equivalent standing and qualifications. Clifford Chance LLP is registered in The Netherlands with the commercial register of the Chambers of Commerce under number 34360401. For our (notarial) third party account details, please see www.cliffordchance.com/locations/netherlands/netherlands_regulatory.html

AMSDAM-1-875456-v1

www.cliffordchance.com

UK – Angola Investment Forum

uk – angola investment forum

Documents