2017 Angola Country Commercial Guide

Doing Business in Angola:
2017 Country Commercial Guide for U.S.

Companies
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.

DEPARTMENT OF STATE, 2017. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Table of Contents
Doing Business in Angola ________________________________________ 6
Market Overview ________________________________________________________ 6
Market Challenges ______________________________________________________ 7
Market Opportunities ____________________________________________________ 8
Market Entry Strategy ___________________________________________________ 9
Political Environment______________________________________________ 10
Political Environment ___________________________________________________ 10
Selling U.S. Products & Services _____________________________________ 11
Using an Agent to Sell U.S. Products and Services ____________________________ 11
Establishing an Office ___________________________________________________ 11
Franchising ___________________________________________________________ 13
Direct Marketing _______________________________________________________ 13
Joint Ventures/Licensing ________________________________________________ 13
Selling to the Government _______________________________________________ 13
Distribution & Sales Channels ____________________________________________ 15
Express Delivery ______________________________________________________ 16
Selling Factors & Techniques _____________________________________________ 17
eCommerce ___________________________________________________________ 17
Overview ___________________________________________________________________ 17
Current Market Trends ________________________________________________________ 17
Domestic eCommerce (B2C) ___________________________________________________ 17
Cross-Border eCommerce _____________________________________________________ 17
B2B eCommerce _____________________________________________________________ 18
eCommerce Services _________________________________________________________ 18
eCommerce Intellectual Property Rights __________________________________________ 18
Angolan intellectual property rights law does not specifically address eCommerce. _________ 18
Popular eCommerce Sites _____________________________________________________ 18
Online Payment ______________________________________________________________ 18
Document Title and Date 2
Mobile eCommerce ___________________________________________________________ 18

Digital Marketing _____________________________________________________________ 18
Major Buying Holidays ________________________________________________________ 19
Social Media ________________________________________________________________ 19
Trade Promotion & Advertising ___________________________________________ 19
Pricing _______________________________________________________________ 20
Sales Service/Customer Support __________________________________________ 20
Protecting Intellectual Property __________________________________________ 20
Due Diligence _________________________________________________________ 21
Local Professional Services ______________________________________________ 21
Principle Business Associations ___________________________________________ 21
Limitations on Selling U.S. Products and Services ____________________________ 22
Web Resources ________________________________________________________ 22
Leading Sectors for U.S. Exports & Investments ________________________ 23
Agricultural Equipment and Supplies _____________________________________ 23
Overview ___________________________________________________________________ 23
Leading Sub-Sectors __________________________________________________________ 26
Opportunities ________________________________________________________________ 27
Web Resources ______________________________________________________________ 28
Agriculture and Food Products ___________________________________________ 28
Overview ___________________________________________________________________ 28
Opportunities ________________________________________________________________ 29
Web Resources ______________________________________________________________ 31
Electric Power Equipment ______________________________________________ 32
Overview ___________________________________________________________________ 32
Opportunities ________________________________________________________________ 35
Web Resources ______________________________________________________________ 38
Environmental Technologies _____________________________________________ 38
Overview ___________________________________________________________________ 38
Opportunities ________________________________________________________________ 42
Web Resources ______________________________________________________________ 43
Healthcare ___________________________________________________________ 43
Overview ___________________________________________________________________ 43
Opportunities ________________________________________________________________ 47
Web Resources ______________________________________________________________ 48
Marine Technologies ____________________________________________________ 49
Overview ___________________________________________________________________ 49
Opportunities ________________________________________________________________ 51
Web Resources ______________________________________________________________ 52
Offshore Oil and Gas Technologies _____________________________________ 53
Overview ___________________________________________________________________ 53

Opportunities ________________________________________________________________ 56
Web Resources ______________________________________________________________ 57
Transportation (Aviation and Rail) ______________________________________ 58
Overview ___________________________________________________________________ 58
Opportunities ________________________________________________________________ 60
Web Resources ______________________________________________________________ 61
Trade Regulations, Customs, & Standards_____________________________ 62
Import Tariff __________________________________________________________ 62
Trade Barriers _________________________________________________________ 63
Import Requirements & Documentation ____________________________________ 63
Labeling/Marking Requirements __________________________________________ 65
U.S. Export Controls ____________________________________________________ 66
Temporary Entry _______________________________________________________ 66
Prohibited & Restricted Imports __________________________________________ 66
Customs Regulations ____________________________________________________ 67
Trade Standards _______________________________________________________ 67
Overview ___________________________________________________________________ 67
Standards __________________________________________________________________ 67
Conformity Assessment _______________________________________________________ 68
Product Certification __________________________________________________________ 68
Accreditation ________________________________________________________________ 68
Publication of technical regulations _______________________________________________ 68
Contact Information ___________________________________________________________ 68
Trade Agreements _____________________________________________________ 68
Licensing Requirements for Professional Services ____________________________ 69
Web Resources ________________________________________________________ 69
Investment Climate Statement _____________________________________ 70
Executive Summary ____________________________________________________ 70
Openness to and Restrictions upon Foreign Investment ______________________________ 72
1.1 Policies towards Foreign Direct Investment _____________________________________ 72
1.2 Limits on Foreign Control and Right to Private Ownership and Establishment __________ 75
1.3 Other Investment Policy Reviews _____________________________________________ 75
1.4 Business Facilitation _______________________________________________________ 76
1.5 Outward Investment _______________________________________________________ 77
Bilateral Investment Agreements and Taxation Treaties ______________________ 78
Legal Regime __________________________________________________________ 78
1.6 Transparency of the Regulatory System _______________________________________ 78
1.8 Legal System and Judicial Independence ______________________________________ 79
1.9 Laws and Regulations on Foreign Direct Investment ______________________________ 79
1.10 Competition and Anti-Trust Laws ____________________________________________ 80
1.11 Expropriation and Compensation ____________________________________________ 80
1.12 Dispute Settlement _______________________________________________________ 80
1.13 Bankruptcy Regulations ___________________________________________________ 81

Industrial Policies ______________________________________________________ 82
1.14 Investment Incentives _____________________________________________________ 82
1.15 Foreign Trade Zones/Free Ports/Trade Facilitation ______________________________ 82
1.16 Performance and Data Localization Requirements ______________________________ 82
Protection of Property Rights ___________________________________________________ 83
1.17 Real Property ___________________________________________________________ 83
1.18 Intellectual Property Rights _________________________________________________ 85
Financial Sector _______________________________________________________ 86
1.19 Capital Markets and Portfolio Investment ______________________________________ 86
1.20 Money and Banking System ________________________________________________ 86
1.21 Foreign Exchange and Remittances __________________________________________ 88
1.22 Sovereign Wealth Funds___________________________________________________ 89
State-Owned Enterprises ________________________________________________ 89
1.23 Privatization Program ________________________________________________ 90
Responsible Business Conduct ____________________________________________ 91
Corruption ____________________________________________________________ 91
Political and Security Environment ________________________________________ 92
Labor Policies and Practices _____________________________________________ 93
OPIC and Other Investment Insurance Programs _____________________________ 95
Foreign Direct Investment and Foreign Portfolio Investment Statistics ___________ 95
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy __________________ 95
Table 3: Sources and Destination of FDI ___________________________________________ 96
Table 4: Sources of Portfolio Investment __________________________________________ 96
Contact for More Information on the Investment Climate Statement ____________ 97
Trade & Project Financing _______________________________________ 97
Methods of Payment ____________________________________________________ 97
Banking Systems _______________________________________________________ 98
Foreign Exchange Controls_______________________________________________ 98
U.S. Banks & Local Correspondent Banks ___________________________________ 99
Project Financing ______________________________________________________ 99
Financing Web Resources _______________________________________________ 101
Business Travel__________________________________________________ 102
Business Customs _____________________________________________________ 102
Travel Advisory _______________________________________________________ 102
Visa Requirements ____________________________________________________ 102
Currency ____________________________________________________________ 103
Telecommunications/Electric ___________________________________________ 103
Language ____________________________________________________________ 104
Health ______________________________________________________________ 104
Local Time, Business Hours and Holidays __________________________________ 104

Temporary Entry of Materials or Personal Belongings ________________________ 105
Travel Related Web Resources __________________________________________ 105
Doing Business in Angola
Market Overview
Angola is an upper middle income country located in southern Africa with a $96.2 billion
GDP, a 27.4 million population and a per capita income of $3,514 (IMF). It ranks as the third
largest economy in Sub-Saharan Africa and is the United States’ third largest export market
in that region.
Angola is major oil producing country and OPEC member with output of around 1.8 million
barrels of oil per day, making it one of the top producers in Sub-Saharan Africa. The country
holds significant proven gas reserves as well as extensive mineral resources. Since 2015,
Angola has faced a severe economic setback attributed largely to the significant drop in oil
prices. Resulting federal budget cuts, currency devaluation and high inflation levels have
slowed import levels and hindered economic growth. In 2016, local currency-based GDP
stagnated at 0 percent growth, while real growth (in US dollars) declined 6.6 percent. For
2017, local currency based GDP growth is projected by the IMF at 1.3 percent and inflation
should drop to 20 percent from a high of 45 percent in 2016.
Angola achieved its independence from Portugal in 1975, then immediately entered into a
civil war that ended only in 2002. The country’s second Presidential election under the
2010 constitution is scheduled for August 2017 with a stable democratic transition expected.
Angola is designated as one of the United States’ three strategic partners in sub-Saharan
Africa together with Nigeria and South Africa.
Angola depends largely on the off-shore petroleum industry for 50 percent of GDP and 75
percent of government revenues. Major international oil production companies active in
Angola include: Chevron, Exxon Mobil, BP, and Total. U.S. exports to Angola concentrate in
the oil and gas sector. Given the country’s stated focus on diversifying its economy and
building domestic production capacity, medium-term potential for U.S. companies exists in
agriculture, industry, and key infrastructure such as energy, water and transportation.
Total Angolan imports in 2016 are estimated at $14 billion, a 51 percent decline from 2014
pre-economic downturn levels. Paralleling this trend, U.S. exports to Angola fell by 34
percent between 2014 and 2016 to $1.25 billion, a drop that would have been even steeper
without the 2016 sale of two Boeing aircraft to Angolan’s national airline. Despite this
decline, Angola remains the United States’ third largest export market in Sub-Saharan
Africa. Aircraft, energy generation equipment, frozen chicken, railroad locomotives, and
oil and gas equipment were the main categories of U.S. exports to Angola in 2016. Leading
countries supplying Angola’s imports in 2015 were China (17 percent), Portugal (15 percent),
Korea (8.6 percent), United States (7.4 percent) and South Africa (5.4 percent)
Angola exported $27.5 billion to world markets in 2016 primarily consisting of petroleum
with modest shipments of diamonds and wood. Due to the steep decline in global oil prices,
the value of Angolan exports fell by 54 percent since 2014. The U.S. imported $2.86 billion
in Angolan products in 2016, with over 90 percent petroleum products followed by small
amounts of diamonds, wood, and even an initial shipments of coffee in 2016.
Leading reasons to consider the Angolan market for US export expansion include:
 Large market size, with a population of 27.4 million and an economy of $96.2 billion.
Despite the current economic downturn, Angola is the third largest economy in Sub-
Saharan Africa, so it is a logical next market for US companies active in other countries
in the region.
 Angola imports most products due to its nominal local production capacity. While an
effort is underway aimed at building domestic production capacity, this will require many
years and depend on international suppliers of key inputs for infrastructure,
manufacturing and agricultural development.
 Strong interest in United States. Angolan private companies are eager to directly engage
with U.S. companies and gain exposure to U.S. equipment, technologies and solutions
related to priority economic sectors.
 Safer than other countries in the region with respect to the lack of secular conflict and
strong central government, though the current economic crisis is triggering an upswing in
economically motivated crime.
 U.S. Commercial Service –Angola, established in late 2014, is on stand-by to assist US

companies to understand the business environment and to find local partners and sales
opportunities.
Market Challenges
Foreign Exchange: The leading business challenge in Angola since mid-2015 has been the
lack of foreign exchange due to the steep decline in petroleum revenues and the resulting
drop in international reserves entering the Angolan economy. This disruption is significantly
impeding imports of products to this heavily import dependent market. International and
domestic companies operating in Angola face significant delays securing foreign exchange
approval for remittances to cover key operational expenses, including imported goods and
expatriate salaries. Profit and dividend remittances are even more problematic for most
companies. Based on recent U.S. companies’ experiences in Angola, the U.S. Embassy
encourages U.S. exporters to structure exports to Angola on cash-in-advance terms. Letters
of credit are extremely difficult to secure since Angolan banks are unwilling to assume
foreign exchange risk. Most international companies report cancelling export credit terms
to their Angolan clients due to outstanding payments on accounts resulting from foreign
exchange delays.
Business Environment: While its large market size and business opportunities draw a
focus to Angola, the country is deemed one of the most difficult business environments in
the world. To be successful, significant time and capital commitment is required and a
strong, experienced local partner is highly advisable. The World Bank Ease of Doing
Business Ranking (2017) places Angola at 182 among 190 countries assessed in a range of
business areas, with Angola ranking lowest in the areas of enforcing contracts, trade
across borders, and access to credit. Details are at: www.doingbusiness.org . The private
entity Transparency International also ranks Angola among the bottom of its Corruption
Perception Index at a level of 164 of 176 countries in its 2016 assessment:
www.transparency.org/country.
High Cost Location: Luanda is ranked as one of the highest cost locations in the world for
expatriates and company operations. The local currency devaluation has somewhat
improved affordability of restaurants and services, but business class hotels remain
expensive ($400-500 per night) given the limited availability and quality interpreters run
$500-800 per day. Western standard housing and office space is fairly expensive, but has
improved somewhat due to the decline in demand resulting in expatriate staff downsizing
in Angola by a number of international oil companies. Angolan executive salaries are
comparable to U.S. levels. Though salaries are required to be paid in local currency, many
international companies tie compensation rates to international currency as an offset to
local currency devaluation.
Portuguese Language: Angolan government officials and most business executives, outside
of the oil industry, require some Portuguese-English interpretation support for meetings.
Product labeling, marketing materials, and most technical level training must also be in
Portuguese. Many Angolans are familiar with Spanish due to the historic presence of Cubans
in the country and are very open to using this as a bridge language with U.S. companies.
U.S. companies can take advantage of written marketing/technical material and training
expertise from operations in other Portuguese language countries such as Portugal or Brazil
to assist their Angola market entry efforts. However, distributors from those countries
would not be effective as representatives in the Angolan market because local market
expertise and in-country product servicing/training support is essential to business success
in Angola.
Nascent Distribution Channels: Angola’s business infrastructure and capacity is just 15 years
post-civil war resulting in a limited number of local companies that are well positioned to
become distributors or representatives for international companies. Many international
products are sold through resale channels rather that formal representatives or distributors
of international manufacturers. There is a solid and growing entrepreneurial business class
in Angola, but the current economic downturn is severely stressing Angolan companies and
limiting their access to business credit. The U.S. Commercial Service Angola offers services
to assist U.S. companies to identify qualified Angolan business partners and to promote their
products and services in the market.
Market Opportunities
While Angola’s economic downturn severely challenges short-term market opportunities,

U.S. companies planning for medium-term expansion in Africa should consider positioning
themselves in Angola with local business partners and with appropriate government
ministries. Angola’s market size and stated priorities on infrastructure, industrial and
agricultural development require international expertise and hold potential for U.S.
companies.
Best prospects for U.S. exports to Angola include the following industries. Details on these
opportunities are presented in the designated section of this report.
 Agricultural Equipment and Supplies

 Agricultural Products
 Electrical Power Equipment
 Environmental Technologies
 Healthcare
 Marine Technologies (Fisheries and Ports)
 Offshore Oil and Gas Technologies
 Transportation (Aviation and Rail)
Market Entry Strategy
Angola offers medium to long-term business opportunities for U.S. companies focused in top
prospect sectors, especially for those with established experience doing business in Africa.
Given its challenging business environment and consistent attention needed to develop
market presence, companies should consider the necessary time and financial commitments
required to succeed in Angola. Long-established presence by Portuguese companies in
Angola provide opportunities for collaboration and also pose stiff competition for new
market entrants. A strong Angolan business partner knowledgeable about local business
procedures and established in the target industry with financial strength and established
clients is essential to business success. Larger international companies often establish
independent operations subject to the Angolan regulations for investing in the country (see
details in the “Investment Climate” section of this report). In all cases, companies should
perform thorough due diligence on potential business partners and structure contractual
arrangements conformant to U.S. and Angolan law.
The U.S. Commercial Service Angola offers services to assist U.S. companies in
understanding market opportunities, qualifying potential business partners, and conducting
necessary due diligence. Referrals to Angolan business service providers such as law firms
are also available.
Political Environment
Political Environment
For U.S. Department of State background notes on Angola please visit:
https://www.state.gov/r/pa/ei/bgn/6619.htm
Selling U.S. Products & Services
Using an Agent to Sell U.S. Products and Services

An agent or distributor is important for success when establishing new business activities
in Angola. A limited number of companies dominate domestic distribution. These firms
are willing to partner with foreign companies exporting to Angola, but may also represent
competing products. A limited number of U.S. companies operate subsidiary or affiliate
companies in Angola concentrating in the information technology, automotive,
petroleum, heavy equipment, services sectors. U.S. companies should conduct careful
due diligence on potential business partners and select well-established companies
already experienced with representing international products.
Given the current economic climate in Angola of limited access to credit and delays in
securing foreign exchange, some Angola distributors and agents are reluctant to enter
into new business agreements due to the invest associated with business expansion. Many
Angolan distributors with existing international product lines are facing limited inventory
since international payments have been typically delayed several months since mid-2015.
In many cases, both Angolan importers and international suppliers are opting for cash in
advance payment terms with some arranging for non-traditional payment structuring
through third countries.
The U.S. Commercial Service Angola provides business services to assist U.S. companies
in the identification and due diligence of qualified business partners, distributors and
representatives. For details on these services and to find your closest U.S. Commercial
Service office in the United States to start this process visit: www.export.gov
Establishing an Office
Working with a well vetted local distributor or representative can ease entrance into the
complex Angolan market. Establishing a formal presence through a direct representative
office or a direct investment is complex. The World Bank Ease of Doing Business Ranking
(2017) places Angola as one of the most difficult countries for conducting business with a
ranking of 182 among 190 countries assessed. One of Angola’s better performing areas in
this ranking is the category of “Starting a Business” where it placed 144th among countries
analyzed. The average time required to start a business in Angola is 36 days compared
to 27 days on average for the Sub-Saharan Africa region, but a great improvement from
the 66 days required in Angola just two years ago. The bulk of this time relates to
securing a commercial operations permit from the Ministry of Commerce. Details are at:
www.doingbusiness.org
Angolan law restricts ownership to the Angolan government with respect to activities
related to defense, internal public order and state security, Central Bank and national
currency related matters, seaports and airports, and national telecommunications
network infrastructure. Majority Angolan government ownership is required for local
telecommunications infrastructure and minerals (oil, diamonds) exploration activities.
A new investment law enacted in August 2015 requires a 35 percent local partner for
investments in the following industries: energy and water, hotels and tourism,
transportation and logistics, telecommunications and information technology, civil

construction, and communications. Details of this law are outlined in the “Investment
Climate” section of this report.
For the petroleum industry, 2003 Executive Order 127/03 defines the role of international
companies vis-à-vis Angolan companies based on the capital intensity and complexity of
service being rendered. For details on these regulations please see the section of this
report on “Leading Sectors for U.S. Exports – Oil and Gas Equipment”.
Legal options for establishing a direct presence in Angola include:
Representative Office: A representative office oversees the interests of the foreign firm
it represents, following up on and providing assistance to that firm’s business operations
in Angola. A representative office has no independent legal authority to do business in
its own name and is limited to a maximum of 6 employees.
Branch Office: Branch offices are the most common form of representation for foreign
firms in Angola, because they enable foreign investors to do business in Angola on the
same terms and under the same conditions as firms legally established in Angola. A branch
office lacks an independent legal identity, although it is considered a legal person and
can go to court or be the target of legal action under certain circumstances.
Incorporation under Angolan Law: Under the jurisdiction of Law Nº 1/04, Diário da
República Nº 13, foreign investors in Angola may choose from among five types of
corporate or business entities established by law: Corporations, Limited partnerships,
Limited co-partnerships, General partnerships, Limited co-partnerships by shares. In
most cases, international investors can incorporate as a sole ownership, but some areas
such as minerals extraction operations and services require Angolan government and/or
private partners.
Companies outside of the petroleum industry seeking to incorporate in Angola must go

through a formal government application process and invest a minimum of $1 million in
order to benefit from investment incentives. The Angolan Government determines
eligible incentives including repatriation, tax deductions, and exemption from certain
taxes and duties for investors on a case-by-case review of the investment proposal.
Foreign companies are restricted from operating directly in petroleum, diamond, and
financial sectors. Angolan owned companies subcontract out business in these industries
to international companies. For the petroleum sector, 2003 Executive Order 127/03 dictates
that exploration contracts must be in joint venture with the national oil company Sonangol.
For petroleum service and equipment provider companies, basic activities are restricted to
Angolan companies. For more complex work, Angolan partnership is required for
international companies to qualify as an Angolan company. Only in the case of the most
complex work are international companies able to provide services directly to the petroleum
industry in Angola. Additional details on operating in the petroleum industry in Angola are
outlined in the section: “Leading Sectors for U.S. Exports – Oil and Gas Equipment”.
Franchising
Strong consumer demand exists for international franchises in Angola driven by customary
travel by professional and upper middle class Angolans especially to Europe, South Africa
and Dubai. Shopping centers are expanding in Angola with currently seven open in
Luanda, with an additional two under construction, but currently stalled due the
economic downturn. One of these shopping centers, Xyami, has expanded into the
secondary cities of Benguela and Lubango. International franchises operating in Angola
include: Yum Brands’ Kentucky Fried Chicken (KFC) and Pizza Hut through their
Portuguese license holder, Brazilian companies Bob’s Burgers and O Boticario (cosmetics),
Wimpy (UK), Sport Zone and Salsa (Portugal), Aldo (Canada) and Grupo Cortefiel (Spain)
for sales of its clothing brands that includes Cortefiel, Pedro Del Hierro, Springfield and
Women Secret.
Several other international companies previously operated franchises in Angola, but have
left the market or changed their business model. Coca-Cola initially operated through a
franchisee in Angola then moved to a global licensing model. South African franchise
Nando’s no longer operates in the Angolan market.
Franchises, as with other businesses operating in Angola, face a challenging business

environment especially with difficult access to foreign exchange related to payments of
royalty remittances and imported products.
There are no legal restrictions on establishing a franchising business model in Angola.
Direct Marketing
Direct marketing is not common in Angola, though some Angolan retailers of home goods
such as furniture and electronics use door-to-door marketing in some of the newer
neighborhoods in Luanda to promote their products. A popular on-line direct sales
platform in Angola is the local version of international company OLX: https://olx.co.ao/ .
Several Angola-specific online stores also exist including: www.baobabay.com
www.kompletus.com, and www.kitandeira.com .
Joint Ventures/Licensing
Joint ventures with a minimum of 35 percent Angolan ownership are required under the
new investment law for the following industries: 1) electricity and water, 2) tourism and
hospitality, 3) transportation and logistics, 4) telecommunications and information
technology, 5) construction, and 6) media. Foreign investors often find that a local
Angolan partner who contributes financially and substantively to the company helps in
doing business; however, a limited pool of Angolan companies hold these qualifications.
A number of foreign investors operate successfully in Angola without a local partner.
The “Investment Climate” section of this report provides details regarding the regulations
and procedures related to direct investment in Angola.
Selling to the Government

Angolan Government Law on Public Contracting Law amended in June 2016 under Law No.
9/16, allows for two main methods of awarding contracts: direct contracts and tenders.
There are three categories of public tenders: by invitation, restricted, and open. The
contracting authority selects the type of award according to contract amount and activity
(acquisition of good and services or civil works). Details on each of these contracting
methods as specified in Law No 9/16 are as follows:
Direct contracting is permitted by this Law (per Article 143 – 149) if the total contract is
less than 5 million kwanzas (around $30,000). Higher value direct contracts are allowed
under the law (per Articles 35, 37 and 40; and Annex IV) if authorized by specified senior
government officials as follows: President of the Republic (with no value limit), the Vice-
President (up to 182 million kwanzas or $1.1 million), Cabinet Ministers (up to 91 million
kwanzas or $550,000), Provincial Governors (up to 36 million kwanzas or $218,000), and
regional Administrators (up to 18 million kwanzas or $109,000).
Tenders by invitation are required for contracts from 5 million up to 182 million kwanzas
(from $30,000 to $1 million). To be considered, an Angolan company must be registered in
the centralized Angolan Government Databank (per Article XIII of the law). A minimum of
three entities must be invited to participate in tender (per Articles 138 – 142).
Restricted tenders and open tenders are required when the estimated value of the contract
exceeds 182 million kwanzas ($1 million). Bidders must be pre-qualified to be able to
participate in restricted tenders (per Articles 117 – 135 of the law)
In the case of open tenders (per Articles 69 – 116) the tender announcement must be
published in the “Diário da República” (Daily Gazeta) and the “Jornal de Angola”
(government national daily newspaper). Cabinet Ministers can authorize open tenders for
up to 500 million kwanzas (around $3 million). For open tenders above that value, the
responsible Ministry must work through the Presidency’s Procurement Office.
The Public Contracting Law (per Article 53 and Annex V), determines that foreign companies
are only allowed to complete directly on tenders with values greater than 182 million
kwanzas (around $1 million) for good/services and greater than 500 million kwanzas (around
$3 million) for public works. This represents a higher value than the previous public
procurement law in which foreign companies were allowed to bid directly only on tenders
valued at or above 73 million kwanzas (around $440,000). Below these values, foreign
companies can only participate in government procurements as a supplier or subcontractor
to an Angolan company fulfilling a government contract.
Implementing regulations associated with Public Contracting Law No. 9/16 are as follows:
 Presidential Decree nº 196/16 dated 23 September which approves the Regulation
on the price of selling of bidding documents;
on registration and certification of State suppliers;
on procedure for and execution of framework contracts;
 Presidential Decree nº 201/16 dated 27 September which approves the standard
contract forms for works, goods and services.
Reform and modernization of Angola’s Public Procurement law was a condition of the African
Development Bank (AfDB) loan to support electric power sector reform in Angola. The 2016
Public Procurement Law aims at modernizing and simplifying the public contract
procedures; however, the African Development Bank (AfDB) has identified areas of this new
law that require strengthening to improve transparency. By mid-June 2017, the AfDB
expects to release a report outlining suggested areas for legal and implementation reform
and plans to provide technical capacity building to the Angolan government for its
implementation.
Angola is not party to the WTO Procurement Agreement.
Foreign companies can compete for Angolan Government business, but to qualify must
have a legal presence in Angola or have a legally designated Angolan representative.
Government institutions cannot pay vendors unless the relevant expenditure was
authorized in the national budget; therefore, companies should conduct careful due
diligence to ensure that an expenditure has been budgeted before pursuing. Due to
pressure on growing international debt and the requirement for companies to transact
business through the local banking system, the Angolan government is pushing for
contracts to be exclusively in local currency. International companies need to consider
this factor very carefully in structuring their business to participate in government
contracts with local agents or partners especially given the ongoing difficulty in remitting
foreign exchange out of the country.
Oil production companies operate in joint ventures with the national oil company,
Sonangol, and are required to formally announce their procurement tenders through the
national daily newspaper Journal de Angola and also list these business opportunities on
their corporate website.
Since 2015 with the significant tightening of the Angolan government budget, new projects
depend heavily on external financing. In the case of bilateral export credit agency financing
procurements would adhere the specific country’s sourcing requirements. Procurements
using financing from regional and International organizations, such as the World Bank or
African Development bank, are subject to the international tender rules of those
organizations.
Many governments finance public works projects through borrowing from the Multilateral
Development Banks. Please refer to “Project Financing” Section in “Trade and Project
Financing” for more information.
Distribution & Sales Channels

Angola’s business environment is still maturing at just 15 years post-civil war. As a result,
distribution channels for most products and services are limited to a handful of key players.
Luanda, the capital city, holds one-quarter of the population followed by a limited number
of secondary cities: Benguela/Lobito, Huambo, and Lubango, with Soyo and Cabinda as oil
industry-focused cities. With this market concentration, it is very reasonable to appoint
only one distributor or representative to cover the entire country. While a number of
legally established distributors and representatives of international products exist in Angola,

many products especially consumer goods are sold through resellers. These resellers
purchase products internationally and sell through retail points of sale often using the logo
of the international company to attract business.
A southern Africa regional distribution approach to Angola is challenging since it is a

Portuguese language country surrounded by English and French speaking markets. The
exception is Mozambique that shares a Portuguese colonial history and language. A
significant amount of business in Angola still flows through distributors in Portugal due to
language and historic ties, but increasingly those Portuguese companies most successful in
Angola have established local presence. South Africa is a major regional commercial hub
for Southern Africa including Angola. However, other than for products manufactured in
South Africa, these distribution patterns are starting to change in response to increasing
competition in Angola. The Angolan market is demanding better pricing and delivery time
directly from international manufacturer, as well as improved after-sales service, spare
parts and maintenance that can be better offered by a local distributor.
While it can initially be cost efficient for U.S. companies to use other Portuguese language
countries such as Portugal to lower market entry costs into Angola, U.S. companies can be
most competitive in Angola by establishing distribution and representation directly with an
Angolan company that can provide in-country services and support.
Distribution infrastructure within Angola continues to be challenged by poor road quality,

time consuming customs entry processes that the World Bank ranks among the slowest
worldwide, and limited though expanding warehousing and cold chain capacities. Railroad
expansions underway aim to provide intermodal transportation capacity throughout the
country.
In the petroleum industry, there is increased enforcement of long-standing regulations by

Angolan government pushes for “Angolization” of the supply chain and increased local value
to be provided by Angolan companies. This regulation requires most international companies
providing products and services to the petroleum industry to work with Angolan distributors
that can provide in-country value-added services. Exemptions exist for complex services
but the regulation does not explicitly indicate which activities are covered by this
exemption. The section in this report on “Leading Sectors for U.S. Exports - Oil and Gas
Equipment” provides further details about this regulation.
Express Delivery
International express delivery services in Angola are provided by DHL, FedEX and UPS. DHL
Express operates directly in Angola, while FedEx is represented by Portuguese company
Grupo Rangel and UPS is represented by Parcel Express, an OREY Group affiliate. Some
smaller players also service this market.
All import shipments through express delivery services are subject to normal customs
regulation with import duties calculated based on cargo values and quantities. Personal
exemption from import duties are applied only for goods costing less than $900. In the
case of business documents, the customs invoice can state the item with zero customs value.
Selling Factors & Techniques

Angola is a Portuguese-speaking country. Outside of the petroleum sector, English is not
widely spoken, even among top government officials or business leaders. Ability to do
business in Portuguese is essential to succeed in the non-petroleum sectors. The
Government requires labeling in Portuguese for all imported goods, especially in the
healthcare sector for medicines, cosmetics, hair care products, skin care and processed
food.
The best way to do business in Angola is to find a local distributor or representative to

handle business development throughout the country. The selected distributor or
representative should be financially solid, have capacity to stock inventory and aftermarket
parts, provide technical capacity appropriate to the specific product, have the ability to
handle the complex import process, and demonstrate strong existing end user client ties,
especially if the target client is the Angolan government. U.S. companies wanting to
establish strong Angola market presence also need to provide ongoing management oversight
and training for the distributor/representative.
eCommerce
Overview
While internet access levels in Angola are fairly high compared to other Sub Saharan
countries, electronic commerce in Angola is limited as the country remains a predominantly
cash-based economy with an unreliable mail delivery system.
Current Market Trends

Future potential exists for eCommerce in Angola considering the strong base of internet
users in Angola. Internet Live Stats for 2016 report 5.9 million internet users in Angola,
representing around 23.5 percent of the population. Most use mobile phones rather than
home computers to access the internet; mobile broadband access is available to just 12
percent of the population (2014 ITU).
The major limitation in eCommerce in Angola is the lack of use of credit cards or other
internationally accepted payment mechanisms. More than 50 percent of adult Angolans
have banking accounts, but access to international credit cards is extremely restricted. For
domestic purchases, debit cards are becoming more common.
Domestic eCommerce (B2C)

Domestic eCommerce (B2C) is not wide spread in Angola, but it is slowly growing with the
creation of several domestic e-Commerce websites. Payment is made through domestic
debit cards (Multicaixa) and delivery is through local courier service since the mail delivery
system is unreliable.
Cross-Border eCommerce
Cross-border eCommerce is restricted to middle and upper income Angolans with access to
international credit cards and international travel. Such purchases are made most often
through major international online stores such as Amazon, Ebay (USA and Europe) and
Alibaba (China). Deliveries are made through international couriers.
Some Angolans use international commercial consolidator services such as U.S. company
MyUSA.com for multiple eCommerce purchases then save on transportation delivery costs.
Middle and upper income Angolans travel regularly to Portugal where many have homes and
extended family. It is common for them to make eCommerce purchases for delivery to
family and friends in Portugal, then when visiting Portugal to personally bring these items
back to Angola in their luggage.
B2B eCommerce
A limited number of Angolan businesses use European or U.S. based B2B websites such as
ebay.com and Amazon.com with products shipped to them in Angola by express courier.
eCommerce Services
International transportation delivery services including Fedex, UPS, and DHL exist in Angola.
For domestic deliveries, couriers are commonly used due to the unreliability of the domestic
mail system.
eCommerce Intellectual Property Rights

Angolan intellectual property rights law does not specifically address eCommerce.
Popular eCommerce Sites

A popular on-line direct sales platform in Angola is the local version of international
company OLX: https://olx.co.ao/ . Several Angola-specific online stores also exist
including: www.baobabay.com www.kompletus.com, and www.kitandeira.com .
Some Angolan consumers use European or U.S.-based B2B websites such as ebay.com and
Amazon.com with products shipped to them in Angola by express courier.
Online Payment
Approximately 50 percent of the adult population participates in the formal banking
systems. Debit cards (Multicaixa) are becoming increasingly common for domestic
purchases.
International credit cards are scarce and extremely restricted by commercial banks due to
the lack of foreign exchange availability to cover these payment commitments. For those
with access, Visa and Mastercard are most commonly issued in Angola. Some consumers are
beginning to use Paypal.
Mobile eCommerce
The majority of the Angolan population with internet access (approximately 23.5 percent),
use cellphone as their method of access. Those using a laptop or a desktop to make online
purchases normally use their cellphone or tablet as well. According to International
Telecommunication (ITU) data only around 8 percent of Angolans have home internet
access.
Digital Marketing
Many companies promote themselves exclusively on Facebook as an affordable and
accessible on-line presence versus establishing and managing their own website.
Additional popular social media platforms in Angola with advertising opportunities are
news website: Club K www.club-k.net and Angonoticias www.angonoticias.com
and Instagram.com
Major Buying Holidays

Black Friday is the most popular eCommerce buying holiday in Angola since Angolan
consumer recognize the savings available from international eCommerce sites on this day.
Social Media
Social media is widely used in Angola given the relatively high penetration of internet users
in the country, over 20 percent of the population. An estimated 3.3 million companies and
individuals use Facebook for business promotion and personal communication. There are an
estimated 3.5 million Facebook users in the country. Many companies promote themselves
exclusively on Facebook as an affordable and accessible on-line presence versus establishing
and managing their own website.
Trade Promotion & Advertising

Social media is widely used in Angola given the relatively high penetration of internet users
in the country, over 20 percent of the population. An estimated 3.3 million companies and
individuals use Facebook for business promotion and personal communication. There are an
estimated 3.5 million Facebook users in the Angola. Many companies promote themselves
exclusively on Facebook as an affordable and accessible on-line presence versus establishing
and managing their own website.
Additional popular social media platforms in Angola with advertising opportunities are
news website: Club K www.club-k.net, Angonoticias www.angonoticias.com, and
www.instagram.com.
In addition, the Angolan affiliate of OLX is a popular advertising and direct sales platform:
https://olx.co.ao/
Government-owned media include two television stations, a radio station, and Angola’s only
daily newspaper, Journal de Angola. Private media include one television station, several
radio stations, and several privately owned press weeklies. All of these media channels
provide advertising opportunities.
Press coverage can be another useful strategy for building market visibility in Angola.
However, it is important that media relations are carefully managed so that messaging is
accurately presented.
For consumer-oriented products, billboard advertising is also common as is sponsorship of

popular events.
In technical and professional areas, conferences, symposium by industry area, and a limited
number of trade shows provide opportunities for promotion and technical presentations that
can help build market visibility and develop relationships with key buyers.
Consistent marketing and business development efforts are key to business success in
Angola. Given the relatively small size of the business and government market, building
and maintaining a good reputation for the company and/or product is key due to substantial
reliance on client referrals. A well selected distributor or representative can be key to this
effort.
The main trade show in Angola, FILDA – the International Fair of Luanda - is held annually
in July, though was cancelled in 2016 and in 2017 due to the country’s economic downturn.
This multi-industry show is a good platform to build market visibility especially once an
international company is established in the Angola market. Normally, this show organizer
hosts other smaller trade events in a range of sectors throughout the year. Their schedule
can be found at: http://www.fil-angola.co.ao
Pricing
A major upsurge in inflation in Angola is being reflected in the significantly higher prices
in the market. The 2016 inflation level of 45 percent is projected to be contained to 20
percent in 2017. Even domestically produced and grown product prices have risen due to
the high costs of production and imported inputs, as well as the increase in fuel prices
caused by the withdrawal of government subsidies. Details on import taxes and duties
are addressed in the section of this report on trade regulations and customs.
Despite this trend, among those who can afford to be selective, there is a continuing and
growing appreciation in Angola for quality products even at higher price. Consumers are
increasingly recognizing that inexpensive products from China and other African markets
in the Angolan market both legally and illegally generally offer a lower quality than
western brands.
Angola is an expensive market. For expatriates and business travelers it has been ranked
among the most expensive locations in the world, though the current economic crisis and
significant currency devaluations is bringing local pricing calculated in international
currency more in line with western markets.
Sales Service/Customer Support

Angolan consumers are increasingly demanding better sales service and customer support,
on par with what they experience in travel to Europe, South Africa, and Dubai, and
respond very positively to comparable levels of business services when offered in Angola.
Companies that can provide strong customer service with post-sales value-added services,
spare parts, and technical support will be competitively positioned in the Angola market.
U.S. companies should consider committing the time and resources to build capacity
through their appointed distributors to provide this type of quality service and support.
Notwithstanding this objective, a number of U.S. companies have reported to CS Angola

challenges providing spare parts and inputs to Angola since late 2015 due to foreign
exchange scarcity that is limiting the purchasing capacity of their Angolan clients and
partners.
Protecting Intellectual Property

Please see the Investment Climate section of this report for details on protecting intellectual
property in Angola.
In any foreign market companies should consider several general principles for effective
management of their intellectual property. For background on these principles please link
to our article on Protecting Intellectual Property and also Corruption.
The U.S. Patent and Trademark Office contact for Angola and Sub-Saharan Africa is:
JoEllen Urban
Senior Trade Advisor
Office of Policy and International Affairs
U.S. Patent and Trademark Office
Tel: 571-272-8498
Email: JoEllen.urban@USPTO.GOV
Due Diligence
Careful selection of a local business partner in Angola will facilitate business success. The
U.S. Commercial Service Angola offers services for U.S. companies to identify top potential
distributors and representatives. The U.S. Commercial Service also offers an International
Company Profile (ICP) service to support due diligence research on potential business
partners. This report includes detailed background on a specific target company including
business structure and ownership, financials, and business activities.
For U.S. companies pursuing a joint venture or other complex business partnership with an
Angolan company, an Angolan law firm should be consulted to provide thorough due
diligence assessments before entering into any purchase or other contractual agreement or
a joint venture.
Local Professional Services

Listings of Angola-based law firms, accounting firms, customs brokers, and freight
companies experienced in working with international companies are available from the U.S.
Commercial Service Angola.
Principle Business Associations

Angolan Industry Association (AIA) is the leading business association in Angola with
nation-wide membership including both industry and agricultural sectors.
http://aiangola.com/
Angolan Community of Exporting and Internationalized Companies (CEEIA), established

in 2013, is the association of Angolan companies with international activities and
dedicated to promoting more exports and international partnerships among Angolan
companies. www.ceeia.co.ao
US-Angola Chamber of Commerce (USACC) is the bilateral business chamber promoting

business between the United States and Angola with offices in both Washington DC and
Luanda. www.us-angola.org
Angolan Government Agencies related to business:
Angolan Export and Investment Promotion Agency (APIEX) is the Angolan government’s
recently established export and investment promotion agency that has replaces the
National Private Investment Agency (ANIP) and falls under the Ministry of Commerce.
Their US offices are located at the Angolan Embassy in Washington DC and its website is
under construction: www.apiexangola.co.ao
Angolan Embassy in the United States – Trade Office The Angolan Government
representation in the United States promoting Angolan business.
www.angolatradeusa.org
Limitations on Selling U.S. Products and Services

Private ownership is prohibited in Angola in the areas of defense, internal public order, and
state security; banking activities relating to the operations of the Central Bank and the
Ministry of Finance; administration of ports and airports; and other areas where the law
gives the Angolan government exclusive responsibility for its operations. Investment in the
petroleum, diamond, and financial sectors are governed by sector-specific legislation.
For investments in the following sectors, a minimum of 35 percent local participation/

partnerships is required: 1) electricity and water, 2) tourism and hospitality, 3)
transportation and logistics, 4) telecommunications and information technology, 5)
construction, and 6) media.
Imports into Angola of the following goods are prohibited:
 animals and animal by-products from areas affected by epizootic diseases

 plants coming from areas affected by epiphytic disease
 some distilled beverages, counterfeit goods, pornography, roulette and other
gambling machines
 passenger vehicles over 3-years from the manufacturing date
 industrial vehicles if more than 5-years from the manufacturing date
 transgenic grain or seed
Import licenses are required for certain products including some foods, medicines, live
animal and plants, as well as some communications and national security related items.
Web Resources
Relevant web resources for the “Selling U.S. Products and Services” section are incorporated
under the relevant headings throughout this section.
Leading Sectors for U.S. Exports & Investments
Agricultural Equipment and Supplies
Overview
Subsistence agriculture provides the main livelihood for most of Angola’s population, but
more than half of the country's food is still imported. Angola holds tremendous agriculture
potential with fertile soils, abundant water and a favorable climate. The Ministry of
Agriculture estimates that Angola has 58 million hectares of agricultural quality land
including 35 million hectares of arable land. Of the arable land approximately 10 percent
is currently cultivated and 20 percent is suitable for irrigation. After years of civil war,
aggressive landmine clearing efforts have opened up extensive areas of land for agricultural
development. Livestock also holds strong potential in Angola with vast natural habitat for
grazing and water resources of rivers and lakes throughout the country.
During the colonial era which ended in the 1970’s, Angola was a major producer and exporter
of cotton, coffee, corn, banana, tobacco, sugar cane and sisal. Currently, Angola’s main
agricultural crops include cassava, corn, beans, potatoes, sweet potatoes, soy and bananas
as well as coffee, manioc, rice, vegetables and fruits. Domestic production capacity does
not meet demand including for many of these primary agricultural crops. The most fertile
regions are in the highlands and valleys. The rainy season is from October to May, which is
considered the prime season for vegetable cultivation. Tomatoes are grown during the dry
season (June to September). Greenhouses and irrigation expand the growing seasons, but
these technologies are not widely used in Angola.
Angolan egg production of about 36 million per month meets around 75 percent of domestic
demand. Poultry production is growing, but most chicken products in the market currently
imported. Angola’s livestock farming is located primarily in the southern part of the country
and is based on pasture grazing. Beef is the second largest agricultural product after
cassava. Other livestock, such as goats, pigs and chicken, are raised mainly by small-scale
farmers as subsistence food sources. A livestock census by the Ministry of Agriculture is
expected to be concluded in 2017. The industry association, Cooperative of Cattle
Producers of Southern Angola (CGSA), estimates 3.5 million heads of cattle nationwide.
A featured element of the Angolan Government’s National Development Plan (2013-2017) is

agricultural development to diversify the economy and to build domestic food production
capacity that will decrease the country’s dependence on imported food. This focus was
further heightened starting in 2015 as the economic crisis caused by plummeting global oil
prices left Angola with foreign exchange shortages and a currency devaluation that made
critical food imports more expensive and payment more difficult.
The Angolan government has established a number of publically announced target areas for
agricultural production development including:
 A comprehensive program to stimulate beef production by 2018 to offset some of the

100,000 tons of beef imported into Angola annually. Areas of focus for this program
include improving veterinary health, increasing herd production, strengthening
slaughterhouse regulations, and building infrastructure capacity through government
projects and credit to private entities.
 A plan to reach corn production capacity sufficient to meet domestic demand (human
and animal feed) by 2020 through a range of public and private initiatives. Current
demand is for 4,500 tons of corn, but local production is only 1,800 tons necessitating
corn imports which are currently from Brazil, South Africa and Turkey.
 Angola is striving to build wheat production capacity. In early 2017, a first wheat
flour milling plant was reopened in Lobito with initial capacity to produce 130 metric
tons (MT) per day of wheat flour and bran with plans to expand to 650 MT per day of
wheat flour and bran. A second wheat flour milling plant is under construction
through a public-private sector consortium at the Port of Luanda projected capacity
of 1,200 tons per day of flour and animal feed.
Angola’s agricultural industry consists of both private and public companies. Private sector
agriculture is expanding with several large agro-industry growers, mostly involving
Portuguese, Brazilian, and Israeli investors either independently or through joint ventures
with the Angolan government. Chinese participation in Angola’s agriculture is growing,
prompted by government financing with rice production already in place in the southern
province of Cuando Cubango starting with 500 hectares that is expected to expand to 1000
hectares in 2017. In addition, a number of Angolan agricultural companies have announced
that new agricultural projects planned or underway.
The economic downturn in Angola since 2015 triggered by the steep global oil price decline
is negatively impacting the Angolan government budget including the government’s stated
support of economic diversification efforts, such as agricultural production. The federal
government budget allocation to agriculture has been cut by over one-half since 2013. Even
more concerning, the percentage of the budget committed to agriculture has fallen from a
high of 1.14 percent in 2013 to just 0.4 percent of the budget in 2017, a trend contrary to
the government’s stated priority focus on agricultural development and economic
diversification. Among other areas, budget cuts and the lack of foreign exchange for
imports has directly impacted Angolan government programs to provide subsistence farmers
with seeds, fertilizers and other agricultural inputs. Specific agricultural programs
including in the 2017 federal budget target: Commercial Agriculture Development Program
($66.8 million), Strengthening Agricultural Productivity Program ($48.6 million), Family
Farming Development Program ($36.2 million), Animal Production Program ($10.7 million),
and Public Veterinary Health Program ($400,000).
Even more significant obstacles to private sector agricultural projects are the lack of
commercial credit in the market and severe shortfalls in foreign exchange that make it
extremely difficult for companies to import needed agricultural equipment and inputs.
Strong pent-up demand exists for these important imports as companies try to establish and
expand their agricultural production capacity.
Angolan government credit programs for industry and agriculture exist, but are underfunded
and underutilized. For example, “Angola Invest”, a government–guaranteed and subsidized
line of credit program, provides up to $5 million through local banks for companies with 75
percent minimum of Angolan financial capital; however, during 2016 only a handful of loans
were approved through this program with commercial banks complaining about the lack of
quality projects. The government’s development bank (Banco de Desenvolvimento
Angolano) focuses on larger (over $5 million) long-term loans to private companies investing
in productive sectors such as agriculture; however, limited government budget allocations
has restricted this program. Furthermore, clear land title for purposes of loan collateral is
reportedly a challenge for some companies and individuals in accessing financing for
agricultural activities. For Angolan companies able to secure these local currency loans
they also face the challenge of accessing foreign exchange necessary for the imported
equipment and inputs need for their project implementation.
During more prosperous budget years, the Angolan government directly supported the
establishment of numerous large agricultural projects and companies. Some of these
include:
 Gesterra S.A, (Arable Land Management) – An Angolan government company with 18

projects in 8 provinces throughout the country and investments of $800 million for
cultivation of thousands of hectares of crops including rice, maize, soy, and beans,
as well as livestock, poultry and swine. These projects, developed in partnership
with private entities, are designed to reach profitability within 8 to 9 years.
 SODECAP (Capanda Agro-industrial Development Park) - An Angolan government

company responsible for the development of the Capanda Agro-industrial region
covering 411,000 hectares in Malange province. This development region includes
government investments in the operations of Pedras Negras farm (cereals), Biocom
farm (corn, sugar cane and ethanol), and Pungo Andongo Farm (corn) as well as
smaller agriculture involving 186 villages with production of produce, sugar cane,
wood, livestock and eggs.
 SODEMAT S.A. (Matala Regional Development Company) - An Angolan government

company in Huila province developing almost 7,000 hectares of land by providing
around 500 small scales farmers with up to 25 hectares each, together with technical
support and inputs and equipment (tractors and irrigation) financed by the
government development bank.
 Aldeia Nova, an Israeli Vital Capital Fund public private sector partnership with the
Angolan government, consists of large scale agro-communal centers that support
communities of farmers with technical support and equipment for the production,
processing and distribution of products ranging from poultry and cattle to crops, fruit
and vegetables. www.vital-capital.com/aldeia-nova
 Quiminha Project (PIDARQ) – This Angolan government Integrated Agricultural and

Rural Development project is a $200 million investment being developed with Israeli
company Tahal Group through 2018. This 5,000 hectare project involves intensive
irrigation, will include 300 family farmers with small plots as well as industrial scale
private farms, and is scheduled to reach production levels of 52,000 tons of produce
per year. http://tahal.com/project1-for-africa/
International and bilateral donors are increasingly focusing on Angola’s agriculture sector
development.
Currently under development with the Angolan Government is a major World Bank
“Commercial Agriculture Development Project” estimated at $230 million and anticipated
for 2018. The proposed project development objective is to promote commercial
agriculture development, increasing production and employment within selected value
chains in targeted areas in Angola. The project is divided in 3 components: agribusiness
Development ($190 million); support to develop an enabling environment for commercial
agriculture ($25 million); and project management, coordination and public-private
dialogue ($15 million). In preparation for this loan discussion, the Angolan Ministry of
Agriculture invited the University of Texas A&M’s Borlaug Institute to conduct an agricultural
assessment in late 2015/early 2016 to assess and provide recommendations for advancing
Angola’s capacities in the areas of poultry, livestock, coffee, grain crops, and value chain
development.
Bilateral donors and business interests are increasing focusing on Angolan agriculture. For
example a $73 million Spanish line of credit was announced in early 2017 to support Spanish
investment in Angola including agriculture projects.
Ongoing multilateral development bank projects include:
 World Bank “Smallholder Agricultural Development and Commercialization” Project.

A second project loan was signed in July 2016 for $70 million to help increase
smallholder agriculture productivity, production and marketing for selected crops in
the project areas. Details are at: http://projects.worldbank.org/P154447?lang=en
 The UN’s Food and Agriculture Organization (FAO) assistance in Angola for 2013-
2017 includes smallholder production and productivity to improve food security and
nutrition, (2) enabling farmers to apply improved production techniques through
Farmer Field Schools, and (3) strengthening sustainable management of natural
resources, strengthening local authorities and community groups capacity in the
uptake and application of improved technologies and practices
 The African Development Bank (AfDB) agricultural-related work in Angola focuses on

developing small farmer projects and linkages to agricultural value chains and
commercialization. Active projects in this area include: (1) a study of private sector
agriculture capacity in Cabinda province; (2) technical support to advance
infrastructure projects along the “Lobito corridor” in order to connect the markets
of the Democratic Republic of the Congo, Zambia, and Angola, and (3) agricultural
development in Southern Angola related to the impact of climate change on this
naturally dry area.
Leading Sub-Sectors
 Equipment for seeding, planting and harvesting grains and horticulture crops
 Livestock production equipment and technologies

 Cold chain solutions (refrigeration/warehousing)
 Food processing equipment
 Seed varieties
 Fertilizers/compost
 Irrigation systems (pumps, pipes, etc.)
 Veterinary supplies
 Training and management services and technology
Opportunities
Main agricultural equipment suppliers to Angola are Portuguese, Brazilian and Indian. A
number of U.S. agricultural equipment and technology companies are active in Angola
through distribution partners including John Deere, Caterpillar, Massey Ferguson, Case, and
New Holland. Additional U.S. equipment in Angola is purchased and imported directly by
the end user or informal resellers often from South Africa.
Notwithstanding the difficult foreign exchange limitations, the high priority focus on
agricultural development and increasing attention from the World Bank on this sector
suggests that Angola is a market to watch for U.S. agricultural equipment and supply
companies on the medium-term.
Specific sub-sector areas with strongest potential include:
Livestock – The Angolan government has established goals for increasing livestock production
together with the country’s vast, suitable natural habitat. Current livestock activity is
concentrated in southern Angola and is primarily based on small family farms with some
existing larger producers. Producers share with the U.S. Commercial Service their interest
in technologies for cattle raising, animal feed, veterinary services and other solutions
related to production and improving quality.
Grain and horticulture – Government targets of meeting domestic corn supply through local
production by 2020 will require substantial investments. A number of private projects also
focus on soy production. Several large-scale government sponsored projects such as the
Quiminha Project also focus on increasing horticulture production. Angolan companies are
require equipment and input solutions including: seeds, fertilizers, pesticides, irrigation
equipment and other types of production and processing equipment, such as silos, and
dryers.
Cold Chain - Strong potential also exists for U.S. exports related to cold chain infrastructure
as Angola continues efforts to build its domestic food production and distribution capacity.
The Angolan Government initiated PRESILD (Program for Restructuring of the Logistics and
Distribution System of Products Essential to the Population) to support domestic agricultural
production and distribution with a plan for infrastructure nationwide, but implementation
has been slow due to budget limitations. Ministry of Commerce regulations established in
2015 require companies to separate import from retail activities and to register their cold
storage facilities.
Food Processing - With increased production capacity, opportunities should expand for U.S.
exports related to food processing equipment. Several flour and grain milling projects are
underway. There is a high level of agriculture production loss due to the lack of access to
market and proper food handling capacity. Most processed foods including basic canned
vegetables are imported opening substantial potential for local value added manufacturing
with agricultural production expansion.
With the increased focus on agricultural production in Angola, many landowners are seeking
to establish production, but lack necessary agricultural background. Therefore demand
exists for international consultants and turn-key solutions from international suppliers.
Angolan companies already active in agriculture often express concern about the lack of
spare parts and services available in Angola for agricultural equipment maintenance. While
some agricultural equipment distribution infrastructure exists in Angola, many farmers
purchase agricultural equipment through neighboring countries or buy used equipment
without receiving after sales support. Companies that can provide quality post-sales value-
added services and support can be very competitive in Angola.
Web Resources
Angola Ministry of Agriculture www.minagri.gov.ao
For further information:
Manuel Cafala, Commercial Specialist

Commercial Service
U.S. Embassy, Angola
E-mail: manuel.cafala@trade.gov
Tel: (+244) 222 64 1000 ext.1602 |(+244) 932 572 530
Agriculture and Food Products
Overview
Agriculture accounts for 12 percent of Angola’s $96.2 billion GDP in 2016 (IMF projection)
and provides employment, both formal and informal, for more than two-thirds of Angolans,
mostly at subsistence levels. Prior to the 1975-2002 civil war, Angola was a major exporter
of coffee, sisal, sugar cane, banana and cotton, and self-sufficient in all food crops except
wheat. The civil war disrupted agricultural production and displaced millions of people.
Angola currently imports more than half of its food, with some estimates putting the figure
as high as 90 percent. Angola is the United States’ fifth largest market for poultry products
in the world, and the third largest market in Africa for all agricultural exports.
Angola has the natural resources to become one of the leading agricultural countries in
Africa, as its diverse and fertile ecology is suited for a variety of crops and livestock.
However, the country currently only cultivates approximately 10 percent of its 35 million
hectares of arable land. An estimated 90 percent of farms in Angola are small to medium
in size and are used mainly for communal, subsistence farming. The agricultural
commodities produced include cassava, bananas, potatoes, maize, sweet potatoes, citrus
and pineapples.
The World Bank is currently developing a comprehensive agricultural sector development

program for Angola anticipated to be in place by the end of 2017 that would greatly expand
their role beyond previous projects focused on smallholder agriculture land rehabilitation
and irrigation.
While chicken and pinto beans remain major US agriculture exports to Angola, these sales
declined significantly in 2016 due to the limited access to foreign exchange and increased
food prices resulting from local currency devaluation and high inflation. Food imports are
deemed a high priority of the Angolan government with some associated increases in foreign
exchange allocations by the Central Bank. A limited number of food importers pre-selected
by the Ministry of Commerce benefit from these allocations.
Leading Sub-Sectors
 Retail Sector (consumer-oriented food products)

 Poultry
 Wheat Grain
Opportunities
Retail Sector (consumer-oriented food products)
In Angola, food is sold both through modern retail and informal channels. Local industry
sources estimate that the informal market controls approximately 80 percent of agricultural
produce retail sales volumes. Informal retail includes both small grocers as well as open air
markets (locally called “Cantinas”). Since the civil war ended in 2002, the importance of
the informal market has declined especially in urban centers such as Luanda where formal
retail is developing rapidly. The government is trying to formalize retail by establishing
specific areas for open markets. In Luanda, municipal authorities are forcefully eradicating
street venders with laws that impose fines for both vendors and buyers. Public health
concerns are the main reason provided for the closures of informal open markets, as goods
are often sold in poor condition, food is kept on the ground, without refrigeration and
exposed to the sun, and expired goods are sometimes offered for sale.
As many other things in the country, shopping itself is not without challenges. Only a small
percentage of Angola’s population owns a car, thus most people are dependent on
overcrowded public mini-buses to reach hypermarkets and supermarkets. Consequently,
the majority of the population prefers to shop close to home in open air markets or small
grocers, which are perceived as offering fresher, less expensive food than hypermarkets and
supermarkets. Even with convenient supermarkets opening in the past few years in the
outer areas of Luanda, many Angolans feel more comfortable in informal markets. For this
reason, local formal retailers have come up with various strategies to attract the informal
market customer. Nosso Super, for example, opened its shops at locations near traditional
market places. Hypermarket Kero, in turn, tries to create a comfortable environment for
lower and middle income customers by playing loud Angolan music and the main Cash and
Carry’s created a benefit card that accumulates in value based on client purchases.
Changes in consumer profile and demographics, increasing urbanization, improvements in

infrastructure, and an increase in the number of international brands available in the
Angolan market are driving rapid developments of the retailing landscape. Consumers
across income levels are becoming more sophisticated and demanding in terms of variety
and quality. In the past, Angolans were satisfied with small grocers selling dry goods, but
now retailers are expected to offer frozen goods as well. Historically, Portuguese, Lebanese
and Indians have been the dominant players in the Angolan grocery retail market; however,
due to the economic downturn since 2014 and scarcity of foreign exchange many of these
third country traders are leaving Angola. South African supermarket chain Shoprite is
expanding in Angola and new players are entering the formal retail space most recently
hypermarket Candando owned by Angolan Isabel dos Santos. Some supermarkets target
wealthier Angolans and expatriates such as Casa dos Frescos that offers the greatest choice
of fresh produce and higher quality standards.
Leading Supermarket Retailers in Angola
Brand & Company Outlets

Nosso Super (Nova Rede de Supermercados de Angola) 28
Shoprite and Usave (South African Shoprite) 17
Maxi Cash & Carry (Teixeira Duarte) 14
Kero Hypermarket (Zahara Group) 12
Casa dos Frescos (Casa dos Frescos Group) 9
Mega Cash & Carry (Refriango Group) 1
Jumbo 1
Mazarati (Group Dimassaba) 1
Deskontão 1
AngoMart (Newaco group) 4
Alimenta Angola 2
MEL 1
MARTAL 2
Mercadão Cash & Carry (SODOSA group) 2
InterMarket 1
TAKI (NDAD group) 2
Candando (Contidis) 1
Poultry
Poultry is the most widely-consumed as well as the most affordable protein in Angola.
Angola produces 36,000 tons of broiler meat per year, only 8 percent of total market demand
of approximately 450,000 tons per year. Growers include subsistence farmers, smallholder
producers supported by government and non-governmental projects, and commercial
operations.
In 2016, Angola was the seventh largest market for U.S. poultry and poultry product
shipments by volume and value in the world. While significant, U.S. poultry exports to
Angola declined almost by 60 percent since 2014 due to a lack of foreign currency availability
for payments to international suppliers. Despite this current challenge, Angola remains a
strong market opportunity for U.S. frozen chicken leg quarters.
USDA seeks to alleviate credit financing constraints through the use of financial tools such
as the export credit guarantee program GSM-102
(http://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102).
Wheat Grain
In the 1960’s and 1970’s, Angola produced about 25,000 tons of wheat grain per year, mainly
in the southern Huambo province. The civil war halted wheat production and destroyed
flour milling capacity.
Faced with lost oil revenue, the Angola government is encouraging the development of
wheat milling to replace relatively costly flour imports as part of its overall economic
diversification plan. Angola currently imports about 500,000 tons of wheat flour per year
from Turkey and the European Union, at a value of $177 million in 2015. By replacing flour
imports with wheat imports, Angola can reduce its dependence on foreign exchange as well
as boost value-added local production. The Angolan government and private companies
plan to bolster the milling industry make the country a promising market for U.S. wheat
exports. The U.S. Wheat Associates estimates that the United States could export up to $25
million in wheat annually to Angola.
Wheat milling projects underway in Angola include the Grandes Moagens de Angola project
that will have the capacity to produce 1,200 tons of wheat flour per day, with the opening
scheduled for mid-2017. Cerangola invested $250,000 to reopen a mill in Lobito with a
capacity to produce 100 tons per day of wheat flour and 30 tons per day of wheat bran.
Additional renovations to the mill are planned for 2018, at a cost of $6 million that could
increase production to 500 tons per day of wheat flour and 150 tons per day of wheat bran.
These expansions open strong opportunities for U.S. wheat exporters particularly once the
import duty disadvantage of milling wheat flour in Angola is addressed.
Web Resources
Ministry of Agriculture http://www.minagri.gov.ao
Ministry of Commerce http://www.minco.gov.ao
Ministry of Health http://www.minsa.gov.ao
For more details from the U.S. Department of Agriculture, contact:
Foreign Agricultural Service (FAS Luanda)

U.S. Embassy Luanda
Rua Huari Boumedienne, #32
Miramar, Luanda, Angola
Tel: (+244) 222-641-058
E-mail: Ricardo.Dias@fas.usda.gov
Office of Agricultural Affairs (FAS/USDA)

U.S. Embassy Pretoria
877 Pretorius Street
Pretoria, South Africa 0001

Tel: (+27) 12-431-4057
Fax: (+27) 12-342-2264
E-mail: agPretoria@usda.gov
www.fas.usda.gov
Animal and Plant Health Inspection Service (APHIS)

U.S. Embassy Pretoria
877 Pretorius Street
Pretoria, South Africa 0001
Tel: (+27) 12-431-4711
http://www.aphis.usda.gov
Electric Power Equipment
Overview
Increasing electric power availability is among the Angolan government’s highest priorities
in an effort to diversify the economy and meet the increasing energy demand of a growing
population. In order to achieve a targeted 9.9 gigawatt (GW) of installed generation
capacity and a 60 percent electrification rate by 2025, the government has instituted an
ambitious infrastructure plan.
2016 2018 2025

Installed Generation Capacity 2.7 GW 6.3 GW 9.9 GW
Transmission Infrastructure 2,500 km 9,750 km 16,350 km
Electrification Rate 30% 43% 60%
(% of population)
The Ministry of Energy and Water projects that by the end of 2018, the country’s power
generation mix will consist of 64 percent hydropower (4 GW), 12 percent natural gas (750
MW) and 24 percent other fossil fuels (1.5 GW). This 6.3 GW total is anticipated once several
major projects come online during 2017 and 2018: Soyo (gas) combined cycle plant (750
MW), Cambambe hydroelectric phase 2 (700 MW), and the Lauca hydroelectric project (2.1
GW). For these and future projects, external financing and private project development
will be key especially given the current government budget and economic downturn.
Current electrification rates are estimated at 43 percent in cities and less than 10 percent
in rural areas. As a result, both businesses and residents rely heavily on diesel generators
for power. Given the four-fold increase in diesel fuel prices during 2015 due to government
subsidy cut backs, many are beginning to explore alternative energy solutions.
Angola holds great potential for renewable energy production. Mapping studies completed
by the Ministry of Energy and Water in June 2014 identified potential for 55 GW solar power,
3 GW wind power and 18 GW in hydropower throughout the country. To address rural
demand, the government is pursuing the development of small-scale off-grid projects
leveraging fossil fuels as well as renewable technologies (small hydro, solar, wind, and
biomass).
Angola’s transmission infrastructure is made up of three separate grid systems (northern,

central, and southern) in addition to isolated grids such as in the east. The northern grid
covers Luanda, Bengo, Malange, Kwanza Norte, and Kwanza Sul. The central network
includes Benguela and Huambo, and the southern grid serves Huila and Namibe. Plans exist
to link the grids through a north-central-south backbone and expand the grid from 3,354 km
to 16,350 km by 2025. Angola is currently a non-operating member of the Southern African
Power Pool, but plans exist to connect to the pool through Namibia (Baynes) and the
Democratic Republic of Congo (Inga).
In 2014, a $1 billion African Development Bank (AfDB) Electricity Sector Transformation

Program (PTSE) loan instigated major reforms in Angola’s power sector. It prompted the
unbundling of the sector beginning with the November 2014 Presidential Decree that led to
the establishment of three public utilities operating under the Ministry of Energy and Water.
These entities include: the national production company (PRODEL - Empresa Pública de
Produção de Electricidade), the national transmission company (RNT-Empresa Rede Nacional
de Transporte de Electricidade) and the national distribution company (ENDE - Empresa
Nacional de Distribuição de Electricidade). In addition, the purview of GAMEK (Gabinete de
Aproveitamento do Médio Kwanza) was expanded to include oversight of the development
and construction of most major power projects in the country.
This electric sector restructuring also sought to establish greater autonomy and strengthen
the role of the sector regulator IRSE (Instituto Regulador do Sector Eléctrico) in providing
oversight of sector activities. Progress continues in this regard as IRSE builds technical and
financial capacity. In early 2016, the government increased retail tariffs for electricity by
60 percent for private consumers to $0.071 per kilowatt hour (kWh), and by 190 percent to
$0.059 per kWh for businesses, though these levels remain well below average cost of
production of $ 0.22 / kWh in 2015. These increased rates should improve government
utility financial viability by lowering subsidy levels and creating a more sustainable business
model for the electricity sector that will be more attractive to potential independent
producers. By 2025, the government is expected to make progress towards achieving cost-
reflective tariffs; thus, lessening the sector’s reliance on subsidies, improving the financial
position of the utilities, and encouraging outside investment into the sector.
The General Electricity Law, approved in December 2015, codified the sector restructuring
and established a legal framework for independent power generation. International
development partners are providing technical support to the Angolan government to build
capacity and establish a regulatory framework under this legislation. Other support
activities include negotiating power purchase agreements with independent power
producers (IPPs) and design of a feed-in-tariff scheme for renewables. These steps are
critical to attracting private investment as IPPs remain uncommon in Angola.
Power transmission infrastructure in Angola will have to be enhanced to support new

production capacity. Many of the future generation projects will require the development
of new transmission infrastructure. Commercial and technical losses are significant during
distribution. A considerable number of those consuming electricity are not yet metered,
and establishing this infrastructure is a high priority of the government distribution utility
ENDE.
Major power projects are being inaugurated in 2017-2018 and other planned projects:
Project Estimated Estimated Completion Date and

Installed Capacity Contractor
Cambambe Hydroelectric 700 MW January 2017 completion with

(2nd phase) Dam and production estimated to begin in
transmission lines, 2nd mid-2017
Phase (supplies Luanda,
Benguela, and Kwanza Sul) Contractor: Odebrecht
Laúca Hydroelectric Dam

and transmission lines
(supplies Luanda, Huambo, 2070 MW Starting 2017
Huíla, Malange, and Kwanza Contractor: Odebrecht
Norte)
Soyo Combined Cycle 750 MW November 2018

(Phase 1) and high voltage
power lines Contractor: China Machinery
Engineering Corporation (CMEC)
Soyo Combined Cycle (Phase 500 MW Contractor: TBD

2)
Caculo Cabaça Hydroelectric 2171 MW 2022
Financed by Chinese government

loan ($4.5 billion)
Contractor: China Gezhouba

Group Corporation (CGGC) /
Niara Holding
For further more information on projects from 2025 Government Energy Plan please contact
CS Angola.
U.S.-based power product and solutions companies active in the Angola include GE, APR
Energy, Cummins, and Caterpillar among others. In addition, European companies
(Germany, Portugal) supply equipment to projects. Portuguese, Brazilian and Chinese
construction companies generally lead in project construction.
Electric power-related equipment ranks among the top U.S. export categories to Angola.
Electric Generating Sets and Rotary Converters (HTS 8502) surged to $96.8 million in 2016,
one of the few product category increases among total U.S. exports to Angola of $1.25
billion.
To support energy access throughout Sub-Saharan Africa, the U.S. government launched the
Power Africa initiative to leverage private sector and government resources to add more
than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity and
60 million new home and business connections. In Angola, the U.S. government has provided
resources for a Power Africa Transaction Advisor to support the Ministry of Energy and Water
in its efforts to improve the regulatory and enabling environment and to structure projects,
especially those with potential for private sector participation. The main focus of the Power
Africa program in Angola for 2017 is to help strengthen the legal and regulatory environment
for potential private sector participation in the sector. For details about Power Africa,
including project tracking and financing tools, please visit: www.usaid.gov/powerafrica
Leading Sub-Sectors
Generation
 Equipment for use in small scale hydroelectric power projects

 Diesel and gas turbine generators
 Renewable energy solutions: Solar; Biomass; Wind; small hydro
 Utility scale central dispatch center for energy load management
Transmission
 Substations
 Electric Transmission Lines
 Technologies to support high voltage transmission line
Distribution
 Pre-paid Meters
 Low Voltage distribution Lines
 Technologies to support distribution to end consumers such as Supervisory control
and data acquisition (SCADA)
Services
 Engineering Procurement and Construction (EPC) services specific to the electric

power generation.
 Maintenance repair and operation services
Opportunities
External financing is key to the continuation of priority government energy projects and
imports of this essential equipment into Angola especially during the current government
budget and economic downturn. The Angolan government budget dedicated to the
electricity production, transmission and distribution sector declined somewhat in 2017 to
$980 million (2.2 percent of the total federal budget) from $1.6 billion in 2016 (3.8 percent)
largely due to a decline in financing committed to production and transmission program.
Generation
Major government hydropower projects, Cambambe expansion (700 MW) and Lauca (2070
MW) and the Cambambe expansion (700 MW), are scheduled to begin operations in 2017 and
2018 with Brazilian firm Odebrecht as lead contractor and German financed and supplied
turbines. Another major hydropower project, Caculo Cabaça supported by Chinese
financing, has been announced with a 2022 completion timeline. Beyond these major hydro
projects, strong potential exists in Angola for mini-hydro (<10 MW) to take advantage of
Angola’s vast river network. The Ministry of Energy and Water in its 2025 Angola Energy
Strategy identified 100 locations suitable for the production of 600 MW from mini-hydro.
In addition, the Soyo I combined cycle plant (750 MW) is scheduled for completion in 2018
supported by Chinese government financing and construction led by China Machinery
Engineering Corporation. GE is providing the majority of the turbines for this project.
Initial plans are already underway for a second Soyo combined cycle plant (500 MW).
Natural gas commercialization legislation anticipated for 2018 will be important to
encourage private investment to generate adequate supplies of natural gas to supply the
expansion of production at Soyo. Increased natural gas availability should encourage a shift
in energy production equipment to natural gas.
Mapping studies completed by the Ministry of Energy and Water in June 2014 identified
potential for 55 GW solar power, 3 GW wind power and 18 GW in hydropower throughout
the country. Based on these findings, in addition to hydro projects earlier noted, the
government’s 2025 plan targets 100 MW of solar projects including 22 MW focused on rural
electrification and 100 MW of wind energy with an initial project identified by the
government, but currently on hold. In addition, the 2025 Energy Strategy includes a goal
of reaching 500 MW of energy production through biomass from forestry, agriculture,
livestock and solid waste sources. Outside of the major Biocom sugar production project
that would contribute 100 MW toward this target, there has been little progress in other
areas of biomass project development. Renewables, excluding large hydro, are expected to
represent about 8 percent of total installed capacity by 2025.
The execution of bankable Power Purchase Agreements (PPAs or off-take agreements), with
experienced private sector developers, will be a key step toward the Angolan government
reaching its power generation goals, particularly in renewable energy. Additionally,
government support and other credit enhancements to mitigate political, off-taker, foreign
currency, and other risks will be essential for the successful implementation of projects led
by the private sector.
Electric power-related equipment ranks among the top U.S. export categories to Angola and
this trend is likely to continue as Angola strives to reach its power production targets. The
Angolan government has overlooked maintenance as essential to continued operations of

thermal power production capacity resulting in high demand for related equipment and
services. Assuming government prioritization of appropriate budget and financing resources
for maintenance, this area can also be an opportunity for U.S. companies.
Transmission
Transmission infrastructure is key to delivering increased new power production capacity to

population centers. The U.S. government is actively supporting technical assistance
designed to advance transmission project development in Angola. A 2015 feasibility study
financed by the U.S. Trade and Development Agency on Electrical Distribution Modernization
focused on the interconnection of Angola’s Luanda South grid with Namibia in preparation
for future hydroelectric resources from the future Baynes dam project under development
on Cunene River. In addition, the U.S. Department of State is providing a technical and
economic feasibility study to support the national transmission company RNT to advance the
development of a high-voltage transmission backbone that will interconnect the three major
transmission networks in Angola. This backbone will likely consist of 400kV transmission lines
and will connect the northern, central, and southern transmission networks. This study is
scheduled for completion by the end of 2017.
Currently, Angola has no major import or export capability for electricity and has only
limited physical connections to the Southern African Power Pool and the Central Africa
Power Pool. The planned interconnection with Namibia via the Baynes hydro power plant
(600 MW) would link Angola to the Southern African Power Pool. Discussions continue with
the Democratic Republic of Congo (DRC) related to the expansion of the Inga hydroelectric
dam that would provide a connection to the Central Africa Power Pool.
Opportunities for U.S. transmission-related equipment and solutions focus on the significant
requirements in Angola for transmission infrastructure to support the rapidly expanding
power generation capacity throughout the country, as well as extensions of some older lines
and substations devastated by the civil war. The Angolan government is also seeking
financing for energy dispatch centers to monitor production, transmission and distribution,
by controlling inflows and outflows of electricity going through the system.
Distribution
The newly formed national distribution company (ENDE) faces high technical and
commercial loss rates, estimated as high as 35 percent, due to illegal connections, non-
payment with approximately 80 percent of existing electricity customers un-metered. Low
tariffs and a heavy debt burden from predecessor companies also pose a challenge. To
improve ENDE’s operations and revenues, during 2015, the company installed 1,500 smart
electric meters in a pilot with equipment from US companies Itron and Landis &
Gyre. Implementation of a broader smart meter program targets installation of 1.5 million
units in key urban locations by 2017 while also increasing enforcement to eliminate illegal
connections. To reach this goal, ENDE has established business arrangements with ZTE
(China) and Energitec (India), with modest local assembly planned. ENDE continues to seek
additional international suppliers. Due to budget limitations, ENDE has received sovereign
guarantee support to secure international financing for this and other projects.
Web Resources
Ministry of Energy and Water (MINEA) http://www.minea.gv.ao/

Regulatory Institute of Electricity Sector (IRSE) http://www.irse.gov.ao/homepage.aspx
Medio Kwanza Exploitation Office - (GAMEK) http://www.gamek.co.ao/
Electricity Sector Transformation Program (PTSE)
http://www.aceew.org/apresentacoes/25/1.pdf?PHPSESSID=62uihl96ajftdm57plkd5q07e2
Power Africa www.usaid.gov/powerafrica
For information contact:
Mauro Fonseca, Commercial Assistant

U.S. Commercial Service Angola
Mauro.fonseca@trade.gov
Tel: (+244) 222 641 253
Mob: (+244) 929 667 036
Environmental Technologies
Overview
Opportunities exist in Angola for U.S. companies with solutions related to water, wastewater
and solid waste as the country undertakes efforts to meet the health and infrastructure
needs of a growing population. Angola continues to rank among the lowest category in the
United Nations Human Development Index at 150 of 188 countries for 2015. Some of the
underlying causes of many of Angola’s current health problems - malaria, typhoid, cholera,
diarrhea, tuberculosis, infectious, parasitic, and respiratory diseases - are linked to poor
water and sanitation conditions.
According to World Bank 2015 data, 49 percent of the Angolan population has access to
improved water sources (75 percent in the urban areas and 28 percent in the rural areas)
and 52 percent have access to sanitation facilities (89 percent in urban areas and 22 percent
in rural areas). Angola’s water and sanitation infrastructure suffered greatly during its
protracted civil war ending in 2002 that led to a surge in the capital city Luanda’s
population. Despite abundant water resources from rivers and lakes throughout the country,
poor water quality and lack of distribution in Angola limit the amount of usable water
available for human consumption, sanitation, agriculture and industry.
The Angolan Government’s National Development Plan 2013-17 and “Angola 2025” human
development strategy targets improving health and sanitation by expanding and improving
water supply and sanitation, and building the institutional capacity of water agencies.
These efforts have received significant support from the World Bank Water Sector
Institutional Development Project that focuses on urban and peri-urban regions. Meanwhile,
water access for rural populations is the focus of the Government’s “Water for All” (“Agua
para Todos”) program as well as UN, USAID and other bilateral agencies, as well as non-
governmental organizations.
Solid waste also challenges the sanitation and related health situation especially in Luanda.
During the 2015-2016 summer solid waste accumulation in Luanda’s streets worsened and
contributed to severe mosquito-born health issues – both a yellow fever epidemic and surge
in malaria cases. In response, the Government has prioritized waste collection and
established a plan for solid waste management to be supported in part through waste
collection taxes.
Leading Sub-Sectors
Water
Angola’s vast natural water resources are primarily supplied through an extensive network
of rivers and lakes nationwide. Major discrepancies in water access exists between urban,
peri-urban and rural areas. According to World Bank 2015 data, while at a national level 49
percent of the Angolan population has access to improved water source, the gap is
significant between the urban areas (75 percent) and rural areas (28 percent). The
country’s water distribution infrastructure is mostly concentrated in the central urban
areas, while peri-urban communities rely on water trucks, and rural areas are supplied by
public wells and water pumps.
As of 2013, the Ministry of Energy and Water estimated a 60 percent water access deficit in
Luanda due to significant pressure from the continued population growth. Luanda’s water
system consists of 3 water collection plants, 5 water treatment plants, 14 water distribution
centers and a 3,180 km water distribution network. The Luanda public water company
(EPAL) processes water sourced from the Kwanza and Bengo Rivers, in the 14 collection and
treatment plants of Candelabro, Kifangondo, Cabiri, Luanda Sudeste, Kikuxi 1, Kikuxi 2,
Luanda Sul, Bom Jesus 1, Bom Jesus 2, Kilamba, Calumbo, Capari, Muxima e Caquengue and
distributes water through 26 distribution stations throughout the city.
According to the Luanda water utility EPAL, the drinking water system in Luanda has an
installed treatment capacity of 730,250 cubic meters per day (m3/day) and a 354,180
m3/day distribution capacity. This system is constrained by obsolete equipment and
facilities that require expansion and modernization. EPAL charges consumers (45 kwanzas)
per cubic meter (around US$0.25) for water distributed through their network. An
estimated 40 percent of water flowing through Luanda’s distribution infrastructure is lost
due to technical and commercial causes.
Peri-urban areas rely primarily on private tanker trucks delivery to underground water
storage tanks at residences or businesses at a cost to the consumer of KZ 1,700 per cubic
meter (around $9.44). Due the lack of reliable water supply, even urban residents with
water connections often maintain water storage tanks. Newer apartment and offices
buildings typically include backup water storage facilities with pumping and purifying
equipment to process water delivered by tanker trucks.
Given the poor water quality both from public water distribution network and truck
delivered water, for drinking water consumers typical boil water or use chlorine additive.
Those with adequate financial resources purchase bottled water or treat drinking water at
the point of use with filtration systems such as reverse osmosis membranes. The main
contaminants found in urban treated water are microbiological and parasites, while in some
regions rural water wells also contain arsenic.
Angolan Government’s water sector development plan as outlined in the National

Development Plan 2013-17 and Angola 2025 human development strategy aims to expand
existing water infrastructure to reach 100 percent of the country’s 18 capital cities, increase
water production capacity, build institutional management capacity, and expand water
coverage in rural areas. A National Water Plan announced in January 2017 sets forth the
policy and strategy for management of water resources throughout the country. The
Government’s Agua por Todos (Water for All) program aims to bring potable water access
to 80 percent of Angola’s rural population. In addition to expanded water infrastructure
and access, Angolan water sector restructuring incorporates revised pricing policies, the
installation of prepaid water meters focused on residential consumers, and establishment
of regional government water utility companies in the major cities throughout the country.
The World Bank is the primary leading partner of the Angolan Government supporting these
objectives through the Water Sector Institutional Development Project (2008-2016) with a
total project cost of $130 million co-financed by a World Bank loan and the Angolan
Government. This project was extended until 2019 with an additional $120 million World
Bank loan. It concentrates primarily (75 percent) on water projects in urban and peri-urban
areas with the balance of the project related to wastewater/sanitation. Main project
components include:
1) development and building capacity of water utilities, a regulatory agency, and water
resource management systems;
2) water supply system rehabilitation targeting 240 km of water supply networks and
72,000 domestic household connections; with the loan extension for an additional
405 km of water supply networks and 60,000 domestic connections
3) rehabilitation of production and treatment facilities, construction of new water
distribution reservoirs and new wells, replacement of technical monitoring
equipment, and the establishment of a water consumption and billing system; and
4) capacity building at national and provincial to improve the efficiency of water
supply.
A second World Bank Water Sector Institutional Development Project valued at $545
million (with a $300 million World Bank loan) reached project appraisal in November 2016
and is expected to be approved in 2017. This project will focus on: 1) water supply
institutional strengthening and capacity development, 2) water resource management; 3)
rehabilitation and expansion of water supply production and distribution; and 4)
management and engineering support. Project Appraisal document details are at:
http://projects.worldbank.org/P151224?lang=en
In addition to the World Bank, Angola has benefited from water sector infrastructure
financing from the African Development Bank, the European Commission, Spain, Portugal,
and China. Projects focusing on rural populations have received support from USAID, and
UNICEF and several non-governmental organizations.
Angolan government budget for 2017 allocates 1.54 percent of its budget (around $670
million) to water supply and basic sanitation. Another 2 percent (around $900 million) is
designated for urban infrastructure including water and wastewater related infrastructure.
Of these amounts, $535 million is committed to the rehabilitation and expansion of urban
water and sanitation infrastructure, primarily as co-financing to the World Bank’s Water
Sector Project. Another $50 million within this budget is earmarked for the rural Agua por
Todos (Water for All) project.
Within the Angolan Government, the Ministry of Energy and Water and its National
Directorate of Water Supply and Sanitation (DNAAS) oversees policies and projects in this
sector. The Angolan Government established the Regulatory Institute for Energy and Water
Services (IRSEA) in 2016 and the National Water Resources Institute (INRH) in 2010 with
support through the World Bank. Provincial Governments and municipalities are responsible
for supervising operations of utilities in implementing water, wastewater, and solid waste
management projects in their respective jurisdictions based on the Ministries of Energy and
Water and Environment, as well as to prepare public contracting procedures.
Wastewater
Water sanitation infrastructure challenges are also pervasive in Angola with just 52 percent
of the population nationally having access to sanitation services, according to 2015 World
Bank data. As with water infrastructure, sanitation systems are concentrated in central
urban areas with 89 percent access compared to 23 percent in rural areas. In peri-urban and
rural areas most of the population uses latrines or open areas.
Angola produces 280 million cubic meters of wastewater annually (767,000 m3/day), a
volume projected to increase to 381 million m3/year (over 1 million m3/day) by 2017. Of
all water supplied into the distribution network, an estimated 80 percent becomes
discharged effluent flowing directly in the oceans or rivers without treatment. No
regulations exist for agricultural or industrial wastewater discharge.
The Angolan government plans include the restoration of existing sewage systems,
construction of toilets and septic tanks in peri-urban areas, and expansion of sewage
treatment to 60 percent of the rural population. Storm water drainage and flood
control/prevention are also top priorities for the Angolan government. Heavy rain induced
flooding in Luanda and particularly in the southern provinces of Benguela, Huila, Namibe,
and Cunene has been significant. The Luanda public sanitation company ELISAL (Empresa de
Limpeza e Saneamento de Luanda) has established contracts for wastewater collection
services with private companies: ENCIB, Ango Ambiente and SA Ambiente.
While most funding in the water sector focuses on access to drinking water, there are
elements of the World Bank projects that include sanitation especially related to
institutional capacity building. The Angolan government allocates a negligible amount of
its budget to wastewater management.
Solid Waste
Solid waste management became a top priority of the Angolan government in 2016 in
attempt to address the significant levels of waste accumulating especially in the capital
Luanda. Rapid population growth in Luanda combined with steep government budget cuts
starting in 2015 resulted in deferred payments on government contracts including waste

collection services. During the 2015-2016 summer, waste accumulation on Luanda’s streets
and neighborhoods contributed to severe mosquito-borne health issues – both a yellow fever
epidemic and surge in malaria cases.
Given the extremely difficult government budget situation, Presidential Decree 119/12 of
April 2016 established a waste management regime to include taxes for waste collection
services and establishment of private concessions for waste collection and management.
According to the Ministry of Environment, the Luanda region population of 6.5 million
generates approximately 215,000 tons of solid waste per month (t/m). By region this
includes: Luanda (75,975 t/m), Viana (45,771 t/m), Belas (38,344 t/m), Cacuaco (26,472
t/m), Cazenga (25,870 t/m), and Icolo/Bengo/Quissama (2,393 t/m). An estimated 60
percent of Angola’s solid waste is organic household waste.
In 2016, five companies were selected to manage waste collection, transfer and treatment
in specific parts of Luanda Province with oversight by the Ministry of Environment: Mota-
Engil/Vista Waste (Portuguese) in Luanda, Odebrecht (Brazil) in Cacuaco, and Queiroz
Galvao (Brazil) in downtown Luanda, and public companies ELISAL and Nova Ambiental in
the largest municipalities of Cazenga and Viana.
The Ministry’s waste management plan for Luanda, being developed with the provincial
government, includes the following new construction:
 3 landfills with one dedicated to construction and industrial waste

 10 transfer stations
 46 sorting facilities, along with facilities for industries related manufacturing
Luanda currently has a single landfill that is nearing capacity and faces operational
challenges with long wait times for garbage collection trucks delivery. Public company
ELISAL operates the landfill two transfer stations. The Ministry of Environment is working on
an integrated waste management system and would like to incorporate into its new model
waste management recycling systems and equipment, waste-to-energy, composting,
improved landfill technologies. The government expects to adopt regulations related to
medical waste in the near future.
Key end-user clients in Angola for equipment and systems include waste management
concession companies and other companies involved in waste management, with the
Ministry having a strong role in technology selection so an important point of market
influence. With a shift to private sector concessions for waste management and with
minimal government budget available, private companies will likely be responsible for most
waste management related equipment and material procurements.
The Ministry for Environment is responsible for preserving and protecting the environment,
managing environmental technologies, including introducing solid waste management
policies, the use of natural renewable resources, and environmental education as outlined
by Presidential Decree n.º 261/11, I Serie n.º 193.
Opportunities
Environmental equipment can be imported into Angola duty free. The Ministry of Energy
and Water and the Ministry of Environment can both impact the technology selection
process. Key end user clients in Angola for environmental equipment and systems include
waste management concession companies, and leading engineering/procurement and
construction companies implementing major water and wastewater projects. Some of the
private companies most active in the water and wastewater infrastructure development in
Angola include: Chinese companies (CRBC, GHCD, and SynoHidro), Portuguese companies
Engolac, Edifer, and NorAfrica, TSE (Belgium) and OPAIA Group (Angolan).
Water and Wastewater Best prospects:
 Water treatment technologies for municipal and point of use

 Water supply and distribution engineering and equipment
 Technologies for water measurement and monitoring
 Customer metering, billing and payment systems
Solid Waste Best prospects:
 Waste management collection vehicles and equipment

 Recycling and composting equipment and systems
 Landfill engineering, equipment and operation services
 Medical waste collection and processing equipment
Web Resources
Ministry of Environment www.minamb.gov.ao

Ministry of Energy and Water www.minea.gov.ao
Institute for Water Resources www.inrh.gv.ao
Luanda Public Water Company (EPAL) www.epal.gov.ao
For more Information Contact:
Clemência Nogueira
Commercial Specialist
Clemencia.Nogueira@trade.gov
(+244) 222 641 076 | (+244) 932 572 822
Healthcare
Overview
Angola’s population of 27.5 million (2016) is projected to grow by three percent in 2017.
The population is 63 percent urban and by gender, 47.3 percent male and 52.7 percent
female. According to the 2014 Angolan Census, the Angolan population is very young with
65 percent of the population under 24 years. Life expectancy at birth is 61.7 years. Child
and maternal mortality rates remain high, with the under-five mortality reaching 68 per
1,000 per 1,000 live births. A high fertility rate of 6.2 births per woman places additional
pressure on the health system.
Angola’s healthcare system is comprised of public and private services. Per Angolan law,
public health services, from primary care to specialized services, are available at no cost.
However, the public system suffers from shortages of doctors, medicines, nurses, primary
health care workers, as well as inadequate training and a lack of a computerized information
management systems to efficiently track historical records of patients. As a result, access
to healthcare services and to pharmaceuticals for the majority of the population is limited.
The best quality health services are found in Luanda and in the other major cities of
Benguela/Lobito, Lubango and Huambo.
Most middle and upper middle class Angolans use private healthcare services that generally
offer higher quality and fee-based care. Four major private clinics are located in Luanda:
Girassol - affiliated with state oil company Sonangol, Sagrada Esperança - affiliated with the
state diamond company Endiama, Multiperfil - affiliated with the Presidency, and the
Luanda Medical Center. Numerous small private clinics are also available. Professional and
upper class Angolans typically travel to Namibia, South Africa, Cuba, Spain and Portugal for
more complex medical treatments. However, such international health travel has become
more difficult due to increased costs with the local currency devaluation and severe
restrictions on foreign exchange.
The major health concerns in Angola include malaria, typhoid, tuberculosis, infectious and
parasitic diseases, respiratory and diarrheal diseases, cholera, rabies, measles, sickle cell
anemia, and chronic non-communicable diseases. Angola has a relatively low HIV
prevalence of 2 percent. During the 2015/16 summer, two simultaneous epidemics of
malaria and yellow fever erupted in Angola. These crises were effectively combated by a
massive vaccination campaign against yellow fever led by the World Health Organization
(WHO) and assisted by the U.S. government and other bilateral donors, as well as private
contributors and an emergency anti-malarial medications procurement led by the U.S.
government, Presidential Malaria Initiative (PMI).
With the appointment of a new Minister of Health Dr. Luis Gomes Sambo in March 2016,
major reform efforts are underway at that Ministry to increase accountability, contain costs,
establish a transparent procurement and distribution system for pharmaceuticals and
medical suppliers, promote improved quality of pharmaceuticals, and improve services.
The healthcare budget for 2017 is $1.87 billion, 4.3 percent of the Angolan federal budget,
a comparable level to 2016. According to the World Health Organization (2014), the annual
per capita health expenditures in Angola is $420 per year, 57 percent funded by the public
sector. Private health spending is from individuals, employers and private insurance.
Angola has approximately 0.1 hospital beds per 1,000 people, a total of 3,700 doctors (or
about 0.08 doctors per 1,000 inhabitants), 34,300 nurses (0.01 midwives per 1,000
inhabitants), and 6,400 diagnostic and therapeutic technicians (WHO 2013). Cuba supplies
approximately one-third of the doctors who work throughout Angola’s 18 provinces. Other
expatriate healthcare professionals are mostly from Brazil and Portugal. Angolan
universities graduate close to 200 new medical doctors per year. The government plans to
expand this rate to 1,000 physicians per year by 2020.
Angola’s National Development Plan for 2013-2017 (PND) and National Health Strategic Plan
for 2012-2025 (PNDS) outline the government’s priorities. These include: rehabilitating and
expanding public healthcare infrastructure and capacity, especially for rural and
underserved urban populations; expanding healthcare professional training; and disease
prevention. The PNDS projected that about $5.2 billion would be invested in the public
system per year for the period 2013 to 2025. However, in light of federal budget challenges
these targets will be difficult to attain.
U.S. government foreign assistance in Angola supports the Ministry of Health in overall
disease surveillance, HIV, malaria, family planning, as well as commodities procurement,
tracking and distribution. The President’s Emergency Plan for AIDS Relief (PEPFAR) provides
key technical assistance at the National and Provincial Ministries of Health and to 9 health
facilities in Luanda in order to improve the quality and coverage of HIV testing and
treatment services and support high quality programming for key populations and the
military. The President’s Malaria Initiative (PMI) works to reduce malaria-related mortality
through education, the provision of bed nets, and the distribution of malaria treatments. In
2016, PMI signed a Memorandum of Understanding with the Ministry of Health setting forth
an accountability framework for its programs. With USAID’s technical assistance, the
Ministry of Health is developing a monitoring and evaluation plan for the Angolan PNDS (2012
– 2025) and a National Health Accounts (NHA) exercise to better understand the flow of
resources for health in Angola.
The Ministry of Health, under the Health Inspection Office (IGS) is responsible for monitoring
the quality of imported pharmaceuticals and medical equipment, and ensuring that medical
devices imported into the country meet WHO norms and Angolan regulations. The Ministry’s
National Directorate for Pharmaceuticals and Equipment (DNME) is the regulatory body
responsible for establishing the criteria for pharmaceuticals and medical equipment entry
into Angola. The Angolan Society of Pharmacists (OFA) conducts consumer education on
pharmaceutical quality and consumer behavior.
The Ministry of Health DNME has authorized 219 importers and distributors of
pharmaceuticals and medical devices. To import into Angola, pharmaceutical products must
be registered with the Ministry of Health, submitted for laboratory tests to meet compliance
to norms and standards, and be labelled in Portuguese. There are 14 private DNME certified
pharmaceutical laboratories in Angola: AstraZeneca, Bayer Health Care, Bial, BluePharma,
Dafra Farma, Edol, GSK, Labesfal, Laboratórios Azevedos, Merck Serono, Sandoz, Sanofi,
Shalina and Tecnifar. Health authorities are also planning to develop a public
pharmaceutical laboratory that will have the capacity to analyze the quality of
pharmaceutical products before entering Angola.
To import medical devices into Angola, the registered importer must present a Certificate
of Origin, a Certificate of Free of Sale, and a certificate proving compliance with ISO 9001
quality norms to the Ministry of Health, which is responsible for processing the required
import license.
Leading Sub-Sectors
Pharmaceuticals
Increasing local manufacturing of basic primary pharmaceuticals is a government priority as

articulated in Presidential Decree 180/10 which established the country’s National
Pharmaceutical Policy. Leading suppliers of pharmaceutical imports into Angola are China,
India, and Portugal. Local production is limited to Nova Angomédica, formerly a joint
venture with the Angolan government that was recently privatized and produces anti-
anemic, analgesic, antimalarial, anti-inflammatories, anti-tuberculosis, anti-allergic (in pill
and syrup forms), as well as saline solution and ointments.
Pharmaceuticals are distributed through pharmacies, public hospitals, and private clinics.
The quality of products, prices, and service vary according to location. Small pharmacies
in the outskirts of major cities tend to sell unregulated, lower cost pharmaceuticals, often
from India and China. Higher quality and fully registered pharmaceuticals are more common
in urban centers. Pharmacies in public hospitals generally provide generic pharmaceuticals,
while private pharmacies generally carry branded pharmaceuticals.
Private health institutions purchase directly from overseas suppliers or through their
designated local distributors. The public sector depends on the central government medical
procurement center (CECOMA) which centralizes all orders and manages stocks for all public
health institutions nationwide. Payment is based on the budget allocated to each
healthcare facility. Hospital Josina Machel in Luanda receives the largest budget though
even it is inadequate to meet the significant patient demand.
To increase efficiencies and manage costs, beginning in 2016, CECOMA began to use the UN
Development Program for procurement of pharmaceuticals assuming primarily a distribution
and logistics role. The Angolan government procurement of pharmaceuticals for treatment
of malaria and tuberculosis are funded 50 percent by the Angolan government, with 25
percent from The Global Fund, and 25 percent from the U.S. government; HIV related
commodities are funded 60 percent by the Angolan government and 40 percent by The
Global Fund.
Counterfeit pharmaceuticals are a major concern in Angola, with an estimated one-half of

the pharmaceuticals on the market fraudulent. Most counterfeit pharmaceuticals are sold
in the informal market but increasingly can be found in formal channels of distribution. The
National Institute for Consumer Protection (INADEC) with the Ministry of Health’s National
Direction for Medicines and Equipment (DNME), are responsible for enforcing registration
requirements and keeping non-conforming pharmaceuticals and counterfeit products out of
the market. The Angolan government has circumvented a number of significant counterfeit
shipments attempting to enter Angola.
Medical Equipment
Angola relies primarily on imported medical equipment, devices, supplies and consumables
to meet local demand. CECOMA and parastatal Angopharma are the Ministry of Health’s
official procurement agencies. Most imports of medical equipment are managed by the
Angolan private sector. There is nominal local manufacturing of medical supplies and
consumables in Angola.
U.S. medical solutions, equipment, instruments, devices, consumables, supplies and

furniture brands are well-known and valued by practitioners in Angola due to their reliability
and high quality. Some U.S. manufacturers already selling in Angola through a regional office
in neighboring countries or through Angolan importers and distributors include Welch Allyn,
Hill-Rom, Accu-Scope, Abbott, Baxter, Johnson & Johnson, Beckman Coultier, Thermo Fisher
Scientific, and OPTI Medical Systems.
Severe delays in access to foreign exchange combined with the limited public sector
healthcare budget is impeding some Angolan importers and distributors from introducing
new product lines and stocking product inventory.
Opportunities
Angola’s public healthcare sector holds potential for U.S. companies given the government’s
priority on expanding public healthcare infrastructure and providing efficient primary
healthcare delivery. Private healthcare will continue to grow as a portion of the overall
health services network in Angola to meet demand for quality healthcare by the middle and
upper classes, many of whom currently rely on healthcare treatments outside of Angola.
Cardiology: Almost 10 percent of the population suffers from cardiovascular diseases, with
a concentration in the most heavily populated provinces of Luanda, Benguela and Huila.
Many of these patients have high blood pressure or physical limitations. Several specialized
cardiology centers are equipped for diagnostic capability as outpatients care; however, very
few have the infrastructure or equipment for interventions and surgeries. Angola currently
offers limited opportunities for sales of cardiology devices and equipment, but this should
expand in the future as diagnosis and treatment capacity improves.
Child and maternal care: Angola lacks specialized medical care for children and women,
contributing to high rates of child and maternal deaths. Opportunities exist for medical
devices and pharmaceutical products to enhance care for children and women. With a high
fertility rate of 6.3 children per woman, only 57 percent of births are assisted by healthcare
professionals and 51 percent are in healthcare facilities (UNICEF 2015).
Healthcare Infrastructure: Once Angola’s economy begins to recover, opportunities should

open for design, construction, and equipping of public health facilities to expand capacity
in Luanda and other provinces where healthcare services are limited. Luanda General
Hospital (Hospital Geral de Luanda) opened in 2015 expanding public health care services in
Luanda beyond the Josina Machel General Hospital, Américo Boa Vida Hospital and in David
Bernardino Pediatric Hospital.
Telemedicine: Several healthcare facilities are utilizing telemedicine to extend health care
service to rural areas and lower income urban populations, groups who typically depend on
traditional medicine. However, these services are challenged by limited internet access
among poorer populations and inconsistent internet connectivity outside of major
population areas, as well as by government budget shortfalls. Examples of telemedicine
solutions in Angola include: Girassol Clinic’s contract with Portuguese company PT Inovação
e Sistemas to provide medical care and remote specialty consultations, as well as training
for the health care professionals throughout the country; Pediatric Hospital David
Bernardino in Luanda partners with PT Inovacao e Sistemas telemedicine system to access
international medical expertise to diagnose and treat children with heart problems; Nossa
Senhora da Paz Hospital in Benguela Province accesses expertise and training on infectious
diseases using telemedicine with the Vall d´Hebron Institute of Research in Spain; and, the
Luanda Medical Center deploys patient monitoring technologies from Israeli company Shahal
Medical Services Ltd.
Pharmaceutical and Medical Equipment: The lack of sufficient pharmaceuticals and medical
supplies in the Angolan market due to government budget challenges and foreign exchange
delays is significant and is negatively impacting patient health. Moreover, fraudulent
medicines pose an increasing problem. With an eventual economic recovery there will be
a need for restocking medical supplies both by the private and public healthcare sectors.
Medical equipment including instruments, diagnostic and imaging are also needed in the
market.
A number of recently established comprehensive private retail pharmacies provide

prescription and over-the-counter medicines, personal hygiene, self-improvement health
products, smoking cessation, first aid supplies, basic outpatient immunization and diagnosis
services. Leading pharmacies in Angola include: Mecofarma, Moniz Silva, Novassol, Central,
Mediang and Tandu-Far.
Oncology: The Angolan Institute for Cancer Control (IACC) was created 2014 to enhance
oncology care in the public sector, as well as to oversee policy implementation, programs
and prevention plans. The IACC offers specialized cancer treatments in clinical oncology,
general surgical oncology, radiotherapy and pathological anatomy and is seeking innovative
techniques in the diagnosis and treatment of cancer.
Neurosurgery: A neurosurgery and hydrocephaly treatment center established in Luanda by

the Lwini Foundation provides treatment for underserved disabled populations especially
women and children. The neurosurgery and hydrocephaly treatment center focuses on
corrective surgery for children suffering from spinal bifida and hydrocephaly.
Web Resources
Ministry of Health – National Health Plan 2012-2025

www.minsa.gov.ao/VerPublicacao.aspx?id=1266
www.saudeangola.gv.ao
Ministry of Health - National Directorate for Pharmaceuticals and Equipment (Direcção

Nacional dos Medicamentos e Equipamentos – DNME): http://dnme.co.ao
U.S. Agency for International Development: www.usaid.gov/angola
World Health Organization: www.who.int/countries/ago/en/ ;

http://apps.who.int/nha/database/Country_Profile/Index/en
UNICEF: www.unicef.org
Angolan medical associations include:

Ordem dos Médicos de Angola: http://ordemdosmedicosdeangola.com/
Ordem dos Farmacêuticos de Angola: www.ordemfarmaceuticosangola.org
Associação dos Farmacêuticos de Língua Portuguesa: http://www.afplp.org
Ordem dos Enfermeiros de Angola: www.ordenfa.amawebs.com
Associação das Doenças Cardio-Vasculares de Angola:
www.facebook.com/congressoangolanodecardiologia

Clemência Nogueira
(+244) 222 641 076 | (+244) 932 572 822
Marine Technologies
Overview
Angola, located in southwestern Africa with a 1600 km Atlantic Ocean coastline, holds solid
medium-term potential for maritime transportation and fisheries development as prioritized
by the government’s national development plan.
Fisheries
The Angolan government and international entities are heavily focused on fisheries
development to advance the country’s economy diversification, generate employment
opportunities, and expand food production capacity both for national consumption and for
export. Angola was a leading fish exporter during the colonial era until the mid-1970s, but
then lost its fisheries capacity and expertise during the protracted civil war that ended only
in 2002. Fisheries represented less than 1 percent of Angola’s GDP in 2014 with production
of approximately 310,000 tons, according to African Development Bank (AfDB) data.
Angolan government is prioritizing development of the fisheries sector, both coastal and
aquaculture value-added production in Angola with support from the AfDB and United
Nations.
Commercial fishing was responsible for more than 63 percent of total marine catches in
2013 with the remainder from artisanal fishing. Most all semi-industrial and industrial
fishing is based at four main ports: Namibe, Benguela, Porto Amboim and Luanda.
Companies from Poland, Portugal, Spain, Russia, South Korea, Taiwan and Italy are active
in the fisheries business in Angola. To support the advancement of fishing activities, Poland
funded the $22 million construction of a fisheries training and technical support academy in
the Namibe province.
There is a large artisanal fishing fleet in Angola with around 100,000 people earning their
living in the fishery sector including 50,000 artisanal fisherman organized in groups that fish
in teams and share equipment including 9000 boats, most with engines. The coasts of
Benguela and Luanda provinces have the greatest concentration of artisanal fishing. The
Angolan government prioritized the development of artisanal fishing to improve production
quality and living standards in artisanal fishing communities by providing microcredit and
regional support centers with facilities for boat and gear maintenance, fish processing and
docks.
In 2013, the AfDB extended a five-year, $40 million loan to Angola for the Artisanal Fisheries
Support Project. This project aims to increase incomes of small-scale fishermen and traders
through improved fishery infrastructure, to reduce post-harvest losses, and to improve the
quantity and quality of fish capture and sales. The program targets coastal communities in
four provinces in Angola (Cabinda, Benguela, Kwanza Sul and Bengo) focusing on populations
over 10,000 with a concentration on women who constitute 80 percent of small-scale fish
processors and traders.
The Ministry of Fisheries works to address illegal fishing through operation of 15 patrol
vessels procured from China and France, as well as two vessels funded by the Dutch
government with installed vessel tracking technology. Angola collaborates with Namibia
and South Africa to protect and survey the fishing grounds through a Southern African
Development Community (SADC) regional program. In addition to the Ministry of Fishery
efforts, an inter-agency Angolan government committee led by the Ministry of Defense
operates a National Communication Service Center responsible for managing the safety and
security of the activities in the national waters especially to protect the oil production
platforms and combat illegal fishing as well as piracy.
Aquaculture production in Angola is currently modest, with a focus on tilapia and catfish,
but government efforts are underway to expand production, supported by a $11.1 million
loan from the UN International Fund for Agricultural Development (IFAD). By 2017, Angolan
authorities seek to reach 60,000 tons of production per year through small-scale communal
ponds and a limited number of medium to large-scale commercial aquaculture operations.
Sea Ports
Angola’s has four operational sea ports as follows:
 Luanda, Angola’s main port has a capacity of 11,166 TEUs and handles more than 70
percent of the country’s imports. Due to the country’s continued economic
downturn and resulting drop in foreign exchange and imports, the Luanda port cargo
volume dropped by 21 percent from 2015-2016 after a previous 38 percent decline
from 2014-2015. This port located adjacent to the Luanda Railway (CFL) includes
five specialized terminals: Multiterminais (break-bulk terminal), Unicargas
(multipurpose terminal), Sogester (container terminal), Sonils (Oil & gas terminal),
and Soportos (multipurpose terminal).
 Lobito port, the second largest port in the country, is interconnected to the Benguela
railway network with plans to eventually extend into neighboring countries of Zambia
and the Democratic Republic of Congo. This port recently benefitted from Chinese-
funded construction, renovation and installation of heavy equipment.
 Cabinda port situated in the enclave of Cabinda in the furthest northwest part of the
country services primarily the oil and gas activity that dominates business in that
province.
 Namibe port is close to the southern border with Namibia and mainly focuses on
fishing activities in the region. Its development benefited from Japanese
government assistance, and the port remains a focal point of that country’s
development interest in Angola.
Two new green-field ports were initiated several years ago to increase cargo capacity and
competitiveness. The Ciao port continues under development in Cabinda with plans to
provide regional services; however, the Dande project near Luanda stalled due the country’s
economic downturn and resulting drastic decline in cargo traffic.
 Caio Port (Porto de Caio) is a public-private partnership project with a 30-year

concession begun in 2012 from the Ministry of Transportation. This deep water port
located in Cabinda province, adjacent to the Democratic Republic of Congo and
Republic of Congo, is positioning itself to facilitate regional and international
commerce. The project has secured partial financing from the Chinese export bank
and the Angolan Sovereign Wealth Fund. Land reclamation and dredging is
underway. The first phase of the project is scheduled to include commercial quay
wall, rig facility quay, ship repair facility, breakwater and access channel.
 Porto de Dande - In 2011, the Angolan government approved the construction of the
deep water Porto da Barra do Dande in Bengo Province, 50 km north Luanda to shift
cargo from Luanda Port which at that time was reaching full capacity. With basic
engineering preparations completed, the project is on hold due to lack of
government budget and a significant slowdown in cargo flows resulting from the
country’s economic challenges.
Leading Sub-Sectors
Fisheries
 Vessels and equipment suited for small scale fisherman (less than 14’ vessels)
 Vessel tracking and rescue solutions
 Aquaculture production technologies, feed and equipment
 Fish Processing and storage (cold chain) equipment
 Technical support and training
Sea Ports
 Improving port productivity

 Maritime and coastal security technologies
 Vessel tracking technologies for new control center at Port of Luanda
 Engineering and design services for greenfield ports
 Technical support and training
Opportunities
Fisheries
Given the difficult financial situation in Angola, the greatest potential for U.S. company
participation in the country’s fishery sector development is through the existing $40 million
AfDB loan for Artisanal Fisheries Support Project and UN aquaculture development funding.
The AfDB loan details are outlined in the Project Appraisal report listed under “Web
Resources.” While modest, the Angolan government increased its budget allocation for
fisheries slightly in 2017 to $44.6 million with dedicated programs for fisheries resource
development ($2.2 million), aquaculture ($1.2 million), artisanal fisheries ($688,000), and
fishery processing and distribution ($600,000).
The Angolan Ministry of Fisheries is in the process of establishing several technical training
and support centers for the artisanal fishery industry as well as regional processing and cold
storage facilities. In addition, several private sector aquaculture farms are under
development. Commercial sales opportunities exist for U.S. equipment and technology
providers in the areas of aquaculture cultivation, small scale fishing equipment, fish
processing, cold chain equipment and logistics services.
Sea Ports
Once Angola’s economy improves and cargo levels resume back to normal, potential exists
for U.S. companies in some of the technology based areas of port operations such as those
related to security, enhancing productivity and vessel tracking. In its 2017 budget, the
Angola government earmarked $254 million for seaport infrastructure rehabilitation and
construction.
The Caio Port development project in Cabinda is in initial land reclamation and dredging
phases with financing from China and the Angolan Sovereign Wealth Fund. Chinese
construction firm China Road and Bridge Corporation (CRBC) holds a lead contract role with
engineering being led by German Sellhorn Group. Project owners are interested in engaging
U.S. companies in this project
An increased focus on maritime security opens opportunities for U.S. companies with
solutions related to coastal patrolling, search and rescue, and related communications and
monitoring technologies. The Ministry of Defense in Angola leads in this area with
involvement by a number of Ministries including Transportation (Ports) and Fisheries.
A 2016 Angolan government decree formally authorized a new National Search and Rescue
Center to be established under the Maritime and Port Institute (IMPA) with inter-ministerial
involvement. Internal studies are underway to ascertain existing infrastructure and to
determine needed communication system, equipment and training for this Center.
However, due to current government budgetary constraints, funding has not been allocated
to implement this search and rescue center.
Web Resources
Fisheries
Ministry of Fisheries of Angola www.minpescas.gov.ao
African Development Bank – Fisheries Sector Appraisal Report (2013)

http://www.afdb.org/en/documents/document/angola-fisheries-sector-support-project-
appraisal-report-31660/
Sea Port
Port of Luanda http://www.portoluanda.co.ao/#

Port of Lobito http://www.eplobito.net/
Port of Caio http://www.portocaio.com/
Angolan Ministry of Transportation www.mintrans.gov.ao/
For further information:

Manuel Cafala, Commercial Specialist
Commercial Service
U.S. Embassy, Angola
E-mail: manuel.cafala@trade.gov
Tel: (+244) 222 64 1000 ext.1602 |(+244) 932 572 530
Offshore Oil and Gas Technologies
Overview
Angola is major oil producing country and OPEC member with output of around 1.8 million
barrels of oil per day, making it one of the top producers in Sub-Saharan Africa. The country
has 9 billion barrels of proven oil reserves with production levels of 1.8 million barrels per
day (bpd). The January 2017 OPEC production cap mandated through June 2017 calls for
Angola to reduce production to 1.67 million bpd.
The oil industry in Angola is dominated by the upstream sector – exploration and production
of offshore crude oil and natural gas. Almost 75 percent of the oil production comes from
off-shore fields. Angola produces light sweet crude oil containing low volumes of sulphur,
suited for processing light refined petroleum products.
The oil rich continental shelf off the Angolan coast is divided into 50 blocks. The offshore
blocks 0 to 4 operated by Chevron (Cabinda Gulf Oil Company—CABGOC) account for a
significant share Angola’s oil production. U.S. companies hold a strong position in the market
with Chevron and ExxonMobil together accounting for one-third of national production,
followed by Total and BP. Other international players with smaller operations include ENI
and Statoil. Ultra-deep water projects are being pursued by Total in block 32 and BP in
block 31. Several other U.S. companies that have been active in deep water exploration in
Angola are phasing out their operations. Due to limited results, Vaalco departed the market
in late 2016 and ConocoPhillips is phasing down its presence. Sonangol, the national oil
company cancelled its planned purchase of Cobalt’s major discoveries and assets in Blocks
20 and 21, so Cobalt is pursuing a commercial sale of their Angola business.
Onshore activities are very limited. SOMOIL, a privately-owned company, was planning to
produce around 5,000 bpd in Soyo, in northern Angola, but operations have been delayed.
Onshore blocks in the Kwanza basin were offered in late 2015, but final awards were
cancelled and the blocks should be re-bid in 2017 or 2018.
Angola’s gas reserves are estimated at 11 trillion cubic feet, but production is limited by
the lack of legislation allowing for commercial production. Such legislation is under
development and could be in place by 2018. Associated natural gas is sourced from various
offshore deep-water oil fields within blocks 0, 1, 2, 14, 15, 17 and 18, while non-associated
gas fields are being explored in blocks 1 and 2. The Soyo liquid natural gas (LNG) plant,
developed by Sonangol with a consortium of operators led by Chevron, processes associated
gas from fields in the Soyo region. With a $10 billion investment, the plant started
production in 2013 with a design capacity to process 1.1 billion cubic feet of natural gas per
day and produce 5.2 million tons of LNG per annum. However, due to technical
complications, the plant closed down and only began to restart production in June 2016.
In May 2016, a change in leadership at Sonangol initiated a major reorganization effort that
is focused on increasing efficiencies, lowering costs and increasing concentration on the
company’s core oil and gas business activities. This has resulted in Sonangol management
halting anticipated asset sales, deferring major projects, delaying decisions on industry-
proposed investment plans, and renegotiating supply contracts.
The increasingly competitive global market and lower oil price environment particularly
challenge Angola’s high production costs in Angola which average $40 per barrel. Industry
players emphasize the need for a more competitive business environment with reduced
production costs and increased efficiencies. Industry analysts (Wood Mackenzie) project
that without needed new investment in mature fields that dominant in Angola, production
is estimated to decline significantly by 2030.
To date, the downstream sector – refinery of crude oil and distribution of products derived
from crude oil – remains well below domestic demand. The single oil refinery in Luanda has
a capacity of 65,000 bpd. In August 2016 as part of an overall restructuring, Sonangol put
on hold a second refinery project that had been in development in the central Angolan city
of Lobito. In March 2017, Angola reportedly signed a deal with a Russian consortium to
construct a 400,000 bpd refinery with rail in the southern Angolan city of Namibe.
Increased pressure to reduce production costs coupled with ongoing restrictions on foreign
exchange access have led to significant downsizing of petroleum service companies,
contractors, and operators, with some businesses closing operations. Leading international
services companies active in Angola include: Baker Hughes, Cameron, GE, Halliburton, FMC
Technologies, Tidewater and Weatherford.
Since 2012, petroleum companies operating in Angola have been required to process
payments through local banks and in local currency (kwanza). “Consortium contracts”
between international and Angolan-based service providers and “tripartite agreements”
through commercial banks are mechanisms that can provide oil operators with some
flexibility in foreign exchange payment, but require Sonangol and Central Bank approvals.
Legal Business Framework

International oil exploration companies in Angola are required to operate through joint
ventures with Sonangol. Given this government involvement, major procurements are
secured through a formal tender process managed by the exploration companies, with
technical and financial reviews by Sonangol.
The Angolan government requires oil exploration companies to increasingly engage Angola-
based companies in their operations. Guided by 2003 Executive Order 127/03, oil companies
must use Angolan suppliers for services and equipment of low and medium technical levels.
While legally required for over a decade, the Angolan Government has increased
enforcement of this localization requirement to encourage development of Angolan
company participation as distributors and value-added service providers. The government
does not currently require local content manufacturing though several companies have
initiated limited local manufacturing.
In August 2012, Presidential Decree 190/12 established a waste management policy that
requires oil companies to ensure environmental protection in their operations by meeting
zero operational discharge levels.
Depending on the capital investment and expertise involved, U.S. equipment and services
providers to the oil exploration companies can either establish direct operations in Angola,
sell directly in the case of highly technical solutions, or establish local Angolan distribution
and service partners. U.S. companies seeking Angolan partners can request U.S. Commercial
Service Angola for assistance in identifying and qualifying Angolan distributor partners.
Ministry of Petroleum Executive Order 127/03 issued in 2003 establishes the following
categories of company ownership for petroleum industry contracting of goods and services:
 Exclusive Regime for Angolan Companies – activities not requiring heavy capital
investment and with non-specialized know-how (for example: supply of technical
materials, pressure testing, general equipment maintenance).
 Semi-Competitive Regime – activities with a reasonable level of capital investment

and higher level of know-how, though not specialized. In this case foreign companies
would be permitted through association with an Angolan company (for example:
geographic survey and data processing, production testing, laboratory analysis,
specialized consulting, drilling production materials and equipment, well cleaning
and maintenance).
 Competitive Regime – activities with heavy capital investment and a higher level of
specialized know-how, may be considered for foreign participation without Angolan
company partnership, though local partnership is not excluded.
Leading Sub-Sectors
Total Angolan imports declined by 32 percent in 2016, even further than the 2014-15 drop,
due to the country’s continued economic downturn and scarce foreign exchange. U.S.
exports to Angola concentrate heavily in equipment and material sales to the petroleum
industry. Much of this equipment falls into Harmonized Tariff Schedule (HTS) Category 84 –
Nuclear Reactors, Boilers, Machinery and Mechanical Appliances, which faced the same level
of decline in 2016 as did total Angolan imports.
U.S. Domestic Exports to Angola (US$ million)

Selected Categories related to the Petroleum Industry
HTS Description 2014 2015 2016 2015-16

Change (%)
84 Nuclear Reactors, Boilers, 692.3 463.5 316 -31.8
Machinery and Mechanical
Appliances
Parts for Boring or Sinking 254 133.8 65 -51.4
843143 Machinery
Filtering or Purifying Machinery 11.5 21.7 24.8 +14.4
842129
Taps, cocks, valves and similar 29.8 36.5 24.6 -32.8
848180 appliances for pipes, vats etc
Safety or Relief Valves 16.1 21.4 22.6 +6.4
848140
Parts for Taps, cocks, valves 33.9 30.4 19.3 -36.3
848190 and similar appliances for
pipes, vats etc
841182 Gas Turbines 30.9 25.4 18.6 -27
73 Articles of Iron or Steel 158.3 146.4 44.9 -69

90 Optical, Measuring, Precision, 64 39.8 29.4 -26
etc Instruments/Apparatus
Instruments/Apparatus for 8.9 2.3 5 +124
902620 Measuring/Checking Pressure
of Liquids or Gas
Instruments for Measuring or 1.2 1.4 4.2 +194
903010 Detecting Ionizing Radiation
Best prospects for U.S. exports in the oil and gas industry in Angola include products related
to:
 Production efficiency-related technologies and services

 Exploration and production equipment and services
 Environmental protection and monitoring technologies
 Lubricant oils and grease
Opportunities
Production efficiency-related technologies and services: In the context of global efforts,

also underway in Angola, to reduce costs and increase production efficiencies, technologies
and services that can help achieve projection efficiency objectives hold solid potential.
Gas Production: Angola currently produces limited quantities of marketed natural gas.
Lacking clear and public regulatory environment for commercialization, the vast majority
of the country’s natural gas production is associated with oil production and is flared or
reinjected into oil fields to increase oil recoveries. Legislation to provide a framework for
natural gas commercialization has been under development and may be in place by 2018.
The Soyo LNG plant is projected to receive 1 billion cubic feet per day of associated natural
gas from offshore oil fields through pipelines built under the Congo River, then transform it
into 5.2 million tons per year of LNG and other related natural gas liquid products to service
both the domestic and international markets. The natural gas project plans for 360,000
cubic meters (cm) of full containment for LNG, LPG, and condensate storage, and a loading
jetty sized to accommodate ships up to 210 cm. This project is expected to facilitate
continued offshore oil development while reducing gas flaring and greenhouse gas emissions
in Angola, as well as supplying the Angolan market with up to 125 million standard cubic
feet per day.
Refineries and Lubricants/Oils: Angola’s single, government-owned refinery, Sonangol

Refinery of Luanda (Sonarel), processes 45,000 bpd, meeting only 20 percent of domestic
demand for medium and heavy fuels such as diesel, fuel ordoil, lubricating oils, asphalt, and
Jet B for gas turbines. Demand for gasoline and lubricant oil is high with 80 percent of the
market demand met through imports. Upgrades of new technology and operational
modernization of the existing Sonarel are required to accommodate processing of lighter
liquids (kerosene, naptha, Jet A1 and gasoline). In August 2016 as part of an overall
restructuring, Sonangol put on hold the Lobito refinery project that had been in
development in the southern Angolan city of Lobito.
Web Resources
Sonangol: www.sonangol.co.ao
Angola LNG: www.angolalng.com
Ministry of Petroleum: www.minpet.gov.ao

Clemência Nogueira
(+244) 222 641 076 | (+244) 932 572 822
Transportation (Aviation and Rail)
Overview
The expansion of Angola’s air and rail transportation capacity is a high priority within the
Angolan government’s development plans. The Chinese government has provided financing
primarily for air and rail infrastructure, while U.S. companies are leading in the supply of
aircraft and locomotives.
Major deliveries in 2016 of aircraft by Boeing and locomotives by GE significantly increased

U.S. transportation-related export values to Angola in 2016. Leading U.S. exports to Angola
in this category include the following items:
HTS CODE Description 2015 (US$) 2016 (US$)

8800 Civilian aircraft, engines, 35 million 407 million
and parts
8602 Rail locomotives, other 0 51.5 million
than electric, locomotive
tenders
8607 Parts of railway or 128,000 1.9 million
tramway locomotives or
rolling stock
8609 Containers (including 358,000 1.94 million
containers for the
transport of fluids)
specially designed and
equipped for carriage by
one or more modes of
transport
Aviation
A new international airport under construction 40 km southeast of Luanda is currently

anticipated to be completed in the second half of 2018. The work is being led by a
consortium of Chinese companies in conjunction with Brazilian company Odebrecht.
Envisioned as a major transportation hub for the region, the airport is designed to
accommodate 13 million passengers annually with 12 aircraft docks. The 4,200 and 3,800
meter runways, VIP passenger terminal and air traffic control tower are reportedly already
completed. Plans exist to widen the access road and establish a new rail link to the new
airport from Luanda. The current international airport 4 de Fevereiro serving both
international and domestic fights is limited to 5 gates and 2 runways with lengths of 3.7 and
2.6 km. Secondary airports in Catumbela (Benguela) and Lubango offer regular domestic
and regional international flights. In total of the 30 airports located throughout the country,
17 have been rehabilitated though only 12 of these receive regular commercial flights from
the national air carrier Transportes Aéreos de Angola (TAAG).
The Ministry of Transportation’s National Institute of Civil Aviation establishes the

regulations and standards and also provides enforcement authority for aviation operations
and security. The National Company of Airport Development and Air Navigation (ENANA)
manages the country’s civilian airports. ENANA purchased two firetrucks from U.S. supplier
Oshkosh delivered in September 2016 to assist in bringing the 4 de Fevereiro airport to
compliance with the International Civil Aviation Organization.
Angola’s government-owned airline Transportes Aéreos de Angola (TAAG) operates under

the jurisdiction of the Ministry of Transportation. TAAG services 12 domestic, 10 regional,
and 6 inter-continental destinations and has co-share agreements with Lufthansa, Emirates,
Royal Air Maroc, Air Namibia, Brussels Airlines, Air France, British Airways, and South African
Airways. TAAG’s fleet includes 13 Boeing aircraft (five 737-700, three 777-200, and five
777-300). Two of the 777-300s were delivered in 2016 closing out their order with Boeing.
TAAG signed a 10-year management contract with the Emirates Group in September 2014
with plans to increase fleet, passenger volume and revenues while transforming Luanda into
a regional air travel hub. With the economic downturn since 2015, Emirates leadership is
focusing on increasing efficiencies, improving service to passengers, raising standards of
operability and safety, and reducing TAAG operation costs through strict monitoring
procedures.
SonAir, owned by government oil company Sonangol, operates a direct flight charter from
Luanda to Houston, regular commercial flights to the Angolan cities of Catumbela, Lubango
and Soyo, as well as aircraft mostly to support the oil industry. Their fleet includes Dakota
DCIII, Beechcraft (200, 350 and 1900 D), Twin-Otter, Fokker (50 and 27), Boeing (727 and
737-700). Recently SonAir’s helicopter service consisting of Super Puma EC 225 and Sikorsky
S-76C was halted due to international air safety concerns related to the Super Pumas and
local maintenance service capacity limitation in regard to the Sikorsky equipment. Small
private air transport companies also operate in Angola such as: Kikango, Air Jet and Air 26.
Rail
The Angolan government operates three separate railroad lines – Luanda, Benguela and
Moçamedes - each with their own Administrator reporting to the Ministry of Transportation.
The Angola National Institute of Railroad (INFCA) establishes the regulations and standards
for the railroad operations and holds enforcement authority. The Luanda line runs 425 km
northeast from Luanda to Malange. The Benguela line known as the “Lobito Corridor” runs
1,344 Km from the Lobito port east to Luau on the Democratic Republic of Congo border
where a dry port and logistics center are planned. The Benguela rail renovation completed
in 2014 was financed by the Chinese Government with construction by the China Railway
Construction Company. These lines are designed to connect Democratic Republic of Congo
and Zambia to provide them with closer ocean port access. The African Development Bank
is funding a feasibility study to refurbish the rail line connecting Zambia and Angola and link
to the Benguela line. The southern Moçamedes line at 857 km long connects Namibe to
Menongue. The government-owned railroad companies are responsible for the railroad
operations and maintenance, including the purchase of spare parts. In 2010, Presidential
Decree 195/10, instituted reforms in the railroad sector, allowing for the private concession
for railroad operation and maintenance activities; however there are not yet any private
companies providing these services.
In 2015, GE Transportation signed a contract to provide 100 GE C30ACi locomotives to Angola

with deliveries that began with 15 locomotives in December 2016 and the remainder to
arrive through 2019. These locomotives will be concentrated in the Benguela and
Moçamedes lines for cargo use and to support mining development in southwest Angola.
The Luanda rail will be undergoing some alterations to be able to support the weight of
these locomotives and commercial cargo including fuel throughout its route. According
to INFCA, the Government of Angola requires U.S. standard engines in their locomotives to
streamline maintenance. Fifteen previously delivered Chinese locomotives in Angola have
Caterpillar engines.
Leading Sub-Sectors
Aviation
 Air navigation equipment and support

 Primary and secondary radar systems
 Surveillance systems
 Safety Management Systems
 Ground maintenance and handling equipment
 Aircraft refurbishing parts and service
Rail
 Signaling and control equipment

 Railroad maintenance Equipment
 Passenger carriages
 Freight and Tank carriages
 Maintenance and repair parts (wheels, axles, bearings)
 Maintenance centers and training
Opportunities
Aviation
Given the age of some aircraft in TAAG’s fleet, there could be opportunities to remodel or
refurbish aircraft. TAAG maintenance is handled in-house with TAAG technicians with
components supplied by Boeing. More complex maintenance and overhaul takes place in
South Africa, Ethiopia and Morocco. GE engine maintenance is handled at the GE service
hub in the United Kingdom.
The new Luanda international airport under construction will represent a major expansion
over the current airport. While the airport civil construction is underway with Chinese and
Brazilian companies, opportunities reportedly exist in the areas of air navigation equipment
and support, primary and secondary radar systems, surveillance systems, and safety. The
current international airport in Luanda is not TSA certified. The new airport is expected
to have the necessary security infrastructure and processes in place to allow for this status.
The 2017 Angolan national budget allocated $281 million for the air transportation sector.
Ground handling company Ghassist plans to procure a range of new baggage and passenger
handling equipment to meet the needs of the new airport. The company advises that much
of their equipment is U.S.-made; therefore, we expect that U.S. companies would be well
positioned for these new opportunities.
Rail
In addition to the major 100 GE locomotive delivery underway through 2019, to build out
the railroad cargo network, the Ministry of Transportation requires passenger, freight and
tank carriages as well as related operations and maintenance support. The railroad
infrastructure completed by the Chinese Railway Construction Company will require
maintenance of the 2,600 km of tracks and accompanying railroad automation controls and
signalization. For 2017, the Angolan government budget includes an allocation of $157
million for rail transportation.
Future Angolan government plans include linking the three railroad lines through the
construction of three additional lines, totaling over 10,000 km, but financing has not yet
been identified for this project. A project to connect the Beneguela and Mocamedes lines
was announced in March 2017 through an agreement with Russian Rail.
In December 2015, the Government of Angola launched the Metropolitan Master Plan of
Luanda “Luanda 2030” which entails plans for modernizing the city’s infrastructure to
accommodate the 13 million population projected by that time. One of the main pillars
of this Masterplan is the transportation sector with the planned installation of an above
ground urban rail that would include a connection to the new international airport that is
under construction.
Web Resources
Ministry of Transportation www.mintrans.gov.ao/

National Institute of Railroad (INFCA) www.incfa.gv.ao/
National Company of Airports Exploration and Air Navigation (ENANA) www.enana.co.ao
National Institute of Civil Aviation www.inavic.gv.ao
TAAG Airlines www.taag.com/en/
Sonair Airlines www.sonair.co.ao

Mauro Fonseca, Commercial Assistant
Mauro.fonseca@trade.gov
Tel: (+244) 222 641 253
Mob: (+244) 929 667 036
Trade Regulations, Customs, & Standards
Import Tariff
Import taxes and fees for products entering Angola are calculated on CIF (cost, insurance
and freight) value of the product and include:
 Import duty: 2-50 percent

 General Customs fee: 2 percent
 Brokerage Fee: 2 percent average, not to exceed 4 percent
 Terminal Handling Port Fees up to the equivalent of $283 per 20’ container or $563
per 40’ container
 Stamp Duty: 1 percent
Import duties increased to an average of 10.9 percent with a range from 2 to 50 percent, as
of the March 2014 adjustments to the Angolan Customs Tariff regime established through
Presidential Decree Nº 10/13 of November 2013. Angola’s Customs Tariff Regime is
expected to be updated in 2017. A World Trade Organization (WTO) analysis of Angola’s
2014 custom tariffs shows that agriculture products import duties doubled on average to
23.3 percent while duties for non-agricultural products increased an average of 2 percent
to 9.1 percent. Import duties on manufactured goods now average 10 percent and mining
products average 14.3 percent. Highest import duties reflect the sectors where Angola is
focusing on domestic production development namely: coffee (50 percent), beverages (43.7
percent), fruits and vegetables (43.3 percent), fish and fish products (25.3 percent), sugar
(18.6 percent) cereals (17.3 percent), and wood (17 percent). Raw materials are the
highest taxed imports at 20.5 percent on average with finished products at an import tax
average of 10.5 percent. This full WTO report on Angola can be found at:
https://www.wto.org/english/tratop_e/tpr_e/s321_e.pdf
To determine the cost-build up for import duties and related taxes in Angola for specific
products, and for markets worldwide, the following private, free source is useful:
http://export.customsinfo.com/
Import duty exemptions or reductions may be available for raw materials used in
industrial production. Investors may also benefit from import duty and other tax
deductions as part of their investment contract with the Angolan Government.
Sales to Angolan government are exempted from import duties. This includes most sales
into the oil and gas industry since most of these operations are owned in part by the
government oil company Sonangol.
Consumption Tax: A consumption tax is imposed on all products commercialized in Angola,

the majority at a rate of 2 to 30 percent. Consumption tax levels depend on the product
with most accessed at 10 percent. A lower 2 percent consumption tax rate is imposed on
priority imports such as pharmaceuticals, medical devices, some agricultural inputs and
industrial equipment. Consumption taxes of 30 percent are in place for some higher-end
consumer goods such as vehicles and certain agricultural products where the government is
encouraging domestic production. In an effort to increase government revenue and protect
local beverage producers, the Angolan government approved a controversial law on

September 21, 2015 Presidential Decree 5/15 that increased consumption taxes up to 80
percent on beverages and selected luxury consumer goods. For example the new rate is 70
percent for distilled spirits, 60 percent for beer, 50 percent for wine, 40 percent for
juices/water and for cosmetics. This law is controversial in that it disproportionately favors
domestic manufactured beverage products (water and juice) at lower tax rates.
Value Added Tax (VAT): A VAT is under consideration by the Angolan government tax
authority (AGT-Administração Geral Tributária) within the Ministry of Finance. The
government anticipates that a VAT structure could be implemented by 2020 once the
appropriate financial and administrative infrastructure and expertise to implement such a
system can be established.
Demurrage Fees: There is no charge for demurrage costs for the first 15 days, nor terminal
storage fees for the first 5 days after delivery to port. After this time, rates are $25/day
for demurrage and $120/day for terminal storage for a 40’ container.
Trade Barriers
In September 2015, Angola concluded its second WTO review that covered a wide range of
trade policies and practices that will be the basis of future WTO compliance efforts.
Complete finding are located at:
https://www.wto.org/english/tratop_e/tpr_e/tp421_e.htm
The U.S. Trade Representative’s Annual Foreign Trade Barriers Report for 2016 highlights
many of the issues cover in this Country Commercial Guide and can be reviewed at:
https://ustr.gov/sites/default/files/2016-NTE-Report-FINAL.pdf
Import Quotas: Angolan Presidential Decree 34/15 and implementing decree 22/15 of
January 2015 established import quotas on 14 food and beverage products where domestic
production is deemed do meet 60 percent of market demand. While this law remains on the
books, its implementation has been deferred indefinitely due to stiff pressure from
importers, the international diplomatic community, and in an effort to conform to
international trade commitments. The decree also required importers of a range of food
and building materials products to register through a new process that includes presentation
of company details, projected import volume, and a demonstration of warehousing/
refrigeration capacity. Further, regulations prohibit importers from participating in
distribution and retail activities.
Testing Requirements: Imports of foods and pharmaceutical products are subject to quality
testing during customs clearance. Once imported into Angola, these products are subject
to additional oversight by the Ministries of Commerce, Agriculture and Health.
Import Requirements & Documentation

The process of importing goods into Angola is time consuming and highly bureaucratic. The
World Bank ranks Angola among the countries with the most time consuming import
procedures worldwide in the category of “Trading Across Borders”, at 183 for this process
out of 190 countries assessed. Import procedures in Angola require an estimated 276 hours
for import border compliance and 180 hours for import document compliance. In
comparison, the Sub-Saharan African averages were 144 hours for import border compliance
and 107 hours for import document compliance.
U.S. exporters should inquire about customs broker capacities and importing experience
when selecting a distributor. Angolan import regulations are subject to periodic changes
requiring U.S. exporters should maintain close contact with their importer/distributor to
avoid customs entry delays.
Importers must be registered with the Ministry of Commerce for the category of product
they are importing. Only registered companies can apply for an import license which is
required for imports of sensitive products such as food, medical devices, pharmaceuticals,
agricultural inputs. To minimize customs problems and delays, U.S. companies should
ensure that their prospective Angolan distributor holds import registration status for the
appropriate product category and has experience importing and representing international
products. A competent importer company will have either in-house customs broker capacity
or work with a licensed customs broker. Only customs brokers approved by the Angolan
government can process customs documentation for imports. Custom broker rates are
regulated and cannot exceed 4 percent CIF value of the product, though the average rate is
2 percent.
Documentation required for import into Angola includes:
• Original Air Way Bill (AWB) / Bill of Lading (BL)

• Original Commercial Invoice (listing HTS codes for each item)
• Packing List
• Angolan Loading Certificate issued in country of shipment
• Import License and/or phytosanitary certificate issued by the relevant Ministry, if
required based on product
Angolan Loading Certificate: Shipments bound for Angolan ports require a Loading
Certificate (Certificado de Embarque) issued by the National Council of Angolan Shippers
(CNCA) authorized agent in the country of origin. In the United States the CNCA agent is
OIC Services Inc. in Houston at tel: (832) 912-6820 and email: info@oicservices.com The
application form for the Loading Certificate is available at the Angola Ministry of
Transportation CNC website http://www.cnc-angola.com/index.php/servicos/pauta-
aduaneira
For more information contact the Angolan Embassy Trade Office in the U.S. at:
www.angolatradeusa.org/cnc/
Bill of Lading: In April 2015, the Angolan Customs Agency AGT issued implementing
guidance #003258/DNPA/DSA/AGT/2015 related to the February 15, 2015 AGT Advisory that
allows for merchandise procured through Letter of Credit to be released from the port with
presentation of a copy of the Bill of Lading, rather than the original. This move was
established to address complaints from importers accruing significant port storage fees
awaiting foreign exchange from the Angolan Central Bank as required to secure an original
bill of lading. Under this regulation, importers are required to submit the original bill of
lading within 30 days to maintain their importing authorization.
In practice, few Angolan banks are issuing Letters of Credit due to the unreliability of access
to foreign exchange required to deliver on these payments. U.S. exporters are encouraged
to ship to Angola on pre-paid terms due the extended delays of several months being
experienced by Angolan importers in securing foreign exchange for imports. Guidance on
financing US exports to Angola is addressed in the “Trade and Project Financing” section of
this report.
Pre-shipment inspection
According to Presidential Decree No. 63/13 of June 11, 2013, pre-shipment inspections are
no longer mandatory. Traders may hire pre-shipment inspection services from private
inspection agencies if they wish to benefit from fast track “green channel” access upon
cargo arrival at Angolan Customs or if pre-shipment inspection is required by their letter of
credit agreement.
Laboratory Testing
Imports of foods and pharmaceutical products are subject to testing during customs
clearance. Angolan Presidential Decree No. 140/16 of July 7, 2016 sets forth new
regulations for the laboratory analysis of imported products and for national produced
products to better control the quality of products for human consumption. Private and
public laboratories manage this inspection process at the port of entry. This new regulation
specifies fees for laboratory testing by type of product as well as methodologies and type
of tests to be administered. Once in the Angolan market, these products face additional
oversight during retail distribution by the Ministries of Commerce, Agriculture and Health.
Labeling/Marking Requirements
The Angolan Government requires labeling in Portuguese on all products imported and
sold in the country. Labels must include: list of ingredients, expiration dates, quantity,
production batch, name and address of manufacturer or seller. Imports are only
permitted if a minimum of six month shelf life is remaining for the product.
Unlabeled products or those with language labeling not in Portuguese are subject to
confiscation, though products with labeling in only English, Spanish, or Chinese can be
found in both formal and informal retail sales locations.
The Angolan government is increasing its focus on enforcing sanitary standards especially
for food products and medications including through the expansion of testing laboratories
and increased scrutiny of labeling and expiration dates on products.
Due to the Portuguese language labeling requirement and historical colonial ties, a
significant portion of consumer goods imported into Angola are sourced from Portugal, and
to a lesser extent from Brazil. U.S. companies can leverage their Portuguese or Brazil
Portuguese language marketing material and product information (labeling and user guides)
for positioning in the Angolan market. Please note that Angolan Portuguese is similar to
continental Portuguese, though Brazilian Portuguese is widely accepted.
While it can be cost efficient on the short-term to use other Portuguese language country-
based distributors for sales into Angola, U.S. companies can be most competitive in Angola
by establishing distribution and representation directly with an Angolan company. A well-
selected Angola distributor should be able to assist in meeting Portuguese language labeling
requirements together with other in-country services and sales support.
U.S. Export Controls

There are no U.S. trade sanctions against Angola.
The various export screening lists required to be reviewed for export compliance from the
Departments of Commerce, State and the Treasury are available in a consolidated format
at: http://developer.trade.gov/consolidated-screening-list.html
Temporary Entry
The temporary entry of goods or equipment into Angola is permitted for up to 12 months
and can be renewed for up to 12 additional months. Temporary imports must be
accompanied by all normal customs documents and are subject to a deposit to Angolan
Customs of 100 percent of the duties and taxes on the declared value were it to have
been imported normally. Regulations state that Angolan Customs refunds this deposit
within three months after the temporarily imported goods are exported from Angola.
Temporary imports for display at a trade show should also be accompanied by a letter
from the show organizer verifying participation in the event. Depending on the product,
a pre-shipment inspection may be required. The customs deposit may be waived for
official trade shows when accompanied by a formal letter from the Ministry of Foreign
Relations.
Angola does not accept Carnet for the temporary import of goods.
Prohibited & Restricted Imports
Items prohibited from import into Angola include:
 Animals and Plants - The Angolan Government prohibits the import of animals and animal
by-products from areas affected by epizootic diseases and plants coming from areas
affected by epiphytic disease.
 “Morality”-related products – Certain distilled beverages, pornography, roulette and

other gambling machines, and other goods specified by law. Despite this law, several
casinos operate opening in Luanda.
 Vehicles – Passenger vehicles more than 3 years from the manufacturing date are not
permitted to be imported into Angola. Vehicles for industrial use such as trucks and
those for transportation of more than 10 persons are only prohibited if older than 5 years
from the manufacturing date.
 Biotechnology Products - Angola prohibits the import of viable transgenic grain or seed.
The Ministry of Agriculture controls all agricultural imports and requires importers to
present documentation certifying that their goods do not include biotechnology products.
Transgenic food aid is permitted, but must be milled. Biotechnology imports for scientific
research are subject to regulations and controls established by the Ministry of
Agriculture.
 Counterfeit Goods
Goods requiring import licenses for specific Ministries include:
 Pharmaceutical products for human use, saccharine and saccharine-derived products

(Ministry of Health)
 Radios, transmitters, receivers, and other devices (Ministry of Telecommunications);
 Weapons, ammunitions, fireworks, and explosives (Ministry of Interior)
 Plants, roots, bulbs, microbial cultures, buds, fruits, seeds, and crates and other
packages containing these products (Ministry of Agriculture)
 Fiscal or postal stamps (Ministry of Post and Telecommunications)
 Poisonous and toxic substances and pharmaceuticals including animal vaccines

(Ministries of Agriculture, Industry, and Health)
 Samples or other goods imported for promotion and not commercial sale (Customs).
Customs Regulations
Angolan Customs regulations can be found at Ministry of Finance – Customs Agency

website: www.agt.minfin.gov.ao
Angolan import duty rates were adjusted in March 2014 through Presidential Decree Nº 10/13
of November 2013. Angola’s Customs Tariff Regime is expected to be updated in 2017.
Trade Standards
Overview
Angola is not a full member of the International Standards Organization (ISO), but has been
a corresponding member since 2002. The Angolan Institute for Standardization and Quality
(IANORQ) within the Ministry of Industry coordinates the country’s establishment and
implementation of standards.
Standards
While Angola does not yet have a fully developed national standards regime, there is an
increased focus in this area to support the government’s efforts to build domestic production
capacity and promote exports. Voluntary standards established in Angola fall under the
auspices of the technically relevant Ministry.
In July 2015, ASTM International (formerly American Society for Testing Materials) signed a
memorandum of understanding with IANORQ that should contribute to the consistently
growing strength of standards in Angola.
Conformity Assessment
Angola does not have a national accreditation body. While Angola is a member of the
Southern African Development Community (SADC), it is not a member of SADC’s
Accreditation System (SADCAS) that provides regional accreditation support.
Angola is an affiliate country of the International Electro-technical Commission that

publishes consensus-based International Standards and manages conformity assessment
systems for electric and electronic products, systems and services.
Product Certification
Given the strong presence in Angola of products distributed through Portugal, ISO and CE
markings are commonly found on products sold in Angola. While these standards are not
required to be met in Angola, they give consumers a sense of confidence in product quality.
Angola is a member country of WHO/FAO Codex Alimentarius International Food Standards

and uses these standards to enforce food safety.
Accreditation
The Ministry of Health is responsible for certifying laboratories in Angola. Food products
and pharmaceuticals entering the Angolan market must be analyzed by a certified
laboratory.
Publication of technical regulations

Final government regulations are published in the Angolan Diário da República. There is
no established mechanism whereby U.S. entities or other international entities can
comment on proposed regulations before these are finalized.
Contact Information
Angolan Institute of Standardization and Quality (IANORQ)
Ministry of Industry
Rua Cerqueira Lukoki 25, C.P. 594
Luanda, Angola
Tel. 244 222 337294 Fax. 244 222 392400
www.ianorq-angola.org (not operational); www.mind.gov.ao
Trade Agreements
Angola joined the World Trade Organization in 1996 and in September 2015 completed its
second 5-year review of this membership.
Angola benefits from Africa Growth Opportunity Act (AGOA), the U.S. preferential trade
agreement that provides duty-free status for qualifying goods exported from Angola to the
United States. Given Angola’s dominance on extractive industries, exports benefiting from
this U.S. government program are predominately oil, with some diamonds and wood exports.
The Angolan Government is working to diversify its economy and recently established an
export promotion agency to encourage exports including to the United States that could
take advantage of AGOA.
At a regional level, Angola is a member of the Southern African Development Community

(SADC), but is not party to the Southern African Customs Union (SACU) that involves 12 of
the 15 member countries with the objective of reducing trade barriers among countries in
the region. Angola has taken steps to examine potential participation in the future.
Angola has discussed pursuing customs agreements with its neighboring countries: Namibia,
Zambia and the Democratic Republic of Congo.
Licensing Requirements for Professional Services

Licensing requirements for professional services in Angola are overseen by the respective
professional organization. The specific professional organization must approve the
candidate, a process that starts with the review of the professional diploma(s) by the
national university, Agostinho Neto University. For foreign citizens to qualify for licensing
they must be legal residents in Angola and present their certificate of residence,
employment contract, and a formal consular registration from their home country Embassy
in Angola.
The professional oversight entities responsible for licensing in Angola by area are as follows:
Medicine: Orden dos Medicos de Angola http://ordemdosmedicosdeangola.com/

Law: Orden dos Advogados de Angola http://www.oaang.org/
Engineering: Orden dos Engenheiros de Angola
http://ordemdosengenheirosangola.org (not operational);
https://www.facebook.com/Ordem-dos-Engenheiros-de-Angola-
415312315193792/
Accounting: Orden dos Contabilistas e Peritos Contabilistas
http://www.ocpcangola.org/.
Web Resources
 Angolan Customs www.agt.minfin.gov.ao

 WTO September 2015 Review of Angola’s trade regime
 U.S. Trade Representative’s Annual Foreign Trade Barriers Report for 2016
 Angolan Institute of Standardization and Quality (IANORQ), Ministry of Industry
www.mind.gov.ao
 Southern African Development Community (SADC) http://www.sadc.int
 Common Market for Southern and Eastern Africa (COMESA) http://www.comesa.int
 Community of Portuguese Speaking States (CPLP) http://www.cplp.org
Investment Climate Statement
Executive Summary
Angola is an upper middle income country located in southern Africa with a $96.2 billion
GDP, a 27.4 million population and a per capita income of $3,514 according to IMF data
(2016 Article IV consultation). It ranks as the third largest economy in Sub-Saharan Africa.
Angola is a major oil producing country and OPEC member. It produces an average of 1.8
million barrels per day, the second highest volume in the Sub-Saharan region behind Nigeria.
Angola also holds significant proven gas reserves as well as extensive mineral resources.
Angola’s real GDP (in U.S. Dollars) declined 6.6 percent from $103 billion in 2015 to an
estimated $96.2 billion in 2016 as a result of the decline in global oil prices and a significant
devaluation in the local currency, the kwanza. Inflation increased to 45 percent in 2016
from the 2015 annual rate of 14.3 percent, due to currency devaluation, removal of
government fuel subsidies, and scarcity of foreign exchange. The IMF projects 20 percent
inflation in 2017.
The oil price slide that started in mid-2014 has substantially reduced Angola’s fiscal revenue
and export revenue and stagnated growth in 2016. The non-oil sector contracted by 50
percent in 2016 as industrial production, construction and services sectors suffered from
shortages of imported inputs due to limited availability of foreign exchange. After zero
growth in 2016, Angola’s economy is projected to grow 1.3 percent in 2017 according to the
IMF.
The Government of the Republic of Angola (GRA) is focusing on economic diversification to

reduce its reliance on oil as a source of income as well as to reduce its dependence on
imports. While Angola has prioritized the development of agriculture and agro-industry,
fisheries, and manufacturing as part of its diversification strategy, it will take several years
to see real results. The government’s strategy also focuses on encouraging small and
medium enterprises (SMEs), increasing investments in infrastructure to reduce transaction
costs, and improving the country’s economic competitiveness. (2016 IMF Art. IV
Consultation.)
Angola is one of the United States’ three strategic partners in sub-Saharan Africa, together
with Nigeria and South Africa. The bilateral strategic partnership dialogue has focused on
eight key areas: political-social/regional stability, trade/economic growth, health, energy,
agriculture, regional security cooperation (focused on maritime security and peacekeeping),
education, and consular affairs.
In 2015, the GRA enacted a new private investment law (no. 14/15) and created the National
Agency for Promotion of Investment and Exportations of Angola (Agência para a Promoção
de Investimento e Exportações de Angola – (APIEX)). These measures aim to stimulate
economic growth, diversify the economy, expand the private sector, and foster greater
private-sector participation in Angola’s economic development. The investment law has
received a mixed reaction across the business community as it raises taxes on early
repatriation of profits and dividends for foreign companies and disadvantages foreign
investors relative to domestic investors by imposing local partnership requirements for

foreign investment in key sectors. One year after its launch, APIEX remains underfunded,
lacks focus and strong leadership, and has not been instrumental in bringing any significant
new foreign investments to, or in generating new exports from, Angola. In early 2017, the
Angolan Minister of Commerce replaced the APIEX Board and its senior administrators
Building infrastructure capacity in the areas of electricity, water and transportation is also
a major government focus. The expansion of the Cambambe Dam and the construction of
the Laúca Dam (slated for completion in mid-2017), will increase Angola’s electric power
generation capacity five-fold. This investment in new infrastructures for the production of
electric power was accompanied by the 2015 incorporation of new public companies
operating in the electric energy sector: Rede Nacional de Transporte, E.P. (RNT), Empresa
Pública de Produção de Electricidade, E.P. (PRODEL), and Empresa Nacional de Distribuição
de Electricidade (ENDE). Multilateral development banks hold an important role in Angola’s
infrastructure revitalization with the African Development Bank financing electric sector
reform and the World Bank concentrated on water sector expansion. The Angolan
government expansion of railroad and ports benefited heavily from Chinese government
financing.
Key issues to watch:
 Angola continues to suffer from a relatively poor investment climate due in large
part due to lack of openness to competition from the private sector and the
dominance of the state or state owned enterprises in the economy.
 Angola does benefit from a relatively stable and predictable political environment,
especially when compared to its neighbors in the region.
 Angola is rich in natural resources including oil, minerals, land and water.
 There is an abundant supply of unskilled labor, particularly in the capital Luanda.
Skilled professionals are available, but often require additional training.
 Portuguese is commonly spoken, while English competency levels are relatively
low.
 Under the current investment law, the Angolan government offers incentives to
companies investing in the domestic economy.
 Real estate and living expenses remain prohibitively expensive, but have recently
moderated due to the ongoing economic crisis. In 2016, Luanda was named the
second most expensive city in the world for expatriates by Mercer, down from first
in 2015 and 2014.
 Infrastructure is limited, roads are often in poor condition, power outages are
common, and water availability can be unreliable.
 The investment climate is also heavily hampered by rampant corruption, and a
complex, opaque regulatory environment, as reflected by rankings from globally
recognized entities outlined in Table 1.
 The oil crisis continues to impact the Angolan economy, creating drastic losses in
export revenue and a severe limitation in foreign exchange, forcing substantial cuts
in government spending.
Portfolio investment in Angola is negligible.

Table 1
Measure Year Index/Rank Website Address
TI
Corruption 2016 164 of 176 http://www.transparency.org/research/cpi/overview
Perceptions
Index
World
Bank’s
Doing
Business 2016 182 of 190 www.doingbusiness.org/rankings
Report
“Ease of
Doing
Business”
Global www.globalinnovationindex.org/content/page/data-
Innovation 2016 N/A analysis
Index
Not ranked
U.S. FDI in
partner
USD 24
country ($M 2016 www.bea.gov/international/factsheet/
Billion
USD, stock
positions)
World Bank http://data.worldbank.org/indicator/NY.GNP.PCAP.CD

GNI per 2015 USD 4,180
capita 2016 Not available as of 3/31/17
Openness to and Restrictions upon Foreign Investment
1.1 Policies towards Foreign Direct Investment
Angola’s business environment remains one of the most difficult in the world. Investors
must factor in pervasive corruption, an underdeveloped financial system, loss of last U.S.
corresponding banking relationship in November 2016, poor infrastructure, abundant but
unskilled labor and extremely high operating costs. Surface transportation inside the
country is slow and expensive, while bureaucracy and port inefficiencies complicate trade
and raise costs.
The GRA actively seeks FDI although it also sets barriers to protect domestic businesses. In
August 2015, the government revamped its private investment law. The two year old law,
which is still being implemented, significantly changed how the government treats foreign
investors versus domestic investors. The biggest change is a new 35 percent local
participation requirement for foreign investment in the following strategic sectors: 1)
electricity and water, 2) tourism and hospitality, 3) transportation and logistics, 4)
telecommunications and information technology, 5) construction, and 6) media.

Investments in the other key sectors of mining, finance, and oil are governed under different
laws. The previous law did not require local partnerships with the exception of the energy,
banking, and insurance sectors, though to increase chances of success, the majority of
foreign operators had local associates of some kind. The 35 percent minimum local
participation requirement is likely to challenge foreign investors pursuing large investments
projects in qualifying local partners especially due to local capital constraints as well as the
lack of technical capacity in certain industries.
According to this law, the Ministry with sectoral responsibility for the subject business area
is responsible for assessing the foreign investment application. For example, an agriculture
project would be reviewed by the Ministry of Agriculture. With completion of this review,
the investment proposal if valued under $10 million is overseen and approved by the
Economic Commission of the Council of Ministers. For investments over $10 million, the
Office of the President must approve and provide oversight.
The law also provides number of new fiscal incentives to spur investments. However, in
order to benefit from fiscal incentives, the government requires a minimum investment of
$1 million for international investors while local investors only require $500,000. As a result
of Angola’s costly business environment, these minimum investment requirements pose an
additional hurdle for FDI and put out of reach for many the fiscal incentives offered by the
government.
The law also requires foreign investors to pay higher taxes on dividends and profits they
repatriate, particularly within the first several years of the initial investment. This is
complicated by the fact that most foreign companies based in Angola can no longer readily
access foreign exchange from Angolan banks due to the severe rationing of forex by Angola’s
Central Bank. The new tax on dividends starts at 15 percent, and can rise to as high as 50
percent depending on how much and how soon after the initial investment the repatriation
takes place to encourage in country reinvestments. This new tax scheme has not been a
welcome signal to prospective investors. In an attempt to incorporate foreign companies
into Angolan banking and taxation systems, the law requires financial operations through
Angolan banks.
The government later provided additional clarifications to the investment law by issuing
several presidential decrees. Decrees No. 181/15 and No. 184/15 issued September 2015
provided further clarifications on operational details and roles of ministries in the decision
making process of approving investments. They also enabled the creation of technical
support units within each ministry to assess investments and increase each ministry’s
capacity to assess investments.
The investment law divides Angola into investment regions Zone A and Zone B. Fiscal
incentives for investing in Angola’s less developed regions (Zone B) are twice the level of
incentives compared to those given for investing near Luanda and other major city centers
(Zone A). Additional tax breaks/reductions are available for investors who create more
local jobs, generate higher export receipts, and source more local content in their
operations.
The law expressly prohibits private investment in the areas of: defense, internal public
order, and state security; banking activities relating to the operations of the Central Bank
and the Ministry of Finance; administration of ports and airports; and other areas where the
law gives the GRA exclusive responsibility for its operations. However, it is common for
Angolan companies operating in these restricted sectors to subcontract parts of, or the
entire project to foreign companies. Investment in the petroleum, diamond, and financial
sectors are governed by sector-specific legislation. Details on the petroleum investment
guidelines are outlined in the Country Commercial Guide Best Prospect Summary of the Oil
and Gas industry.
Angola’s foreign exchange laws require all companies operating in Angola to make payments
through local (Angola-domiciled) banks using Angolan currency (kwanza). This law aims to
strengthen demand for the kwanza, and build the capacity of Angola’s underdeveloped
financial sector. The law was implemented in two phases: first, from 2012, oil companies
were required to pay taxes owed to the Angolan Ministry of Finance through a local bank;
then in July 2013 the regulation expanded to all companies operating in Angola, requiring
them to use local banks (and local currency) for all payments, including payments to
suppliers and contractors domiciled abroad.
Foreign exchange availability in the market during 2016 averaged $890.5 million per month,
a substantial decrease, (almost half of the 2015 monthly average of $1.46 billion per month
average and 2013/2014 $1.6 billion monthly averages. Per the February 24, 2016,
Presidential Decree No. 40/16, foreign exchange availability in 2016 was expected to meet
only 63 percent of demand. Angolan companies report waits of 3-8 months to access foreign
exchange for imports. The government prioritized the following areas for forex: 1)
employment retention (raw materials and inputs, equipment, technician salaries, and oil
sector operations); 2) inflationary control (food, consumer necessities, fuel); 3) health and
education; and 4) priority government expenses for necessary operations.
When preparing and entering into contracts with Angolan entities, foreign investors
generally ensure that contracts are not governed by Angolan law, so as to avoid the
accompanying GRA mandate that contracts be denominated and paid in kwanzas, a currency
which has little commercial or practical use outside of Angola. Companies often find it
advisable to seek appropriate legal advice prior to negotiating binding law, arbitration and
payment clauses, and to seek to ensure that contract payments are denominated in and
made in U.S. dollars. As a result of the continued drop in global oil prices, the mainstay of
the Angolan economy, foreign companies with kwanza based contracts have found it
extremely difficult to repatriate profits due to the Central Bank’s severe restrictions on
forex.
Beyond different applications of the Angolan Investment Law between Angolan and foreign
companies, Angolan or other companies familiar with the bureaucratic and arcane legal
complexities of the Angolan business environment hold an advantage over newcomers. In
addition, the Promotion of Angolan Private Entrepreneurs law grants Angolan-owned
companies preferential treatment in tendering for government contracts for goods, services,
and public works. Only firms with a majority Angolan stake can benefit from Angolan
Government’s loan guarantees, generous terms, and subsidized interest rates of the newly
implemented $1.6 billion fund to support micro, small, and medium-sized businesses from
Angola Ministry of Economy’s Angola Invest Program.
While the crisis has been difficult for the Angolan economy, there is hope that the acute
economic stress will lead the GRA to implement much needed reforms and commit to an
economic diversification program. FDI in Angola has steadily increased since the end of the
civil war in 2002, but peaked in 2014 just before the oil led economic crisis. The Banco
Nacional de Angola (BNA) reported $16.5 billion of FDI in Angola in 2014, up from $14.3
billion in 2013, predominantly in the oil industry FDI data is unavailable for 2015 and 2016,
but the oil crisis has very likely reversed this growth trend. The latest figure indicates that
U.S. Direct Investment in Angola plummeted to $24 million in 2015 down from $1.8 billion
in 2014, according to the U.S. Department of Commerce’s Bureau of Economic Analysis
www.bea.gov/international/factsheet/factsheet.cfm
1.2 Limits on Foreign Control and Right to Private Ownership and Establishment
Angola limits foreign equity participation more than most countries in Sub-Saharan Africa.
Foreign ownership is limited to 49 percent in the oil and gas sectors, 50 percent in insurance,
and 10 percent in the banking sectors. Foreign capital participation in excess of these limits
is possible with the approval of the Council of Ministers or the central bank. Private
(domestic or foreign) capital participation in fixed-line telecommunications infrastructure
is prohibited. In the publishing, TV broadcasting, publishing and newspaper media sectors,
foreign ownership is limited to 30 percent.
The private investment law requires at least a 35 percent domestic stake in FDI across six
strategic sectors: 1) electricity and water, 2) tourism and hospitality, 3) transportation and
logistics, 4) telecommunications and information technology, 5) construction, and 6) media.
The private investment law expressly prohibits private investment in the areas of: defense,
internal public order, and state security; banking activities relating to the operations of the
Central Bank and the Ministry of Finance; administration of ports and airports; and other
areas where the law gives the state exclusive responsibility.
1.3 Other Investment Policy Reviews
Angola has been a member of the World Trade Organization (WTO) since 1996. There have
been no investment policy reviews for Angola from either the Organization for Economic
Cooperation and Development (OECD) or the United Nations Conference on Trade and
Development (UNCTAD) in the last three years. The World Trade Organization (WTO)
performed a trade policy review of Angola in September 2015. Excerpts of the Trade
Policy Review concluding remarks by the WTO Chairperson are as follows:
“Members noted that Angola had implemented a number of measures aimed at

import substitution. Its applied tariff rates have been significantly increased and
range from 2 percent to 50 percent, with a simple average of 10.9 percent (up from
7.4 percent in 2005). Members urged Angola to rectify the instances where applied
tariff rates and other duties and charges exceed the corresponding bound levels. In
lieu of import substitution, Members suggested that Angola reduce production costs
through lower import tariffs on inputs and further trade facilitation measures with a
view to enhancing competitiveness and promoting local production."
Members welcomed Angola’s new mining code and sought information about opportunities
for foreign operators. They sought clarifications about Angola’s agricultural policy aiming
at food security and on the sustainability of its fisheries sector. Some participants
inquired about Angola’s plans to broaden its General Agreements on Trade in Services
(GATS) commitments beyond its three existing sectors. Members were also interested in
the Government’s priorities regarding, inter alia, competition policy, Sanitary and
Phytosanitary (SPS) and Technical Barriers to Trade (TBT) regimes, and state-trading and
state-owned enterprises. Noting that Angola’s intellectual property regime had not been
substantially updated since 1992, Members urged the country to effectively implement the
TRIPS Agreement and to broaden its participation in international conventions on
intellectual property.” The Government of Angola plans to introduce a new tariff
schedule in 2018.
1.4 Business Facilitation
Obtaining the proper permits and business licenses to operate in Angola can be time-
consuming. The World Bank Doing Business 2017 report identified Angola’s permit and
licensing process as one of the most time-consuming of all countries surveyed (ranked 182
out of 190 in the survey). Launching a business typically requires 36 days, compared with
a regional average of 27 days. In 2012, the government opened approximately twenty
“Balcões Únicos do Empreendedor” (Single “One stop” Shop for Entrepreneurs). In
addition to the Balcões Únicos process, new business owners must also complete processes
at the Ministry of Commerce, the tax office, and a provincial court in the location where
the business is headquartered.
In 2016, Angola made paying taxes easier and less costly by reducing the frequency of
advance payments of corporate income tax and increasing the allowable deductions for bad
debt provisions. At the same time, Angola interest charges related to shareholder loans are
not tax deductible for corporate income tax purposes. Angola adopted a new labor law that
decreased the wage premium for overtime and night work and increased the wage premium
for work on weekly holidays. The law also extended the maximum duration of fixed-term
contracts and made fixed-term contracts able to be used for permanent tasks, reduced
severance pay for redundancy dismissals of employees with five and ten years of continuous
employment and increased severance pay for employees with one continuous year.
The Angolan Investment and Export Promotion Agency (APIEX), housed within the Ministry
of Commerce, is Angola’s investment and export promotion entity, tasked with promoting
Angola’s export potential, legal framework, environment, and investment opportunities in
the country and abroad. APIEX, established on September 30, 2015, by Presidential Decree
No. 184/15 after the promulgation of Angola’s 2015 investment law, has gotten a slow start.
Nearly two years after its launch, APIEX remains underfunded and lacking focus, not having
been instrumental in bringing any significant new investments to or in generating new
exports from Angola. (www.apiexangola.co.ao). On January 25, 2017, the Angolan Minister
of Commerce, dissolved APIEX Board and dismissed all its senior administrators, appointing
their replacements on February 24, 2017.
Under the Angola 2015 Investment Law, the FDI review and approval is now the responsibility
of the government ministry overseeing the sector where the main investment will occur.
Final approval for investments under $10 million is given by the Economic Commission of
the Council of Ministers. For investments over $10 million, the Office of the President
oversees the process and provides final approval. The process can be time consuming and
difficult to navigate, thus it is strongly recommended to retain legal counsel to assist in the
investment application process.
The following documents are needed for investments under $10 million:
 Letter of Investment Proposal addressed to the Minister of Commerce (MINCO);

 A Power of Attorney or Delegation of Authority to represent the investment
proposal (in case you are not principal);
 Presentation Template Model of the Project, Dully Completed;
 Note: To Obtain the template model of the project you will have to make a
deposit of 35,000 kwanza at the Account of UTAIP of MINCO 54847575/10/002
 Copy of the legal documentation of the company (company status), commercial
registry duly authenticated by the consular services of Angola at the country of
company domicile in case of legal entities;
 Copy of the legal documentation of the natural persons (identity card/passport and
criminal record dully authenticated by the consular services of the republic of
Angola at the country of residency in case of natural persons.
 Technical economic and financial feasibility study of the proposed investment
project
 Environmental Impact Study (When is it applicable in Angola); and
 Presentation of Documents in Duplicate
There are several objectives that the GRA seeks to accomplish through its FDI screening
process: 1) create jobs for Angolans or transfer know-how to Angolan companies, 2) protect
sensitive industries such as defense and finance, 3) prevent capital flight or other behavior
which could threaten the stability of the Angolan economy, and 4) economic diversification.
Contact Information: Departamento de Promoção e Captação do Investimento; Agência para

Promoção de Investimentos e Exportações (APIEX) de Angola. Rua Kwamme Nkrumah No`.8,
Maianga, Luanda, Angola Tel: (+244) 995 28 95 92| 222 33 12 52 Fax: (+244) 222 39 33 81
www.apiexangola.co.ao. For investments under $10 million, Ministry of Commerce in
support of private investment Tel: + (244) 923 592 626; Amarildo.araou1@gmail.com
For investments above $10 million: (+244) 926 876 914 / 938 941 035, geral@utip.gov.ao;
www.utip.gov.ao
1.5 Outward Investment
The Angolan Government does not promote or incentivize outward investment. However,
according to well-respected local newspaper, Expansao, based on data from the Angolan
central bank, Banco Nacional de Angola (BNA), outward investments by Angolans exceeded
$1 billion in 2015, for an aggregate total outward investment of more than $29 billion at
the end of 2015. (Expansao Journal, March 3, 2017 edition).
Bilateral Investment Agreements and Taxation Treaties
In May 2009, Angola signed a Trade and Investment Framework Agreement (TIFA) with the
United States, intended to provide a forum to address trade issues and to help enhance
trade and investment relations between the two countries. The first meeting of the TIFA
Council under this agreement took place in June 2010 with the recent meetings in 2015 and
2016 at the working level focused on work-plan development, AGOA market access, and
strategies to improve the business climate but with limited engagement by the Angolan
government under the current Minister of Commerce.
In July 2010, the United States and Angola signed a Memorandum of Understanding
establishing a bilateral Strategic Partnership Dialogue, which commits the two parties to
increased bilateral relations. Angola has bilateral investment agreements in force with Cabo
Verde, Germany, Italy, and Russia. Angola has also signed agreements with Portugal, South
Africa, Spain, Brazil, France and the United Kingdom, but these agreements have not yet
entered into force. A list of current bilateral investment treaties and their status can be
found on the United Nations Conference on Trade and Development (UNCTAD) website.
Angola does not have a bilateral taxation treaty with the United States.
Legal Regime
1.6 Transparency of the Regulatory System
The regulatory system is complex, vague, and inconsistently enforced. In many sectors, no
effective regulatory system exists due to lack of capacity. The banking system is slowly
adhering to International Financial Reporting Standards (IFRS). IFRS is still far from being
practiced by public sector companies (SOEs). The public does not participate in draft bills
or regulations formulation, nor does a public online location exists where public can
access this information. The Angolan Communications Institute (INACOM) sets prices for
telecommunications services and is the regulatory authority for the telecommunications
sector. Revised energy-sector licensing regulations have improved allowing for some
purchase power agreements (PPA) participation. Draft bills are not made available for
public comment.
1.7 International Regulatory Considerations
Angola’s overall national regulatory system does not correlate to other international
regulatory systems. However, Angola is a member of the African Development Bank (AfDB),
the Organization of Petroleum Exporting Countries (OPEC) (January 2007), the United
Nations (UN) and most of its specialized agencies - International Conference on
Reconstruction and Development (IBRD), the United Nations Development Program
(UNCTAD), the International Monetary (IMF), the World Health Organization (WHO, World
Trade Organization (WTO) and the European Union (EU). At the regional level, the GRA is
part of the Common Market for Eastern and Southern Africa (COMESA), the Community of
Portuguese Speaking Countries (CPLP), and the Southern African Development Community
(SADC), among other organizations. However, Angola has yet to join the SADC Free Trade
Zone of African as a full member. Angola is also a member of the Port Management
Association of Eastern and Southern Africa (PMAESA) which seeks to maintain relations with
other port authorities or associations, regional and international organizations and
governments of the region to hold discussions on matters of common interest.
Angola became an original WTO Member on 23 November 1996; however, it is not party to
the Plurilateral Agreements on Government Procurement, the Trade in Civil Aircraft
Agreement and has not yet notified the WTO of its state-trading enterprises within the
meaning of Article XVII of the GATT. A new government procurement management
framework introduced in late 2010 stipulates a preference for goods produced in Angola
and/or services provided by Angolan or Angola-based suppliers. Technical Trade Barriers to
Trade (TBT) regimes are not coordinated. There have been no investment policy reviews for
Angola from either the Organization for Economic Cooperation and Development (OECD) or
the United Nations Conference on Trade and Development (UNCTAD) in the last three years,
Angola has conducted negotiations with Mozambique and Cuba. However, Angola at present
does not extend trade preferences to any country, in an attempt to encourage and protect
local content.
1.8 Legal System and Judicial Independence
Angola's formal legal system is primarily based on the Portuguese legal system and can be
considered civil law based, with legislation as the primary source of law. Courts base their
judgments on legislation and there is no binding precedent as understood in common law
systems. The Constitution proclaims the Constitution as the supreme law of Angola (article
6(1)) and all laws and conduct are valid only if they conform to the Constitution (article
6(3)).
The Angolan justice system is slow, arduous, and not always impartial. Legal fees are high,
and most businesses avoid taking commercial disputes to court in the country. The World
Bank’s Doing Business 2017 survey ranks Angola 186 out of 190 countries on contract
enforcement, and estimates that commercial contract enforcement, measured by time
elapsed between filing a complaint and receiving restitution, takes an average of 1,296
days, at an average cost of 44.4 percent of the claim.
In 2008, the Angola Attorney General ruled that Angola’s specialized tax courts were
unconstitutional. This effectively left businesses with no legal recourse to dispute taxes
levied by the Ministry of Finance, as the general courts consistently rule that they have no
authority to hear tax dispute cases, and refer all cases back to the Ministry of Finance for
resolution. Angola’s Law 22/14, of December 5, 2014, which approved the Tax Procedure
Code (“TPC”) sets forth in its Article 5 that the courts with tax and customs jurisdiction are
the Tax and Customs Sections of the Provincial Courts and the Civil, Administrative, Tax and
Customs Chamber of the Supreme Court. Article 5.3 of the law specifically states that tax
cases pending with other courts must be sent to the Tax and Customs Section of the relevant
court, except if the discovery phase (i.e., the production of proof) has already begun.
1.9 Laws and Regulations on Foreign Direct Investment

The Angolan Investment and Export Promotion Agency (Agencia Promoção de Investimentos
e Exportacões de Angola - APIEX), housed within the Ministry of Commerce, is Angola’s
investment and export promotion center, tasked with promoting Angola’s export potential,
legal framework environment, and investment opportunities in the country and abroad.
APIEX, established on September 30, 2015, by Presidential Decree No. 184/15 after the
promulgation of Angola’s 2015 investment law, has gotten to a slow start.
1.10 Competition and Anti-Trust Laws
The Pricing and Competition Bureau under the Ministry of Finance was created in 2011
(Presidential Decree 162/11) to ensure the coordination and consistency of pricing and
revenue which divided goods and services into three categories: 1) Preço Fixo (Fixed
Price): Oil, gas, electricity, water, urban transportation. 2) Preço Vigiado (Monitored
Price): Basic Food Basket: Sugar, rice, oil, salt, milk tomatoes, onions, fish, meat, etc.,
plus transportation (air, surface, rail, sea, ports.) and 3) Free Price (Preço Libre): items
not included in categories one and two. The February 25, 2016 Presidential Decree
(28/16), further established price formation on categories two and three. Angola does not
have a competition law, but it is possible to occasionally find references in statute to the
prohibition of certain restrictive agreements and practices. For example, the law
regulating the press expressly forbids situations of monopoly or oligopoly that may
prejudice the independence of the media, pluralism, and fair competition. Single-firm
conduct is not specifically regulated in Angola.
1.11 Expropriation and Compensation
The Port and Maritime Institute of Angola (IMPA) is Angola’s regulatory authority for ports.
Decreto Presidencial nº50/14 (Presidential Decree number 50 of 2014), published in
February 2014, establishes the new Statute for Navigation Agents. This law requires
shipping agencies to be exclusively owned by Angolan nationals in order to be granted a
license to operate in the country. This legislation implements Law on Merchant Marine,
Ports and Related Activities (Lei nº 27/2012, published in August 2012), requiring that port
concession activities be reserved for 100 percent control by Angolan-owned firms. The
2012 law has so far not been consistently applied or enforced.
Changes in legislation and enforcement of existing laws pose risks of reducing company
profits. This is especially true in the petroleum sector which has recently been subject to
revised local content regulations, and continues to be impacted by the new foreign
exchange law of 2012 which requires the petroleum industry to channel all payments
through the local banking system. Given current severe limitations of access to foreign
exchange in Angola, the requirement severely impacts petroleum service providers
because they can be paid only in local currency and face extreme difficulties repatriating
remittances or paying for supplies sourced abroad. The legislative process is generally
secretive and closed to public review, though the government increasingly consults with
major companies and industries on the drafting of legislation that will affect them, as was
the case with the foreign exchange law.
1.12 Dispute Settlement

ICSID Convention and New York Convention
The Angolan justice system is slow, arduous, and not always impartial. Legal fees are
high, and most businesses avoid taking commercial disputes to court. The World Bank’s
Doing Business 2017 survey ranks Angola at 186 out of 190 on contract enforcement, and
estimates that commercial contract enforcement, measured by time elapsed between
filing a complaint and receiving restitution, takes an average of 1,296 days, at an average
cost of 44.4 percent of the claim.
Law 22/14, of 5 December 2014, which approved the Tax Procedure Code (“TPC”) sets
forth in its Article 5 that the courts with tax and customs jurisdiction are the Tax and
Customs Sections of the Provincial Courts and the Civil, Administrative, Tax and Customs
Chamber of the Supreme Court. Article 5.3 of the law specifically states that tax cases
pending with other courts must be sent to the Tax and Customs Section of the relevant
court, except if the discovery phase (i.e., the production of proof) has already begun.
Investor-State Dispute Settlement
The U.S. Embassy is not aware of any formal investment disputes that have either gone to
court or arbitration involving U.S. companies beyond complaints about market obstacles
such as lack of foreign exchange access for remittances. However, in early 2017, a U.S.
company submitted a notice of dispute to an Angolan parastatal that could lead to
arbitration if not resolved in a timely and satisfactory manner.
International Commercial Arbitration and Foreign Courts
In June 2014, the Ministry of Justice and Human Rights (MINJHR) opened the Center of
Legal Alternatives for Conflict Resolution. Among other functions, the Center is tasked
with providing consultation, mediation, and arbitration of contract disputes for both
Angolan and foreign businesses. The process is designed to be faster and less costly than
the traditional court system. The U.S. Embassy is not aware of any cases having been
reviewed by this court.
1.13 Bankruptcy Regulations
With a score of 0.00 out of 16, Angola is 169 out of 190 on the World Bank’s 2017 Doing
Business Report in terms of resolving insolvency.
As a former Portuguese colony, Angola inherited the Portuguese insolvency legislation. The
current civil procedure code in force since 1961 establishes two different processes:
1. A bankruptcy procedure applicable exclusively to commercial debtors
2. An insolvency procedure applicable to non-commercial debtors
The World Bank 2017 report found that no foreclosure, liquidation, or reorganization
proceedings were filed within the past 12 months. While a law adopted in 2003 (Arbitration
Law No. 16/03) introduced the concept of domestic and international arbitration, the
practice of arbitration law is still not widely implemented.
Industrial Policies
1.14 Investment Incentives
Angola is a signatory of the Agreement on Trade-Related Investment Measures (TRIMs).
Angola's 2015 Investment Law no. 14/15, passed August 11, 2015 gives foreign and domestic
investors access to investment incentives, with a minimum investment value of $500,000 for
Angolan companies and a $1 million minimum investment for foreigners. Incentives for high-
priority sectors such as agriculture, manufacturing, energy, water, and housing include
exemption from industrial and capital gains taxes for up to 10 years and from customs duties
for up to 6 years. Many foreign companies now operating in Angola enjoy some form of tax
or duty waiver. Companies need to apply for such incentives when submitting an investment
application to APIEX and the relevant ministry.
This law identifies six key industries where the government requires 35 percent local
partnership: 1) Electricity and Water; 2) Tourism and Hospitality; 3) Transportation and
Logistics; 4) Telecommunications and Information Technology; 5) Construction; and, 6)
Media. Investments in the key sectors of mining, finance, and oil are governed under
different laws. For more details on the oil and gas sector please refer to the Country
Commercial Guide’ (CCG) Leading Sectors for U.S. Exports.
In response to Angola’s economic situation, a Presidential Decree No 40/16 was issued

February 24, 2016, outlining strategies for economic recovery. This Decree called for
measures to: 1) encourage private investment in productive areas for domestic consumption
and for exports including support by government credit facilities; 2) prioritization of
productive-sector related infrastructure development (energy/water,
transportation/construction, human resource development and business climate
improvement); and, 3) expansion of government revenue sources, such as taxes.
1.15 Foreign Trade Zones/Free Ports/Trade Facilitation
Angola is a signatory to the Southern Africa Development Community (SADC). GRA has
indicated that they may join the SADC Free Trade Zone, pending the country’s ability to
build internal industrial capacity that is able to compete with other regional markets.
Since such industrialization will take some time it is likely that GRA will opt for another 3-
year extension on the decision to join SADC FTZ.
In 2009, Angola established the Luanda-Bengo Special Economic Zone (SEZ). Under the new
investment law, the SEZ offers tax incentives to its twenty resident companies. The new
law established the general basis of private investment in Angola in special economic zones,
free trade zones, development areas and other areas subject to specific regulations defining
regimes of access to incentives. Benefits to operating in the zone include more reliable
water and electricity access, as well as increased access to quality roads and infrastructure.
1.16 Performance and Data Localization Requirements

The government encourages "Angolanization" of companies’ work force and urges use of
Angolan suppliers of goods and services. Presidential Decrees 5/95 and 6/01 limit
expatriate staffing of local companies set up in Angola by national or foreign investors to
30 percent of the workforce and require Angolan and expatriate staff with the same jobs
and responsibilities to receive the same salaries and social benefits. Enforcement of these
laws is inconsistent. A 2008 decree requires oil companies to first seek Angolan employees
to fill any vacant position prior to seeking expatriate appointment, which must also first
be authorized by the Ministry of Petroleum.
International oil companies are working with the government on a new local-content
initiative that will establish more explicit sourcing requirements for the petroleum sector
in staffing and material. At this time, local content regulations offer only guidelines that
are loosely enforced and companies lack clarity as to how much is enough to satisfy the
Angolan government. While this situation may make it easier for foreign companies to
comply with local content regulations, this lack of specificity challenges companies in their
business planning. For example, it is difficult for companies to compare their competitive
position against each other when competing for lucrative concessions and licenses from the
government as local content is sometimes considered during competition for government
tenders. In recent years, the government has begun to enforce Decree 5/95 more strictly.
Expatriate employees typically receive no more than three renewals to their one-year work
visas, for a total of three to four years in country. Approval for the fourth year is contingent
upon the company identifying the Angolan employee who will take over the position after
the expatriate leaves. After multiple renewals, some expatriate workers get around these
limits by asking for residency, or starting a new process.
Presidential Decree No. 43/17, of March 6, 2017, legislates that Foreign non-resident
employees (not an Angolan national or foreign resident), must be paid in kwanzas with their
benefits not exceeding 50 percent of their salaries and term of employment not more than
three years. Angolan companies need to prove that skill-set is not available within the local
labor force and that their foreign non-resident employees do not exceed 30 percent of their
workforce. The effects of this law are currently being reviewed by Angolan tax and legal
provider firms. Legal guidance to adhere to this new law is strongly encouraged.
Data Storage is not applicable.
Protection of Property Rights
1.17 Real Property
Land reform in Angola took place after the end of the Angolan Civil War in 2002. After two
years of preparation, the land law (Lei de Terras de Angola) was passed on 18 December
2004. While the land act is a crucial step towards addressing land tenure, normalization of
land ownership in Angola persists with problems such as difficulties in completing land
claims, land grabbing, lack of reliable government records, and unresolved status
of traditional land tenure. Among other provisions, the law included a formal mechanism
for transforming traditional land property rights into legal land property rights (clean
titles). During the civil war, a transparent system of land property rights did not exist, so
it was crucial to re-establish one shortly after the end of hostilities. Transparency and
land property rights are critical for the Angolan economic development given that two
thirds of Angolans work in agriculture and are thus directly dependent on land property
rights.
One of the main tasks of the new Angolan land laws was to protect people from evictions,
which had frequently taken place during the colonial period as well as during the civil war,
largely due to unclear land property rights. Under the Constitution, the state has ultimate
ownership of Angola’s land with the exception of land protected under international law.
The Land Law authorizes private rights to urban land (i.e. cities, townships) that have
qualities of freehold titles: the landholder has a perpetual right to occupy and use the
land, and the landholder can transfer, mortgage, and sell the right. However, the
purchase and sale of untitled urban land must be by public auction, with prices of urban
land fixed by price. The law permits most urban and some non-urban land obtained for
economic purposes to be leased through long-term renewable leases from the Angolan
government for up to 60 years, a process used especially in the case of rural agricultural
land used for economic purposes which often include renewal options at the end of the
lease.
Legislation governing the right of access to land includes the 2004 “Land Act” and
“General Concession of Land Regulations”. According to the “Land Act”, the State may
transfer or constitute, for the benefit of Angolan natural or legal persons, a multiplicity of
land rights on land forming part of its private domain. Although it is possible to transfer
ownership over some categories of land, the transfer of State land almost never implies
the transfer of its ownership, but only the formation of minor land rights with leasehold
being the most common form in Angola. The recipient of private property rights from the
state can only transfer those rights with consent of the local authority and after a period
of five years of effective use of the land (GRA 2004 law). Weak land tenure legislation and
lack of secure legal guarantees (clean titles), are the reasons given by most commercial
banks for their 86 percent refusal rate for loans since land used as collateral. Foreign
real-estate developers therefore seek out public-private partnership (PPP) arrangements
with state actors who can provide protection against land disputes and financial risks
involved in projects that require significant cash outlays to get started.
Registering parcels of land over 10,000 hectares must be approved by the Council of
Ministers. Registering property takes 190 days on average, according to the World Bank’s
Doing Business 2016 survey, with fees averaging three percent of property value. Owners
must also wait five years after purchasing before reselling land. Implementing
regulations, once written, are expected to set out guidelines defining different forms of
land occupation, including commercial use, traditional communal use, leasing, and private
homes. Over the years, the GRA has given out large parcels of land to individuals in order
to support the development of commercial agriculture. However, this process has largely
been unsystematic and does not follow any formal rule change on land tenure by the
state.
Before obtaining proof of title, an Angolan citizen or an Angolan legal entity must also obtain
the Real or Leasing Rights (“Usufruct”) of the Land from the Instituto de Planeamento e
Gestao Urbana de Luanda. This is often a time consuming procedure taking up to one year
or more. However, in the case that company X already owns the land the company must
secure a land property title copy from the Real Estate Registry in Luanda. An updated
property certificate ("certidão predial") is obtained from the relevant Real Estate Registry,
with the complete description of the property including owner(s) information and any
charges, liens and/or encumbrances pending on the property. The complex administration
of property laws and regulations that govern land ownership and transfer of real property
as well as its tedious registration process may reduce investor appetite for real estate
investments in Angola. Despacho no. 174/11 of March 11, 2011, mandates the total fees for
the "certidão predial" include: stamp duty (calculated according to the Law on Stamp Duty);
justice fees (calculated according to the Law on Justice Fees); fees to justice officers
(according to the set contributions for the Justice budget); notary fees and other fees. The
total fee is also dependent on the current value of the fiscal unit (UCF), which is currently
at AOA 88.00 ($.54 cents equivalent).
1.18 Intellectual Property Rights
Angola adopted the Convention for the Protection of Industrial Intellectual Property in
August 2005, incorporating the 1979 text, and the patent cooperation treaty concluded in
1970, and amended in 1979, and 1984. The Ministry of Industry administers intellectual
property rights for trademarks, patents, and designs under Industrial Property Law 3/92.
The Ministry of Culture regulates authorship, literary, and artistic rights under Copyright
Law 4/90. However, based on U.S. Embassy records, no court case involving U.S.
intellectual property has ever tested the strength of these laws. Angola is a member of
the World Intellectual Property Organization (WIPO), and follows international patent
classifications of patents, products, and services to identify and codify requests for
patents and trademark registration. There are no comprehensive statistics available
regarding counterfeit goods seized by the Angolan government.
IAPI (Instituto Angolano de Propriedade Intelectual), is the governmental body within the
Ministry of Industry charged with implementing patent and trademark law. The Ministry of
Culture oversees copyright law. IP infringement is widespread, most notably in the
production and distribution of pirated CDs, DVDs, and other media, largely for personal
consumption. Counterfeit pharmaceuticals are another major area of concern.
INADEC (Instituto Nacional de Defesa dos Consumidores), under the umbrella of the Ministry
of Commerce, tracks and monitors the seizure of counterfeit goods. They do not currently
have a website, nor do they regularly publish statistics. They publish the seizure of
counterfeit products on an ad-hoc basis, primarily in the government-owned daily, Jornal
de Angola.
For additional information about treaty obligations and points of contact at local IP offices,
please see WIPO’s country profiles at http://www.wipo.int/directory/en/. The US Embassy
point of contact for IPR related issues is Mballe Nkembe (NkembeMM@state.gov). For legal
counsel, refer to Angola’s Country Commercial Guide Local Professional Services List
(http://export.gov/ccg/angola090710.asp)
Financial Sector
1.19 Capital Markets and Portfolio Investment
Angola’s capital markets remain very underdeveloped. To respond to the need for
increased sources of financing of the economy, in 2013, the Angolan Government created
the Capital Market Commission (CMC). The CMC announced that in 2016 it will prepare a
study regarding the establishment of a Commodity Exchange to trade agricultural and
livestock commodities contracts. http://www.cmc.gv.ao/. Angolan authorities anticipate
that the establishment of a functioning capital market, including a commodity exchange,
will allow Angolan companies to access both domestic and international capital to support
their growth and financing needs. Angola’s banks are likely the most established
businesses that could potentially list on an exchange. However, a lot of Angolan’s Banks
have a high rate of non-performing loans, unofficially reported to be as high as 40
percent. Angola’s banks have struggled in recent years due to the country’s deteriorating
economic environment and increasing high rate of delinquent loans. Local analysts believe
that Angola’s banks may go through a massive consolidation phase over the next several
years, which may limit their ability in the near-term to list on the country’s fledgling stock
exchange.
Angola has been slowly testing the waters in terms of accessing the international capital
markets. In August 2012, Russia’s second-largest bank, VTB, managed the sale of Angola's
first international bond, a US$1 billion, 7-year bond with a 7.0 percent yield. In November
2015, Angola placed a US$1.5 billion, 10-year Eurobond with a 9.5 percent yield. Deutsche
Bank, Goldman Sachs, ICBC managed the 2015 bond placement.
The BNA has developed a market for short-term bonds, called Títulos do Banco Central, and
long-term bonds, called Obrigações do Tesouro. Most of these bonds are bought and held
by local Angolan banks. The Obrigações have maturities ranging from one to 7.5 years,
whereas the Títulos have maturities of 91 to 182 days. For information on current rates,
see http://www.bna.ao/ .
Foreign investors do not normally access credit locally. For Angolan investors, credit access
is very limited, and if available comes with a collateral requirement of 125 percent, so they
either self-finance, or seek financing from non-Angolan banks and investment funds.
Subsidized government loan programs to promote economic development, such as the
Ministry of Economy’s Angola Invest US $1.6 billion fund to support small and medium-sized
enterprises with loans of up to $5 million, are available only to majority-owned Angolan
companies, but due to reports of limited quality projects and commercial banks reticence,
only a handful of the Angola Invest loans were approved in 2016.
1.20 Money and Banking System
Angola experienced 45 percent inflation in 2016, compared with 14.3 percent inflation in
2015, with IMF forecasts for 2017 at 20 percent. The BNA established a new monetary
policy framework in October 2012 guided by the BNA daily published base interest rate,
and a Luanda Interbank Offered Rate (LUIBOR). The BNA has been under considerable
pressure to stabilize Angola’s economy as the kwanza lost 35 percent of its value in 2015,
and close to 60 percent in the last 16 months. In February 2016, the Financial Action Task
Force (FATF) recognized that Angola has made significant progress in improving its regime
to combat money laundering and terrorist financing and will therefore no longer be
subject to the FATF’s monitoring process. However, the BNA has struggled to fully
implement reforms across Angola’s banks, which have lost their correspondent
relationships with banks in the United States. Angola has been impacted by the broader
global de-risking trends wherein banks decide to close business in markets deemed too
risky from an anti-money laundering and terrorist financing standpoint.
In November 2015, Bank of America, one of the last, if not sole global wholesaler of dollar
notes, ceased selling physical dollar notes to Angola. As part of their de-risking strategy,
Bank of America also instructed South Africa-based FirstRand Bank to stop providing dollar
banknotes to Angolan banks due to concerns with downstream risks related to Angola. The
supply of other hard currencies, including the Euro, was also severely impacted by this
decision. In December 2015, London-based bank Standard Chartered Plc. also ended its
U.S. dollar services and corresponding banking relationships in Angola, citing similar
compliance concerns. In December 2016, Deutsche Bank, the last international bank
providing dollar clearing services, closed its dollar clearing services in Angola. A limited
number of international banks still operate in Angola and provide limited trade finance
such as Germany’s Commerzbank and South Africa’s Standard Bank. International banks
have held back on entering the Angolan market because the risk of fines and other
penalties outweighs the potential rewards of doing business in Angola.
The mandatory reserve requirement for non-government deposits in kwanzas is 20 percent,

and in foreign currency is 15 percent. The reserve requirement for government deposits is
100 percent, a measure that seriously limits lending by state-owned banks. Angolan banks
extend little unsecured credit, instead requiring significant amounts of collateral (125
percent) in the form of property, or dollar deposits from the borrower. Commercial credit
in Angola remains tight. Unclear land titles and ill-defined property rights frequently
complicate and lengthen the process of applying for a mortgage. While the Central Bank
tries to limit foreign currency risk, some loans are denominated in foreign currencies, but
are consequently weighted at 130 percent for the calculation of risk-weighted assets.
Five banks, Banco Angolano de Investimentos (BAI), Banco Economico, Banco de Fomento
Angola (BFA), Banco BIC Angola (BIC) and Banco de Poupança e Crédito S.A.R.L. (BPC),
control over 80 percent of total banking assets, deposits and loans. Angolan banks focus on
profit generating activities including transactional banking, short-term trade financing,
foreign exchange, and investments in high-interest government bonds. Loans to most
sectors have slowed as a result of the economic crisis. BNA and local bankers have also
indicated that there is a growing level of non-performing loans (12 percent in 2015 and 18
percent in 2016 as of the first quarter) across most sectors as clients struggle to make
payments on loans as a result of the of the economic crisis. However, traditional
commercial loans are still only a small part of banking in Angola. In the past, state and
state-affiliated companies enjoyed privileged access to loans, often at concessionary rates
without regard to risk, leading to several bank failures. As of December 2013, the latest
figures available indicated that total customer deposits with the Angolan commercial banks
was 4.6 trillion Angolan kwanza , an increase of 17 percent since 2012. Most banks focus
their operations on short-term commission-related activities such as currency trading and
trade finance. Even with the severe economic slowdown and reduction in overall foreign
exchange availability, bank profit margins are still high enough to allow them to sustain
operations. This statement holds true for the large banks, and may be reinforced by current
draft legislation(“Implementation Strategy of Executive Macroeconomic Program 2017”),
which seeks to designate six Angolan Banks - (BAI, BIC, Banco Económico, Banco Millenium-
Atlântico, BNI and Banco Sol) to handle 80 percent of Forex in the primary market. The
remaining 22 Banks are likely to survive only by merging with other banks.
1.21 Foreign Exchange and Remittances
Foreign Exchange
In a bid to deal with the foreign currency shortage affecting the currency, the allocation
of forex by the Central Bank BNA in the market has been prioritized for strategic areas
such as the oil, food and health sectors. This has had a negative impact on companies’
ability to pay foreign suppliers and foreign firms seeking to convert kwanza into foreign
currency for remittances abroad, repatriation of dividends, royalties and other.
Angola has since been trading mostly in only two currencies the USD and the Euro.
Following the financial and economic crisis that initialized in 2014 due to the global oil
crisis, it became harder for investors to convert proceeds in local currency to foreign
currency. Scarcity of USD in the market following lack of access to USD has created a
demand for Euros. The BNA has been availing USD through auction sells and now it has
been auctioning in Euro currency only.
Angola has artificially maintained a fixed exchange rate since April 2016 and disallowed
fluctuations in the official exchange rate. This has created false appreciation of the local
currency or discouraged devaluation, making the local currency Kwanza one of the most
overvalued currencies in the world. Factors that could have influenced fluctuations in the
exchange rate such as the parity in the interest rate, balance of payments, the purchasing
power of economic agents, were not observed. During 2016 the spread between the
official and market rate for kwanza reached up to 385 percent in June before settling at
280 percent by December.
The law requires foreign investors to pay higher taxes on early repatriation of dividends
and profits within the first several years of an initial investment. The new tax on
dividends starts at 15 percent and can rise to as high as 50 percent depending on the value
and how early repatriation occurs. Under regulations established in July 2013 aimed at
tracking capital movement, strengthening the banking system and capturing tax revenue,
foreign companies are required to process transactions through Angolan banks.
Remittance Policies
The Angolan government established anti-money laundering restrictions in January 2014 to

combat illicit remittance flows. The subsequent drop in foreign exchange availability in
Angola beginning in 2015 due to declining petroleum revenues has severely impeded
legitimate business and personal remittances. International and domestic companies
operating in Angola face significant delays securing foreign exchange approval for
remittances to cover key operational expenses, including imported goods and expatriate
salaries. Profit and dividend remittances are even more problematic for most companies.
The Angolan government is reportedly prioritizing foreign exchange for essential goods and
services including the food, health, defense and petroleum industries. Due to the
tremendous strains on foreign exchange, in 2017 reports indicate that the country is drawing
from its international reserves to increase foreign exchange liquidity in the market. This
has resulted in Angola’s international reserves, which had been protected carefully at $24
billion, falling to $20 billion, as of March 2017. Foreign exchange allocations from the
Central Bank since 2016 have been almost exclusively in Euros, partly driven by loss of
corresponding banking privileges with U.S. Banks. Profits and dividends repatriation are not
prioritized. This is driven by the BNA, which aggressively protects the country’s foreign
exchange.
1.22 Sovereign Wealth Funds
In October 2012, President dos Santos established a petroleum-funded $5 billion sovereign

wealth fund called the Fundo Soberano de Angola (FSDEA). The FSDEA was established in
accordance with international governance standards and best practices as outlined in the
Santiago Principles. In February 2015, FSDEA was recognized as transparent by the Sovereign
Wealth Fund Institute (SWFI), receiving a score of 8 out of 10. FSDEA has the express purpose
of profit maximization with a special emphasis on investing in domestic projects that have
a social component (http://www.fundosoberano.ao/investments/). José Filomeno Dos
Santos, son of President Jose Eduardo dos Santos, was appointed chairman of FSDEA in June
2013.
Half of the initial endowment of FSDEA was invested in agriculture, mining, infrastructure,
and real estate in Angola and other African markets, and the other half is allocated to cash
and fixed income instruments, global and emerging-market equities, and other alternative
investments. In April 2015, FSDEA announced five venture capital funds totaling US $1.4
billion to be invested in mining, logging, agriculture, health, and entrepreneurship.
(http://uk.reuters.com/article/angola-wealth-funding-idUKL5N0XA31J20150413) In
January 2017, FSDEA announced a $180 investment on a new deep sea port in Cabinda.
China EXIM will reportedly lend $600 million to complete the project. Cabinda province
provides most of the oil exported from Angola.
State-Owned Enterprises
In Angola, certain state-owned enterprises (SOEs) exercise delegated governmental

powers, especially in the mining sector where the government is the sole concessionaire.
Foreign investors may sometimes find demands made by SOEs excessive, and under such
conditions, SOEs have easier access to credit and government contracts. There is no law
mandating preferential treatment to SOEs, but in practice they have access to inside
information and credit. Currently, SOEs are not subject to budgetary constraints and
quite often exceed their capital limits.
SOEs, often benefitting from a government mandate, operate mostly in the extractive
sectors, transportation, commerce, banking, and construction. All SOEs in Angola are
required to have boards of directors, and most board members are affiliated with the
government. SOEs are not explicitly required to consult with government officials before
making decisions. By law, SOEs must publish annual financial reports for the previous year
in the national daily newspaper by April 1. Such reports are not always subject to
publically released external audits (though state oil firm Sonangol is publically released).
The standards used are often questioned. Not all SOEs fulfill their legal obligations, and
few are sanctioned. In April 2016, Angolan President dos Santos vacated the board of
Sonangol, and in June 2016, installed one of his daughters, well-known business woman
Isabel dos Santos, as its Chief Executive, to "ensure transparency" in its management and
to improve the Angolan oil sector's ability to compete globally. In December 2016, the
Angolan Supreme Court ruled that Ms. dos Santos’ appointment did not constitute a
criminal act under Angola nepotism laws.
Angola’s supreme audit institution, Tribunal de Contas, is responsible for auditing SOEs.
However, the Tribunal de Contas does not make its reports publicly available. Angola’s
fiscal transparency would be improved by ensuring its supreme audit institution audits
SOEs as well as the government’s annual financial accounts and makes public its findings
within a reasonable period of time. This would improve the transparency of contracts
between private companies and SOEs.
In November 2016, the Angolan Government revised Law 1/14 “Regime Juridico de Emissao
e Gestao da Divida Publica Directa e Indirecta", which now differentiates between ‘direct’
and ‘indirect’ public debt. The GRA considers SOE debt as indirect public debt, and only
accounts in its state budget for direct government debt, thus effectively not reflecting some
substantial obligations in fact owed by the government.
Angola is not a party to the WTO’s Government Procurement Agreement (GPA).
Angola does not adhere to the OECD guidelines on corporate governance for State-owned
enterprises
1.23 Privatization Program
In December 2014, the GRA implemented the Electricity Sector Transformation Program
(PTSE), which unbundled Angola’s two electricity companies to create three separate
public companies. While the new companies are still public, the restructuring program
financed by the African Development Bank also included passage of legislation to allow for
power purchase agreements (PPAs) is designed to create an environment attractive for
private sector investment, including off-grid and renewable energy projects. Electricity
sector investment is open to both foreign and domestic firms (15 Luanda 698; 2015 ICS);
however, under the 2015 Investment Law, international investors in this sector must have
a 35 percent Angolan partner. Starting late 2016, the U.S. government, through Power
Africa, funded a one-year technical Energy Advisor imbedded at Angola’s Ministry of
Energy. The purpose of the Energy Advisor is to help build capacity and the climate
attractive to private energy sector investors.
In May 2015, the Angolan subsidiary of Portuguese conglomerate Nabeiro purchased

Liangol, the Angolan state coffee company for 1 billion USD. Angola, once the 4th largest
coffee producer in the world, is seeking to develop the coffee industry after it was
devastated by the civil war. This is not expected to be an immediate process.
U.S. Embassy Angola is not aware of any formal privatization efforts by the GRA.
Responsible Business Conduct
The government has enacted laws to prevent labor by children under 14 and forced labor,
although resource limitations hinder adequate enforcement. With limitations, the laws
protect the rights to form unions, collectively bargain, and strike. Government interference
in some strikes has been reported. The Ministry of Public Administration, Employment, and
Social Security, has a hotline for workers who believe their rights have been infringed.
Angola’s Chamber of Commerce and Industry (CIACC) established the Principles of Ethical
Business in Angola.
In 2015, Angola organized an interagency technical working group to explore Angola’s

possible membership in the Voluntary Principles on Security and Human Rights (VPs) and
the Extractive Industries Transparency Initiative (EITI). Angola has been a member of the
Kimberley Process (KP) since 2003, and chaired the KP in 2015, until handing over the
rotating chair to the United Arab Emirates
Angola is not a party to the WTO’s Government Procurement Agreement (GPA).
Angola does not adhere to the OECD guidelines on corporate governance for State-owned
enterprises.
Corruption
Transparency International’s 2016 Corruption Perceptions Index ranks Angola 164 out of
176 countries in its corruption level survey. Perceived corruption in Angola flourishes
unabated and is one of the biggest concerns after unemployment. Prevalent in all sectors
of the Angolan society, corruption remains widespread due to a lack of political will,
checks and balances, insufficient institutional capacity and a culture of impunity.
The 2010 Law on Administrative Probity requires public officials to disclose their assets and
income once every two years and prohibits public servants from receiving money or gifts
from private business deals. The Penal Code makes it a criminal offense for private
enterprises to engage in business transactions with public officials. Angola has incorporated
regional anti-corruption guidelines and incorporated them into their domestic legislation,
including: the Southern Africa Development Community’s (SADC) “Protocol Against
Corruption,” the African Union’s “Convention on Preventing and Combating Corruption,”
and the United Nation’s “Convention against Corruption.” Angola does not have an
independent body to investigate and prosecute corruption cases. Three institutions – the
Audit Court, the Inspector General of Finance, and the Office of the Attorney General –
perform many of the anti-corruption duties in Angola.
http://www.business-anti-corruption.com/country-profiles/sub-saharan-
africa/angola/initiatives/public-anti-corruption-initiatives.aspx
Irrespective of the laws on the books and institutions that exist to combat corruption,
corruption, including bribery, raises the costs and risks of doing business and can create an
uneven playing field for foreign investors. Corruption has a corrosive impact on market
opportunities for U.S. companies and the broader business climate. It also deters greater
international investment, stifles economic growth and development, distorts prices, and
undermines the rule of law.
It is important for U.S. companies, irrespective of their size, to assess the business climate
in the sector in which they will be operating or investing, and to have an effective
compliance program or measures to prevent and detect corruption, including foreign
bribery. U.S. individuals and firms operating or investing in Angola, should take the time to
become familiar with the relevant anticorruption laws of both Angola and the United States
in order to properly comply with them, and where appropriate, they should seek legal
counsel.
UN Anticorruption Convention, OECD Convention on Combatting Bribery
Angola is not a member state to the UN Anticorruption Convention or the OECD Convention
on Combatting Bribery.
Resources to Report Corruption
In Angola: None. In 1996 the GAO enacted by presidential decree the Alta Autoridade Contra
Corrupção (High Authority Against Corruption) Act. The law has been in effect since then.
However, no action to implement it has ever been taken.
Other resources to report corruption:
Mrs. Claudia J Dumas, President, Transparency International

1023 15th Street, NW, Suite 300, Washington, DC 20005
Tel: 1-202-589 1616; Fax: +1-202-5891512
Email: transparency@transparency-usa.org; Website: http://www.transparency-usa.org/
Political and Security Environment
Politically related violence is not a high risk in Angola, and incidents are rare. Widespread
civil disturbances are not anticipated for national elections to be held in 2017. Still a young
democracy, Angola is setting a global example with the announcement of current President
Eduardo dos Santos’ decision not to run in the 2017 elections after ruling for 37 years. While
not a perfect democratic transition of power, most observers believe it will be peaceful,
and Angolans are generally welcoming the transition as offering opportunities for new
openings. The last significant incident of political violence happened in 2010 during an
attack against the Togolese national soccer team by FLEC-PM (Front for the Liberation of
the Enclave of Cabinda—Military Position) in the northern province of Cabinda. FLEC
threatened Chinese workers in Cabinda in 2015 and claimed in 2016 that they would return
to active armed struggle against the Angolan government forces. Both claims have so far
proven to be largely untrue. More recently, during the trial of 17 Angolan youth activists in
2016, the government suppressed demonstrations and vigils in support of the activists. The
activists were all eventually convicted of preparatory acts of rebellion and criminal
association, and sentenced in 2016 to between two and eight year prison terms. However,
all the activists were released under a new Amnesty Law enacted in July 2016 after serving
roughly six months of their sentences.
The likely continuation of depressed global oil prices (remaining in the mid $50s and below)
will continue to pressure the GRA regarding maintaining stability in the country. The GRA
has already slashed its budget by half since the start of the economic crisis in 2014,
necessitating the cutting of many subsidies for Angolans (including the gasoline and diesel
subsidies). In addition, the GRA has increased tax rates. Although many Angolans take
advantage of lax GRA implementation capabilities, the combination of decreasing
government services and increasing costs for them, could raise tensions, particularly in an
environment where the government has a spotty track record of delivering basic services.
In response, the GRA has maintained robust spending on its internal security and military
budget. The government has also attempted to levy new taxes on the oil industry and has
promulgated a plan to impose taxes for trash collection on residents and businesses. These
taxes would be payable through electricity bills. There has been sharp criticism from the
oil industry and the public regarding these tax increases due the government’s spotty track
record on delivering basic services. Many believe the tax measures are not well timed,
considering the enormous pressure businesses and individuals are under at the moment.
Labor Policies and Practices
The Angolan labor force has limited technical skills, English language capabilities, and
managerial ability. Many employers find it necessary to invest heavily in educating and
training their Angolan staff. Angola’s labor force was estimated to be 10.85 million in 2016.
The literacy rate is estimated to be 71.1 percent (82 percent male, 60.7 percent female).
(https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html). A 2013
National Statistics Institute (SNI) study indicates that unemployment is around 26 percent,
although these figures are based on limited data taken primarily from urban centers.
(http://www.adeanet.org/min_conf_youth_skills_employment/sites/default/files/u26/An
gola%20Country%20Report.pdf) (https://asokoinsight.com/news/riddle-of-no-jobs-in-
angolas-fast-growing-economy/). Eighty-six percent of primary school age children attend
school. The Law mandates that children must attend school for six years beginning at age
six. Twenty-nine percent of boys and 17 percent of girls attend high school.
http://www.epdc.org/sites/default/files/documents/EPDC%20NEP_Angola.pdf
There are gaps in compliance with international labor standards which may pose a
reputational risk to investors. Children are sometimes employed in the agriculture,
construction, fishing, and coal industries. Forced labor is sometimes used in the
agricultural, fishing, construction, domestic service, and artisanal diamond mining sectors.
Additional information is available in the 2015 Trafficking in Persons Report
(http://www.state.gov/j/tip/rls/tiprpt/2016/), 2015 Country Report on Human Rights
Practices https://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/, and
2015 Findings on the Worst Forms of Child Labor (http://www.dol.gov/ilab/reports/child-

labor/findings/)
Angola’s General Labor Law (Law No. 2/00), updated in 2015, recognizes the right of
workers, except members of the armed forces and police, to form and join independent
unions, to collectively bargain, and to strike, but these rights are either limited or
restricted. To establish a union, a minimum of 30 percent of workers from a sector at the
provincial level must participate and prior authorization by authorities with accompanying
bureaucratic approvals is required. Unlike workers in the private sector, civil service
employees do not have the right to collective bargaining. While the law allows unions to
conduct their activities without government interference, it also places some restrictions
on engaging in a strike. Strict bureaucratic procedures must be followed for a strike to be
considered legal. The government can deny the right to strike or obligate workers to return
to work for members of the armed forces, police, prison staff, fire fighters, “essential
services” public sector employees and oil workers. The government may intervene in labor
disputes that affect national security, particularly strikes in the oil sector. The definition of
civil service workers providing “essential services” is broadly defined encompassing the
transport sector, communications, waste management and treatment, and fuel distribution.
Collective labor disputes are to be settled through compulsory arbitration by the Ministry of
Labor, Public Administration and Social Security. The law does not prohibit employer
retribution against strikers, but it does authorize the government to force workers back to
work for “breaches of worker discipline” or participation in unauthorized strikes. The law
prohibits anti-union discrimination and stipulates that worker complaints be adjudicated in
the labor court. Under the law, employers are required to reinstate workers who have been
dismissed for union activities
The General Labor Law also spells out procedures for hiring workers. For work contracts of
indefinite duration, the law provides for a basic probationary period of up to six months,
during which the worker or employer can terminate the contract without notice or
justification. After the probationary period ends, dismissed workers have the right to appeal
to a Labor Court. Many employers prefer to reach a monetary settlement with workers
when a dispute arises, rather than bring cases before the Labor Court. The World Banks
Doing Business 2016 report placed the average cost of firing a worker in Angola at 26.7
weeks of salary weighting for workers with one year, five years, and 10 years of tenure. The
notice period before dismissing a worker is 4.3 weeks.
The government conducts annual surveys of the oil industry to implement a requirement
that oil companies hire Angolan nationals when qualified applicants are available. If no
qualified nationals apply for the position, then the companies may request the government’s
permission to hire expatriates. Outside of the petroleum sector, policies to encourage
“Angolanization” of the labor force, i.e. the hiring of locals, discourages bringing in
expatriates. However, the associated visa processes for the oil industry are currently easier
and faster due to a special process the Angolan Ministry of Petroleum offers companies in
that sector. Additionally, working visas for other sectors are also easier to obtain, possibly
due to application systems upgrades by the GRA or less expatriates demand due to the
general economic slowdown.
OPIC and Other Investment Insurance Programs

Since 1994, the Overseas Private Investment Corporation (OPIC) has provided investment
insurance to projects in Angola. U.S. investors can apply for OPIC insurance, including
coverage under the “Quick Cover” program for projects valued at less than US $50 million.
OPIC’s portfolio in Angola currently totals US $20.4 million. Since the agreement, OPIC’s
support has helped facilitate critical investments in the energy, services, and health care
manufacturing and financial services sectors.
Angola is a member of the Multilateral Investment Guarantee Agency (MIGA), which provides
insurance to foreign investors against such risks as expropriation, non-convertibility, and
war or civil disturbance. MIGA also provides investment dispute resolution on a case-by-
case basis.
Foreign Direct Investment and Foreign Portfolio Investment Statistics
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
USG or USG or International Source of

Host Country
international Data: BEA; IMF; Eurostat;
Statistical source*
statistical source UNCTAD, Other
Economic Data Year Amount Year Amount
Host Country
Gross Domestic $96.2 $103
2016 2015 www.imf.org
Product (GDP) billion Billion
($M USD)
USG or USG or international Source of

Foreign Direct Host Country
international data: BEA; IMF; Eurostat;
Investment Statistical source*
statistical source UNCTAD, Other
U.S. FDI in BEA data available at

partner country $24 $1,803 http://bea.gov/international/direc
($M USD, stock 2015 2014
Million Million t_investment_multinational_compa
positions) nies_comprehensive_data.htm
Host country’s BEA data available at

FDI in the United $207 $89 http://bea.gov/international/direc
States ($M USD, 2015 2014
Million Million t_investment_multinational_compa
stock positions) nies_comprehensive_data.htm
Total inbound
stock of FDI as % 2015 .00% 2014 1.42%
host GDP
Table 3: Sources and Destination of FDI
Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward Amount 100% Total Outward Amount 100%

Country #1 Amount X% Country #1 Amount X%
"0" reflects amounts rounded to +/- USD 500,000.
Table 4: Sources of Portfolio Investment
Not Available (Tables 3 and 4). Recently the World Bank has put Angola among the ten
countries in Africa least able to make available credible indicators, according to the
indicator Capacity Statistics BM - an instrument that measures the capacity of States to
collect, analyze and disseminate data on their populations and economies.
Portfolio Investment Assets
Top Five Partners (Millions, US Dollars)
Total Equity Securities Total Debt Securities
All Countries Amount 100% All Countries Amount 100% All Countries Amount 100%
Country #1 Amount X% Country #1 Amount X% Country #1 Amount X%

Contact for More Information on the Investment Climate Statement
Dorcas Makaya, Economic Specialist

United States Embassy, Luanda,
Rua Houari Boumedienne 32 Miramar, Angola
Tel: +244 222 641 154
E-Mail: MakayaDC@state.gov
Trade & Project Financing
Methods of Payment
The leading business challenge in Angola since mid-2015 has been the lack of foreign
exchange in the market due to the steep decline in petroleum revenues and the resulting
drop in international reserves entering the Angolan economy. This disruption is significantly
impeding imports of products to this heavily import dependent market. International and
domestic companies operating in Angola face significant delays securing foreign exchange
approval for remittances to cover key operational expenses, including imported goods and
expatriate salaries. Profit and dividend remittances are even more problematic for most
companies. The Angolan government is reportedly prioritizing foreign exchange for essential
goods and services including food, health, and petroleum industry. Due to the on-going
strains on foreign exchange, in early 2017, reports indicate that the country is drawing from
its international reserves to increase foreign exchange liquidity in the market. Foreign
exchange allocations from the Central Bank since 2016 have been almost exclusively in
Euros, partly driven by loss of corresponding banking privileges with U.S. banks and Central
Bank efforts to protect the country’s foreign exchange.
Based on recent U.S. companies’ experiences in Angola, the U.S. Embassy encourages U.S.
exporters to structure exports to Angola on cash-in-advance terms. Letters of credit are
almost impossible to secure since Angolan banks are unwilling to assume foreign exchange
risk. During the second half of 2016, the Central Bank authorized limited value of letters of
credit for use with food imports, but in general this is not a reliable financial tool in the
market at this time. Most international companies report cancelling export credit terms to
their Angolan clients due to outstanding payments on accounts resulting from foreign
exchange delays.
Foreign exchange available in the Angolan commercial market during 2016 fell to $895.8
million per month on average, down from $1.46 billion per month in 2015. For the first two
months of 2017, foreign exchange allocations increased back up to $1.45 billion per month
propelled by pre-election priorities and the reported use of international reserves to
increase market liquidity. As a point of reference during 2013 and 2014, foreign exchange
monthly allocation average was $1.6 billion. A Presidential Decree No 40/16 issued February
24, 2016 stated that foreign exchange availability in 2016 was expected to meet only 63
percent of demand and prioritize: 1) employment retention (raw materials and inputs,
equipment, technician salaries, and oil sector operations); 2) inflationary control (food,
consumer necessities, fuel); 3) health and education; and 4) priority government expenses
for necessary operations.
The most common and secure method of payment in Angola is an electronic funds transfer
between banks. However, for U.S. companies this process was complicated by Deutsche
Bank, the last international lender, ceasing all U.S. dollar transaction clearing services as
of November 2016. Most foreign exchange transfers are currently processed in Euros. Before
the current foreign exchange crisis, letters of credit were commonly used as were open
accounts for established clients.
During 2016, many Angolans with international credit cards used for travel and overseas
purchases had their value limits lowered or cards cancelled by commercial banks due to the
lack of foreign exchange availability in the market to cover these payment commitments.
Banking Systems
Of the 28 commercial banks registered to operate in Angola, five of these - Banco

Angolano de Investimentos (BAI), Banco Economico, Banco de Fomento Angola (BFA),
Banco BIC Angola (BIC) and Banco de Poupança e Crédito S.A.R.L. (BPC) - control over 80
percent of total banking assets, deposits and loans. No U.S. banks operate in Angola.
Commercial banks in Angola are predominately Angolan, Portuguese, and South African.
Most traditionally concentrate on short-term commission-related activities, such as
foreign exchange operations and trade financing. All major banks offer ATM services.
Credit cards use is limited to Visa and Mastercard, and only accepted by business hotels
and a limited number of service providers.
For a complete listing of authorized Angolan financial institutions please visit:

www.bna.ao/Conteudos/Artigos/lista_artigos_medias.aspx?idc=142&idsc=834
Foreign Exchange Controls
Effective July 2013, all companies operating in Angola are required to operate in local
currency (kwanza) and use local banks to make all payments, including payments to
suppliers and contractors located outside of Angola. This law aims to strengthen demand
for the kwanza, thereby building up the capacity of Angola’s financial sector.
For travel in and out of Angola, the government has tightened regulations on currency
movement. Effective April 15, 2016, Angolan citizens are permitted to carry up $10,000
into or out of the country with Angolan residents subject to a $5,000 limitation. The limit
on transit of local currency is 50,000 kwanzas. Officials at the Luanda airport regularly
search departing passengers for currency and will confiscate amounts over these limits.
Angola’s new private investment law, passed in August 2015, discourages investors from
repatriating profits within the first several years of their investments by imposing higher
taxes on dividends and profits. Investors face severe constraints in sending remittances
abroad as profits and dividends repatriation are not prioritized for foreign exchange
allocation in the current restrictive Central Bank auction process. For details on
remittances for foreign investors in Angola, please review the Investment Climate Statement
within this report.
U.S. Banks & Local Correspondent Banks
There are no U.S. banks operating in Angola, nor do any U.S. banks have direct
correspondent relationships with Angolan-based banks. U.S. dollar transaction clearing
services are no longer available in Angola as of November 2016 when Deutsche Bank, the
last bank to offer this service, left the market. International transactions are handled in
euros or other convertible currencies through European and South African correspondent
banks. A number of Angolan banks have ownership ties with Portuguese banks including BFA
(Banco de Fomento Angolano), Banco BIC, Caixa Angola, and Millennium–Atlantico Bank.
Standard Chartered (UK) has restricted its correspondent banking services to a limited client
base including the Central Bank, Sonangol, and some of the international oil companies
operating in Angola.
Project Financing
As the Angolan government budget continues to tighten, project financing for government
projects increasingly depends on external sources such as international commercial or
export credit agencies that typically requiring a sovereign government guarantee.
Domestic credit for private sector projects is extremely limited. Several government
supported local currency credit lines managed through commercial banks for priority
sectors exist, though Angolan companies complain of long review processes and difficulty
securing such financing. Angolan commercial banks are generally not willing to provide
guarantees for foreign currency loans due to the foreign exchange risk. Angolan
government sovereign guarantees that were available in 2016 for a number of high profile
projects are becoming more scarce in 2017, a trend that seems to correlate with the
Angolan government’s increased debt load.
Without needed Angolan government or commercial bank guarantees to support projects

in Angola there is limited activity by U.S. government project financing related agencies
such as U.S. Export-Import Bank, Overseas Private Investment Corporation and U.S. Trade
and Development Agency.
The Overseas Private Investment Corporation's (OPIC) political risk insurance and
financing is available for projects in Angola with at least 25 percent U.S. participation.
Most recently in 2014, OPIC provided a $9.8 million loan to support the Luanda Medical
Center providing treatment and outpatient services. OPIC’s portfolio in Angola currently
totals $20.4 million and since opening operations in 1994 has supported projects in
energy, services, and health care manufacturing and financial services sectors.
The U.S. Trade and Development Agency (USTDA) promotes economic growth in emerging
economies by facilitating the participation of U.S. businesses in the planning and execution
of priority development projects in host countries. In Angola, USTDA has provided feasibility
study grants to support project development in the transportation, electricity and port
industries as well as Reverse Trade Missions to the United States focused on housing and
agribusiness sectors.
Multilateral Development Banks:
The African Development Bank (AfDB) and World Bank provide project financing liquidity in
several key areas of business and economic development in Angola that present solid
opportunities for U.S. companies to participate in internationally competed tenders with
secure international financing.
AfDB activities in Angola include projects in the following sectors: agriculture, rural
development and environment (49 percent); social, including health and education (27
percent); water and sanitation (16 percent); and multi-sector (8 percent) with eight loans
valued at a total of $122.4 billion. The AfDB has also focuses on economic and social
programs related to gender, education, private sector development, microfinance. The
AfDB is increasingly focusing on large-scale infrastructure projects. Specific projects
generating interest from U.S. companies include those in the electrical, fisheries and
railway infrastructure areas. For details on AfDB activities in Angola please see:
www.afdb.org/en/countries/southern-africa/angola/angola-and-the-afdb/
The World Bank Group portfolio in Angola includes major efforts in the water and
agriculture sectors as outlined in detail under the “Best Prospect” sections of this report.
The World Bank Water Sector Institutional Development Project (2008-2016) with a total
project cost of $130 million was extended until 2019 with an additional World Bank loan of
$120 million. It concentrates primarily (75 percent) on water projects in urban and peri-
urban areas with the balance of the project related to wastewater/sanitation. The World
Bank portfolio in Angola also includes programs in financial management, health and
education. For details please see: www.worldbank.org/en/country/angola/overview#2
In agriculture, a second World Bank “Smallholder Agricultural Development and

Commercialization” Project loan was signed in July 2016 for $70 million to help increase
smallholder agriculture productivity, production and marketing for selected crops in the
project areas. Details are at: http://projects.worldbank.org/P154447?lang=en
Currently under development with the Angolan Government is a major World Bank
“Commercial Agriculture Development Project” estimated at $230 million and anticipated
for 2018. The proposed project development objective is to promote commercial
agriculture development, increasing production and employment within selected value
chains in targeted areas in Angola.
Angola is a member of the World Bank Group’s Multilateral Investment Guarantee Agency
(MIGA), which provides insurance to foreign investors against such risks as expropriation,
non-convertibility, and war or civil disturbance. MIGA also provides investment dispute
resolution on a case-by-case basis.
The Commercial Service maintains Commercial Liaison Offices in each of the main
Multilateral Development Banks, including the African Development Bank and the World
Bank. These institutions lend billions of dollars in developing countries on projects aimed
at accelerating economic growth and social development by reducing poverty and
inequality, improving health and education, and advancing infrastructure development.
The Commercial Liaison Offices help American businesses learn how to get involved in
bank-funded projects, and advocate on behalf of American bidders. Learn more by
contacting the Commercial Liaison Offices to the African Development Bank
(http://www.export.gov/afdb) and the World Bank (http://export.gov/worldbank).
Bank Web Resources
Commercial Liaison Office to the African Development Bank http://www.export.gov/afdb

Commercial Liaison Office to the World Bankhttp://export.gov/worldbank
Financing Web Resources
Trade Finance Guide: A Quick Reference for U.S. Exporters, published by the International
Trade Administration’s Industry & Analysis team:
http://www.export.gov/tradefinanceguide/index.asp
U.S. Government Resources
Export-Import Bank of the United States: http://www.exim.gov

Country Limitation Schedule: http://www.exim.gov/tools/country/country_limits.html
OPIC: http://www.opic.gov
Trade and Development Agency: http://www.tda.gov/
SBA's Office of International Trade: http://www.sba.gov/oit/
USDA Commodity Credit Corporation: http://www.fsa.usda.gov/ccc/default.htm
U.S. Agency for International Development: http://www.usaid.gov
International Development Banks
World Bank www.worldbank.org

The Africa Development Bank: www.afdb.org
Angolan Central Bank Banco Nacional de Angola: www.bna.ao
Angolan Commercial Banks For a complete listing of authorized Angolan financial

institutions please visit:
www.bna.ao/Conteudos/Artigos/lista_artigos_medias.aspx?idc=142&idsc=834
Business Travel
Business Customs
U.S. companies serious about the Angolan market need to dedicate time and attention to
develop direct contacts with local distributors and clients. Building technical and after
sales service capacity in Angola is also important to business success. Angola holds strong
historic ties to Portugal, but rather than sales through this channel, the most effective
business contacts and success are direct establishment of Angolan-based distributors or
partners. U.S. companies with Portuguese or Brazilian sales can effectively leverage
these marketing and staff resources as they expand into Angola. Angolan buyers report
that sales through South African distributors can increase costs, cause delivery delays,
and often result in poor after-sales service. Western business practices including the use
of business cards are the norm. Many Angolan company and government representatives
use email addresses through third countries and international service providers due to the
unreliable email service through Angolan providers.
A limited number of business class hotels exist in Angola and are mostly concentrated in
Luanda. Internet service is available in major business hotels, but is generally slower than
in the United States. There are some internet cafes in Luanda and in most provincial
capitals.
Business appointments especially with government officials are often not confirmed until
hours before the appointment time making advance planning challenging. Companies should
be prepared to be flexible. Business travelers who intend to spend extended time in Angola
are highly encouraged to obtain a local mobile telephone for use while in Angola.
Travel Advisory
There is no U.S. Department of State travel alert or warning for Angola as of April 2017.
For details on Angola travel safety and health please review the current U.S. Department
of State travel information at:
http://travel.state.gov/content/passports/english/country/angola.html
Visa Requirements
Acquiring an Angolan visa can be a lengthy process. Business travelers should begin
arrangements well in advance of planned travel dates. U.S. citizens are required to obtain
visas before arriving to Angola, and visa approvals may take several weeks. The Angolan
Government can require that the applicant apply for a visa in their country of citizenship,
unless residency can be established in a third country.
An invitation letter is required with the visa application from the business visitor’s primary
in-country business contact. For clients of the U.S Commercial Service utilizing contracted
services such as a Gold Key, the U.S. Embassy Angola can issue an invitation letter upon
request
According to U.S.-Angolan Government reciprocal arrangements, a 2-year multi-entry visa

should be issued to US citizens.
For the most current details on visa application requirements, U.S. travelers should consult
the Angola Embassy in Washington DC at www.angola.org or the closest consulate in
Houston www.angolaconsulate-tx.org, Los Angeles www.angolaconsulate-ca.org, or New
York.
Angola requires proof of a valid Yellow Fever vaccine before allowing entry into the country,
so travelers should have their yellow International Immunization Card ready to present upon
arrival.
U.S. companies with Angolan business contacts who plan on travel to the United States
should direct them to the U.S. Embassy Angola website for visa application details
at: http://angola.usembassy.gov/visa-info-service.html
Currency
Credit card use (Visa and Mastercard only) is limited to the major hotels with few service
providers or retailers accepting credit cards. Most banks offer ATM machines, though not
all accept international credit cards. In general, Angola is primarily a cash economy and
companies operating in Angola are required to charge only in local currency, the kwanza.
Currency exchange services are available at the airport, currency exchange houses, and
major hotels. While major hotels can procure cars, drivers and translators for business
customers, few hotels will include the charges for such services in the hotel bill; therefore,
customers may need to arrange direct payment in local currency.
Telecommunications/Electric
Telecommunications: Angola’s telecommunications infrastructure continues to improve.

International cellular and voice over internet services are fairly common in Luanda and other
major cities. Estimates for 2016 were 5.9 million (Internet Live) representing around 23.5
percent of the population. Most use mobile phones rather than home computers to access
the internet; mobile broadband access is available to just 12 percent of the population (2014
ITU).
Angola Cable, with majority ownership by Angola Telecom, is part of a consortium building
the South Atlantic Cable System, a submarine cable linkage between Luanda and Forteleza,
Brazil that is designed to link with Americas Cable consortium from Brazil to the United
States. This company is also part of West Africa Cable System (WACS) consortium, a
submarine communications cable running along the west coast of Africa, then to Europe
Angola’s two main cellular phone operators, Unitel and Movicel, provide service to all
provincial capitals and most towns. Visiting business representatives can purchase a mobile
phone easily and affordably for coordination of in-country business meetings as required.
Electric: Electrical outlets in Angola supply electricity at 220-240 volts AC. Outlets
accommodate European standard electrical socket types: The "Type C" Europlug and the
"Type E" and "Type F" SchukoTransportation.
Language
Portuguese is the official language of Angola. Few Angolans speak English at a level
appropriate for business transactions, particularly in the government; therefore, an
interpreter is usually necessary. The daily rate for qualified interpreters ranges from $500-
700 equivalent in local currency.
The U.S. Commercial Service Angola can schedule an interpreter for U.S. companies to
support contracted Gold Key and other contracted service meetings and programs.
Health
Medical facilities and services are available in Angola. While still limited, the quality of
healthcare is improving with the expansion of private medical clinics and hospitals including:
Girassol, Sagrada Esperança, Multiperfil, and the Luanda Medical Center.
Payment for services is generally required before delivery of services. Medical providers will
accept U.S. dollars or local currency. Few facilities accept credit cards. Adequate care for
medical emergencies is limited to Luanda, where there are some good private clinics that
usually have 24-hour service provided by a physician with specialists on call.
A list of physicians is available at the US Embassy Angola website:

http://angola.usembassy.gov/medical_information.html
Few doctors speak English, but due to the heavy concentration of Cuban doctors in Angola,
Spanish is common. Routine surgeries such as appendectomies can be performed. Local
pharmacies provide a limited supply of prescriptions and over-the-counter medication, but
travelers should carry an adequate supply of properly-labeled medications routinely require
when living in or visiting Angola.
Travelers to Angola should consult the CDC guidance for travel at:
http://wwwnc.cdc.gov/travel/destinations/traveler/none/angola
Angola requires proof of a valid Yellow Fever vaccine before allowing entry into the country,
so travelers should have their yellow International Immunization Card ready to present upon
arrival. Anti-malaria medications are also strongly recommended.
Local Time, Business Hours and Holidays

Throughout the year, Standard Time in Angola is one hours ahead of Greenwich Mean Time.
Generally, business hours are weekdays from 8:00 a.m. to 1:00 p.m. and 2:00 p.m. to 5:00
p.m. Most offices observe a five-day week, but many stores are open on Saturdays, and
Sundays. All banks are open weekdays from 8:00 a.m. to 3:00 p.m., and some banks operate
on Saturdays from 8:00 a.m. to 12:00 a.m.
Below are listed Public Holidays for the January -December 2017 period. Holidays falling on
the weekend are observed the following Monday.
January 01 New Year’s Day
February 04 Start of Liberation War
February 28 Carnival
March 08 International Women’s Day
April 04 Peace and Reconciliation Day Angola
April 14 Good Friday
May 01 Labor Day
September 18 Nation’s Founder and National Heroes Day
November 02 All Soul’s Day
November 11 Independence Day Angola
December 25 Christmas Day
Temporary Entry of Materials or Personal Belongings

For transit in and out of Angola, the government has tightened regulations on currency
movement. Effective April 15, 2016, Angolan citizens are permitted to carry up $10,000
into or out of the country with Angolan residents subject to a $5,000 limitation. The
50,000 kwanzas (local currency) has not changed. Officials at the Luanda airport regularly
search departing passengers for currency and will confiscate amounts over these limits.
The temporary entry of goods or equipment into Angola are permitted for up to 12 months
and can be renewed for up to 12 additional months. Temporary imports must be
accompanied by all normal customs documents and are subject to a deposit to Angolan
Customs of 100 percent of the duties and taxes on the declared value were it to have been
imported normally. Regulations state that Angolan Customs refunds this deposit within three
months after the temporarily imported goods are exported from Angola.
Temporary imports for display at a trade show should also be accompanied by a letter
from the show organizer verifying participation in the event. Depending on the product,
a pre-shipment inspection may be required. The customs deposit may be waived for
official trade shows when accompanied by a formal letter from the Ministry of Foreign
Relations.
Angola does not accept Carnet for the temporary import of goods.
Travel Related Web Resources
US Department of State – Travel Information

http://travel.state.gov/content/passports/english/country/angola.html
U.S. Embassy Angola - Consular Services for American Citizens
http://angola.usembassy.gov/service.html
Angolan Government Migration and Foreigners Service (SME)

http://www.sme.ao/index.php?option=com_content&view=article&id=82&Itemid=113&lan
g=en
Angola Embassy in the United States www.angola.org
Angolan Consulate in Houston www.angolaconsulate-tx.org
Angolan Consulate in Los Angeles www.angolaconsulate-ca.org

2017 Angola Country Commercial Guide

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

2017 Angola Country Commercial Guide

Загружено:

Авторское право:

Доступные форматы

Doing Business in Angola:

2017 Country Commercial Guide for U.S.

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.

Mobile eCommerce ___________________________________________________________ 18

Leading Sub-Sectors __________________________________________________________ 55

1.13 Bankruptcy Regulations ___________________________________________________ 81

Local Time, Business Hours and Holidays __________________________________ 104

Doing Business in Angola

 U.S. Commercial Service –Angola, established in late 2014, is on stand-by to assist US

While Angola’s economic downturn severely challenges short-term market opportunities,

 Agricultural Equipment and Supplies

Market Entry Strategy

For U.S. Department of State background notes on Angola please visit:

Selling U.S. Products & Services

Using an Agent to Sell U.S. Products and Services

transportation and logistics, telecommunications and information technology, civil

Legal options for establishing a direct presence in Angola include:

Companies outside of the petroleum industry seeking to incorporate in Angola must go

Franchises, as with other businesses operating in Angola, face a challenging business

There are no legal restrictions on establishing a franchising business model in Angola.

Selling to the Government

Angola is not party to the WTO Procurement Agreement.

Distribution & Sales Channels

legally established distributors and representatives of international products exist in Angola,

A southern Africa regional distribution approach to Angola is challenging since it is a

Distribution infrastructure within Angola continues to be challenged by poor road quality,

In the petroleum industry, there is increased enforcement of long-standing regulations by

Selling Factors & Techniques

The best way to do business in Angola is to find a local distributor or representative to

Current Market Trends

Domestic eCommerce (B2C)

eCommerce Intellectual Property Rights

Popular eCommerce Sites

Major Buying Holidays

Trade Promotion & Advertising

For consumer-oriented products, billboard advertising is also common as is sponsorship of

Sales Service/Customer Support

Notwithstanding this objective, a number of U.S. companies have reported to CS Angola

Protecting Intellectual Property

Local Professional Services

Principle Business Associations

Angolan Community of Exporting and Internationalized Companies (CEEIA), established

US-Angola Chamber of Commerce (USACC) is the bilateral business chamber promoting

Angolan Government Agencies related to business:

Limitations on Selling U.S. Products and Services

For investments in the following sectors, a minimum of 35 percent local participation/

Imports into Angola of the following goods are prohibited:

 animals and animal by-products from areas affected by epizootic diseases

Leading Sectors for U.S. Exports & Investments

Agricultural Equipment and Supplies

A featured element of the Angolan Government’s National Development Plan (2013-2017) is

 A comprehensive program to stimulate beef production by 2018 to offset some of the

 Gesterra S.A, (Arable Land Management) – An Angolan government company with 18

 SODECAP (Capanda Agro-industrial Development Park) - An Angolan government

 SODEMAT S.A. (Matala Regional Development Company) - An Angolan government

 Quiminha Project (PIDARQ) – This Angolan government Integrated Agricultural and

Ongoing multilateral development bank projects include:

 World Bank “Smallholder Agricultural Development and Commercialization” Project.

 The African Development Bank (AfDB) agricultural-related work in Angola focuses on

 Livestock production equipment and technologies

Specific sub-sector areas with strongest potential include:

Angola Ministry of Agriculture www.minagri.gov.ao

For further information:

Manuel Cafala, Commercial Specialist