Angola: Investing

FDI in Figures

Angola has an exceptional economic potential. The country is rich in oil, minerals, fisheries and agriculture, and has significant potential in hydroelectricity. The country seeks to promote foreign investment. A new law for FDI was enforced in 2003 in order to create a more positive atmosphere for investors. However, this law is subordinated to decrees and regulations issued by the ministries. Angola is considered one of the most corrupt countries of the world, its financial system is underdeveloped, and transportation is slow and expensive.

During these past years, encouraged by the exceptional high prices, investments have rushed into the oil sector, reactivating the projects of oil exploration and drilling at the time when the profitability was low due to the drop in prices. In spite of a drop in the FDI flux in 2009, due to the economic crisis, FDI flows should remain large.

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

	Angola	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	5.7	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

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

Source: UNCTAD - Last Available Data

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

Tax Rates

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

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Angola.
Useful Resources: National Investment Agency of Angola
Economic Developments and Prospects in Angola - African Economic Outlook
Egyptian Mission in Angola
comandante stona street
N247 Alvalade
Phone: (+2442)22321591 - 2321593 - Dir 2320568
Fax: (+2442) 22323285
Contact the Mission via Email.
Embassy of Angola in Egypt
12, Fouad Mohey El Din
Square Mohandessine
Cairo, Egypt
Phone: (+20) 3 3377602 / (+20) 3 7498259
Fax: (+20) 3 3378683
Contact the Embassy via Email.

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