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In 2023, Angola is set to solidify its spot as one of sub-Saharan Africa’s five largest economies, driven by higher oil prices and a growing non-oil sector, according to the IMF’s outlook. Positive economic momentum took hold in 2022, with the economy growing by 2.6 percent after ending a five-year recession with 0.7 percent growth in 2021. The economy is expected to grow 3.2 percent in 2023, alongside annual population growth of 3.3 percent. In May 2022 Angola briefly moved into the position of Africa’s top oil producer for the first time in over five years; the country currently stands as the continent’s fourth largest producer of crude oil. Angola is also a significant producer of rough diamonds, has reserves of more than 50 critical minerals, and is expanding the Lobito Corridor rail network as an outlet to link DRC mineral exports to the Atlantic. Angola joined the Extractive Industries Transparency Initiative in June 2022 to increase transparency in the oil, gas, and mineral resource sectors. The United Nations announced Angola will graduate from the Least Developed Countries category in February 2024.

Despite its reputation as a challenging place to do business, Angola is seeking to improve its investment climate and improve in the areas of anti-corruption, democracy, governance, and human rights. Angola improved 20 places in the 2022 Transparency International Corruption Perceptions Index, ranking 116 out of 180 countries. The country also signed a first of its kind Sustainable Investment Facilitation Agreement (SIFA)  with the EU in November 2022, which aims to help simplify processes, increase transparency, and integrate labor and environmental standards into the bilateral agreement. However, a slow and opaque judicial system discourages investment and at times limits the efficiency of contract enforcement. Similarly, the perception of and incidence of corruption remain a concern for investors, particularly in the non-extractives sector.

The past year saw Angola experience a year-on-year increase in foreign direct investment inflows of $3.8 billion as of January 2023, according to Angola’s Private Investment and Export Promotion Agency (AIPEX), attributed to efforts in improving regulations, broader economic reforms, improvements in information communication and technology, and infrastructure. AIPEX registered investment from the United States increased by $1.2 billion in the same period. Angola is also receiving a high level of interest as an investment destination from investors from across the globe. Angola was selected by the World Bank as one of the countries to have its business and investment climate assessed under its new flagship, Business Ready  project. On issues of environment sustainability, Angola has set ambitious targets to diversify energy production, including plans to generate 77 percent of Angola’s installed power supply from clean sources by 2025. As a result of substantial government investment, the country stands to become host to sub-Saharan Africa’s largest solar power generation capacity as a result of solar investments, led by U.S. firm SunAfrica.

Angola has not faced significant food insecurity or supply chain disruptions as a result of Russian aggression in Ukraine. The country has relied on its strategic food reserve to help stabilize the cost of key commodities, and inflation fell to 10.8 percent in March 2023 after reaching 27 percent in March 2022. The government increased its stake in the Catoca diamond mine to 59 percent after acquiring the shares linked to corrupt former officials but did not impact the 41 percent stake held by Russian state-owned company Alrosa.

Table 1: Key Metrics and Rankings
Measure Year Index/Rank Website Address
TI Corruption Perceptions Index 2022 116 of 180 
Global Innovation Index 2022 127 of 132 
U.S. FDI in partner country ($M USD, historical stock positions) 2021 USD -$118 
World Bank GNI per capita 2021 USD 1,710 

Policies Towards Foreign Direct Investment

Angola continues to actively seek FDI to diversify capital inflows, boost economic growth, and diversify the economy. The government completed the 2019-2022 cycle of its privatization program (PROPRIV), initially planning to sell off 195 state owned assets and later revising the goal to 178. Despite a down-turn in foreign investment during COVID-19, the government privatized 93 small and medium companies and shares in businesses previously held by the government, raising about $1.1 billion, according to official reports. The government will continue PROPRIV through 2026, offering stakes in or total control of another 73 assets, including some of its major state-owned enterprises such as national airline TAAG, the country’s largest mobile telecoms operator Unitel, and state oil company Sonangol. Angola has also modernized its tendering processes for public procurement to make it more transparent and attempt to move toward a true market economy. Since 2021, Angola has increased the number of public investments awarded through open tenders and expanded the use of a public procurement electronic platform .

Angola’s trade and investment promotion agency  AIPEX   provides an online investment platform for investors to register their investment proposals. AIPEX and the Institute of State Assets and Shares work together on roadshows to promote PROPRIV and other investment opportunities for foreign investors. AIPEX is also responsible for providing institutional support and monitoring investment project execution. Angola boasts 28 existing chambers of commerce and industry, including two with a U.S. link, that hold business roundtables and advocate for companies from their countries in Angola.

Angola passed local content regulations for the oil sector in October 2020, restricting the concept of “national company” to companies fully owned by Angolan citizens, as opposed to a company with at least 51 percent ownership by Angolan entities. The regulation has three distinct categories that determine the types of services that must be contracted with local entities, locally incorporated entities (regardless of the share capital structure), or foreign entities. The local content regulations apply to oil companies and other companies providing goods and services to the oil sector, however it took some time for the exclusivity and preference lists to be published, so companies faced some uncertainty until they were published in 2021, according to a prominent, local sector law firm.

Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign and domestic private entities can establish and own business enterprises with limitations on foreign entities holding the majority stake in companies in specific sectors. The 2018 Private Investment Law (PIL) establishes the general principles of private investment in Angola for domestic and foreign investors and applies to private investments of any value. Under the PIL, the acquisition of shares of an Angolan entity by a foreign investor is deemed to be a private investment operation. If the investor wishes to transfer funds abroad, the private investment project must be properly registered and executed, and appropriate taxes must be paid before transferring.

Majority foreign shareholding restrictions persist in specific industries such as the oil and gas sector (49 percent cap) and the maritime sector, specifically for shipping, due to their significance in the Angolan economy. Mining rights are granted to private investors by the national mineral resource regulator, the National Agency for Mineral Resources, which is aligned with the Ministry of Mineral Resources, Petroleum, and Gas. The PIL lifted restrictions on having Angolan partners for several strategic sectors such as telecommunications, hospitality and tourism, transportation and logistics, and information technology.

In October 2021, the National Assembly approved Law No. 26/21, which revoked the Law of Commercial Activities No. 1/07 of May 2007. Under Law No. 26/21, the authority to license business activity, which previously rested with the Ministry of Commerce and, since July 2021, with provincial governments and municipal administrations, was transferred to the Angolan President. The law also expands business licensing eligibility. Commercial stakeholders have expressed concern that the transfer of authority could create dependence on higher governmental powers to authorize commercial activity.

Other Investment Policy Reviews

At the government’s request, the last Investment Policy Review (IPR) of Angola’s business and economic environments was completed in 2019 by the United Nations Conference on Trade and Development (UNCTAD). The full report and policy recommendations are accessible at  UNCTAD TPR  . The WTO’s last IPR was in 2015; OECD has never conducted an IPR of Angola.

Angolan civil society organizations presented a summary of their activities between January 2021 and January 2022 to the Extractive Industries Transparency Initiative (EITI) which included recommendations to develop the country’s mineral resources in a transparent manner, limit harm to the environment via better enforcement, and to include women in the leadership of mining companies and broader range of natural resource issues.

Business Facilitation

Foreign and Angolan entrepreneurs are able to incorporate companies using the One-stop Shop for Companies (Guiché Único da Empresa or GUE), which allows for starting the incorporation process online  or at one of seven locations located around the country. Presidential Decree No 167/20, of June 15, 2020, created the “  Single Investment Window  Janela Única de Investimento, or JUI, which is aimed at simplifying contacts between investors and all myriad public entities involved in the approval of foreign investment projects.

To incorporate a company, investors must open a bank account and make an initial deposit divided into shares and appropriate to pursue the company’s objectives, show proof of deposit to an Angolan notary. Investors must also submit a draft incorporation deed, articles of association, and shareholder documents. The company can then register with the Commercial Registrar to register the company’s incorporation in the Angola’s Official Gazette (Diário da República) though that process is now optional. For naming purposes, the GUE process requires the provision of three options in preferential order to avoid repetition with existing companies.

Despite efforts to reduce the bureaucracy related to incorporating a business, it still takes around 30 days to incorporate. The business then must register with the Tax Authority , the  National Institute for Statistics  , and the  National Institute for Social Security  . The business can then initiate licensing procedures.

In November 2022, the EU and Angola concluded a Sustainable Investment Facilitation Agreement (SIFA)  — the first EU agreement of this kind. The SIFA aims to make it easier to attract and expand investment through simplified processes and enhanced transparency, while integrating environmental and labor rights commitments in the bilateral relationship.  The agreement must now be revised before it is signed and ratified by both parties to enter into force.

Outward Investment

The Angolan government does not promote or incentivize outward investment, nor does it restrict Angolans from investing abroad. Investors are free to invest in any foreign jurisdiction.

Domestic investors often prefer to invest in Portuguese-speaking countries, with few investing in neighboring countries in Sub-Saharan Africa. Difficulty in accessing capital or loans limits the scale of investment abroad by domestic investors.

Angola has bilateral investment agreements in force with Cabo Verde, Germany, Italy, Russia, Brazil, and Portugal. A list of the other 12 signed bilateral investment treaties and their status can be found on the UNCTAD website  .

Angola has a  Trade and Investment Framework Agreement   with the United States and ratified the African Continental Free Trade Agreement in October 2020. Angola and the EU concluded negotiations on a  Sustainable Investment Facilitation Agreement  in November 2022.

Angola does not have a bilateral taxation treaty with the United States but signed the Foreign Account Tax Compliance Act (FATCA) on November 9, 2015, which entered into force on August 29, 2016, through Presidential Decree No. 162/16, of August 29. Under this agreement, Angolan financial institutions report to the IRS information on financial accounts held by U.S. taxpayers in Angola. More details can be found at  

Transparency of the Regulatory System

Angola’s regulatory system is complex, at times vague, and inconsistently enforced. In many sectors, no effective regulatory system exists due to a lack of institutional and human capacity. The banking system is slowly beginning to adhere to International Financial Reporting Standards (IFRS). SOEs are still far from practicing IFRS. The public does not regularly participate in draft bills or regulations formulation, although the National Assembly offers an online option for citizen input that can be directed to one of the ten parliamentary committees. Angola does not yet have an ESG disclosure framework, but in January 2023 the Council of Financial System supervisors announced a strategic plan to develop ESG policies and a best practice guide that would include compliance and disclosure information. The Angolan Communications Institute (INACOM) is the regulatory authority for the telecommunications sector and regulates prices for telecommunications services such as mobile telephone, internet, and TV services, particularly in sectors without much competition. Revised energy-sector licensing regulations have permitted some purchase power agreements (PPA) participation. The National Bank of Angola (BNA) oversees the banking and non-banking financial institutions and delivers sanctions for violations of banking regulations.

Regulatory reviews are based on scientific, or data driven assessments or baseline surveys. Evaluations are based on data, but not made available for public comment. All regulation is made at the national level.

The state reserves the right to have the final say in all regulatory matters and relies on sectorial regulatory bodies for supervision of institutional regulatory matters concerning investment. The Economic Commission of the Council of Ministers oversees investment regulations that affect the country’s economy including the ministries in charge. Other major regulatory bodies responsible for completing deals include:

  • The National Petroleum, Gas and Biofuels Agency (ANPG) is the government regulatory and oversight body responsible for regulating oil exploration and production activities. On February 6, 2019, the parastatal oil company Sonangol – which previously held regulatory authority – spun off that function to create ANPG through Presidential decree 49/19. The ANPG is the national concessionaire of hydrocarbons in Angola, authorized to conduct, execute, and ensure oil, gas, and biofuel operations run smoothly. The ANPG must also ensure adherence to international standards and establish relationships with other international agencies and sector relevant organizations.
  • The Regulatory Institute of Electricity and Water Services (IRSEA) is the regulatory authority for renewable energies and enforcing powers of the electricity regulatory authority. Revised energy-sector licensing regulations have improved legal protection for investors to attract more private investment in electrical infrastructure, such as dams and hydro distribution stations.
  • The Angolan Communications Institute (INACOM) is the regulatory authority for the telecommunications sector including for prices for telecommunications services.
  • As of October 1, 2019, a 14 percent VAT regime came into force, replacing the existing 10 percent Consumption Tax. The General Tax Administration (AGT) oversees tax operations and ensures taxpayer compliance. The new VAT tax regime aimed to boost domestic production and consumption and reduce the incidence of compound tax for businesses unable to recover the consumption tax. The government introduced a temporary reduction of the VAT in October 2021 for key items in the basic basket of goods to 7 percent. The temporary measure remained in place through early 2023. Corporate taxpayers can be reimbursed for the VAT on the purchase of good and services, including imports.

There are no informal regulatory processes managed by nongovernmental organizations or private sector associations, and the government does not allow the public to engage in the formulation of legislation or to comment on draft bills. Procurement laws and regulations are little publicized and not consistently enforced. The Inspector General is charged with providing oversight of public ministries and agencies through inspections, audits, and other supervisory mechanisms and will occasionally detain public employees when accused of misappropriation of state resources. However, oversight mechanisms are generally weak, and no audits are required to ensure internal controls are in place or administrative procedures are followed. Inefficient bureaucracy and possible corruption frequently lead to payment delays for goods delivered, resulting in an increase in the price the government must pay.

No regulatory reform enforcement mechanisms have been implemented since the last ICS report. The Diário da República (the national gazette) publishes official regulatory action but is not publicly available and not free of charge, though some decrees and regulatory actions are posted on ministerial websites.

The Ministry of Finance’s Debt Management Unit publishes  quarterly public debt reports, debt strategy, annual debt plan, bond reports, and other publications in Portuguese and in English though it does not have regularly report on contingent liabilities.

International Regulatory Considerations

Angola is a member of SADC and ECCAS, though it is not a member of SADC’s Free Trade Area or of the Economic and Monetary Community of Central Africa (CEMAC) the customs union associated with ECCAS. New regulations are generally developed in line with regulatory provisions set by AfCTA , SADC , and ECCAS .

Angola is a WTO member but does not notify all draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT). Technical Barriers to Trade (TBT) regimes are not coordinated and often trade regulations are passed and implemented without the due oversight of the WTO.

Legal System and Judicial Independence

Angola’s legal system follows civil law tradition and is heavily influenced by Portuguese law, though customary law often prevails in rural areas. Legislation is the primary source of law. Precedent is accepted but not binding as it is in common-law countries. The Angolan Constitution is at the top of the hierarchy of legislation and establishes the general principle of separation of powers between the judicial, executive, and legislative power. Primary judicial authority in Angola is vested in its courts, which have institutional weaknesses that include lack of independence from political influence in the decision-making process at times.
The Angolan justice system is slow, arduous, and often partial. Legal fees are high, and most businesses avoid taking commercial disputes to court in the country.

Angola has commercial legislation that governs all contracts and commercial activities but long lacked a specialized court. On August 5, 2020, the Economic Council of Ministers approved the opening of the Court for Litigation on Commerce, Intellectual Property, and Industrial Property Matters, at the Luanda Court of First Instance. With the introduction of this commercial court, the GRA hopes the business environment and trust in public institutions will improve. Prior to this arrangement, trade disputes were resolved by judges in the Courts of Common Pleas. The commercial legislation provides that before going to court, investors can challenge the decision under the terms of the administrative procedural rules, either through a complaint (to the entity responsible for the decision) or through an appeal (to the next level above the entity responsible for the decision). In the new system, investors will be able, in general, to appeal to civil and administrative courts. Investors exercising their right to appeal, however, should expect decisions to take months, or even years, in the case of court decisions.

Angola enacted a new Criminal Code and a new Criminal Procedure Code which entered into force on February 9, 2021, to better align the legal framework with internationally accepted principles and standards, with an emphasis on white-collar crimes and corruption. The legal reforms extend criminal liability for corruption offenses and other crimes to legal entities; provide for private sector corruption offenses to face similar fines and imprisonment to the punishments applicable to the public sector and modernize and broaden the list of criminal offenses against the financial system. The legal system lacks resources and independence, limiting the effectiveness of the reforms.

There is a general right of appeal to the Court of First Instance against decisions from the primary courts. To enforce judgments/orders, a party must commence executive proceedings with the civil court. The main methods of enforcing judgments are:

  • Execution orders (to pay a sum of money by selling the debtor’s assets),
  • Seizure of assets from the party, and
  • Provision of information on the whereabouts of assets.

The Civil Procedure Code also provides for ordinary and extraordinary appeals. Ordinary appeals consist of first appeals, review appeals, interlocutory appeals, and full court appeals, while extraordinary appeals consist of further appeals and third-party interventions. Generally, an appeal does not operate as a stay of the decision of the lower court unless expressly provided for as much in the Civil Procedure Code.

Laws and Regulations on Foreign Direct Investment

Angola’s legal system is becoming more favorable to FDI and has generally not allowed FDI in specific sectors such as military and security, activities of the Central Bank, and key infrastructure port and airport infrastructure. Under the privatization program (PROPRIV) the government has encouraged FDI in ports, airports, and free trade areas through management and operation tenders. Investment values exceeding $10 million require an investment contract that needs to be authorized by the Council of Ministers and signed by the President.

AIPEX, Angola’s investment and export promotion agency, maintains the Janela Única do Investimento  (Single Investment Window), which serves as Angola’s one-stop-shop for investment.

Competition and Antitrust Laws

Mergers and acquisitions, including those which take place through the sale of state-owned assets, are reviewed by the Institute of Asset Management and State Holdings (IGAPE) and competition related concerns receive oversight by the Competition Regulatory Authority (the “CRA”) which is also responsible for prosecuting offenses. Competition is also regulated by the Competition Act of 2018, which prohibits cartels and monopolistic behavior. A leniency regime was added in September 2020 to reduce fines for the first party to come forward under specific conditions.

CRA decisions are subject to appeal, though Angola does not have special courts of jurisdiction to deal with competition matters.
Angola’s Competition Act creates a formal merger control regime. Mergers are subject to prior notification to the CRA, and they must meet certain specified requirements. The thresholds requiring prior notification are the following:

  • the creation, acquisition, or reinforcement of a market share which is equal to or higher than 50 percent in the domestic market or a substantial part of it; or
  • the parties involved in the concentration exceeded a combined turnover in Angola of 3.5 billion Kwanzas in the preceding financial year; or
  • the creation, acquisition, or reinforcement of a market share which is equal to or higher than 30 percent, but less than 50 percent in the relevant domestic market or a substantial part of it, if two or more of the undertakings achieved more than 450 million Kwanzas individual turnover in the preceding financial year.

Mergers must not hamper competition and must be consistent with public interest considerations such as:

  • a particular economic sector or region.
  • the relevant employment levels.
  • the ability of small or historically disadvantaged enterprises to become competitive; or
  • the capability of the industry in Angola to compete internationally.

Expropriation and Compensation

Under the revised Law of Expropriations by Public Utility (LEUP), which came into force in October 2021, real property and any associated rights can be expropriated for specific public purposes listed in the LEUP in exchange for fair and prompt compensation to be calculated pursuant to the act. Only property strictly indispensable to achieve the relevant public purpose can be expropriated. The LEUP does not apply to compulsory eviction, nationalization, confiscation, easements, re-homing, civil requisition, expropriation for private purpose, temporary occupation of buildings, destruction for public purpose and revocation of concessions. Save for the urgent expropriation instances specifically set forth in the act, the LEUP enshrines the primacy of acquisition through private-law mechanisms, providing for a negotiation process between the expropriating entity – national or local government – and the relevant citizen or private-law entity.

Despite the reforms, expropriation without compensation reportedly remains a common practice with idle or underdeveloped areas frequently reverting to the state with little or no compensation to the claimants who paid for the land, who in most cases allege unfair treatment and at times lack of due process. About 50 families were relocated from their homes in May 2022 to make space for infrastructure close to the new Luanda International Airport. All were reportedly moved at least 15 miles away and given land that was about 43 square feet, but also were not given advance warning; their homes were eventually demolished to enable construction.

Dispute Settlement

ICSID Convention and New York Convention

Angola’s National Assembly agreed to ratify the ICSID Convention on September 1, 2021. Angola signed the convention on July 14, 2022 and deposited its instrument of accession to the ICSID convention on September 21, 2022. The convention entered into force on October 21, 2022. Angola ratified the New York convention of 1958 on March 6, 2017. There is no specific legislation related to enforcement of either the 1958 New York Convention or the ICSID Convention.

Investor-State Dispute Settlement

Angola is a member of the Multilateral Investment Guarantee Agency which can provide dispute settlement assistance as part of its political risk insurance products. Angola does not have BIT or FTA chapter with the United States but signed a Trade and Investment Framework Agreement with Angola in 2009.

U.S. Embassy Luanda is aware of one ongoing formal investment dispute involving an American company since 2017. To date, the U.S. investor’s complaints against the GRA remain unsettled.

International Commercial Arbitration and Foreign Courts

Alternative dispute resolution mechanisms are not commonly used in commercial disputes. Under the revised Public Procurement Law of December 2020, in disputes related to the termination of a public works contract, the law mandates an extrajudicial conciliation process be attempted before the case goes to court. Angola recognizes and enforces arbitration rulings against its government. Extra-judicial cases against foreign investors are rare.

Bankruptcy Regulations

Angola’s Law on Corporate Restructuring and Insolvency went into force on May 10, 2021, representing the first amendment to bankruptcy legislation since 1961. The law regulates the legal regime of extrajudicial and judicial recovery of the assets of natural and legal persons in economic distress or imminent insolvency, provided recovery is viable and the legal regime of insolvency proceedings of natural and legal persons. The law permits the conservation of national and foreign investment since investors know they have a legal remedy that has as its purpose the preservation of the company.

Investment Incentives

The Private Investment Law (PIL) of 2021 included amendments allowing for negotiation of tax incentives between state and potential investors. The PIL eliminated the investment value and the value required to qualify for incentives in foreign and local investments, previously set at USD 1,000,000 and USD 500,000 respectively. It also eliminates the requirement for foreign investors to establish a partnership with an Angolan entity with at least a 35 percent stake in the capital structure of investments in the electricity and water, tourism, transport and logistics, construction, media, telecommunications, and IT sectors. Investors can determine their own capital structure in those sectors under the current law. The government offers sovereign guarantees and since January 2022, has had access to a 1 billion Euro credit line from Deutsche Bank to finance private sector activities. The first company to benefit from a sovereign guarantee under the credit line was the Carrinho Group, a food services company that received access to 200 million Euros. The company also won the concession to manage Angola’s strategic food reserve.

Angola does not yet have a legislation which offers incentives to green investment.

Foreign Trade Zones/Free Ports/Trade Facilitation

The PIL restructures the country into three economic development zones (zones A through C) determined by political and socio-economic factors, up from two as per the 2015 investment law. For Zone A, investors have a three-year moratorium on taxes reduced between 25- 50 percent of the tax levied on the distribution of profits and dividends. For Zone B, it is between three to six years with a 50 to 60 percent tax reduction, and for Zone C between six to eight years with a tax reduction between 60-70 percent of the tax levied on distribution of profits and dividends.

The Free Trade Zones Law (FTZL) passed October 12, 2020. The FTZL establishes benefits to be offered to investors by the Angolan Government in exchange for meeting specific monetary, job creation, or other investment requirements on a per contract basis. Investors are granted use of the Free Zone for 25 years and can receive industrial tax and VAT benefits, customs rights, as well as land and capital benefits for investing in a Free Zone. Investments made in Free Zones must consider environmental protection interests.

Investors are allowed to carry out industrial activities, agriculture, technology activities, as well as commercial and service activities. It is possible to carry out other activities which are not specified by the FTZL, provided that such activities target an international market and relevant authorities authorize the activities. Industrial activities should use Angolan raw materials and be focused on exports).

Performance and Data Localization Requirements

The GRA follows “forced localization” in the oil and gas sector where foreign investors in the sector must use domestic goods and tertiary services as stipulated in decree 271/20 of October 20, 2020. The Local Content Law covers all companies providing goods and services to the oil sector, as well as the oil companies themselves. Commercial relations for the oil and gas sector continue to be divided into an “Exclusivity Regime”, “Preference Regime”, and a “Competitive Regime. Under the Exclusivity Regime, oil and gas companies must contract wholly owned Angolan commercial companies. Under the Preference Regime, the contracted company must be incorporated in Angola, and under the Competitive Regime, there is contractual freedom in sourcing the company. The specific goods and services falling under the Exclusivity and Preference regimes must be listed by the National Oil, Gas and Biofuels Agency (ANPG) – the national concessionaire – annually. In addition, all companies operating in any segment of the petroleum-sector value chain are required to present an Annual Local Content Plan to the ANPG.

Local content regulations offer guidelines that are only loosely enforced, and companies lack clarity on how to satisfy the Angolan government’s requirements. While the lack of enforcement may make it easier for foreign companies to comply with local content regulations, the lack of specificity challenges 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. Legal guidance to get the guarantees for investors under the PIL is strongly encouraged.

Regulations around data storage, management, and encryption are still at nascent stages. The Institute for Communications of Angola (INACOM) oversees and regulates data in liaison with the Ministry of Telecommunications. The National Assembly approved Law No. 22/11 on June 17, 2011, providing the framework for personal data protection, though the law does not specifically address the transmission of data outside the country. The President of Angola passed Decree No. 214/16 on October 10, 2016, establishing the organizational framework of the data protection authority. The Ministry of Telecommunications and Information Technology (‘MTTI’) announced, on October 9, 2019, that the National Data Protection Agency (APD) had become operational. The APD issued the first license to a private credit agency in February 2022 and collaborates with other governments and private sector entities to train Angolan public officials on data protection. It also issues fines to companies that it deems to have violated personal data protection laws.

Real Property

Property rights enforcement remains difficult, given that the Land Law (Lei de Terras de Angola) has not been revised since its approval in December 2004 and two-thirds of Angolans are directly dependent on land property rights due to their work in agriculture. Difficulties in completing land claims, land grabbing, lack of reliable government records, and unresolved status of traditional land tenure continue to be problems. Among other provisions, the Land Law includes a formal mechanism for transforming traditional land property rights into legal land property rights (clean titles), since a transparent system of land property rights enforcement did not exist before the civil war ended in 2002.

Foreigners are permitted to hold land in Angola through acquisition or lease under the 2004 Land Law. The Land Law sets out requirements for all potential landholders to acquire land, with the main distinctions for foreign entities being the type of identification (passport) a foreign citizen must produce.

Mortgages exist but can be difficult to obtain. According to the Land Law, 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. The recipient of private property rights from the State can only transfer those rights with the consent of the local authority and after a period of five years of effective use of the land. Weak land tenure legislation and lack of secure legal guarantees (clean titles) are the reasons given by most commercial banks for their greater than 80 percent refusal rate for loans since land is 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. Owners must wait five years after purchasing before reselling land. There are no written regulations setting out guidelines defining different forms of land occupation, including commercial use, traditional communal use, leasing, and other private use. Over the years, the government has given out large parcels of land to individuals to support the development of commercial agriculture. However, this process has largely proceeded in an unsystematic way and does not follow any formal rule change on land tenure by the State.

Before obtaining proof of title nationwide, an Angolan citizen or an Angolan legal entity must also obtain the Real or Leasing Rights (“Usufruct”) of the Land from the Institute of Planning and Urban Management of Luanda (IPGUL), an often-time-consuming procedure that can take up to a year or more. However, if a company already owns the land, it must secure a land property title deed from the Real Estate Registry in Luanda. The local registry – if the property is not in the capital – then produces an updated property certificate (certidão predial) 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. Dispatch no. 174/11 of March 11, 2011, mandates the total fees for the property certificate 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); along with notary and other fees. The total fee is also dependent on the current value of the fiscal correction unit (UCF), set at 88 kwanzas.

Intellectual Property Rights

Angola is not listed in United States Trade Representative’s (USTR) Special 301 report nor the notorious market report.

Domestic enforcement of Intellectual Property Rights can be difficult due to lack of resources and competing priorities, but the National Authority of Economic Inspection and Food Safety (ANIESA) was able to identify and break up a network of businesses selling counterfeit cosmetic products in early 2021. Authorities traced the source of the products to DRC, highlighting concerns about lack of border measures to intercept counterfeits. The Angolan Government signed an agreement with Portugal in October 2021 to jointly combat counterfeit medicines. In December 2021, ANIESA suspended the operations of three factories (located in Viana, Kikuxi, and Benfica) for producing counterfeit Havaianas-branded sandals. Trademark registration is mandatory to be granted rights over a brand. Angolan trademarks are valid for 10 years from the filing date and renewable for further periods of 10 years.

The Instituto Angolano de Propriedade Intelectual (IAPI) is the governmental body within the Ministry of Industry & Commerce charged with implementing patent and trademark law. The Ministry of Culture, Tourism & Environment oversees copyright law.

Regarding patents, additional fees are due for each claim after the 15th. Additionally, the request for the anticipation or postponement of the publication of a patent is now provided by the new applicable fees.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  

Capital Markets and Portfolio Investment

Foreign portfolio investment is still new in Angola, but the government is seeking to increase it. The National Bank of Angola (BNA) abolished the licensing previously required to import capital from foreign investors allocated to the private sector and export income associated with such investments. This measure complements the need to improve the capture of FDI and portfolio investment and it is in line with the privatization program for public companies (PROPRIV) announced through Presidential Decree No. 250/19 of August 5, 2019, which encourages foreign companies to purchase state-owned assets the government is liquidating. BNA has also stopped requiring a license to export capital resulting from the sale of investments in securities traded on a regulated market and the sale of any investment, in which the buyer is also not a foreign exchange resident, pursuant to Notice No. 15/2019. The BNA is increasingly removing restrictions on payments and transfers for current international transactions.

Angola’s Debt and Securities Stock Exchange (BODIVA), planned to be privatized in 2024, trades an equivalent in local currency (kwanzas) of USD 2 billion a year. In view of policies adopted by the institution, BODIVA predicts an increase in the volume of trades. The stock exchange has 23 commercial banks and two brokerages as members, which operate mainly in government denominated Treasury Bonds. The first IPO on BODIVA, for 10 percent of Banco BAI, occurred in June 2022 and was oversubscribed. The government hopes to list several other state-owned enterprises or government shares in major Angolan companies on the exchange starting in 2023. BODIVA allows the trading of different types of financial instruments through an electronic auction platform to investors with rules (self-regulation), systems (platforms), and procedures that assure market fairness and integrity to facilitate portfolio investment. The Capital Markets Commission, the regulator, is updating its own supervisory framework while looking to provide new services and attract more individual investors to the capital markets. Presently, only local commercial banks can list on the nascent stock exchange. According to the Capital Markets Commissioner, portfolio investment by individuals only represents 16 percent of BODIVA’s equity.

Through the ongoing privatization program, the government announced in January 2023 it sold 93 assets out of 178, with plans to sell 30 percent of the assets via BODIVA by the end of 2024.

Credit is partially allocated on market terms. Since the revision of the PIL in 2021, domestic credit is accessible to foreign investors and companies that are majority foreign held (this was previously only possible after implementation of the investment project). For Angolan investors, credit access remains limited. However, BNA Notice 10/20 of April 3, 2020 directed commercial banks to increase the minimum amount of subsidized credit that they must make available to borrowers – from 2 percent of the banks’ assets to 2.5 percent by the end of 2020 – to accelerate the diversification of domestic production. The private sector has access to a variety of conventional credit instruments provided by commercial banks.

The BNA published Notice 10/22 of April 6, 2022, to update the scope of application of Notice 10/20 on the granting of credit to the real sector of the economy. The new Notice establishes (i) the terms and conditions applicable to this type of credit, (ii) the minimum requirements in terms of number and total value and (iii) the treatment in the calculation of the reserve requirements. The illustrative list of essential goods to which the Notice applies underwent minor changes and now includes beekeeping, pastry and bakery goods, wheat crops, fertilizers, soil correction materials. However, it no longer mentions cement, clinker, honey, and paint for construction purposes.

The Notice provides for the following types of credit: (i) medium-long term credit for investment, including to buy machinery and equipment, which must have as its maximum term the payback period of the investment and may include financing with real guarantees and leasing; (ii) short-term credit to buy raw materials and other inputs from local suppliers in the domestic market, which must be granted for the maximum estimated period between its acquisition and the sale or payment by the buyer of the finished product; and (iii) credit granted as factoring.

Money and Banking System

Forty-seven percent of Angola’s income-earners utilize banking services, with 80 percent being from the urban areas. As of January 2023, 23 banks were authorized to operate in Angola. The banking market remains marked by concentration and limited financial inclusion. The top six banks control nearly 80 percent of sector assets, loans and deposits, but the rest of the sector includes many banks with minimal scale and weak franchises. The total number of customers in the six largest banks is 9.9 million. Angola’s largest bank, Banco Angolano de Investimentos (BAI), has an asset value of over USD 6 billion.

Angola has a central banking system. The banking sector largely depends on monetary policies established by Angola’s central bank, the National Bank of Angola (BNA). In part due to the IMF program and the current government’s financial reform agenda, the BNA is adopting international best practices and slowly becoming more autonomous. On February 13, 2021, President Joao Lourenco issued a decree granting autonomy to the BNA in line with IMF recommendations. Since that time, the bank has made decisions on monetary, financial, credit, and foreign exchange policies without political influence, while also maintaining its oversight, regulatory, and supervisory role of the institutions in the financial system. The reforms taken under the Lourenco administration have lessened the political influence over the BNA and allowed it to more freely adopt strategies to build resilience from external shocks on the economy. As Angola’s economy depends heavily on oil, so does the banking sector. The BNA periodically monitors minimum capital requirements for all banks and orders the closure of non-compliant banks.

Credit availability is limited and often supports government-supported programs. The GRA obliges banks to grant credit more liberally in the economy, notably by implementing a Credit Support Program (PAC). For instance, the BNA first issued a notice obliging Angolan commercial banks to grant credit to national production equivalent at a minimum to 2.5 percent of their net assets in 2020 and extended the notice through the end of 2022. Although the RECREDIT Agency purchased non-performing loans (NPLs) of the state’s parastatal BPC bank, NPLs remain high.

The country has not lost any additional correspondent banking relationships since 2015. The Eastern and Southern Africa Anti-Money Laundering Group, the regional grouping of the Financial Action Taskforce to which Angola belongs, carried out a mutual evaluation of Angola’s anti-money laundering regime beginning in 2021 and had not yet finalized the results as of April 2023. A positive result could give more confidence to private foreign banking institutions looking to reestablish correspondent banking relationships. Most transactions go via third party correspondent banking services in Portuguese banks, a costly option for all commercial banks.

Foreign banking institutions are allowed to operate in Angola and are subject to BNA oversight.

Foreign Exchange and Remittances

Foreign Exchange

There are no current limitations or restrictions for foreign investors converting, transferring, or repatriating funds following the issuance of a series of notices from the BNA.

The regulations on Foreign Investment Operations by Non-Residents allow investors to freely convert funds in their accounts from the national currency to world currencies, transfer values from their accounts in Angola to accounts overseas and keep funds in kwanzas or foreign currencies deposited in their accounts in Angola.

As part of the reforms that the National Bank of Angola (BNA) has been implementing in the Angolan foreign exchange market, the BNA issued Notice 3/2023 on March 1, defining $250,000 (126.6 million kwanzas) as the limit that Angolan can transfer abroad without needing to present documentation for carrying out banking operations.

The notice seeks to align Angola’s foreign exchange market to international standards, preventing and combating money laundering and terrorist financing. No fees are charged for transfers intended for travel or family assistance abroad.

For transfers of commercial nature, the notice neither defines nor limits the amounts transferrable, and limits depend on the financial capacity of the customer. In this type of operation, it is not mandatory to present documentation for the customer to carry out the transfer. However, operations of a commercial nature abroad cannot be carried out to the payer’s account, but to an account to be indicated by the customer, i.e. the customer who goes to a bank to request the transfer must present the bank details of the intended recipient entity.

The notice also covers non-resident citizens, permitting the opening of a bank account for transfers of wages and other income. For opening a bank account, presentation of an employment contract valid for 12 months or more is mandatory. For non-resident citizens without an employment contract, the employer can directly transfer the corresponding amount to an account abroad. This notice offers greater flexibility in carrying out foreign exchange operations by individuals abroad, such as for non-resident citizens, unlike in the previous notice.

The exchange rate in Angola is freely determined by the market, following the principle of supply and demand and rate fluctuations. The central bank may intervene whenever it deems necessary to make corrections in the event of excessive currency volatility.

Remittance Policies

To ease access to foreign exchange for investment remittances and to increase the efficiency of the Foreign Exchange Market, the National Bank of Angola (BNA) decided to expand the base of entities that negotiate the purchase and sale of foreign currency with commercial banks through the Bloomberg FXGO trading platform. In 2021, the BNA granted the possibility of participating in the negotiation of the platform to airlines and insurance companies. In 2023, it plans to add the main national importers. There are no time limitations on the transfer operations, as they do not require any authorization from the central bank.

The BNA issued Directive number 06/2022 on June 24, 2022, which limits the monthly amount that can be remitted from Angola to a foreign country to $5,000 per sender. Remittances received from outside the country are not subject to regulated limits according to the directive.

Sovereign Wealth Funds

The Angolan Sovereign Wealth Fund (FSDEA) was established in 2012 with $5 billion USD. The fund was established in accordance with international governance standards and best practices as outlined in the Santiago Principles. As of August 2022, the FSDEA reported $2.8 billion. Angola is a  full member  of the International Forum of Sovereign Wealth Funds. In its most recent publicly available annual report, covering 2019, FSDEA disclosed that nearly 75 percent of its $3.8 billion in liquid investments were in North America – primarily in the United States – though that was before the fund was drawn down by $2.5 billion dollars in 2020 to support Angola’s COVID response. An audit conducted by Deloitte in 2022 found that the fund had nearly $2.1 billion in investments with 87 percent of the liquid investments in North America.

There are currently 81 public enterprises listed on the State Institute of Asset and Shares Management website; 70 are wholly owned by the state, 8 with majority-ownership by the state and 3 with minority stakes for the government. A list of all of Angola’s SOEs can be found at the following link:!/sector-empresarial-publico/universo-do-sep  . Based on the IMF definition of government owning at least 50 percent equity and revenue being greater than 1 percent of GDP, SONANGOL, the state oil company, and Sodiam, the state diamond company, qualify as major SOEs.

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. All SOEs in Angola are required to have boards of directors, and most board members are affiliated with the government.

Other public enterprises operate in the agribusiness, oil and gas, financial services, and construction sectors as well as in telecommunications, transportation, electricity, and water distribution.

The GRA considers SOE debt as indirect public debt, and only accounts for direct government debt in its state budget, effectively not reflecting some substantial obligations in fact owed by the government. President Lourenço has launched various reforms to improve financial sector transparency, enhance efficiency in the country’s SOEs as part of the National Development plan 2018-2022 and Macroeconomic Stability Plan.

Under the Law on Competition (Law no. 5/18, of May 10, 2018) SOEs competing in the domestic market are free to compete internationally and overseas participation is encouraged. In principle, domestic SOEs should also provide non-discriminatory treatment in their purchase and sale of goods and services, however the oil and gas sector local content law is an exception to this objective.

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 SOEs.

Privatization Program

Angola began its privatization program (PROPRIV) in 2019, with an aim to privatize 195 assets by 2022. By January 2023, the government had privatized 93 assets and raised over $1.1 billion in revenue through the program despite COVID-19 pandemic-imposed hurdles and bringing its overall goal down to 178. In March, President Lourenco signed Presidential Decree number 78/23, extending the program through 2026, with a goal of privatizing 73 assets, including some of the country’s largest SOEs such as the state-owned telecommunications company Unitel, the national oil company Sonangol, the national airline TAAG, and companies in the extractives, health, manufacturing, and agriculture sectors. The program is supervised by the State Institute of Asset and Shares Management (IGAPE) and implemented through the Angolan Debt and Securities Exchange Market (BODIVA).

The privatization process is open to interested foreign investors and the government has improved the transparency of the bidding process. The government has an “electronic auction” site where investors can submit their bids for the various tenders:  .

There is a general awareness of expectations of or standards for responsible business conduct (RBC) or obligation to conduct due diligence to ensure no harm with regards to environment, social and governance issues. Projects that could have an impact on the environment are subject to an environmental impact assessment (EIA) depending on their nature, size or location, on a case-by-case basis. Presidential Decree No 117/20 of April 22, 2021 establishes the:

  • Rules and procedures for EIAs for public and private projects.
  • Environmental licensing procedure for activities that are likely to cause significant environmental and social impacts.
  • Applicable fees.
  • Fines for non-compliance.

The government has few initiatives to promote responsible business conduct. In March 2019, the UNDP launched the National Network of Corporate Social Responsibility, “RARSE,” to create a platform to reconcile responsible business conduct with the needs of the population. In 2020, the government, through the Ministry of Education, also held a campaign under the theme, “Countries that have a good education, that enforce laws, condemn corruption, privilege and practice citizenship, have as a consequence successful social and economic development”.

The government has enacted laws to prevent labor by children under 14 and forced labor, although resource limitations hinder adequate enforcement. In August 2021, the Council of Ministers passed an updated National Action Plan for the Eradication of Child Labor (PANETI) (2022-2025) to eradicate the worst forms of child labor. This plan was launched on March 17, 2022 and is implemented by the Multisectoral Commission for the Prevention and Eradication of Child Labor. The PANEtI aims to eliminate child labor in Angola, by creating strategies, prevention policies, a favorable environment for the harmonious development of children, and creating institutional capacity to solve the problem of worst forms of child labor in the country.

With limitations, the laws protect the rights to form unions, bargain collectively, 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 established the Principles of Ethical Business in Angola.

The GRA does not fully meet the minimum standards for the elimination of trafficking in persons but has made significant efforts toward doing so, especially considering the impact of the COVID-19 pandemic on its anti-trafficking capacity. Those efforts led to Angola remaining on Tier 2 in 2022. Some of the efforts taken by Angolan authorities include convicting multiple traffickers, including five complicit officials, and sentencing all to imprisonment; offering long-term protective services that incentivized victims to participate in trials against their traffickers; dedicating funds specifically for anti-trafficking efforts, including for implementation of the national action plan; and conducting public awareness campaigns against trafficking.

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 joined the EITI in June 2022. Angola has been a member of the Kimberley Process (KP) since 2003 and chaired the KP in 2015. Angola is not a party to the WTO’s GPA and does not adhere to the OECD corporate guidelines for SOEs.

Additional Resources

Department of State

Department of the Treasury

Department of Labor

Climate Issues

According to Article 5 of Decree No. 51/04 of July 23, 2004, every project (private or public) must present an Environmental Impact Study to the Ministry of Environment for their approval.

Angola aims to address the impacts of climate change as stated in its 2018-2022 National Development Plan .  It includes the main goals and actions to tackle current and future impacts on important sectors for economic development and for environmental sustainability.  In addition, the National Strategy for Climate Change  (2020–2035) includes five pillars on mitigation, adaptation, capacity building, funding, and institutional coordination.  In addition, the Government of Angola has ratified the UNFCCC and developed and submitted its National Adaptation Plans of Action (NAPAs).

  • Angola has not made firm commitments or introduced policies to reach net-zero carbon emissions by 2050.  Angola’s share of global GHG emissions is 0.26 percent according to the World Resources Institute 2019 data on climate watch, and it occupies the 154th position in the Climate Vulnerability Index ranking.  Under the Paris Agreement on Climate, Angola increased emissions reductions targets from 10 percent to 14 percent (compared to business as usual), with a further 10 percent on support under the revised Nationally Determined Contributed (NDC) submitted to the United Nations in May 2021.  In addition, Angola accelerated its target year for meeting the new emissions targets   from 2030 to 2025.
  • The NDC now lists mitigation actions across all sectors and elaborates on how the country plans to adapt. Product of a wide consultation, the NDC also outlines how climate action links to Angola’s broader development vision.  However, actions are poorly enforced, and the role of private sector is neither enhanced nor the impact of actions clearly spelled out to create awareness.
  • Angola prioritizes the implementation of adaptation measures in coastal zones, land use, forests, ecosystems and biodiversity, and water resources.  On mitigation, Angola aims to reach 70 percent of installed renewable energy  by 2025 – which President Lourenco revised to 77 percent during a speech in January 2023 – and to sequester 5 million tons of CO2e per year through reforestation by 2030.  Angola, like many African countries, needs access to abundant, always available, and cost-effective power to support economic growth.  As part of a path toward sustainable transition, Angola needs to reduce emissions from its existing fossil fuel facilities.

The Forest and Fauna law 06/17 of January 24, 2017, has significantly changed how natural forests are managed in the country, introducing the concept of forest concessions for the first time, allowing for a more rational use of forest resources.  Recognizing the potential of the blue economy, the government has expanded the mandate of the Ministry of Fisheries to cover issues of the sea, launched a marine spatial plan to address conflicting uses of marine resources, and is planning to establish the first marine protected area in the country.  In addition, the government has started the preparation of guidelines to regulate private concessions in protected areas, as an effort to attract private investments in nature-based tourism and has also established the Kavango Agency to ensure further multi-sectoral coordination in the management of the high-sensitive Kavango watershed.

The Strategic Plan for the Protected Areas System of 2018 (PESAP 2018) is the most recent policy document for protected areas.  The plan focuses on measures to allow fundraising, train staff, and strengthen institutions such as the National Institute for Biodiversity and Protected Areas.  It also emphasizes the importance of maintaining the socioeconomic and financial sustainability of conservation areas.

Corruption remains a strong impediment to doing business in Angola and has had a corrosive impact on international market investment opportunities and on the broader business climate. The Lourenço administration has developed a comprehensive anti-corruption and anti-money laundering legal framework, but implementation remains a challenge. Angola has made several arrests of former officials and family members of the former president who were accused of embezzling state funds and has made a concerted effort to recover assets it accuses those individuals of stealing. Angola signed the UN Convention Against Corruption on December 10, 2003 and ratified the agreement on August 29, 2006. The 2022 Transparency International  Corruption Perceptions Index ranked Angola 116 among the 180 countries in the Index, up 20 spots from 2021.

Some of the recent anti-corruption legislation includes:

  • The revised Criminal Law Code and Criminal Procedure Code, which both entered into force in February 2021: The updated laws include corporate criminal liability; harsh penalties for active and passive corruption by public officials, their family members, and political parties; criminalization of private sector corruption; and seizure of proceeds.
  • The updated Public Procurement Law, which entered into force on December 23, 2020, emphasizes the management of potential conflicts of interest in awarding public contracts, including the requirement for foreign investors to have a local partner, which historically made procurement ripe for bribery and kickbacks.
  • The Whistleblower Protection Law, which came into force on January 1, 2020, provides a protection system – including anonymity – for victims, witnesses, and the accused during judicial proceedings that involve corruption and/or money laundering allegations.

The government does not require the private sector to establish internal codes of conduct and does not provide a mechanism for reporting irregularities related to public officials.
U.S. firms in Angola are aware of cases of corruption in Angola despite efforts to combat the phenomenon and view it as a significant impediment to FDI. Corruption in Angola is pervasive in public institutions, government procurement customs and taxation. Foreign investors seeking to do business in Angola must remain mindful of the corruption risks and the extraterritorial reach of the U.S. Foreign Corrupt Practices Act.

Resources to Report Corruption

Contact at the government agency or agencies that are responsible for combating corruption:

Hélder Pitta Grós
Procurador Geral da Republica (Prosecutor General of the Republic)
Procurador Geral da Republica (Prosecutor General’s Office)
Travessa Antonio Marques Monteiro 22, Maianga
Telephone: 244-222333 172

Sebastiao Domingos Gunza
Inspector General of State Administration
Office of the Inspector General of State Administration
Rua 17 de Setembro, Luanda, Angola
+244 993 666 338

Angola maintains a stable political environment, though demonstrations and workers strikes occur with regularity, particularly in recent years due to increased socio-economic difficulty. Incidents of politically motivated violence are rare. The Front for the Liberation of the Enclave of Cabinda—Military Position (FLEC MP) based in the northern province of Cabinda threatened Chinese workers in Cabinda in 2015 and claimed in 2016 that they would return to active armed struggle against the Angolan government forces.

General elections occurred in August 2022. The ruling Popular Movement for the Liberation of Angola (MPLA) party won its fifth consecutive election, an outcome that did not result in any significant politically motivated violence or protests. Local elections were initially planned to take place by 2020 but have not yet occurred after COVID-19-related delays and the lack of key legislation governing the elections. Young people take to the streets occasionally to protest economic hardship and what they view as successive unrealized political pledges. Large pockets of the population live in poverty without adequate access to basic services. Crimes of opportunity such as muggings, robberies and car-jackings occur across the country.

In the fourth quarter of 2022, the unemployment rate for economically active Angolans 15 years and older – who represent half of Angola’s 33 million people – was 29.6 percent. The labor market in Angola is largely characterized by high unemployment and a high level of informality. There is also a deficit of skilled and well-trained labor, especially in the industrial sector due to the low level of vocational training. The foreign/migrant labor force bridges the gap in specialized labor. The Angolan labor force also has limited technical skills, English language capabilities, and management training.

Companies in the construction and manufacturing sectors are significant sources of formal and informal mechanisms for workers to acquire skills and abilities particularly relevant to public and private construction works and manufacturing industry.

In the fourth quarter of 2022, the economically active population in Angola age 15 years and older was estimated to be approximately 16.6 million people (48.1 percent male and 51.9 female). Over 80.5 percent of the employed population in Angola was estimated to work in the informal sector as of the fourth quarter of 2022, equal to around 8.8 million people out of the 10.9 million people 15 years of age and older and employed in the same period. Informal employment was highest among women, reaching nearly 88 percent and rural residents, reaching nearly 96.2 percent. The unemployment rate for women was also 28.9 percent for women and 32 percent for men. There are gaps in compliance with international labor standards which may pose a reputational risk to investors. Children are sometimes employed in agriculture, construction, fishing, and coal industries. There have been reports of forced labor in agriculture, construction, artisanal diamond mining, and domestic work, sometimes as a result of human trafficking.

The General Labor Law 7 of September 15, 2015, governs all aspects of the employment relationship and provides guidelines on employment adjustments to respond to fluctuations in market or economic conditions. The law differentiates between layoffs and firing. However, there are unemployment insurance mechanisms in place or social safety net programs for workers laid off for economic reasons. All forms of termination must rely on Social Security contributions along the years of employment in due course as the benefits are not readily available at termination but only when the beneficiaries reach retirement age or become physically impaired to maintain employment status. The National Assembly unanimously approved a draft Labor Law on February 23, 2023. As drafted, the new law establishes indefinite employment contracts as the standard, reduces the length of fixed term contracts, and introduces telework into special contract arrangements. The law still requires final approval by the president.

All employers and unions may enter into collective bargaining agreements under the Law on the Right to Collective Bargaining (20-A/92). Where there is no union representation, the employees may set up an ad hoc commission aimed at negotiating and concluding a collective bargaining agreement with the employer, subject to complex requirements. If more than one union represents an employer’s employees, the unions must set up a joint negotiation committee composed of representatives from each union in the same proportion as the employees are represented.

The negotiation process for a collective bargaining agreement must be finalized within 90 days of the employer receiving the union/employees’ initial proposal. If this process is unsuccessful, the Law on the Right to Collective Bargaining provides for alternative dispute resolution mechanisms to resolve collective labor conflicts – notably conciliation, mediation, and arbitration. Unions/employees may call a strike if the negotiations are deadlocked when the deadline for reaching an agreement passes.

A collective bargaining agreement requires all the parties to maintain social peace while it is in force, rendering illegal any strike action or collective labor conflict during that period. Once the effective period has elapsed, the agreement shall continue to bind the parties until it is replaced by a new or amended collective bargaining agreement. 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.

DFC (then OPIC) signed a bilateral agreement with Angola in 1994; this agreement does not require prior host government approval of U.S. government investment support. DFC financing also supported the construction of the Luanda Medical Center, one of the premier medical facilities in the country. There is huge potential for the implementation of DFC-financed projects to accelerate private sector growth and facilitate public-private partnerships. DFC is actively exploring potential investments in multiple sectors in Angola such as energy, healthcare, critical infrastructure, and technology as Angola attempts to diversify its economy. Inquiries about projects in Angola may be sent to, accompanied by a project teaser or memo.  Angola is a member of the World Bank’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.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
Host Country Statistical source* USG or international statistical source USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other
Economic Data Year Amount Year Amount
Host Country Gross Domestic Product (GDP) ($M USD) 2021 $78.9 billion 2021 $67.4 billion  
Foreign Direct Investment Host Country Statistical source* USG or international statistical source USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other
U.S. FDI in partner country ($M USD, stock positions) 2021 $2,122 million 2021 $ -118.0 million BEA data available at  
Host country’s FDI in the United States ($M USD, stock positions) N/A N/A 2021 $95 million BEA data available at  
Total inbound stock of FDI as % host GDP 2020 12.6% 2021 17.7% UNCTAD data available at  

* Source for Host Country Data:GDP: , National Statistics InstituteFDI:!/estatisticas_aipex/estatisticas, Angolan Private Investment and Export Promotion Agency

Table 3: Sources and Destination of FDI
Data not available.

Dorcas Makaya
Economic Specialist
United States Embassy Luanda
+244 222 641 000

On This Page

  2. 1. Openness To, and Restrictions Upon, Foreign Investment
    1. Policies Towards Foreign Direct Investment
    2. Limits on Foreign Control and Right to Private Ownership and Establishment
    3. Other Investment Policy Reviews
    4. Business Facilitation
    5. Outward Investment
  3. 2. Bilateral Investment and Taxation Treaties
  4. 3. Legal Regime
    1. Transparency of the Regulatory System
    2. International Regulatory Considerations
    3. Legal System and Judicial Independence
    4. Laws and Regulations on Foreign Direct Investment
    5. Competition and Antitrust Laws
    6. Expropriation and Compensation
    7. Dispute Settlement
      1. ICSID Convention and New York Convention
      2. Investor-State Dispute Settlement
      3. International Commercial Arbitration and Foreign Courts
    8. Bankruptcy Regulations
  5. 4. Industrial Policies
    1. Investment Incentives
    2. Foreign Trade Zones/Free Ports/Trade Facilitation
    3. Performance and Data Localization Requirements
  6. 5. Protection of Property Rights
    1. Real Property
    2. Intellectual Property Rights
  7. 6. Financial Sector
    1. Capital Markets and Portfolio Investment
    2. Money and Banking System
    3. Foreign Exchange and Remittances
      1. Foreign Exchange
      2. Remittance Policies
    4. Sovereign Wealth Funds
  8. 7. State-Owned Enterprises
    1. Privatization Program
  9. 8. Responsible Business Conduct
    1. Additional Resources
    2. Climate Issues
  10. 9. Corruption
    1. Resources to Report Corruption
  11. 10. Political and Security Environment
  12. 11. Labor Policies and Practices
  13. 12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs
  14. 13. Foreign Direct Investment Statistics
  15. 14. Contact for More Information
2023 Investment Climate Statements: Angola
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