The minimum value for a private investment in Angola is now set at 50 million kwanzas for domestic investments and at any amount for foreign investments, according to the New Private Investment Law, approved on 11 August (Law 14/15) .
This rule is one of the innovations introduced by the New Private Investment Law, which defines “domestic investment as the implementation of projects using capital secured by residents, and beyond monetary means these may also take the form of technology and knowledge, goods or be from financing, even if contracted abroad.”
Foreign investment is defined as the implementation of projects through the use of capital secured by non-residents, and as well as monetary means these also take the form of technology, knowledge, and equipment.
During a seminar held Monday in Luanda to inform government officials about the new vision guiding the process of private investment in Angola, officials also presented the innovation of setting objective criteria for granting incentives and benefits to allow a gradual reduction of taxes on industry, real estate transfer and the application of capital.
The new private investment law also introduces limits on the use of supplies as the embodiment of capital, as well as prevention of indirect investments that are worth more than direct investments that are made, according to Angolan news agency Angop.
Reducing three development zones to just two and offering incentives in proportion to the value of Angolan shareholdings, as well as setting a minimum limit of 35 percent Angolan stake for investments is also part of the new rules laid down by the Private Investment Law.
The document also provides for a substantial change in creating departments at the ministries in charge of private investment, which will be responsible for capturing and promoting private investment initiatives directed towards sectors that best meet the objectives set by the National Development Programme for 2013-2017. (macauhub/AO)