Angola’s new Private Investment Law removes local partner requirement

18 May 2018

Angola’s new Private Investment Law, approved unanimously by members of the country’s parliament, aims to make the country more attractive to investment, and its main innovations are the removal of the requirement to involve a local partner in every project and the minimum investment of US$1 million, according to official information.

Foreign investors were required to have a local partner with a minimum 35% stake in the business, according to the previous version of the Law, a situation that has been described as a restrictive factor for carrying out investments in the country.

The law does not apply to investments in the oil, mining and financial sectors, which are governed by a specific law, or to commercial companies in the public domain in which the State holds all or a majority of the capital.

The new version of the bill establishes as penalties a single amount of 1.0% of the value of the investment, which is increased three-fold for repeat offences, according to Angolan news agency Angop.

Private investors are obliged to employ Angolan workers, providing them with the necessary professional training and with salary and social conditions compatible with their qualifications, and any type of discrimination is prohibited.

The country was divided into development zones, with Zone A covering Luanda province and the capital municipalities of the provinces of Benguela, Huíla and Lobito, while zone B includes the provinces of Bié, Bengo, Kwanza Norte, Kwanza Sul, Huambo, Namibe and other municipalities in the provinces of Benguela and Huíla.

Zone C covers the provinces of Cuando Cubango, Cunene, Lundas Norte and Sul, Malange, Moxico, Uíge and Zaire and Zone D is the enclave province of Cabinda. (macauhub)