REPBLICA ANGOLA ORGOS AUXILIARES DO PRESIDENTE DA REPBLICA

REPÚBLICA ANGOLA ORGÃOS AUXILIARES DO PRESIDENTE DA REPÚBLICA CASA CIVIL UNIDADE TÉCNICA PARA O INVESTIMETO PRIVADO

Technical Unit for Private Investment

Legal Framework Enquadramento Jurídico 1. Presidencial Decree No. 181/15, from September 30, 2015, approved the general outlines for the national policy on private investment; 2. Presidencial Decree No. 182/15, from September 30, 2015, approved the Procedural Regulations for Private Investment Implementation; 3. Presidencial Decree No. 184/15, from September 30, 2015, dissolved ANIP, and created APIEX (Angola Investment and Export Promotion Agency); 4. Presidencial Decree No. 185/15, from October 2, 2015, created U. T. I. P. , (the Technical Unit for Private Investment); 5. Law No 14/15, from ____ 11, 2015, the Private Investment Law; 6. Law No. 2/07, from August 31, 2007, regulates the legal status of foreigners in Angola; 7. Presidencial Decree No. 108/11, from May 25, 2011, regulation on the legal regime foreign works; 3

ort Technical Operational Roles Funções Operacionais APIEX promotes the internationalization of angolan companies, supports their export activities, attracts investment projects of foreign or domestic origin, promotes angolan brands and products overseas, and facilitates the introduction of angolan products and services in the global market; UTIP the Technical Unit for Private Investment is a specialized service that provides permanent support to the Head of State, and it is responsible for the preparation, processing, review and negotiation of private investment projects worth more than US$10, 000. 00; the UTAIP and reviewing project proposals worth up to US$10, 000. 00; UTAI the Technical Unit for Investor Support is responsible for providing customer care services, facilitation, preliminary contacts, and for guiding the private investor. 4

What is the role of UTIP? Qual é o papel da UTIP?

▪ To support and advise the Head of State on matters related to private investment; ▪ To process and review all investment projects that fall under the TPE; negotiate private investment contracts under TPE, and to ensure the integrated administrative processing of all applications, including those for fiscal incentives, lincensing, and installations; ▪ To participate and organize seminars and other events on private investment ▪ To establish mechanisms for institutional coordination with other ministerial departments; ▪ To act as an interlocutor on behalf of the investor with the local state agencies, to ensure the effective implementation of the investment projects. ▪ To

How is the private investment policy being implemented? Como está sendo implementada a política do Investimento Privado?

nvestor INSTITUTIONAL COORDINATION COORDENAÇÃO INSTITUCIONAL Governos Provinciai ZEE, PDI; PTUR s, & MINAG Ministério s & APIEX Embaixadas

Required Documentation and Processing Times Documentação necessária e tempo de processamento

Completed investment proposal transmittal form (provided by UTIP); Government-issued identification documents of all applicants; A technical, economic, and financial feasibility study of the project; An environmental impact study; A draft investment contract (to be drafted according to the terms set forth in art. º 46. º of the Private Investment Law); A document certifying the financial situation and technical capabilities of the applicants. Receipt, review, evaluation, negotiation, and submittal for review by the TPE ▪ Time limit: up to 30 days MINFIN's technical comments ▪ After the formation of the negotiations committee ▪ Time limit: up to 10 days; Contract execution ▪ Time limit: up to 15 days after TPE's final decision NOTE: Technical recommendations/comments regarding the award of fiscal and customs benefits and incentives are required but not binding.

What are the priority sectors for private investment ? Quais são os sectores prioritários para o Investimento Privado?

Priority Sectors Agriculture

PRODUÇÃO INDUSTRIAL ✓ Food Industry ✓ Textile Industry ✓ Clothing and Footwear ✓ Wood Processing ✓ Metal Industry ✓ Recycling (paper, glass and plastic) ✓ Construction Materials

PESCAS ✓ Fishing ✓ Production of canned fish ✓ Production of fish feed and fishmeal ✓ Production of fish oil ✓ Development of aquaculture ✓ Salt production and processing

Sectors where local partnership is compulsory (35% to Angolan nationals ) Sectores em que a parceria local é obrigatória (35% para os angolanos)

Power and water Transport and Logistics Hotels and Tourism Construction Telecommunications and Information Technology/ Media

Private Investment Incentives Incentivos ao Investimento Privado

CUMULATIVE CRITERIA FOR INCENTIVES CONCESSIONS CRITÉRIOS ACUMULATIVOS PARA CONCESSÕES DE INCENTIVOS ▪ Job creation for Angolan nationals; ▪ Investment amount; ▪ Investment Location; ▪ Produção Agriculture production, livestock, fisheries, agribusiness, and related activities; ▪ Production for export; ▪ PLocal ownership, shareholding; ▪ VLocal value-added

Job creation for national workers Up to 50 jobs > 50 < 100 > 100 < 500 5. 00% 7. 50% 10. 00% Investment amount in AOA equivalent to: > USD 500 Mil > USD 5 Million > USD 20 Million < USD 5 Million < USD 20 Million < USD 50 Million 5, 00% 7, 50% 10, 00% Investment Location > USD 1 Zone A Zone B 7. 50% 15. 00% Zone A 7. 50% Agriculture production, livestock, forestry, fisheries, agribusiness, and related activities 1 Zone B 15. 00% Up to 25% > 50% - < 50% < 75% 7. 50% 10. 00% 12. 50% 1 > 10% > 20% > 35% > Local ownership and shareholding < 20% < 35% < 45% < 7. 50% 10. 00% 12. 50% 1 Up to 25% > 50% > - < 50% < 75% 7. 50% 10. 00% 12. 50% Production for Export Local value-added > 1

TAX REDUCTION AND BENEFIT CONCESSION PERIODS DIMINUIÇÃO DE IMPOSTOS E PERÍODOS DE CONCESSÃO DE BENEFÍCIOS Fiscal benefits, namely the reduction of (1) Industrial Tax, (2) Capital Gains Tax (3) Property Transfer Tax (SISA), vary from 1 to 10 years, according to the: Tax Benefit concession reduction period From 10% to 30% 4 years From 31% to 50% 6 years From 51% to 70% 8 years From 71% to 100% 10 years

OTHER BENEFITS AND FISCAL INCENTIVES OUTROS BENEFÍCIOS E INCENTIVOS FISCAIS ▪ Deductions to taxable income; ▪ Accelerated depreciation and reintegration; ▪ Fiscal credit; ▪ Tax exemptions or reductions; ▪ Tax deferrals and other fiscal benefits

GENERAL PURPOSE AND OBJECTIVES FOR INCENTIVES OBJECTIVOS DA ATRIBUIÇÃO DE INCENTIVOS ▪ To stimulate economic growth; ▪ To boost the most disadvantaged regions, especially in the interior of the country; ▪ To expand the productive capacity, using local raw materials, and to enhance the added value of the domestically produced goods; ▪ To foster partnerships between local and foreign entities; ▪ To increase exports and reduce imports; ▪ To increase the balance of payments and foreign currency supply.

APPROVED PROJECTS Projectos Aprovados

SUMMARY OF APPROVED PROJECTS BY SECTOR RESUMO DOS PROJECTOS APROVADOS POR SECTORES Sectors Quantity Amount in USD * 1000 Agriculture 03 194. 205, 00 Industry 23 1. 941. 470, 97 Petrochemical Industry 01 12. 000, 00 Services 01 14. 774, 00 Construction 01 5. 000, 00 Commerce 03 790. 497, 77 Education 01 10. 000, 00 Real Estate 02 990. 542, 85 24

APPROVED PROJECTS PER SECTOR PROJECTOS APROVADOS POR SECTORES 25 23 20 15 10 5 3 3 1 1 1 Petrochemical Industry Construction Services 1 2 0 Agriculture Industry Trade Education Real Estate

DISTRIBUIÇÃO GEOGRAFICA DOS PROJECTOS 8 6 3 3 3 2 National 1 1 Cabinda Cuanza Sul 1 Malanje Bengo Luanda 1 1 Cuando Cubango Cunene 1 Huíla Benguela Uige Namibe

MAIS DE 23 MIL POSTOS DE TRABALHO CRIADOS MORE THAN 23. 000 JOBS CREATED 7512 7173 8000 7000 6000 5000 3000 4000 2965 3000 1595 2000 554 80 1000 159 0 Industry Petrochemical Industry Education Agriculture Serviçes Comercy Construction Real Estate

Private Investment Projects Under Review PROJECTOS DE INVESTIMENTO SOB REVISÃO

Sectors Quantity Amount in USD Agricultura 02 42, 300. 00 Services 01 288, 950. 00 Energy 01 30, 000. 00 Construction 01 338, 000. 00 Manuf. Industry 05 12, 286, 550. 00 Real Estate 01 221, 200. 32 Fisheries 01 49, 645. 32 Hotels and Tourism 01 900, 000. 00 Farming and livestock 01 12, 000. 00 Total 14 14, 168, 645. 64 29

6 5 5 4 3 2 1 1 P. Serviços Energy Construção 1 1 Pesca Hotels and Tourism Agro-Pecuaria Real Estate 0 Agriculture Manufact. Industry 30

TO PRODUCE, FOR EXPORT “Angola, towards the diversification of the national economy through private investments” THANK YOU! Contacts: +244 926 876 914; geral@utip. gov. ao www. utip. gov. ao