ANGOLA Law and Practice Contributed by: João Afonso Fialho and Marizeth Vicente, VdA
Incentives may be granted for projects with impacts on the Angolan economy – namely: • acquisition of supplemental goods and services on the local market; • carrying out mineral activities in remote areas; • contribution to the training and development of local human resources; • carrying out research and development activities in co-operation with Angolan academic and scientific institutions; • local processing and dressing of minerals; or • significant contributions to increase exports. The government may also authorise special tax and customs exemptions for Angolan companies exclu - sively engaged in the processing, dressing and cutting of minerals extracted in the country. Investors often seek tax stabilisation under their min - eral investment contracts. However, tax stabilisation is seldom granted. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects Direct and indirect transfers or sales of mineral rights/ mining assets (including by means of M&A operations in and/or outside the country) may trigger the assess - ment of capital gains under the general rules of the Investment Income Tax Code. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Over the past six years or so, the Angolan govern - ment has made several political, economic and legal reforms to facilitate and attract investment in the country. Particularly in the mining sector, the govern - ment has undertaken several initiatives to enhance the sector’s performance, competitiveness and trans - parency with the establishment of a new governance model, new policies and regulations for the market - ing of rough diamonds and a new foreign exchange regime applicable to the sector. Investors from all over the world are attracted by the opportunity to negotiate special tax incentives and
benefits, the details of the data available to the inves - tors – as a result of the work of the National Geology Plan (PLANAGEO) for mineral-geological investigation – and the variety and quality of the Angolan portfolio of minerals with significant potential for economic return. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors Investment in the mining sector is subject to the special investment regime established in the Mining Code. There are no limitations on foreign investment, although additional formalities must be complied with by foreign investors in the importation of investment capital and the exportation of dividends and profits. Such additional formalities have, nonetheless, been eased with the approval of the new foreign exchange regime applicable to the sector. The exceptions to the above principle are diamond artisanal production, which may only be granted to Angolan citizens, and diamond semi-industrial min - ing, civil construction or mining rights of mineral-rich waters, which may only be granted to companies organised under Angolan law in which Angolan citi - zens hold at least two thirds of the capital. 5.3 International Treaties Related to Exploration and Mining Angola has signed bilateral investment treaties or memorandums of understanding for commercial co- operation with a number of countries, including Brazil, Cape Verde, Congo, Cuba, France, Germany, Guinea Bissau, Italy, Japan, Mozambique, Namibia, Portugal, the Russian Federation, São Tomé e Príncipe, Spain, South Africa, Switzerland, Turkey, the United Arab Emirates and the United Kingdom (not all of these treaties are yet in force). In addition to the above, bilateral co-operation trea - ties for the mining sector have been entered into with Cuba, the Democratic Republic of the Congo, Mozambique, Portugal, South Africa, Russia and the United States of America. In 2024, Angola approved for ratification the Protocol on Mining in the Southern African Development Com - munity (SADC). This protocol establishes principles for
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