These are the key priority areas of focus for investment into the country during the post-war reconstruction of the former Portuguese colony, a country that was war-torn for more than two decades.
Speaking at a breakfast meeting in Johannesburg organised by the South Africa–Angola Chamber of Commerce, Angola KPMG managing partner Isabel Serrao said the Angolan government is focusing on investments revolving around infrastructure rehabilitation, while the restructuring of the credit and financial system, privatisation of State assets, establishment of private–public partnerships and macroeconomic targets, and attracting foreign investment rank high on its priority list.
Key potential investment industries include oil, gas, agriculture, mining, construction and tourism.
Infrastructure investment should revolve around water, electricity, railways, airports, hydropower dams and housing.
The government has demarcated key developmental areas into three categories, namely Zone A, Zone B and Zone C.
Zone A constitutes Luanda, Benguela town, Huila, Cabinda and Lobito town, while Zone B includes Kwanza South, Bengo, Uige, Lundas and Kwanza North, and Zone C comprises Huiambo, Bie, Moxico, Cunene, Namibe, Malange and Zaire.
Emphasising the benefits of investing in the former Portuguese colony, Serrao said the country offers sizeable tax benefits.
Some of the country’s taxes include a 35% corporate tax rate, between 4% and 15% pay-as-you-earn tax, 10% to 15% capital gains for companies and between 10% and 50% consumption tax.
Special tax regimes apply to minerals and natural resources, with a 35% corporate tax for the mining sector, and a 70% median tax for the oil sector.
She explained that the Angolan government is currently drafting new legislation on withholding taxes.
However, different withholding tax rates apply to minerals and natural resources.
Regarding the transfer of dividends, investors will be allowed to transfer abroad the dividends or distributed profits, the product of the divestiture of investments, royalties and management fees.
Serrao said through the South Africa–Angola Chamber of Commerce, KPMG will enhance trade between the two countries, with a particular investment focus on the latter.
Having been in Angola since 1996, KPMG is one of the oldest audit and consulting firms in the country. It carries out industry surveys on a regular basis, which enables it to maintain an indepth understanding of the various sectors.
KPMG Angola offers a range of professional services to foreign, national and international companies, which are either analysing potential business, considering investment options or operating a business in Angola.