The import of capital and export of income from foreign investors in Angola is no longer subject to licensing by the National Bank of Angola (BNA), which has formalised the opening of a capital and financial account.
However, the BNA decided only to partially open the account in this first phase “intending to maintain some control over certain flows which could represent a significant risk to the stability of the foreign exchange market”.
The import of capital by foreign investors wishing to invest in the country in companies or projects in the private sector, as well as the export of the income associated with such investments, are now exempt from licensing by the Angolan central bank.
The export of capital resulting from the sale of investments in securities traded in a regulated market, as well as the sale of any investment when the buyer is a non-resident foreign exchange investor, are also exempt from licensing.
However, the investment in public debt securities and the sale of an interest by a foreign investor in a company or project to a foreign exchange resident are still subject to licensing by the National Bank of Angola.
In early 2018, the BNA implemented a new floating exchange rate regime defined by the market, paving the way for the gradual liberalisation of the foreign exchange market.
According to the Angolan central bank, “the market exchange rate protects the country’s international reserves, improves its external competitiveness, promotes private sector activity and makes it possible to eliminate administrative restrictions”.
The BNA stresses that the partial opening of the capital account “is an important development” to make Angola’s economy more open and improve the attraction of foreign investment.
The program of privatization of public companies that foresees privatizing 195 public companies by 2022, makes it important to create conditions to encourage the participation of foreign investors in this process.
Source: AFP via Macau Business