Foreign investors have no current limitations or restrictions for converting, transferring, or repatriating funds following a series of notices from Banco Nacional de Angola (BNA). The regulations on Foreign Investment Operations by Non-Residents allow investors to:
- Convert funds in their accounts from the national currency to world currencies.
- Transfer values from their accounts in Angola to accounts overseas.
- Keep funds in kwanzas or foreign currencies deposited in their accounts in Angola.
The exchange rate in Angola is freely determined by the market, following the principle of supply and demand, and the rate fluctuates. The Angolan central bank, BNA, may intervene whenever it deems necessary to make corrections in the event of excessive currency volatility.
The most common methods of payment in Angola are open account, international bank to bank transfers, letters of credit, cash in advance, automated machine payments, documentary collections and factoring.
The use of checks has ended for safety reasons, and the use of cash in official commercial transactions is discouraged. In 2018 BNA announced that letters of credit would be the preferred financial instrument for import and export transactions and proposed that letters of credit be mandatory for all international trade transactions above 100,000 euros; however, letters of credit have not yet gone into widespread usage.
In 2020 Angola approved a new law regarding the Angolan Payments System, Law No. 40/20, of December 16, which revoked Law no. 5/05 of July 29, 2005. The purpose is to adapt the legal framework to the actual volume of transactions in the Angolan market, between Angola and international markets, and to the evolution of the financial products, which led to a modernization of the payments system, greater safety, effectiveness and reliability.
Also in 2020, BNA published the Instruction 17/20, of October 15, which establishes that importers can freely negotiate the methods of payment in the import of goods. This instruction revoked Instruction 18/19, of October 25, 2019, which established limits per operation in all methods of payment. It also establishes that, except for the method of advance payments (limited to 50,000 dollars per operation or up to 10% of the total amount of an operation under a letter of credit), there are no annual or per operation limits in the methods of payment.
The most common and secure method of payment in Angola is an electronic funds transfer between banks. Most foreign exchange transfers are currently processed in euros and dollars.
For travel into and out of Angola, the government has tightened regulations on currency movement. Since April 15, 2016, Angolan citizens are permitted to carry up to 10,000 dollars into or out of the country, with Angolan residents subject to a 5,000 dollars limitation. The limit on transit of local currency is 50,000 kwanzas (around 100 dollars). Officials at Luanda airport will confiscate amounts over these limits.
The 2018 investment law grants foreign investors “the right and guarantee to transfer abroad”:
- Dividends or distributed profits
- The proceeds of the liquidation of their investments
- Capital gains
- The proceeds of indemnities and royalties
- Other income from remuneration of indirect investments related to technology transfer after proof of implementation of the project and payment of all taxes due.
Under the 2018 investment law, tax on dividends starts at 15% and can rise to 50% depending on the value and how early repatriation occurs.
Angola’s future growth is set to accelerate in the next few years with ambitious investment programs. The initiatives are designed to create a more promising investment environment for foreign investors, whilst promoting economic growth and development.
Foreign exchange
For travel into and out of Angola, the government has tightened regulations on currency movement. Since April 15, 2016, Angolan citizens are permitted to carry up to 10,000 dollars into or out of the country, with Angolan residents subject to a 5,000 dollars limitation. The limit on transit of local currency is 50,000 kwanzas (around 100 dollars). Officials at Luanda airport will confiscate amounts over these limits.
The 2018 investment law grants foreign investors “the right and guarantee to transfer abroad”:
- Dividends or distributed profits
- The proceeds of the liquidation of their investments
- Capital gains
- The proceeds of indemnities and royalties
- Other income from remuneration of indirect investments related to technology transfer after proof of implementation of the project and payment of all taxes due.
Under the 2018 investment law, tax on dividends starts at 15% and can rise to 50% depending on the value and how early repatriation occurs.