NEWS

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To this end, documents such as residency authorizations, refugee cards, investor visas, work visas and temporary permanence visas the validity period of which has terminated as of 28 February 2021 are considered valid until 31 July 2021.

However, in order to benefit from this extension, the individuals which return to Angola must request the renovation or extension of the documents within 5 days after entering Angolan territory.

Article by Marco Correia Gadanha

Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.

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This diploma has the goal of completing the regulatory programme carried out by the Angolan Executive with the purpose of reforming financial regulations.
In fact, this new Law has the purpose of suiting the current challenges within the scope of financial stability, in particular in what concerns the reinforcement of the legal framework of the regulation and supervision of the institutions participating in the Financial Sector.

Thus, this new regime introduces significant changes to the existing legal framework, namely in what concerns its institutional part, as well as supervision, interventive, contraventions and sanctions measures.

Further to the above-mentioned, this new Law establishes:

a) The procedure for incorporation and carrying out of Financial Institutions’ operations;

b) The exercise of the supervisory activity;

c) The procedure for corrective intervention and resolution; and

d) The regime for sanctions, winding-up and liquidation of Financial Institutions.

Article by Marco Correia Gadanha

Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.

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Almost fourteen years after the signature of the Bilateral Investment Treaty (BIT) with Spain and more than four years after the signature of the BIT with United Arab Emirates (UAE), the official content of both BITs was finally published in Angolan Official Gazette.
Signed with an hiatus of almost ten years, these international instruments exemplify the Angolan effort of last decades to adopt investment-friendly policies at different levels and open its economy to external investment, becoming one of the most attractive countries to invest in Africa.

Both treaties permit the intensification of the economic relationship and cooperation between the two countries and Angola, with mutual benefits and greater stimulation and prosperity for their economies, through favorable and equitable conditions for investments performed by investors of the contracting countries.

The most important rules foreseen in both treaties, among others, are:

• Angola compromises to grant to Spanish and Emirati investors, a treatment so favorable as the treatment given to the most favored foreign investors.
• Angola also compromises to give a fair and equitable treatment to those investments and that will not impose any discriminatory or arbitrary measure which obstructs the normal development, management, sale or settlement of the investment.
• Are also established the conditions in which expropriations may be performed, always involving the payment of an indemnification, which shall be equal to the fair market value which the investment had before the intention of expropriation was made public.
• When a force majeure situation occurs, the investors of each party will have access to the assistance funds in equal position with the national investors.
• The investors have the right to freely transfer to foreign territory amounts related with their investment.
• Any dispute between investor and contracting State regarding an investment may be solved through arbitration by ICSID or UNCITRAL rules.

The entering into force of both treaties reinforces the economic relation of Angola with UAE and Spain, permitting greater investment from investors and companies of these countries and shall be seen as another step on Angola’s investment-friendly integrated and comprehensive policy.

Article by Marco Correia Gadanha

Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.

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It was published in the Angolan Official Gazette on May 10, entering into force on the same day, Law no. 13/21, of May 10, regarding the new legal regime which regulates insolvencies and judicial/non-judicial corporate/individual recovery procedures in Angola.
This legal regime was expected for a long time, since the legal framework in force until now was the regime foreseen in the Civil Procedure Code of 1961, finally suppressing the urgent necessity of review of this sector of the Angolan Law.

Angolan Law follows, through this regulation, trends of the most advanced legislations regarding corporate/insolvency law, encouraging and permitting the recovery of economically viable companies, without the unique purpose of recover creditors’ assets.

The new legal framework introduces better mechanisms to assist companies which for some reason are facing economic difficulties, safeguarding the possibility of maintaining those companies working and enabling that they reach again a favorable position and economic stability.

Indirectly, it permits the conservation of jobs and encouragement of national and foreign investment, since investors acknowledge that if their company has economic difficulties, they may rely on legal remedies which permit and have as purpose the preservation of the company, with relevant social and economic benefits.

This regime is also better for creditors, because with the maintenance of the company, the probability of receiving their credits in full in the future increases.

If it is true that bankruptcy procedures were already foreseen (even assuming that the regime was old and outdated), before the new law Angola had not a corporate recovery procedure. So, companies were left in that difficult situation expecting that the normal market dynamic would solve the problem, with less probability of recovery and greater hypothesis of entering in bankruptcy, or were immediately submitted to bankruptcy procedures without trying to keep the company functioning, which ultimately was not the best solution for creditors, that could not obtain the totality of their credits. In this aspect, the new regime finally fills an omission of the Angolan Law.

The approval of the new Insolvency and Corporate Recovery Law permits the adjustment of Angolan Law to the modern Insolvency Law principles and purposes, being just another example of Angola’s investment-friendly policy, promoting economic development, and strengthening businesses environment, legal certainty and procedural promptness and efficiency.

Article by Marco Correia Gadanha

Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.

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On the end of April, entered into force Law no. 10/21 of April 22, which modified Law no. 10/18 of June 26 (Angolan Investment Law).
With this amendment, the Angolan State intends to improve its competitiveness regarding the implementation of domestic and foreign investment, fortifying its position as one of the most desirable African countries to implement an investment, namely with the creation of a contractual investment regime, which permits the negotiation of great part of the aspects connected with the investment.

The following are the most relevant modifications:

• It is established the obligation to register investment projects regulated by special law at AIPEX, for the granting of Private Investor status.
• Domestic investment begins to comprise the allocation of capital (even if in case of reinvestment), machinery, and equipment.
• Foreign investment starts to englobe the transference of capitals from foreign territory and transfer of machinery, equipment, and other instruments.
• Investors may now transfer capitals (profits, dividends) to foreign territory without the total execution of the private investment project, but only if they pay their taxes and constitute legal reserves.
• Foreign investors are now able to use domestic credit mechanisms without having totally implemented their investment project.
• It was introduced the private investment contractual regime, which permits a direct negotiation with the Angolan State regarding conditions, incentives and benefits that will be granted for the settlement of the investment.
• The elements which are evaluated for the granting of benefits to the investment project start to include the value of the investment and the number of jobs generated.
• Tax benefits applicable to the special investment regime were revoked and that matter will be regulated by the Tax Benefits Code, which is not in force yet.
• The grant of benefits has no longer a limitation period of ten years.
• Companies whose investment was not performed under the Private Investment Law may, from this moment, register their investment at AIPEX, permitting the transfer of funds to foreign territory with the same easiness than the companies whose investment was registered before its execution.

With the mentioned modifications, it is expected that more major investments are closer of becoming a reality in Angola, namely structural investments with huge economical and social impact. The Angolan State shows through this amendment, a strong effort to maintain its Investment framework updated and enhance it, attracting more and better investment to one of the African countries with greater potential.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialized in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal

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The Angolan Government has published the Presidential Decree No. 76/21, of 25 March 2021, approving the legal framework applicable to the generation, transmission, distribution, and marketing of Electricity, repealing all inconsistent legislation, such as the Electricity Generation Regulations, approved by Decree No. 47/01, of 20 July 2001, and the Electricity Distribution Regulations, approved by Decree No. 45/01, of 13 July 2001.
Among other matters, the new Regulation classifies electricity generation linked to the Public Electricity System as being under general or special regimes, the latter understood as being subject to special rules within the scope of the new Regulation, notably electricity generation through renewable resources and in isolated systems.

The Presidential Decree also published the Bases for the Electricity Generation Concession, Bases for the Concession of the National Electricity Transmission Grid, and Bases for the Concession of Electricity Distribution Grids. The new Regulation entered into force on 25 March 2021.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialized in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal.