New Foreign Exchange Rules For Foreign Investment And Capital Transactions

• Published date: 21 January 2022
• Subject Matter: Finance and Banking, Government, Public Sector, Financial Services, Inward/ Foreign Investment, Commodities/Derivatives/Stock Exchanges
• Law Firm: PLMJ
• Author: Renata Valenti and Rúben Brigolas

Notice 11/2021 of 2 December (the "Notice") was approved by Banco Nacional de Angola ("BNA") to define the procedures for carrying out foreign investment operations and repatriation of capital by foreign exchange non-residents, in relation to (a) companies without shares admitted to trading on regulated markets (b) securities and derivative instruments and (c) divestment operations.

The Notice repeals the rules provided for in Notice 15/2019 of 30 December and maintains the focus on liberalisation of the sector. The exemption from prior licensing from the BNA remains in place for most foreign exchange operations, with the burden of compliance being on the commercial banks.
Investments in the oil sector remain excluded from the scope of application of these rules.

The parties to foreign exchange transactions are exempt from prior licensing of the transactions.
In order to ensure repatriation, the relevant parties have to comply with the procedures set out in the Notice. This will allow repatriation of income relating to (i) foreign investments, (ii) repayment of shareholder loans and other shareholder benefits, (iii) the proceeds of sale or dissolution of a foreign investment, and (iv) the proceeds of sale or maturity relating to investment in securities and derivatives.

Of special note are operations...