Angola

GDP (US$ Billion)

126.51 (2017)

World Ranking 59/193

GDP Per Capita (US$)

4,466 (2017)

World Ranking 109/192

Economic Structure

(in terms of GDP composition, 2017)

Services
(N/A)
Industry
(N/A)
Agriculture
(N/A)

External Trade (% of GDP)

57.6 (2017)

Currency (Period Average)

Angolan Kwanza

165.92 per US$ (2017)

Political System

Presidential republic

Overview

The administration of President João Lourenço has embraced reforms on several fronts to achieve macroeconomic stability and create a favourable environment for economic growth in recent years. After devaluing the currency, the government took further steps toward a more transparent and market-based foreign exchange market. Monetary policy remained tight and a substantial budget surplus was achieved in 2018. The new macroeconomic framework is being supported by a three-year International Monetary Fund Extended Financial Facility (EFF) in the amount of USD3.8 billion. Internationally, Angola is becoming more assertive and demonstrating a more steadfast commitment to peace and stability in Africa, particularly in the Great Lakes region. However, the country continues to face internal development challenges, which include reducing its dependency on oil and diversifying the economy, rebuilding its infrastructure, and improving institutional capacity, public financial management systems and human development indicators.

Major Economic/Political Events and Upcoming Elections

August 2017

The ruling MPLA was confirmed as election winners. João Lourenço became president and began to implement reforms and ramped up anti-corruption efforts.

August 2017

Construction on the Caculo Cabaca Hydropower Project began in August 2017 and was slated for completion in 2024. The facility would produce an additional 2,170MW to add to Angola's electricity generation capacity.

March 2018

As of the end of March 2018, citizens from 61 countries could apply for a tourist visa valid for up to 30 days with a pre-visa system. Applicants apply for the pre-visa online and would be granted the visa at Luanda Airport. These countries include the EU, China, Brazil, Canada, India, Indonesia, Israel, Japan, Russia, the UAE and the United States.

May 2018

The Angolan government announced that it intended to, at least partially, privatise around 74 state-owned enterprises (SOEs) by 2021. These include Angola's ports, its national air carrier, Ensa (the state-owned insurance company), BCI Bank and Angola Telecom.

September 2018

Angola reached an agreement with China for a USD11 billion credit facility in September 2018 following the Forum on China-Africa Cooperation. The credit obtained from China has reportedly been earmarked for investment in infrastructure. Chinese assistance to Angola over the last decade and a half has been prolific, with Angola receiving more financial assistance from Beijing than any African state.

July 2019

The introduction of value added tax (VAT), which was initially scheduled for January 2019, has been postponed to July 2019. The introduction of VAT will replace Consumer Tax. The rate of VAT to be introduced will be 14%, with exceptions for certain basic products.

Source: BBC Country Profile – Timeline, National sources, Fitch Solutions

Major Economic Indicators
Graph: Angola real GDP and inflation
 
Graph: Angola real GDP and inflation
 
Graph: Angola GDP by sector (2017)
 
Graph: Angola GDP by sector (2017)
 
Graph: Angola unemployment rate
 
Graph: Angola unemployment rate
 
Graph: Angola current account balance
 
Graph: Angola current account balance
 

e = estimate, f = forecast

Sources: IMF, World Bank, Fitch Solutions

Date last reviewed: May 1, 2019

External Trade

Merchandise Trade

Graph: Angola merchandise trade
 
Graph: Angola merchandise trade
 
 

Source: WTO

Date last reviewed: May 1, 2019

Graph: Angola major export commodities (2018)
 
Graph: Angola major export commodities (2018)
 
Graph: Angola major export markets (2018)
 
Graph: Angola major export markets (2018)
 
Graph: Angola major import commodities (2018)
 
Graph: Angola major import commodities (2018)
 
Graph: Angola major import markets (2018)
 
Graph: Angola major import markets (2018)
 

Sources: Trade Map, Fitch Solutions

Date last reviewed: May 1, 2019

Trade in Services

Graph: Angola trade in services
 
Graph: Angola trade in services
 
 

Source: WTO

Date last reviewed: May 1, 2019
 

Trade Policies
  • Angola has been a member of the World Trade Organisation (WTO) since 1996.



  •  
  • A number of categories of goods require authorisation from the relevant government agency for their importation. The following categories of goods all require authorisation prior to import:



       
    • Pharmaceutical substances, saccharine and products derived thereof (Ministry of Health).
    • Fiscal or postal stamps, radios, transmitters, receivers, and other devices (Ministry of Post and Telecommunications).
    • Weapons, ammunition, fireworks, and explosives (Ministry of Interior).
    • Plants, roots, bulbs, microbial cultures, buds, fruits, seeds, and crates and other packages containing these products (Ministry of Agriculture).
    • Poisonous and toxic substances and drugs (Ministries of Agriculture, Industry, and Health).
    • Goods imported to be given away as samples (Ministry of Customs).



  •  
  • Customs duties are levied on imports at ad valorem rates varying from 2% to 70% and consumption tax at ad valorem rates varying from 2% to 30%.



  •  
  • Listed equipment may be imported temporarily if a bank guarantee is provided.



  •  
  • A 1% stamp tax is also due on importation plus customs fees (from 2%).



  •  
  • The exportation of goods that are not produced in Angola is subject to customs duties at the rate of 20% plus customs fees (at rate of 0.5%) computed on the customs value, with the exception of goods covered by the Customs Regime Applicable to the Petroleum and Mining Sectors.



  •  
  • A special exemption regime applies for the oil industry for some listed equipment.

Sources: Global Trade Alert, WTO – Trade Policy Review, Fitch Solutions

Trade Agreement

Trade Updates

While Angola is a member of the Southern African Development Community (SADC), it is not a member of the SADC Free Trade Agreement (FTA) – although this is set to change as Angola is set to join SADC's FTA in August 2019, incentivising trade with all its Southern African peers except South Africa. South Africa is already a significant trade partner with Angola, with the latter opting to maintain a blanket tariff rate on all goods and services from South Africa so as to protect local industry.

Multinational Trade Agreements

Active

Angola-United States: Angola benefits from the Africa Growth Opportunity Act (AGOA), the United States preferential trade agreement which provides duty-free status for qualifying goods exported from Angola to the United States. The Angolan government is working to diversify its economy and recently established an export promotion agency to encourage exports, including those to the United States that could take advantage of AGOA.

Ratified and Awaiting Implementation

The African Continental FTA (AfCFTA): The AfCFTA is a trade agreement signed by 49 African Union (AU) member states with the goal of creating a single market followed by free movement and a single currency union. The AfCFTA was signed in Kigali, Rwanda on March 21, 2018, and was ratified by the necessary 22 states in April 2019. Implementation of the agreement will come into effect 30 days after the documentation regarding the ratification of the agreement is submitted to the AU. Negotiations will continue in 2019, including negotiations surrounding the relevant competition policy, investment and intellectual property rights. A draft shall be submitted for the January 2020 AU Assembly.

Under Negotiation

The SADC: At a regional level, Angola is a member of SADC, but is not party to the SADC FTA which involves 12 out of the 15 member countries with the objective of reducing trade barriers among countries in the region. The country has been unwilling to join the SADC FTA due to the government's concern that such a union would limit the competitiveness of local industries by lowering trade tariffs.

Sources: WTO Regional Trade Agreements Database, Fitch Solutions

Investment Policy

Foreign Direct Investment

 

Graph: Angola FDI stock
 
Graph: Angola FDI stock
 
Graph: Angola FDI flow
 
Graph: Angola FDI flow
 

Source: UNCTAD

Date last reviewed: May 1, 2019

Foreign Direct Investment Policy

  1. The new administration of President João Lourenço – which took office after the 2017 general elections – has embraced reforms on several fronts to achieve macroeconomic stability and create a favourable environment for economic growth. After devaluing the currency, the government took further steps toward a more transparent and market-based foreign exchange market. Exchange rate misalignments were reduced in 2018 with greater exchange rate flexibility.



  2.  
  3. In May 2018, with input from the private sector, the government approved a new private investment law. The new law eliminates the local partnership requirement for foreign investors, and offers greater business facilitation and tax incentives for investors. Under the new regime, local content restrictions were eliminated (except for those originating from industry specific legal statutes, such as on oil and gas, mining, banking and financial services, aviation, and shipping).



  4.  
  5. The government has also created the Agency for Investment and Promotion of Exports of Angola (Agencia de Investimento e Promocao de Exportacoes de Angola – AIPEX), a single body to promote investments and exports and the international competitiveness of Angolan companies.



  6.  
  7. With the new 2018 investment law, Angola’s limits on foreign equity participation will substantially reduce, bringing it more in line with those of its sub-Saharan African neighbours. Foreign ownership will remain limited to 49% in the oil and gas sectors, 50% in insurance, and 10% in the banking sectors. The Angolan government eliminated the 35% local content requirement in foreign investments, and it offers incentives to companies investing in the domestic economy, while maintaining minimal FDI screening processes. There are several objectives that the government seeks to accomplish through its FDI screening process: firstly, to create jobs for Angolans or transfer expertise to Angolan companies as part of the 'Angolanisation' plan; secondly, to protect sensitive industries such as defence and finance; thirdly, to prevent capital flight or any other behaviour that could threaten the stability of the Angolan economy; and finally, to diversify the economy.



  8.  
  9. According to Decree 151/17 effective from July 4, 2017, the three-year maximum duration of work permits granted to foreigners has ceased to be applicable within the Angolan jurisdiction. Instead, these work permits will from now on be granted for as long as the contracts of foreign employees are valid.



  10.  
  11. All companies must prepare their financial statements in accordance with the Angolan Accounting Law and the Angolan General Accounting Plan (PGCA).



  12.  
  13. The government has also made progress in the establishment of the antitrust law, followed by the creation of a competition authority.



  14.  
  15. Under the Land Tenure Act of 2004, all land belongs to the state and the state reserves the right to expropriate land from any settlers. The state may also allow for land usage through a 60-year lease, after which the state reserves the legal right to take over ownership.



  16.  
  17. Expropriation without compensation remains a common practice. Land tenure became a more significant issue following independence from Portugal when over 50% of the population moved to urban centres during the civil war. The state offered some areas for development within a specific timeframe. After this timeframe, areas that remained underdeveloped reverted to the state with no compensation to any claimants.



  18.  
  19. Angola is not a member state to the International Centre for Settlement of Investment Disputes (ICSID Convention), but has ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Its ratification was endorsed domestically via resolution No. 38/2016, published in the Official Gazette of Angola on August 12, 2016.



  20.  
  21. Angola plans to auction nine oil blocks in 2019 and is seeking to build new refineries as Africa’s second-biggest oil producer looks to benefit from the rise in crude prices that could boost companies’ appetite for investments. The tenders for the offshore areas are part of efforts to lure back global explorers. The nine blocks are located in the Namibe basin, and are part of 55 blocks which are expected to be auctioned through 2025.



  22.  
  23. The government is offering tax concessions for companies developing smaller fields, is cutting bureaucracy and selling parts of state-owned oil company Sonangol EP to attract foreign companies. Some of the efforts are bearing fruit as French major Total SA and Italy’s Eni SpA began pumping from new areas in the past year, and other blocks are set to start or resume in 2019, according to the government.



  24.  
  25. President João Lourenço announced in 2018 that the government aims to reform Angola's state-owned Sonangol.



  26.  
  27. Angola is party to several investment related treaties and conventions. In May 2009, Angola signed a Trade and Investment Framework Agreement (TIFA) with the United States, intended to provide a forum to address trade issues and to help enhance trade and investment relations between the two countries. The first meeting of the TIFA Council under this agreement took place in June 2010 with the recent meetings in 2015 and 2016 at the working level focused on a plan development, AGOA market access, and strategies to improve the business climate, but with limited engagement by the Angolan government under the then Minister of Commerce.



  28.  
  29. In July 2010, the United States and Angola signed a Memorandum of Understanding establishing a bilateral Strategic Partnership Dialogue, which commits the two parties to increased bilateral relations. Angola has bilateral investment agreements in force with Cabo Verde, Germany, Italy, and Russia. Angola has also signed agreements with Portugal, South Africa, Spain, Brazil, France, and the United Kingdom, but these agreements have not yet entered into force.



  30.  
  31. Angola is a member of the World Bank, African Development Bank (AfDB), the Organisation of Petroleum Exporting Countries (OPEC) (January 2007), the United Nations (UN) and most of its specialised agencies - International Conference on Reconstruction and Development (IBRD).



  32.  
  33. Angola conducts several bilateral negotiations with Portuguese Speaking countries (PALOPS), Cuba and Russia and extends trade preferences to Mainland China due to credit facilitation terms, while attempting to encourage and protect local content.



  34.  
  35. In 2009, Angola established the Luanda-Bengo Special Economic Zone (SEZ). Under the new investment law, Angola is divided into four economic zones, zone A through D, offering different incentives. Porto Caio is under construction in the province of Cabinda. The port is designated as a Free Trade Zone (FTZ) and is slated to provide numerous opportunities for warehousing, distribution, storage, lay down area and development of oil, and gas related activity. The Port will also serve as a new major gateway to international markets from the west coast of Angola, and the development will facilitate exports and render them more cost-effective for companies.

Sources: WTO – Trade Policy Review, World Bank, National Sources

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
Micro enterprises - Exemption on stamp duties



- 2% tax on gross sales for the first two- to five years (depending on location/zone)



- Exemption on consumption tax relating to raw materials
 
Small- to medium enterprises - Tax reduction ranging between 10% and 50% for the first two- to five years (depending on location/zone)



- Exemption on consumption tax relating to raw materials
Special Zones: Angola established the Luanda-Bengo SEZ in 2009. Under the new investment law, Angola has 4 special economic zones, zone A through D - Zone A (which covers the province of Luanda, Benguela and Huíla headquarters and Lobito municipality) offers a three-year tax exemption for capital tax and a reduction in the tax burden by 25-50%. Regarding private investment in Zone A, the provisional industrial tax was reduced by 20% for a period of two years. Capital application stipulations require that private investors pay 11.25% of tax, in two years, against the previous 15%.



- In Zone B (comprising the provinces of Bié, Bengo, Cuanza Norte, Cuanza Sul Huambo, Namibe and the other municipalities of Benguela and Huíla) offers a three- to six year tax exemption for capital tax, with a reduction in the tax burden by 50-60%. Furthermore, the SISA tax drops from 2% to 0.50%. The urban property tax for investors in this area will now be taxed at 12.50%, against 25% (50% reduction) for a period of four years, while the final settlement industrial tax goes from 30% to 9%. Industrial tax rates were also reduced from 2% to 0.60% for a four-year period and the capital duty from 15% to 0.6%.



- The Urban Property Tax (IPU) will remain at 25% for two years, while Industrial Tax (from group A and B) will be reduced from 30% to 24%, for a two-year period.



- Zone C (which includes the border provinces of Cuando Cubango, Cunene, Lunda Norte, Lunda Sul, Moxico, Uíge, Zaire and Malanje) offers an eight-year tax exemption for capital tax with a 60-70% reduction in the tax burden. The Investors will pay 6.25% of urban property tax, against 25% (reduction by 75%), in an eight-year period, while the industrial tax rate final settlement is 6% against the 30% previously charged (reduction by 80%). The capital duty goes from 15% to 3% over a period of eight years.



- Zone D is located in Cabinda. The Porto Caio port (under construction) is designated as a FTZ and is slated to provide numerous opportunities for warehousing, distribution, storage, lay down area and development of oil, and gas related activity. Investors will pay 3.125% of urban property tax, against the previous 25%. The final industrial tax dropped from 30% to 3% over a period of eight years, while the provisional tax is 0.20% compared to 2%, while the capital duty goes from 15% to 1.50%.

Sources: US Department of Commerce, Fitch Solutions

Taxation – 2019
  • Value Added Tax: 14%
  • Corporate Income Tax: 30%

Sources: The Angolan Ministry of Finance, The Angolan General Tax Administration

Important Updates to Taxation Information

  • The introduction of VAT, which was initially scheduled for January 2019, has been postponed to July 2019. The introduction of VAT will replace Consumer Tax, which allows for double taxation and which the government wishes to avoid with hopes of stimulating private consumption. The introduction of VAT aims to increase neutrality in the taxation of consumption, while also promoting the collection of revenue owed to the state. The elimination of the double taxation would improve the country’s attractiveness to investors. The rate of VAT to be introduced will be 14%, with exceptions for certain products included in the basic basket of goods.



  •  
  • Tax treaty negotiations between Angola and Portugal on the avoidance of double taxation were concluded in September 2018. However, as of Q119, the treaty has not yet gone into effect.



  •  
  • The country categorises businesses and corporate entities into two groups: A and B. Group A encompasses companies with a share capital exceeding AOA2 million and with an annual turnover exceeding AOA500 million, as well as permanent establishments of non-resident companies, public companies, associations and foundations. Group B contains all other groups, with exceptions for the mining and oil and gas sectors. Each of these four categories applies a different corporate income tax rate, as demonstrated below. (These groupings (Group A, Group B, Mining and Oil and Gas) also have their tax schedules influenced by their location, as the four different zones in use in Angola present different incentive rates and deductions.)

Corportate Income Tax Rates by Group


 
Group A
 
Group B
 
Mining
Corporate Income Tax 30% 15% 40%



Taxes and Special Provisions Relating to the Oil and Gas Sector

Type of Tax Tax Rate and Base
Corporate Income Tax
 
- 50% – production-sharing agreements

- 65.75% – other types of joint ventures not classified as production-sharing ventures

- Tax reduction for Angolan companies equal to the general rate (as applied to Group A - see table above)
Oil Production Tax 20%
Oil Transaction Tax and a surface urcharge 70%, plus USD300 million per square kilometre, not applicable to production-sharing agreements
Training Levy on production and refining companies USD0.15 per barrel
Training Levy on companies in possession of a prospecting license USD100,000 per year
Training Levy on exploration companies USD300,000 per year

 

Business Taxes

Type of Tax Tax Rate and Base
Withholding Tax Payments received for services rendered: 6.50%

Royalties: 10%

Dividends10%

Branch Remittance Tax: 10%

Interest: 15% (10% on shareholders loans, corporate bonds, bank deposits, treasury bills, treasury bonds and titles issued by the BNA)
Investment Income Tax - 10%; 10% exemption applies to dividends paid to parent companies by a subsidiary if both are domiciled in Angola and if the subsidiary has been owned by the parent for at least one year and meets a 25% ownership threshold
Consumption Tax - 2-80% (standard rate is 10%)

- To be replaced by VAT in 2019
VAT - 14% (proposed)

- To be introduced in H219, replacing consumption tax
Import Duties 2-50%
Customs Emoluments 2%
Urban Property Tax 25% (applicable to 60% of the property's gross rent)
Urban Property Transfer Tax 2%
Social security contributions on salaries 8% by employer; 3% by employee

Sources: The Angolan Ministry of Finance, The Angolan General Tax Administration

Date last reviewed: May 1, 2019

Foreign Worker Requirements

Localisation Requirements

Under the law, private investors should hire Angolan staff providing professional training and ensuring social and payment conditions, accordingly with their professional skill, without discrimination.



Under the 'Angolanisation' principle, at least 70% of the workforce at a company that employs more than five workers must be Angolan nationals and only 30% may be foreign non-resident (i.e., expatriate) individuals.

Obtaining Foreign Worker Permits for Skilled Workers

The appropriate visa allowing a foreign national to undertake remunerated activities in Angola is the Work Visa. The Work Visa is granted for the duration of the employment contract and must be applied for at the Angolan Consulate or Embassy in the applicant’s country of origin or residence.



In order to employ any non-resident foreign worker, the employee must meet the following main requirements: be of age; have a technical or scientific qualification, duly proved; have physical and mental ability; not have any criminal record.



In the oil sector, the employment of foreign personnel is subject to previous authorisation from the Ministry of Petroleum, and the grounds for the employment of foreign workers instead of national workers must be justified.



As of April 2017, some of these stringent visa requirements have been eased. Employers are now not limited in the time duration of the contracts that they negotiate with foreign employees, and can agree to pay employees in the foreign currency of their choice and provide incentives and allowances higher than 50% of the employee's base salary.

Temporary Visas

Various types of temporary visas may be granted to foreign nationals who intend to come to Angola. The type of visa depends on the reason and period of stay.

  • Ordinary Visas are granted to foreign nationals for business or family reasons. They are granted for 30 days, extendable twice, up to a maximum of 90 days. Ordinary Visas do not allow its holders to perform remunerated activities in the country, for which a Work Visa is required, or apply for residence.



  •  
  • Privileged Visas may be granted to foreign investors, representatives or proxies of investing companies in order for them to implement and execute investment projects in Angola.

Resident Permits

Residence permits are granted to foreign nationals that intend to establish residence in Angola, provided that they meet the requirements imposed by the Angolan law. The application for a residence permit may include spouses, underage children and any dependents of the applicant.

The following residence permits may be granted:

  • A Temporary Residence Card Type A is granted to foreign nationals with authorisation to establish residence in Angola. It allows the holder to establish residence for one year and is extendable for equal time periods.



  •  
  • A Temporary Residence Card Type B is granted to foreign nationals living in the country for more than five consecutive years. It is valid for three years and is extendable for equal time periods.



  •  
  • A Permanent Residence Card is granted to foreign nationals resident in the country for more than 10 consecutive years. It is valid for five years and is extendable for equal time periods.

Sources: Government websites, Fitch Solutions

Risks

Sovereign Credit Ratings


 
Rating (Outlook) Rating Date
Moody's
 
B3 (Stable)
 
27/04/2018
Standard & Poor's B- (Negative)
 
11/08/2017
Fitch Ratings
 
B (Stable) 28/12/2018

Source: Moody's, Standard & Poor's, Fitch Ratings

Competitiveness and Efficiency Indicators


 
World Ranking
 
2017 2018 2019
Ease of Doing Business Index
 
182/190 175/190 173/190
Ease of Paying Taxes Index
 
157/190 103/190 104/190
Logistics Performance Index
 
N/A 159/160 N/A
Corruption Perception Index
 
167/180 165/180 N/A
IMD World Competitiveness N/A N/A N/A

Sources: World Bank, IMD, Transparency International

Fitch Solutions Risk Indices


 
World Ranking
2017 2018 2019
Economic Risk Index Rank   163/202 160/202
Short-Term Economic Risk Score 36.5
 
41.3 47.5
Long-Term Economic Risk Score 43.4
 
40.8
 
41.6
Political Risk Index Rank   131/202 132/202
Short-Term Political Risk Score 67.5 67.5 67.5
 
Long-Term Political Risk Score 52.1 55.9 55.9
Operational Risk Index Rank   177/201 174/201
Operational Risk Score 30.7 31.4 32

Source: Fitch Solutions

Date last reviewed: May 1, 2019

Fitch Solutions Risk Summary

ECONOMIC RISK

President João Lourenço's series of ministerial reshuffles, and promised economic policy shifts, signal an increased commitment by the administration to reforming Angola's business environment and promoting diversification beyond the oil sector. That said, while this suggests potential for much stronger long-term economic growth, oil will remain the dominant sector over the next decade. The oil sector still accounts for one third of GDP and more than 90% of exports. A short-term uptick in oil production will provide tailwinds to various sectors of the economy in 2019, leading Angola to emerge from a prolonged recession. However, while business-friendly reforms and external financing provide upside potential for investment inflows and economic growth, Angola remains highly vulnerable to external shocks that can weigh on growth prospects.

OPERATIONAL RISK

Angola's economy is heavily dependent on hydrocarbons, with oil traditionally comprising over 40% of GDP, more than 70% of fiscal revenues and over 90% of merchandise export earnings. This has served the nation well during periods of rising commodity prices, but keeps Angola highly vulnerable to external price shocks. Although the non-oil sectors have been experiencing increased growth in recent years, they are not able to cushion the economy from the negative ramifications of vastly depleted oil revenues. Angola does, however, benefit from having a large and young pool of potential labour.

Source: Fitch Solutions

Date last reviewed: April 29, 2019

Fitch Solutions Political and Economic Risk Indices

Graph: Angola short term political risk index
 
Graph: Angola short term political risk index
 
Graph: Angola long term political risk index
 
Graph: Angola long term political risk index
 
Graph: Angola short term economic risk index
 
Graph: Angola short term economic risk index
 
Graph: Angola long term economic risk index
 
Graph: Angola long term economic risk index
 

 

100 = Lowest risk, 0 = Highest risk

Source: Fitch Solutions Research Economic and Political Risk Indices

Date last reviewed: May 1, 2019

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Angola Score 32.0 42.5 26.2 29.4 30.2
Southern Africa average 42.3 41.5 41.6 41.4 44.6
Southern Africa position (out of 13) 13 6 12
 
11
 
12
 
SSA average 34.5 38.2 34.5 33.3 32.0
SSA position (out of 48) 30 11 37
 
30
 
26
Global average 49.7 50.3 49.8 49.0 49.8
Global position (out of 201) 174 145 182 172 165

100 = Lowest risk, 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Graph: Angola vs global and regional averages
 
Graph: Angola vs global and regional averages
 
Country
 
Operational Risk Index Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk Crime and Security Risk Index
Mauritius 59.9 47.2 71.8 57.3 63.5
Seychelles 55.3 52.1
 
53.6 55.2
 
60.1
South Africa 52.0 53.3

56.4

56.0 42.1
Botswana 50.5 52.3 47.2 47.2 55.4
Namibia 47.6 49.0 45.1 51.3 44.8
Swaziland 40.9 33.8 33.1 48.6 48.3
Zambia 39.6
 
39.2 44.9 33.2 41.0
Lesotho 37.5 34.0 32.9 34.4 48.8
Malawi 35.1 35.0 31.5 31.2 42.8
Mozambique 33.5 30.9 38.7 37.2 27.3
Madagascar 33.1 33.8 36.3 28.3 34.1
Zimbabwe 32.2 36.4 22.4 28.4 41.7
Angola 32.0 42.5 26.2 29.4 30.2
Regional Averages 42.3
 
41.5 41.6 41.4 44.6
 
Emerging Markets Averages 46.0 48.1 46.5 44.7 44.8
Global Markets Averages 49.7 50.3 49.8 49.0 49.8

100 = Lowest risk, 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Date last reviewed: May 1, 2019

Hong Kong Connection

Hong Kong’s Trade with Angola
 

Graph: Major export commodities to Angola (2018)
 
Graph: Major export commodities to Angola (2018)
 
Graph: Major import commodities from Angola (2018)
 
Graph: Major import commodities from Angola (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Angola (by consignment)

Date last reviewed: May 1, 2019
 

Graph: Merchandise exports to Angola
 
Graph: Merchandise exports to Angola
 
Graph: Merchandise imports from Angola
 
Graph: Merchandise imports from Angola
 

Note: Graph shows Hong Kong exports to/imports from Angola (by consignment)

Exchange Rate HK$/US$, average

7.75 (2014)

7.75 (2015)

7.76 (2016)

7.79 (2017)

7.83 (2018)

Sources: Hong Kong Census and Statistics Department, Fitch Solutions

Date last reviewed: May 1, 2019


 
2017 Growth rate (%)
Number of Angolan residents visiting Hong Kong 426
 
1.0
Number of African residents visiting Hong Kong 142,512 -11.6

Sources: Hong Kong Tourism Board, Fitch Solution

Date last reviewed: May 1, 2019

Commercial Presence in Hong Kong


 
2016
 
Growth rate (%)
 
Number of Angolan companies in Hong Kong N/A N/A
- Regional headquarters
- Regional offices
- Local offices

Source: Hong Kong Census and Statistics Department

Treaties and Agreements between Hong Kong/China and Angola

In October 2018, under the witness of China, Xi Jinping, and Angolan President, Joao Lourenco, the administrator of State Administration of Taxation Wang Jun and the minister of Angola’s Ministry of Finance Archer Mangueira signed a bilateral agreement for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance and Protocol.



The agreement will provide tax certainty for cross-border taxpayers between two countries in avoiding double taxation and play a positive role in further pushing forward the bilateral economic cooperation and exchanges of capital, technology and personnel.

Source: State Administration of Taxation of The People's Republic of China

Chamber of Commerce (or Related Organisations) in Hong Kong
 

Angolan Consulate General in Hong Kong

Address: Units 2302-4, 23/F, Office Tower, Convention Plaza, 1 Harbour Road, Wan Chai, Hong Kong

Email: reception@consuladogeral-angola.hk

Tel: (852) 3798 3888

Fax: (852) 3101 0873

Source: Visa HQ

Visa Requirements for Hong Kong Residents

An Angola tourist visa is required for Hong Kong residents. All applicants must apply in person at the nearest Embassy of Angola. It is important to note that Angola Embassy only accepts lodgings on a Monday and Tuesday and only allows collections on a Wednesday and Thursday.

Source: Visa HQ

Date last reviewed: May 1, 2019

 

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