Doing Business In (Insert Country Name Here)

The government of Angola’s decision in 1999 to allow the kwanza to float has virtuallyeliminated the difference between the formal and informal rate and has increased thetransparency and predictability of the foreign exchange rate. The Central Bank hasauthorized commercial banks and exchange bureaus to trade currency. Exportingkwanzas is prohibited and non-residents are limited to taking no more than $5000 inforeign currency when leaving Angola, unless the excess amount was declared uponarrival.Central Bank Order 4/2003 imposes firm controls over transfer of funds abroad.Investment Law 11/03 guarantees the repatriation of profits for officially approved foreigninvestment and investors can remit funds through local commercial banks; however,Order 4/2003 requires Central Bank authorization for repatriation of profits and dividendsexceeding $100,000. In addition, the Central Bank can temporarily suspend repatriationof dividends or impose repatriation in installments if immediate repatriation will have anadverse effect on the country's balance of payments. Companies have complained inthe past about waiting several months to remit funds abroad, but the Central Bank hasloosened controls and bank service time now has been reduced to a matter of hours.U.S. Banks and Local Correspondent BanksReturn to topNo U.S. banks currently operate in Angola.Project FinancingReturn to topThe U.S. Export-Import Bank will consider structured financing arrangements on a caseby-casebasis where the project offers a reasonable assurance of repayment, includingasset-backed borrowing. The Overseas Private Investment Corporation's (OPIC)political risk insurance and financing is available for projects in Angola, as is coverageunder its Quick Cover program. However, in multi-million dollar projects, US companiesshould also explore providing a commercial financing package for the purchase.The government of Angola has been extremely successful in securing credit in 2004,2005, and 2006 particularly from bilateral export credit agencies. This includes creditlines of $6 billion from China, $700 million from Brazil, $900 million from Portugal, $600million from Spain, and $500 million from Germany. For the first time, the government ofAngola has been able to secure credit lines, in particular with German banks financinginfrastructure projects in Angola, solely with a sovereign guarantee, without the backingof oil. The terms of loans negotiated by the government have also improved, with longerrepayment periods and lower interest rates reflecting Angola’s improving creditworthiness.Web ResourcesReturn to top2/13/2007