Angola has demonstrated a continuous commitment to economic diversification, highlighting the agribusiness and mining sectors as strategic pillars for sustainable development. The transition from 2024 to 2025 presents a scenario of opportunities and challenges. A promising scenario for investments in 2025 is taking shape, driven by economic reforms and government incentives. The Angolan government has announced an investment of 105 billion kwanzas for the 24/25 agricultural campaign, aimed at boosting national production. This investment focused on the distribution of inputs, equipment and financing for family farms, benefiting around 1.5 million households. The target was a 7% growth in agricultural production, higher than the 5.6% recorded in the previous year.
By 2025, the consolidation of these investments is expected, with a continued focus on agribusiness. In view of this movement, the National Development Plan 2023-2027 (PND) defines agroindustry as a priority, aiming to ensure food self-sufficiency and boost economic growth. An increase in the number of industrial units in the agro-industry subsector is expected, from 169 in 2023 to 234 by 2027. Angola boasts up to 35 million hectares of arable land, that is, it has in arable land the equivalent of 6 times the size of Portugal and uses only about 10% of its land with agricultural potential. It undoubtedly has the potential to be the “breadbasket of Africa” in agribusiness, since there are excellent soil and climatic conditions and available labor to achieve a unique production capacity in Africa.
What is expected and fundamental is that there is a balance in agricultural holdings, so that family farms no longer dominate 90% of national production, with a larger area and lower productivity per hectare and corporate farms, with a smaller total area, larger individual size and high productivity, show more and more growth through foreign direct investment. Likewise, and in order to increasingly motivate investment in this sector, the Family Farming Acceleration and Food Security Strengthening Program 2024 – 2026 – Osi Yetu was approved, which is a long-term strategy program of the executive that considers Agriculture and Livestock a prosperous sector, a driving force for inclusive growth and a driver of national productivity. Another example is Notice No. 10/22 of April 6 of the National Bank of Angola, which establishes, regarding credit, that Banking Financial Institutions must grant the Real Sector of the Economy the terms and conditions applicable to such agricultural credits. Commercial Banking has embraced the challenge of financing agricultural projects and this measure seeks to awaken and attract investment in the sector that presents itself with many opportunities.
And also in the PND – 2023-2027, the development of human capital is prioritized as well as Food Security to implement the Long-Term Strategy “Angola 2050” and it is in these guidelines that other executive programs are aligned, such as Planagrão – National Plan for the Promotion of Grain Production its general objectives are to “ensure the country’s food security, generate income and promote competitiveness” for the medium term, to transform Angola into the largest grain producer in the Southern African region, with emphasis on the provinces of Moxico, Lundas Norte and Sul – regions with available land and favorable climatic conditions. It is also urgently intended to replace imports with national production, especially for the Basic Basket in the context of the diversification of exports;
In relation to the mining sector, this sector has been the jewels in the crown for decades and has attracted the attention of multinationals. The country has 38 of the 50 most important minerals in the world, as identified by the National Geology Plan – Planageo, opening “doors” for private investors to explore these ores and develop their value chain. 2025 could be marked by substantial investments aimed at modernizing rail infrastructure and improving logistics efficiency in the Lobito Corridor region, which will be the region’s fastest export and import route to Europe and the Americas. Specifically for the mining industry, the railway offers the shortest and most direct route to port from the DRC’s Kolwezi mining district, where exports of copper, cobalt and other raw materials are expected to grow rapidly and will be in high demand in the coming years as the energy transition accelerates.
Investors will also be able to count on some tax benefits brought by the law that approves the general state budget for the 2025 financial year. Regarding the VAT related to imports or transmissions of industrial equipment by the manufacturer (provided that the industrial nature of the equipment, as well as its purpose, is duly proven), the rate is reduced from 14% to 5%, and for this the taxpayer must request approval of the benefit by the Tax Administration.
Another flexibility was given to the Industrial Tax, equity variations and latent capital gains or losses resulting from the updating of fixed assets — tangible fixed assets, intangible fixed assets and investments in real estate — to fair value will be fiscally neutral, with an impact on the 2024 fiscal year, not competing as income or costs for the purposes of determining the Industrial Tax tax base.
Importers and exporters were given the possibility of paying customs duties in installments and exemption from presenting a guarantee in the customs clearance process to Official Brokers and Freight Forwarders, the Reduction in the number of physical and documentary inspections and exemption from presenting a guarantee in transit processes. The implementation of projects of public interest by International and National Organizations or Entities will benefit from exemption from customs duties on importation, Property Tax on Holding and Transfer, Value Added Tax, Stamp Duty, which constitutes a charge of the Project. Goods in international transit will be exempt from the payment of duties and other customs impositions with the exception of the General Customs Fees corresponding to fifty-six thousand two hundred Kwanzas. Also noteworthy is the Special Contribution on Foreign Exchange Operations, which is levied on transfers made under contracts for the provision of services, technical assistance, consultancy and management, capital operations and unilateral transfers. Natural or legal persons domiciled or headquartered in national territory, who request, from a financial institution, the making of transfers covered by this regime, are subject to the payment of the Special Contribution on Foreign Exchange Operations. The rate applicable to the value of the transfer to be made is 2.5% for natural persons and 10% for legal persons.
However, we cannot fail to mention that despite the investment, the creation of quality infrastructure represents a challenge which may limit efficiency in the production chain and flow of agricultural products, which can impact the profitability of investments. It will also be necessary for AIPEX (Private Investment and Export Promotion Agency of Angola) to have an active presence and action to exercise more vigorously not only the promotion, but also the execution and “rescue”, necessary for investors who wish to embrace these sectors.
Lisa Neves | Associate Lawyer – FBL Advogados
Imisi de Almeida | Trainee Lawyer – Abreu Advogados
For more information and updates contact LEX Africa member in Angola, FBL Advogados, on fbl@fbladvogados.com or visit https://www.fbladvogados.com/
