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Why should Non-Resident Foreign Exchange Investors Invest in the Angolan Capital Market?

Heriwalter Domingos


The “head” of a non-resident foreign exchange investor is objective, dynamic and pragmatic, so the opportunity cost of investing in the Angolan securities market in relation to other markets may be the main concern of non-resident foreign exchange investors.


For non-resident foreign exchange investors, the objectivity of the "why" answer will be sufficient for the investment decision. In this dimension, the dynamics of the Angolan capital market, certainly already arouses a certain interest at an international level, thus making it increasingly challenging for entities linked to the market, flexibility and clarification for non-resident foreign exchange investors of "how to invest in Angola?".

It is a fact that the size of the existence of non-resident foreign exchange investors is fundamental for the evolution of any securities market. On December 27, 2021, another milestone in this sphere was reached with the publication by the BNA of Notice No. thus BNA Notice No. 15/2019.

Particularly, one of the main highlights of the aforementioned Notice is the fact that it makes investment in securities in the securities market more flexible, ending the licensing obligation for the sale of securities held by non-foreign exchange residents to exchange residents, which was considered by the main stakeholders, as being one of the great "irritants", in the investment process in the Securities Market ("MVM").

We can define foreign exchange non-resident investors as all individuals or legal entities that, in accordance with specific regulatory procedures, may invest in certain commercial and financial operations with actual or potential impact on the balance of payments of a given country.

It is essential to demystify the "common and limited" approach that considers investment by non-residents of foreign exchange as being exclusively investment carried out by foreigners. That is, the non-residence of foreign exchange is transcendental to nationality, being limited only to the foreign exchange residence of the investor, in accordance with the terms of paragraph 2 of article 4 of Law no. , the non-residence exchange:

  • Individuals with habitual residence abroad;
  • Legal persons based abroad;
  • Natural persons who emigrate;
  • Individuals who are absent from the country for a period of one year;
  • The affiliates, branches, agencies or any form of representation in foreign territory of legal persons based in the country;
  • Diplomats, consular representatives or the like, acting in national territory, as well as members of their respective families;
  • Other entities that may fall within the scope of special cases liable to obtain the aforementioned quality from the BNA.

As already mentioned, investment by non-foreign exchange residents in the securities market plays a fundamental role in the development of the market itself. According to studies carried out by InvestMax on the B3 (Brazilian Stock Exchange), the participation of non-resident foreign exchange investors represents around 50% of the Exchange's business. At the JSE (Johannesburg Stock Exchange) level, according to Citywire South Africa, non-resident foreign exchange investors represent more than 35% of the activity of the respective Stock Exchange.

In this context, similar to the most liquid markets, it is always challenging to approach the potential that non-resident foreign exchange investors may or may not have in consolidating a particular securities market, thus making it relevant to clarify the procedures that non-resident foreign exchange investors should take into account the process of investing in securities in the Angolan market.

  • How Can a Non-Resident Foreign Exchange Investor Invest in the Angolan Securities Market?De forma pragmática um investidor não residente cambial, poderá começar a investir no mercado de valores mobiliários angolano, seguindo os seguintes trâmites:

1. Identification of the BODIVA Member ("Angola Debt and Securities Exchange"): For this purpose, it is essential that the foreign exchange non-resident investor makes contact with a BODIVA Member (Commercial Bank or Brokerage House). BODIVA makes a list of all Members available on its institutional website ( »» Members);

2. Opening of the Custody Account at CEVAMA ("Central de Valores Mobiliários de Angola"): It is essential that the non-resident foreign exchange investor, through a BODIVA Member, proceeds with the opening of the custody account (Individualized registration account for the "guard " of the titles). When submitting the documents referring to the process of creating the custody account, the foreign exchange non-resident investor must complete the pre-registration to obtain the provisional NIF by AGT.

3. Presentation of the instruction (order) for the purchase or sale of admitted securities: Once the custody account is opened, the foreign exchange non-resident investor may present his investment instruction to BODIVA Members, taking into account the guidelines of the Notice of BNA No. 11/ 2021.

  • Why should Non-Resident Foreign Exchange Investors Invest in the Angolan Securities Market?

We can answer the question posed in this opinion article, rhetorically, through another question: Why should non-resident foreign exchange investors not invest in the Angolan securities market?

From an objective point of view, the right time for non-resident foreign exchange investors to invest in the Angolan securities market is now, for the following reasons:

1. There is a tendency on the part of the competent institutions in terms of flexibility in regulatory terms of the investment process by non-resident foreign exchange investors;

2. At the Coso (Committee of SADC Stock Exchange) level, the Angolan Secondary Public Debt Market ("MSDP") is one of the most liquid, with maximum yield rates of up to 23%.

3. As the stock market is considered the maximum spectrum of the market economy, with the holding of auctions on the stock exchange and the IPOs on the Angolan securities market, non-resident foreign exchange investors complying with all legal requirements, will be able to have the "door " open, to easily insert their "impressions" in terms of expertise, within the scope of the embryonic process of opening share capital of companies on the Stock Exchange;

4. In addition to the regulatory advance with the publication of BNA Notice No. 11/2021, investors will be able to find a set of tax benefits, as identified below:

Source: CMC (Investment Guide - Angolan Securities Market for Foreign Exchange Non-Residents)

From an exogenous point of view, according to Business Insider Africa, Angola is among the ten (10) best African countries to invest in this year. The IMF (International Monetary Fund), due to the ongoing reforms, forecasts growth for 2022 of around 3%, combined with this growth, the financial rating agency Standard & Poor's (S&P), improved in the first week of February 2022, Angola's rating to B-, thus demonstrating the confidence of creditors in terms of liquidity risk. In this context, all these aspects are considered by non-resident foreign exchange investors and certainly contribute to the investment decision.

In view of the above, and with the development carried out at the regulatory level and the very dynamics of the growth of the Angolan securities market, taking into account the weight that non-resident foreign exchange investors occupy in other more liquid markets, it is essential that in the lexicon of entities involved, the word “better and more flexible” is permanently included.

Opinion of
Heriwalter Domingos

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