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Angola: New Foreign Exchange Regime for Mining Activities

13/02/2023

Angola: New Foreign Exchange Regime for Mining Activities

By way of Order 2/23, of 9 February 2023, the Angolan Central Bank (BNA) has enacted a new foreign exchange regime for mining activities in Angola (“Mining Forex”). Below is an outline of the Mining Forex:

Entities covered: The Mining Forex is applicable to the following entities:

  • Holders of rights for reconnaissance, prospecting, exploration, exploitation, cutting, commercialization and marketing of minerals;
  • Diamond cutters;
  • Sellers and buyers of rough diamonds or other minerals;
  • Exporters of rough or cut/polished minerals;
  • The state-owned Diamond Trading Company, SODIAM;
  • Other state-owned mining companies;
  • Other related entities involved in the extraction of minerals.

Export: All exports of Angolan minerals (in a rough or cut/polished state) must be paid in hard currency;

Revenues: Export revenues are processed as follows:

  • Angolan investors – they must bring the funds to local (Angolan) bank accounts, except as needed to reimburse external loans;
  • Foreign investors – they can keep the funds outside Angola, except they have to import funds to (i) pay local taxes, and (ii) pay local suppliers.

Payments: Payments between local entities must be settled in local currency (Kwanza),  except in the following cases where settlement in hard currency is permitted:

  • Transactions between the producers and SODIAM;
  • Transactions between the producers and the diamond cutters;
  • Transactions between the diamond cutters and SODIAM.

All payments must be made by electronic transfer between bank accounts with local banks. Cash withdrawals and payments are prohibited.

Bank accounts: Entities covered by the Mining Forex must open accounts with local banks in both local (Kwanza) and hard currency. Hard currency accounts are funded by exports. These accounts (hard currency) can be used for the following purposes:

  • Reimbursement of hard currency loans (bank and shareholder loans);
  • Payment of dividends to foreign shareholders;
  • Payment of imports of goods and services;
  • Purchase of local currency;
  • Other hard currency operations permitted by law.

External loans: Entities covered by the Mining Forex may obtain foreign loans to finance their mining activities without need to seek BNA approval. In the context of such loans, foreign escrow accounts may be opened and the buyers of Angolan minerals may be instructed to make payments into these accounts directly for repayment of the loans.

The previous regulations dealing with the subject matter are revoked, including BNA Order 13/20, of 29 May 2020.

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A conversation on the future of the Energy Industry

08/02/2023

A conversation on the future of the Energy Industry

In this conversation, OneLegal partner Rui Amendoeira is joined by Larry Birchall and Tyson Birchall, respectively the Executive Chairman and Managing Director of Longbow Capital Inc. for a thought-provoking conversation about the future of the energy industry. Longbow Capital is a Calgary-based private equity investment manager which focuses on energy, power, infrastructure and technology.  

Topics discussed include:

  • Is the “peak oil” prophecy finally real?
  • Is U.S. shale losing steam?
  • How can Europe ensure security of supply as it ditches Russia’s gas?
  • Energy transition: what is achievable and what is not.
  • Can we realistically achieve net zero by 2050?
  • Are we witnessing a renaissance of nuclear energy?
  • How is the ESG movement affecting energy investments?
  • How does Longbow Capital achieve attractive returns to its investors?

And much more.

I hope you enjoy it!

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Angola: New Bank Account Regulations

03/02/2023

Angola: New Bank Account Regulations

By way of Order 1/23, of 30 January 2023, the Angolan Central Bank (BNA) has issued regulations on the opening, operation and closing of bank accounts by the Angolan commercial banks. Below is an outline of the new rules:

  • Any individuals or companies, including non-resident entities, may open accounts with Angolan banks in local currency (Kwanza) or hard currency;
  • Accounts may be opened in person or online;
  • Clients cannot use third-party funds to open an account unless a “credible justification” is provided;
  • Banks must organize an individual file for each client with the client details, signature sample and other information;
  • A Bank Account Contract must be provided to each client with the terms for using the account, bank charges and fees, treatment of client information, communications between the bank and the client, and other mandatory information;
  • Regular account extracts must be provided to clients free of charge;
  • Accounts are considered “dormant” if no debit entry is registered for a period of 24 months. Banks must establish restrictions to the movement of dormant accounts;
  • Transfer of hard currency between accounts domiciled in Angola is only permitted between the same client, affiliated companies or parents/children;
  • Credit facilities cannot be extended to hard currency accounts unless the client is an exporter entity;
  • Upon learning that a client has passed away, banks must immediately block the transfer of funds from the account. Movement of the account is only permitted to the heirs of the deceased client provided appropriate legal documentation is provided the bank;
  • If a client is declared bankrupt or insolvent, banks must immediately block access to the account and comply with the instructions received from the relevant judicial authority;
  • Banks can discretionarily close any account subject to providing 60-day advance notice to the client;
  • Banks can close an account immediately in the following cases:
  1. The client has provided false or incomplete information to the bank;
  2. The client has breached the Bank Account Contract;
  3. The bank is unable to comply with the Know Your Client (KYC) obligations;
  4. The client’s risk profile is unacceptably high to the bank;
  5. The client (company) is extinguished;
  6. By decision of a judicial authority.
  • Banks can close accounts that are dormant for 15 years if the bank is unable to contact the client (including through newspaper notices) during this period. Funds in closed accounts must revert to the State.

Banks have a grace period of 90 days to ensure compliance with the new regulations.

The previous regulations dealing with the subject matter are revoked, including BNA Orders 3/09, of 5 June 2009, 10/16, of 5 September 2016 and 2/17, of 3 February 2017.

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Concession of Public Service for Internal Regular Air Transport of Passengers, Cargo and Mail

02/02/2023

Concession of Public Service for Internal Regular Air Transport of Passengers, Cargo and Mail

On the 18th of January 2023, Decree-Law n.º 5/2023, of 17th January, came into force, which regulates the bases for the concession of the public service for internal regular air transport of passengers, cargo and mail, as well as  the basis of public service obligations.

The aforementioned legal diploma provides for the possibility, through a tender and the consequent conclusion of a concession contract, for one or more air carriers to operate regularly on a route, on a set or on all national internal routes, as well as the possibility of concession under a of exclusivity when the public interest and/or the costs and benefits justify it.

All certified and validly licensed air carriers operating or intending to operate on Cape Verde’s internal air routes are subject to the aforementioned legal diploma.

Moreover, under the terms of the same legal diploma, a number of aspects are regulated, including:

  • The possibility of remuneration for the concession, either through financial compensation to the concessionaire, or through payment of an income to the granting entity;
  • Compulsory civil liability insurance; insurance relating to concession risks; civil liability insurance to cover material and bodily damage caused to third parties; etc.

Finally, with regard to public service obligations, the Decree-Law in question provides for the possibility of imposing the blockade up to seventy-two hours before departure of the flight, to and from Santiago and São Vicente, a maximum of three places for the transport of patients evacuated by medical order.

Concession, Suspension and Revocation of the Certificate of Emigrant Investor

The Regulatory Decree no. 1/2023, of 16 January 2023, entered into force on 18 January 2023, regulating the administrative procedure for the concession, suspension and revocation of the certificate of emigrant investor.

The referred diploma arises by force of the provisions of paragraphs 4 and 6 of article 20 of Law no. 73/IX/2020, of 2 March, which establishes the norms that regulate direct investment by emigrants in Cape Verde.

According to the above mentioned Decree-Regulation, it is the responsibility of the service responsible for the execution of the Government policies regarding the Cape Verdean communities established abroad to issue the certificate of the emigrant investor.

It is worth highlighting that if the emigrant investor no longer meets the requirements for obtaining the status of emigrant investor, this same service may suspend the certificate until the causes that generated the suspension are resolved.

Besides that, the mentioned Regulating Decree establishes as one of the causes for revoking the certificate the erroneous or false information provided at the moment of submission of the certificate request.

Furthermore, under the terms of the same legal diploma, the said certificate is valid for a period of five (5) years, renewable for an equal period if the bearer still meets the necessary requirements for that renewal.

Finally, the above-mentioned diploma approves the model of the certificate of the emigrant investor.

Carla Monteiro, OneLegal Partner

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