Presidential Decree 216/24, of 21 October 2024, approved the Investment Policy of the Angolan Sovereign Fund (Fundo Soberano de Angola, FSDEA). Here is a summary of PD 216/24:

Objectives: The main objectives of the FSDEA are the following:

• Save and transfer wealth to future generations of Angolans;
• Maximize financial returns;
• Manage resources allocated by the state for specific purposes, such as fiscal stability and development of national infrastructure projects.

Investment Principles: The FSDEA shall achieve financial returns while protecting its capital, and its investments shall be aimed at:

• Increasing national wealth through prudent investments based on the best risk/reward balance;
• Creating additional sources of income to Angola and ensure the wealth transfer between generations.

Independence: The FSDEA is totally independent from the state administration and bodies.

Asset Allocation: The FSDSE investment portfolio shall be allocated as follows:

1. Between a minimum of 20% and a maximum of 50% will be invested in fixed income securities issued by sovereign entities of predominantly G7 countries, or companies or financial institutions with investment grade rating;
2. A maximum of 50% will be invested in variable income securities;
3. A maximum of 50% for alternative investments.

Petroleum investments: Investments in petroleum assets shall not exceed 5% of the fund’s assets.

Alternative investments: The fund may invest in alternative investments, including private equity and venture capital.

Hedging: The fund may use hedging instruments, including derivatives, to hedge the risk of its investments.

Leverage: In special cases, the fund may use leverage for its investments up to a maximum of 5% of the fund’s capital.

Reinvestment: Investment returns shall be used primarily for reinvestment. They may also be used for development and social responsibility projects.

Currency: Investments shall be made primarily in US Dollars, although investments in other currencies are also possible.

Risk Management: The Board of Directors of the fund shall approve a Risk Management Policy.

Asset Managers: The fund may hire external asset managers who meet the following requirements:

1. More than 10 years’ experience in at least one G7 economy;
2. Subject to the authority of a regulatory body;
3. Not targeted in any criminal investigation;
4. With assets under management of at least USD 3 billion.

The same asset manager cannot manage more than 30% of the fund’s global portfolio.

By way of Presidential Decree 209/24, of 9 October 2024, the Angolan government has enacted new Regulations on the Sale and Resale of Butane Gas (Butane Gas Regulations). Below is a summary of PD 209/24:

• The sale and resale of butane gas is subject to license to be issued by the following entities:
  
  • The Petroleum Products Institute (“Instituto Regulador dos Derivados de Petróleo”) in case of bulk or wholesale suppliers of butane gas;
  • The local governments in the case of retail sellers of butane gas.
• The license is subject to an initial inspection to be carried out by a technical committee comprised of representatives of the following entities:
  
  • The licensing entity (Petroleum Products Institute or local government, as applicable)
  • Ministry of Commerce
  • Ministry of Health
  • Firefighting department
  • Other concerned public services
• The license is valid for 5 years, and is subject to annual inspections.
• Both wholesalers and retailers must possess installations with the following functionalities:
  
  • A proper warehouse
  • Storage capacity of up to 500 12-kg bottles for retailers, and above 500 bottles for wholesalers
  • A fire and gas leakage emergency plan and appropriate fighting equipment
  • Easy access conditions for loading and offloading, as well as firefighters
  • Personal protection equipment and first aid kit.
• The following are considered administrative offenses:
  
  • The sale/resale of butane gas without a valid license – fine equivalent to 100 to 300 times the minimum wage
  • Lack of fire or gas leakage fighting equipment – fine of 100 minimum wages
  • Lack of first aid kit – fine of 25 minimum wages
  • Absence of proper installations signage – fine of 10 minimum wages
  • Lack of personal protection equipment – fine of 50 minimum wages
• The license may be canceled in the following cases:
  • The licensee has not commenced activity within 180 days of the license date
  • The activity was suspended for 90 days or more
  • The licensee was declared bankrupt
  • The (individual) licensee has passed away or is unable to carry out a commercial activity
  • In case of serious risk to health and safety of the workplace or the environment.