The measures go through two main axes of the real economy, namely, those related to the productive sector (companies) and those related to families and the informal sector of the economy. The MEP Portal presents in full the approved measures that are of immediate implementation.
1. Measures for the Productive Sector (Companies)
1.1. In order to ease the pressure on the treasury with tax obligations (tax relief), the following measures are adopted:
(i) to extend, to 29 May 2020, the deadline for the final settlement of declaratory obligations of Industrial Tax for Group B companies;
(ii) to extend, to 30 June 2020, the deadline for the final settlement of declaratory obligations of Industrial Tax for Group A companies;
(iii) assigning a 12-month tax credit to companies on the value of VAT payable on the import of capital goods and raw materials that are used to produce 54 goods that are referred to in Presidential Decree No. 23 / 19, of 14 January.
1.2. In order to ease the pressure on the treasury with the payment of Social Security contributions (relief from the payment of salaries), the following measure is adopted:
(iv) authorize the deferral of the payment of the Social Security Contribution (contribution of 8% of the total payroll) referring to the 2nd Quarter of 2020, for payment in six monthly installments, from July to December 2020, without training interest;
1.3. In order to ensure financial support for the minimum maintenance of the activity levels of micro, small and medium-sized companies in the productive sector, total resources of around 488 billion Kwanzas are allocated, distributed by the following financial support initiatives:
(v) the Fund for Support to Agrarian Development, FADA, provides a credit line of 15 billion Kwanzas, to finance family farms, with interest rates not exceeding 3%, being the main financing instrument of this type of producers, with fast processing and for financing packages in their size;
(vi) the Banco de Desenvolvimento de Angola, BDA, provides a credit line of 26.4 million Kwanzas, with a rate of 9% and a maturity of 2 years, a capital grace period of 180 days, to finance the purchase of the operators of the trade and distribution to national producers of the following products: maize, cornmeal, wheat, wheat flour, rice, sugar, sugar cane, massambala, pasta, reindeer potato, sweet potato, cassava, bombo manioc, beans , ginguba, sunflower, soy, table banana, banana bread, mango, avocado, citrus, papaya, pineapple, tomato, onion garlic, carrot, eggplant, cabbage, cucumber, cabbage, beef, goat, sheep and pork , poultry, eggs (chicken), milk, honey, salt, horse mackerel, sardinella, sardines, tuna, caxuxu, corvinas, groupers, hake, snorers, sole, swordfish, cuttlefish, squid and octopus, cacusso (species oreochromis and tilapia) and catfish (clarias gariepinus);
(vii) Banco de Desenvolvimento de Angola, BDA, provides a credit line of 13.5 billion Kwanzas, with a rate of 9%, maturity of 2 years, capital grace of 180 days, to finance the purchases of the cooperatives from family producers and small and medium-sized agricultural entrepreneurs to national suppliers of improved seeds for cereals, vegetables and tubers, fertilizers, pesticides, vaccines and the provision of agricultural soil preparation and correction services, prioritizing products made in Angola;
(viii) the Development Bank of Angola, BDA, provides a credit line of 750 million Kwanzas to finance projects for modernization and expansion of the activities of a maximum number of 15 cooperatives for each province, in the agriculture and fisheries sectors , with a maximum value of 50 million Kwanzas, with an interest rate of 7.5% and maturity equivalent to the operating cycle;
(ix) the Active Venture Capital Fund, FACRA, makes available 3 billion Kwanzas to make investments in the equity of agricultural, livestock and fisheries cooperatives, participating in the payment of the share of equity required in the granting of loans to be made available by the BDA;
(x) the Active Venture Capital Fund, FACRA, provides a credit line worth 4 billion Kwanzas to finance micro finance companies, field schools, community credit banks, selected through a public tender, which intend to operate, at the lowest possible cost, a micro credit attribution process for women and young entrepreneurs in the following activities: (1) agriculture, with emphasis on the production of cereals, legumes and oilseeds, roots and turmeric and vegetables; (2) broiler poultry; (3) laying poultry; (4) acquisition of cattle for fattening and slaughter; (5) food processing and beverage production; (6) logistics and distribution of agri-food products and fisheries; (7) aquaculture; (8) recycling of solid urban waste; (9) provision of transport services; (10) provision of professional training services; (11) software development; (12) tourism, cultural and artistic production.
(xi) Credit Operations carried out with credit lines obtained with external financing guaranteed by the State, namely, US $ 1 billion from Deustch Bank assigned to BDA and US $ 120 million from BAD assigned to BPC, are now accompanied by a Supervision Committee, coordinated by the Ministry of Economy and Planning, integrating the Ministerial Departments responsible for the non-oil production sector, to ensure the implementation of a simplified and quick access to these resources for entrepreneurs in the agriculture, fisheries and of the industry that intend to make investments that have more than 50% of incorporation of national factors of production and that promote exports.
1.4. In order to remove excess bureaucracy on companies, the following measures are defined:
(xii) companies are no longer required to perform statistical registration, and AGT must provide the National Institute of Statistics with direct access to the database of the Tax Identification Number, from which INE starts registering companies in the Single File Companies, for statistical purposes;
(xiii) the issuance of the commercial license is now required only for the activities of commercialization of foodstuffs, live plant species, animals, birds and fisheries, medicines, sale of cars, fuels, lubricants and chemicals, with all other activities commercial and service provision only required to request authorization to open the establishment in the respective Municipal Administration. It is up to the Municipal Administration to authorize the opening of commercial establishments and the provision of services in its constituency, after verifying compliance with the spatial planning plan and with the specific rules for the exercise of the activity, in which case the specialized services of the sector of the sector act. Provincial Government trade deconcentrated in the Municipalities;
(xiv) to revoke Presidential Decree no. 273/11 of 27 October, and thus to extinguish the obligation of companies to license management contracts, provision of services and foreign technical assistance or management at Banco Nacional de Angola and at the Ministry of Economics and Planning.
1.5. In order to ensure the minimum necessary mobility of workers during the state of emergency phase, the following measure is defined:
(xv) within the scope of the implementation of Presidential Decree No. 82/20 of 26 March, which defines the concrete exception measures in force during the period of validity of the State of Emergency, a standard model for the accreditation of workers is established of private sector companies, whose work activity is not suspended, guaranteeing their mobility, always observing the prevention and contingency rules for the control of the Covid-19 pandemic, which should be the document to be presented in the event of a challenge from the authorities order and security.
2. Measures for Families and the Informal Economy Sector
2.1. Households live under the threat of rising costs of basic goods, due to disruption experienced in the supply chain, due to reduced family income, potential redundancies and wage cuts, as well as because of lower consumption of their production of goods and services, especially in the informal market.
2.2. In order to mitigate the effects of the aforementioned threats, the immediate measures that should be applied to individuals aim to achieve two major objectives, to protect the well-being of families and to safeguard the process of maintaining and creating jobs, namely the following:
(xvi) To improve family income from wages, the National Institute of Social Security, upon prior request, authorizes employers in the private sector to transfer the amount of the Social Security discount to workers' wages (discount of 3% wages) in April, May and June 2020;
(xvii) In order to ensure the supply of energy and water to households, the Ministry of Energy and Water recommended to companies in the sector not to cut the supply of water and energy to customers with difficulties in paying bills during April;
(xviii) In order to guarantee the consumption of food in the basic basket for the most vulnerable families, resources totaling Kwanzas 315 million were made available to the Ministry of Social Action, Family and Promotion of Women, which develops campaigns to distribute basic basket goods for segments of the most vulnerable population;
(xix) In order to improve the income of the poorest families affected by the depth of the economic crisis that the country is experiencing, in May 2020 the first phase of the Social Monetary Transfer Program will begin, which will have one million and six hundred thousand beneficiary families.
2.3. In order to accelerate the transition from informal activity to the formal sector, the following measures are defined:
(xx) as part of the implementation of the Informal Economy Conversion Program (PREI), a multisectoral working group is created (composed of the Ministries of Economy and Planning, Finance, Transport, Industry and Commerce, Territorial Administration and Spatial Planning and Public Works) to develop and execute an action plan for the formalization and organization of street sales, markets, freight and passenger transport;
(xxi) as part of the implementation of the Competitiveness and Productivity Improvement Program, a multisectoral working group (composed of the Ministries of Economy and Planning, Telecommunications, Information and Communication Technologies and the National Bank of Angola) is created to prepare and execute an action plan to promote the means of digital payments, education and financial inclusion of economic agents, as well as to promote and support the emergence of fintechs.