Andrew Stegmann
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Angola Cables and TM Global Successfully Establish Proof of Concept For a New Undersea Cable Route

Most of the global internet traffic today utilizes infrastructure located primarily in the northern hemisphere to link Asia, Europe and North America. Meanwhile, the southern hemisphere, which includes parts of Asia, Africa and South America is heavily connected via links coming from the North as well. However, the traffic to the southern region currently travels a longer route which may affect the internet experience of the end-users.

Aware of the increasing needs for a more efficient and low latency route, TM GLOBAL, the global and wholesale arm of Telekom Malaysia Berhad (TM) and Angola Cables have been exploring another alternative via a new express route connecting the southern hemisphere subsea cables from Asia directly to South America. A Proof of Concept (PoC) testing is being conducted by both parties leveraging two (2) cable systems; the South Africa Far East cable system (SAFE), connecting Malaysia to Angola, and South Atlantic Cable System (SACS) connecting Angola to Brazil owned by both parties respectively.

The preliminary PoC results have showed up a reduction in the latency reading as compared to the current northern hemisphere routes. This may lead to a significant improvement in the global internet traffic routing quality especially on data connectivity services to the southern hemisphere.

The new express route is set to provide a shorter path connecting Asia to South America while bypassing the Middle East and Europe, hence delivering a better customer experience. The low latency routing will also provide the catalyst for the creation of more effective digital ecosystems that are developing within the southern hemisphere. This initiative is expected to transform data transfer between countries and economies, enabling more robust connection amongst back-haul providers, content/application providers and content delivery network providers in a more efficient data sharing process. The benefits will be far-reaching, especially for financial institutions in conveying market-sensitive information or multinational companies in sharing large amounts of data and applications to users in the US, Latin America or the Far East region.

TM GLOBAL and Angola Cables believe that this initiative will provide better options for service providers in growing their business and expanding their reach to new and niche markets. Both parties will continue to explore other potential collaboration areas in penetrating new market opportunities and serving the customers who are looking for diversity, high resiliency route and better quality of service.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Angola to Introduce Value Added Tax in October This Year

After a postponement in July 2019, Angola is planning on introducing Value Added Tax (VAT) of 14% on 1 October 2019.

The Angolan government and the GTE, its partner for private business policies, agreed to change the date, although it still depends on a timetable to be set by the General Tax Administration (AGT), which is responsible for implementation of the Angolan state’s tax policies.

Among other recommendations, it was decided to opt for the “reducing” the IVA rate to 7% for companies in the Transitional Regime and to deduct at least 2% of the value of stock in the net amount of the Industrial Tax (II).

The government and the GTE also decided to consider new mechanisms to propose the creation of a specific legal instrument to avoid double taxation in the case of advances to official brokers. The IVA Code provides for a single rate of 14% for all imports of goods and for all large taxpayers with income above 15 million kwanzas (about 45,000 euros) and large public enterprises and banking institutions.

The new taxes will be applied as soon as IVA is implemented, which will replace the Consumer Tax (IC). These include the Special Consumption Tax (IEC) and the new Income Tax (IRT).

The IEC Code is mandatory for all natural persons or legal persons and other entities engaged in production operations, whatever the processes or means used, and on imports of goods. The IEC that is proposed for Angola focuses on importers, producers and holders for commercial purposes.

The IRT stipulates that income subject to tax will include profits shared with partners of purely civil companies, with or without a commercial form, and income earned by members of the corporate bodies.

Angola is the only country in the Southern African Development Community (SADC) which has yet to introduce VAT. In other member countries of the regional economic bloc the rate of this tax is over 14% and has been one of the main taxes for State Budget revenues.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Italian Oil & Gas Company Eni Discovers New Light Oil in Angolan Waters

Eni has made a new light oil discovery in Block 15/06, in Angola’s deep offshore. The well was drilled on the Ndungu exploration prospect. The new discovery is estimated to contain up to 250 million barrels of light oil in place, with further upside.

The Ndungu-1 NFW well is located a few kilometers from Eni’s West Hub facilities, and has been drilled by the Poseidon drill-ship in a water depth of 1076 meters and reached a total depth of 4050 meters. Ndungu-1 NFW proved a single oil column of about 65 meters with 45 meters of net pay of high quality oil (35° API) contained in Oligocene sandstone with excellent petro-physical properties. The result of the intensive data collection indicates a production capacity in excess of 10,000 barrels of oil per day.

Ndungu is the first significant oil discovery in Angola inside an already existing Development Area. It certifies the concrete validity of the recent legislation, promoted through the Presidential Legislative Decree No. 5/18 of 18 May 2018, which defines a favorable legal framework on additional exploration activities within existing Development Areas.

Being located about 2 km from the Mpungi field, the new discovery can be fast-tracked to production due to the proximity to the Sub Sea production system. Production will be routed to the N’goma FPSO, therefore extending the West Hub’s production plateau.

Ndungu is the fourth discovery of commercial nature since the Block 15/06 Joint Venture re-launched its exploration campaign in mid-2018. It follows the discoveries of Kalimba, Afoxé and Agogo; the four discoveries altogether already estimated to contain up to 1.4 Billion barrels of light oil in place. The appraisal phase of these discoveries will target their additional upside.

These important discoveries further demonstrate the upside potential of the block and the effectiveness of the proprietary technologies that Eni used and will use to explore Block 15/06.

The Block 15/06 Joint Venture, composed by Eni (operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%), will work to fast track its development.

Angola is a strategic Country for Eni’s organic growth. Eni has been present in the Country since 1980 and currently accounts an equity production of about 150,000 barrels of oil equivalent per day. In Block 15/06 the two oil development projects, West Hub and East Hub, currently produce about 155,000 barrels of oil per day (100%). Eni is also operator of Cabinda Norte Block, located onshore.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: lewis pratt [1], [2].

Andrew Stegmann

Angola Launches Electronic Import Licensing Service to Reduce Bureaucracy, Entice Investors

Angola Ministry of Economy and Planning has launched a new Electronic Goods Import Licensing Service to improve the business environment and motivate economic activity.

With the entry of this new service, importers in the sectors of Industry, Agriculture, Fisheries and goods of the basic basket will only have to wait three days to have the import pre-licensing processes completed.

During the ceremony, the Minister of Economy and Planning, Pedro Luís da Fonseca, said that the initiative demonstrates the will of the state to improve administrative productivity and create a better business environment by reducing bureaucracy, simplifying and decentralizing the pre-licensing process.

The minister also stressed that the Executive’s economic policies and reform are promoting greater openness to private investment, making them the most important pillar of structural changes in the economy, the creation of employment par excellence and income multiplier.

“A good business environment is surely a valuable indicator for private capital investment decisions,” he said.

Pedro Luís da Fonseca said that the Executive is implementing the process of facilitation and economic simplification with the help of different institutions, seeking to maximize synergies.

In turn, Refriango’s administrator, Stephen Daniel, said that the new Electronic Import Licensing Service, under the auspices of the Agriculture and Forestry, Industry, Fishing and Sea sectors, is welcome once that there was a lot of bureaucratization in the treatment of import pre-licensing processes.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: chuttersnap [1], [2].