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					                                    INVESTING IN ANGOLA


Filipe Félix
Lisbon, 15th November 2010


   1 Millennium bcp – Our Strategy for Angola

   2 Why invest in Angola?

   3 Angola•L Financial System

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp


   1 Millennium bcp – Our Strategy for Angola
   1.1 Millennium bcp strategy for Angola

   2.2 Why Angola?

   2 Why invest in Angola?

   3 Angola•L Financial System

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp

Millennium bcp - Our Strategy for Angola

       Angola is a market "core" within the international
       strategy of Millennium bcp

       Millennium bcp is established in Angola with a
       local bank: Banco Millennium Angola

       The underlying reasons relate to:
           ØLinguistic and cultural affinities
           ØBusiness opportunities for our clients
           Ø Growth Potential

 Why Angola?
     Angola•L outlook for economic growth place the country as a main player and an
                          engine contributing for African growth.
               Annual GDP growth (in USD assuming constant prices and expressed as percentage)

                      2004-2008                                           2009-2015
    Angola                                        16,7   Mozambique                                               7,4

Mozambique                                 7,6               Nigeria                                        6,5

    Nigeria                                7                   Lybia                                        6

      Lybia                          6,4                      Egypt                                   5,7

      Egypt                      5,9                          Angola                                 5,5

    Tunisia                     5,3                           Kenya                                 5,4

     Kenya                     5,1                            Tunisia                          4,9

South Africa                   4,9
                                                             Morroco                          4,7

    Morroco                    4,8                            Algeria                   3,9

    Algeria              3,5                             South Africa             3,1

                                                                                              Source: IMF


   1 Millennium bcp – Our Strategy for Angola

   2 Why invest in Angola?
   2.1 Key drivers

   2.2 Economy

   2.3 Opportunities

   2.4 Constraints

   3 Angola•L Financial System

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp

Why Invest in Angola?

 Three important                                     Investment
                            The Economy                                            Constraints
     drivers                                        opportunities

Policies                        § Political stability, social and macro-economic
Government policies             § Incentives to promote economic growth
promoting development           § Definition of a legal framework for many activities
                                § Investment in key infrastructure (transport, energy,
                                    telecommunications, etc..)

                                §   New entrepreneurial initiatives
Accumulation of financial       §   Arising, in fact, middle and upper class
resources and increased         §   Latent demand for consumer goods
welfare                         §   Increased purchasing power and general improvement in the
                                    quality of life

Business                            Injection of foreign investment (direct and indirect)

Several business                §   Growth in construction, industry, retail and tourism (hospitality)
opportunities                   §   Investment in increasing capacity for domestic production
                                §   New businesses to serve increasing demand (banking,
                                    telecommunications, etc)

Why Invest in Angola?

      Three important                           The               Investment
          drivers                             Economy            opportunities

GDP Real Growth (%) IMF Estimate                                 Angola was one of the world's economies with
                                                                 the largest growth between 2005 and 2008,
30                                                               with an average growth of 17% per annum.
25                                                               The country was not immune to the
                                                                 international crisis and was hit particularly
                                                                 by the fall in oil prices in international
15                                                PIB            markets. The GDP must have been near zero
                                                                 in 2009.

5                                                                 GDP per Activity Sector - % do Total
0                                                                 70
                                                                                                              Agricultura, Ind. Flor e
      2003 2004 2005 2006 2007 2008 2009e 1010e                                                               Pescas
                                                                                                              Petróleo e Gás

     Despite being a rich country with many                       40

     natural resources, Angola's economy is still                                                             Indústria
     heavily dependent on oil, with a weight                                                                  Transformadora
     exceeding 40% of GDP.                                        20

     The Government has been trying to diversify                  10                                          Comércio

     the economy, promoting the expansion of                       0                                          Outros
     non-oil sectors                                                   2003 2004 2005 2006 2007 2008F 2009F

Why Invest in Angola?

 Three important                          Investment
                    The Economy                                Constraints
     drivers                             opportunities

              The Government of Angola has set as a priority to build a
              market economy open to private investment and targeting
              all sectors that can contribute to the development of the
              country, especially the non-oil sector

                         Ø Agriculture
                         Ø Construction and Related Services
Sectors eligible         Ø Electricity and Water

for investment           Ø Management and Development of Infrastructure
                         Ø Tourism
incentives               Ø Manufacturing Industry
                         Ø Mining

Why Invest in Angola?

 Three important                            Investment
                     The Economy                                    Constraints
     drivers                               opportunities

                       Ø The "informal" economy

 Foreign               Ø Lack of distribution channels
Investors may          Ø Difficulty in finding raw materials, which have to be
face some              imported in many cases

difficulties and       Ø Difficulty in hiring qualified local workforce
constraints when
approaching the        Ø Complexity of customs systems, legal and fiscal
market                 Ø Imbalances resulting from the dependence on oil revenues
                       that could lead to shortages of foreign currency whenever
                       there is decline in demand or prices plummet

Foreign Investors should therefore build an in depth knowledge of the
local environment to be successful in their projects

   1 Millennium bcp – Our Strategy for Angola

   2 Why invest in Angola?

   3 Angola•L Financial System
   3.1 Foreign Investment

   3.2 The Role of the Banking System

   3.3 Payments Abroad

   3.4 Loans

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp

Angola•Ls Financial System

     Foreign                Banking   Payments
   Investment               System     abroad

 Previous Declaration System            Contractual System
   Applyed with investments between   For investments above USD 5 Mio
       USD 100K and USD 5 Mio


                                        Project submission
   Project submission
                                           decision taken by the
      After approval from                  council of ministers
      ANIP the CRIP is
                                             After approval from
                                             ANIP the CRIP is

Angola•Ls Financial System

      Foreign                   Banking               Payments
    Investment                  System                 abroad

The Role of the Banking System

The banking system is a vital driver in the economic development of Angola

    ü Contributing to national reconstruction through the financing of public works (for ex.
    Infrastructures), property development and corporate finance.

    ü Being a catalyst for technology development: telecommunications, mainframes,
    distributed computing ...

    ü Contributing for the formalization of the economy: – Providing banking access to the
    population, reducing the cash dependency and the informal economy.

    üPromoting innovation: financial products, ATMs, POS, Internet and Mobile Banking,
    Advertising ...

    üSupporting a more effective relationship between the State, companies and individuals.

Angola•Ls Financial System
      Foreign                  Banking              Payments
    Investment                 System                abroad

                             Commercial Payments
     Transfer requests relating to trade (goods) are subject to the
               following Limits and Required Documents

      Payments below USD 100K                         Payments over USD 100K
ü Possibility of opening an import remitance   ü Letter of Credit required with the
ü Bill of Lading and franchised invoice        possibility of advance payment of 20%
ü Delivery of “Documento Único” within 90      ü Bill of Lading and franchised invoice
days after the exchange transaction            ü Delivery of “Documento Único” within 90
                                               days after the exchange transaction

Angola•Ls Financial System
     Foreign                  Banking                   Payments
   Investment                 System                     abroad

Treasury Finance (Short Term finance)
       Non existing commercial credit (bills of exchange, promissory notes
       or factoring)

       Funding almost exclusively through overdraft facility accounts

       Credit agreements recognized with notarization

       Financing in KWANSA or USD

       Criteria for risk analysis similar to that in Portugal

       Guarantees required in accordance to the client's risk

Angola•Ls Financial System
     Foreign                   Banking                      Payments
   Investment                  System                        abroad

        Investment Finance (Medium and Long term Finance)
        Loan Accounts are the usual instrument for contracting

        Intended mainly for financing the purchase of transport vehicles or equipment

        Requested guaranties elements of analysis to be presented may vary

        Loans with flexible drawdown and grace periods

        Mortgages on surface rights are legally permitted

        Payback period is usually smaller than in similar investments in home countries

        Usually the timing for formalization of the loan contract is long

Angola•Ls Financial System

Shortly …

         Exchange                       No provision
            and                          is made to
                       of regulation
        Derivatives                    regulate Real
                       on Factoring
       is scheduled                         Estate
                       and Leasing
          to start                         Leasing


   1 Millennium bcp – Our Strategy for Angola

   2 Why invest in Angola?

   3 Angola•L Financial System

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp

Banco Millennium Angola

                                                                                                 “Most Innovative Bank”
                                                                                                       em Angola

             1994                                   2000                          2006                  2009

                                       Incorporation of BPA                 The BCP Branch is    Partnership with
       Banco Português do
                                      SA in Banco Comercial                 transformed into    Sonangol and Banco
      Atlântico (BPA) opens
                                      Portuguese, SA (BCP) *                Banco Millennium     Privado Atlântico
        branch in Angola
                                                                            Angola, SA (BMA)           (BPA)
                                      * Recognised in Angola, April 2002.

Shareholder structure represents a strong
partnership between Portugal and Angola



Banco Millennium Angola

  § Companies interested in investing in Angola can count on the vast
    experience and market knowledge of Millennium bcp, based on many years
    working in the country.

  § We have a mix of both Angolan and Portuguese employees who deeply
    understand the nuances of the economic environment within the country and
    can help during the process of implementation of projects and therefore
    contributing to the success of investment strategies and providing banking
    support to the performance and expectations of the companies.

 2012 Objectives

 Ø Be a reference market player
 Ø Branch network to reach the level of capillarity equivalent
  to the main competitors in the market (100 Branches by 2012)

 Ø Universal Bank with service of excellence covering all
  market segments

Banco Millennium Angola

                                  Payments &
     Trade Finance                Receivables
                                                       Other Services

  •Documentary Credits       • EUR Payments         •Internet Banking
  • Documentary              • USD & other          •Cash Management
                             currencies Payments    •Swift solutions (e.g.
  • Guarantees
                             • Mass Payments        MT940)
  • Standby letters of
  credit                     • Cheques              •Business Referrals to
  • Collections              • Processing of        Group or Partner Banks
  • Import/Export Advising   collection files       •Support for accounts
                             • ATMs                 opening in external
                             • POS
                                                    •Research and Risk
                             • Collection and
                                                    Analysis (Mbcp)
                             processing of cash &

Banco Millennium Angola
                                                                          Objective 2012: 100 balcões
                                                                       Objectivo em 2012: 100 branches
        October 2010: 2010: 30 balcões
   Situação a Agosto de 30 branches
                                                                          ?65-75 Balcões em in Luanda
                                                                            65 -75 Branches Luanda
2 Cabinda
                                                                          ?40 a- 50 balcões nas Províncias
                                                                            40 50 Branches in the provinces
                                                                                 Cabinda                    2/3   Uíge
                       Uíge                                    1/2               Zaire
           1                                                                                 Uíge
                                                                 2/3             Bengo
                  Kwanza        1         Lunda                                                              Lunda
Luanda                                                                                   Kuanza
                  Norte                   Norte                         Luanda                 Malanje       Norte                    1
                              Malanje                                                    Norte
    19                                                        65/75

                                                  Lunda Sul                                                       Lunda Sul                     4/5
         Kwanza sul                                                                  Kuanza sul
                       Huambo                                                                                        Moxico                       1/2
                                    Bié             Moxico      3/4                                   Bié
       2                                                                                  Huambo
                        1                                                          Benguela
       Benguela                     1
                                                               6/7                         Huila
                       1                                                                                                            3/4
               Huila                                                       Namibe                             Cuando
 Namibe                                   Cuando                                             Cunene           Cubango
   1                                      Cubango              1/2


Banco Millennium Angola

Banco Millennium Angola launched on December 4, 2006, an Internet site, aimed at private customers and companies that
want to query and transact their accounts at any time.

Banco Millennium Angola

                Multinational Brand – Know-how replicated in 9

                         Most Inovative Bank in Angola pela
                         EMEA Finance

  by Clients
     and                 “Brand of Excellence” in Angola
                         2009/2010 Classified by
 Institutions            “Superbrands”.

                         2010 Best Bank in Angola whose
                         capital is mainly foreign, by magazine
                         EMEA Finance(Europe,Middle East and


   1 Millennium bcp – Our Strategy for Angola

   2 Why invest in Angola?

   3 Angola•L Financial System

   4 Banco Millennium Angola

   5 Value proposition from Millennium bcp

Value Proposition

   Ø   Commitment to international business
   Recognising the ever more complex customer demands as well as
   new industry initiatives and increases in regulatory requirements,
   Millennium bcp has developed technological, flexible solutions
   aiming at responding to corporate customers’ key objectives in
   their international business

   Ø Corporate International Services
   Millennium bcp has a dedicated team supporting the international
   business and internationalisation projects of our clients. Our
   mission is to add value on the bank•L global offer within every
   domain of international activities.




Value Proposition

                                    International Business Platform

                    Be a consulting partner for clients undergoing
 Millennium         internationalization processes:
 bcp has a                ü Country profile
                          ü Local partners
 dedicated                ü Legal and fiscal framework

                                      Millennium Trade Solutions
 with two
 competence                                               s
                    Performs an analysis of the company•L profile and requirements
                    and devises adequate solutions for its international activities and
 centres            strategy:
                          ü Treasury Management
                          ü Trade Finance
                          ü Integrated Financial Solutions

Value Proposition

Millennium Trade Solutions
Scope of Activity
q A team of Product Specialists together with the client’s account manager evaluates each
client profile and specific needs and proposes the best solution to respond to the individual
requirements of their international activities.

q The scope of Millennium Trade Solutions Specialists involves all products and services related to
international activities in the areas of trade finance; risk management; cash and treasury

q Our comprehensive product range allow us to offer considerable benefits to our clients,
however we believe our main strength to be our approach to structuring solutions: we take time to
fully understand our customers’ international business within the context of their overall strategy,
in order to put together appropriate solutions that work, by:
             Ø Defining Product Packages function of each client specific profile;
             Ø Creating business proposals that anticipate our clients’ needs.

Value Proposition

International Business Platform
Scope of Activity
q A team of country specialists supports clients going through an internationalisation process,
namely to countries where Millennium bcp maintains a commercial network or other strategic /
priority markets through alliances with local partner banks.

q Offers country packages, based on expertise on local markets

q Matches clients with potential partners in selected markets (e.g.: by sponsoring commercial
missions, participating in international fairs)

q Supports non resident corporations interested in investing in or doing business with Portugal
and referred by Millennium Group or Partner Banks

q Acts as gateway to Millennium Group multi domestic markets

Value Proposition

                                   Products and Services

          Trade Finance           Export Finance         Payments & Receivables     Value Added Services

       ØStructured trade      ØDiscount / Export         ØEUR  Payments            ØElectronic  Banking
       finance                receivables                ØForeign  Currency        ØCash  and Treasury
       ØDocumentary Credits   ØPre-Export Financing      Payments                  Management
       ØDocumentary           ØMedium Term               ØMass Payments            ØInternational Cash-
       Collections            Financing: buyers          ØCheques                  Pooling
       ØGuarantees            credits / suppliers        ØSwift- to -Cheques       ØAccess to foreign
       ØStandby letters of    credits                                              accounts via web or
       credit                 ØCredit & political risk
                                                         Factoring                 Swift solutions
       ØCollections           mitigation through ECA                               ØBusiness Referrals to
                                                         ØElectronic Collections
                              based solutions                                      Group or Partner Banks
       ØImport/Export                                    (Spain and France)
       Advising               Ø EBRD “Trade                                        ØSupport for accounts
                              Facilitation Programme”                              opening in external
                              ØIFC “Global Trade                                   markets
                              Finance Program                                      ØResearch and Risk
                              ØImport/Export                                       Analysis
                              Advising                                             ØExport Portfolio

Value Proposition

                     Financial support for Portuguese companies

    Line of Credit Export Support                         SOFID – Sociedade para o
    "Convention Portugal Angola"                     Financiamento do Desenvolvimento

Conditions of Coverage Cosec                        GOAL - Support for Portuguese companies in
                                                    investments in developing countries and emerging
 Amount guaranteed: capital (85% of the
                                                    countries, alone or in partnership with local investors,
commercial contract) + Prix insurance (if funded)
                                                    contributing to the sustained development of these
+ compensatory interest
                                                    countries, particularly those who are recipients of
• Percentage coverage: 95%                          Official Development Assistance (ODA) Portugal.
• 15% Initial payment of the contract value         FORMS OF SUPPORT
• Medium / long term                                • Lending to medium-term (3 to 10 years)
Goods and Services Covered                          • Access to credit on terms to be defined by SOFID
• Machinery and Equipment                           • Guarantees: case analysis on the basis of project risk
• Shipbuilding and Repair                           • Venture Capital: Participation in the temporary capital
• Contracts for Construction and Public Works       of companies

• Developments in the "turnkey"                     • Provision of consultancy services

• Studies and Projects                              • Other operations and activities useful to their
• Technical Assistance

Value Proposition
                                              Maria Natália Canêlo
                                             Managing Director
                                       Corporate International Services
                                            Tel: + 351 211131780

   Lisbon team                      Country and Product Specialists                               Porto Team

                    Ana Teresa Sá
                                                                      Maria Rosário Guimarães
      Head of Millennium Trade Solutions (South)
                                                              Head of Millennium Trade Solutions (North)
                 Tel: + 351 211131779
                                                                        Tel: + 351 220042361
                       Filipe Félix
                                       Sónia Rocha
                 Tel: + 351 211131716                      
                                                                         Tel: + 351 220042362
                      Carlos Silva

                                                                              Marta Soares
                 Tel: +351 211131797
                    Valter Pizarro                                        Tel: + 351 220042374
                 Tel: +351 211131703                                       Jorge Valpaços
                  Nélia Margarido                                       Tel: + 351 220042363

                 Tel:+351 211131782                                            Address
                       Address                                         Rua Azevedo Coutinho, 39
                Rua do Ouro, 130 – 3º.                                     4100-100 PORTO
                  1100-060 LISBOA

Thank you !

              Filipe Félix
              Phone + 351 211131716


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