Angola approves tax and customs breaks for Africell

Angola approves tax and customs breaks for Africell

Angolan newcomer Africell is set to be granted a number of tax and customs exemptions after the country’s parliament unanimously approved the proposal.

Africell is gearing up to launch its mobile network offering in December 2021, with local news outlet Lusa reporting that the operator has invested “close to US$800 million” in its network, according to telecoms minister Manuel Homem.

Homem added that the tax incentives, which will be authorised by President Joao Lourenco, “result from a market study and negotiation and do not affect competition for companies operating in [the telecoms sector]”. He noted that rival operators had been afforded similar reprieves following their launches.

TeleGeography notes that Africell is Angola’s fourth operator, having procured a Unified Global licence. The operator aims to boost mobile penetration in the market while lowering costs for end users, improving quality of service, and fostering greater competition in the market.

“The terms of the contract include a programme for gradual implementation of coverage between urban centres and suburban areas”, added Homem. “Within eight years the operation should cover at least 60% of urban areas, giving greater priority to coverage of suburban areas.”