A Bilateral Investment Treaty (“BIT”) between Portugal and Angola entered into force on 24 April 2020. The full text of the BIT published in the Portuguese official gazette (Diário da República) can be found here.

In October 1997 the two countries signed a first bilateral investment treaty which never came into force. In the context of the strengthening of economic cooperation between Portugal and Angola, a new agreement was signed in 2008 – the BIT. The formalities for its entry into force were completed only in March 2020 with the approval of the BIT by the Angolan President and the notification of such approval to the Embassy of Portugal in Luanda.

The BIT grants to the investors of one State (1) a set of protections in respect of the investments made in the territory of the other State, as from its entry into force. Hence, investments made prior to 24 April 2020 do not enjoy the protections granted by this BIT. 

Among those protections, aimed at promoting the undertaking of investments, we can highlight the following: 

• The creation of favorable conditions for investments with just, equitable and non-discriminatory treatment;
• A guarantee that investments will not be nationalized, expropriated or subjected to similar measures, except for reasons of public interest and accompanied by prompt, adequate and effective compensation and, if so, in a non-discriminatory manner and in accordance with legal procedures; 
• Reparation (compensation, etc.) in respect of losses in investments due to war, armed conflict or similar situations;
• Granting investments (their management, maintenance, use, enjoyment and disposal) a treatment which is no less favorable than that accorded to the investments of national investors or investors of third-party States;
• The provision of mechanisms of resolution of disputes between the investor and the State where the investment is made, especially arbitration to which the State is bound by means of the BIT.

The entry into force of the BIT paves the way for the creation of greater legal certainty for investors and their investments, which is expected to enhance the flow of private investment between Portugal and Angola.

(1)  Physical person with the nationality of that State, or organization having legal personality (e.g. associations, foundations, corporations, commercial companies) with registered office in the territory of that State and which has been incorporated under the laws in force there.

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