Embassies of Africa in Hungary & Profile

Algeria

1121 Budapest, Zugligeti út 27.

Tel: 200-68-60;392-0510; 392-0519

Fax: 200-6781

E-mail: ambalbud@axelero.hu

Angola

Bp, alkotás u. 50

Tel: 325-3080, 325-3081, 325-3082

Fax: 325-3006

E-mail: ambanhun@interware.hu

Egypt

1125 Bp, Istenhegyi út 7/b

Tel: 225-2150

Fax: 225-8596

E-mail: egyptembassybudapest@yahoo.com

Libya

1143 Bp, Stefánia út 111.

Tel: 343-6076, 343-1214

Fax: 343-1583

Morocco

1026 Bp, Törökvész lejto 12.

Tel: 275-1467, 200-7855

Fax: 275-1437

E-mail: sifamabudap@axelero.hu

Nigeria 
 1023 BUDAPEST 
 RÓMER FLÓRIS UTCA 57,

Telephone: +36 1 212 2021, +36 1 212 2022
Fax: +36 1 212 2025
E-mail Addresses:
embassy@nigerianembassy.hu
secretary@nigerianembassy.hu

nigeria@axelero.hu

Website: www.nigerianembassy.hu

South Africa 

1026 Bp, Gárdonyi Géza út 17.

Phone: 392 0999, 392 0999     

Tunisia

1025 Bp, Pusztaszeri út 24/A.

Tel: 336-1616, 336-1617

Fax: 325-7291

E-mail: at.budapest@axelero.hu 

 Profile of Angola

GENERAL BACKGROUND

Angola is beginning its recovery from a 27-year civil war that began shortly before the nation achieved its independence in 1975. The war destroyed much of Angola’s economy and infrastructure, displacing an estimated four million people. Angola has made a lot of outcome in recent years. Peace has now been secured and — due to the strong efforts on the economic management team — the public finances are improving and inflation is on the decline. The task ahead is to fully exploit the enormous opportunities for development, stemming from Angola's major resources, including notably —its people, its mineral wealth including oil and diamonds, and its agricultural potential. Elections are scheduled for September 2006.
Angola is a member of the United Nations (UN), the African Union (AU), the Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA). Angola is sub-Saharan Africa’s second largest oil producer, and its production is expected to reach 2 million barrels per day by 2008. Major offshore oil finds have also made Angola a key focus of hydrocarbon exploration in sub-Saharan Africa. The Angolan economy is highly dependent on its oil sector, which accounts for over 40% of gross domestic product (GDP) and almost 90% of government revenues. A sharp increase in oil production caused Angola’s real GDP to grow by 15.3% in 2002, followed by a 2003 growth rate of 4.9%. Angola is expected to see growth of 16% in 2006. Inflation is further expected to drop to 45% in 2005.
In 2002, Angola agreed to an International Monetary Fund (IMF) Staff Monitored Program (SMP) to enact economic reforms, with the hope of eventually obtaining additional lending from the IMF and World Bank. In May 2004, Angola elected to participate in the IMF’s General Data Dissemination System (GDDS), created to improve the release of official statistics. Angola is also considering signing the UK’s Extractive Industries Transparency Initiative (EITI), a program created to increase transparency by encouraging energy companies to voluntarily provide details of contracts. In February an agreement will be signed between IMF and Angola on an IMF loan by the end of the year. The World Bank (WB) has approved in February 2005 a donation worth 26 million USD, a credit estimated at 25 million dollars from the International Development Association (IDA), aiming at implementing the first phase of the Multisectorial Emergency and Rehabilitation Project (PMER).The current strategy of the WB is an extension of the Aid Plan for Transition, approved in March 2003. The project targets three fundamental pillars, namely to increase the transparency, efficiency and credibility in the management of public resources, rehabilitation of the infrastructures and to enlarge the delivery of basic services, to prepare the conditions for an extensive and oriented economic growth for the poor people. Due to these efforts, developed countries and the EU decrease their pressure on Angola to promote transparency of oil revenues.
Since early-September 2003, a strong anti-inflationary effort has been implemented by the Angolan Authorities. The main features of the stabilization plan include:

1. a hard kwanza exchange rate policy,
2. improved fiscal accounting, but with continued large foreign financing of the deficit, and
3. enhanced control over commercial banks’ liquidity in tandem with closer policy coordination between the Treasury and the Central Bank.

The Authorities have increased banks’ reserve requirements and reviewed regulations of on banks’ foreign exchange positions. Reserve requirements on domestic and foreign currency deposits were raised to 15 percent on July 2003.

In September 2004, the Angolan government announced its intention to create a reserve fund to hold un anticipated oil income accumulated from higher tax revenue on the increased price of crude. In the same month, the Angolan Central Bank proposed enacting draft legislation that would require oil companies to channel payments through the domestic banking centre rather than international banks. Such a measure would boost transaction revenues for the Angolan banking sector and its ability to make domestic loans. read more

Profile of Nigeria

BUSINESS AND ECONOMY

The Nigerian Government, conscious of the over-dependence on oil, which constitutes about 95% of generated revenue, has embarked on many measures to give the Nigerian a new lease of life. To generate stronger and stable growth rate, the Government is promoting the increased production in the non-oil sector of the economy by creating a level-playing field for private-sector led activity. Essentially, the pivots around which the framework for economic growth and development will revolve include the following:

    * agriculture and agro-business,

    * solid minerals development,

    * manufacturing,

    * information and communications technology (ICT),

    * crude oil,

    * natural gas, and

    * tourism

Other expected areas of concentration that will equally engender accelerated economic growth and poverty reduction are:

    * diversification of the productive base of the economy,

    * emphasis on agriculture and rural development to consolidate existing initiatives in ensuring food security and export possibilities, particularly in cassava, rice production, textiles, cash crops, livestock, and vegetable oil,

    * continued privatization of government owned companies and public utilities

    * maximum use of the opportunity available to the textile and garment industry through the African Growth Opportunity Act (AGOA)

    * promotion of environmental protection and management

    * making Nigeria the hub of economic activity in West Africa

    * sensitization of the Nigerian public about the concept of the New Partnership for Africa's Development (NEPAD), which is the political and socio-economic program of the African Union (AU), and which is recognized as the expression of Africa's collective determination and willingness to develop and integrate into the global economy.

Government will provide Nigerian businesses with an enabling environment that will enhance their ability to take advantage of opportunities arising from NEPAD and the African Union.

As further proof of the Government’s commitment to economic growth, the Nigerian Government developed a home-grown poverty-reduction strategy known as NEEDS - National Economic Empowerment and Development Strategy. The strategy has as its core, some specific structural reforms:

  

 * Anti-Corruption, Transparency and Accountability

          o Extractive Industries Transparency Initiative (EITI). Nigeria has enrolled in this initiative and has already started the process of hiring auditors to examine the Oil Accounts;

          o Establishment of the Economic and Financial Crimes Commission (EFCC), which has already succeeded in arresting several perpetrators of the high-level frauds and

          o Publication of monthly revenue allocations to all tiers of government,

    * Public Sector Reforms

    * Public Expenditure and Revenue Reforms dealing with heightening of budget with a view to reducing fiscal deficit

    * Accelerated Privatization and Liberalization

          o deregulation and Liberalization of the petroleum sector with a complete phase-out of government subsidies,

          o deregulation of the telecom sector and increasing available telephone lines

    * Accelerated growth and Equitable Development

          o Diversification beyond the oil sector in support of other sectors such as SMEs, agriculture, solid minerals, manufacturing, tourism

The members of G-8continue to be the largest Trading-Partners of Nigeria which exports mainly oil and imports essential commodities.

Conclusively, the main focus of the Nigerian Government for embarking on vigorous economic reforms is to build a more humane, productive, and courteous society where every citizen is valued, and the plight of the disadvantaged is adequately addressed.

INCORPORATING A BUSINESS IN NIGERIA

Procedure for incorporating a business enterprise by a foreign investor

1. METHODS OF CONDUCTING BUSINESS

All business enterprises must be registered with the Corporate Affairs Commission. Business activities may be undertaken in Nigeria as a:

(i) Private or Public limited Liability Company;

(ii) Unlimited liability company;

(iii) Company limited by guarantee;

(iv) Foreign Company (branch or subsidiary of foreign company)

(v) Partnership/Firm;

(vi) Sole Proprietorship;

(vii) Incorporated trustees (religious, charitable, philanthropic or cultural);

(viii) Representative office in special cases;

2. THE COMPANIES AND ALLIED MATTERS ACT ANDINCORPORATION PROCEDURES

The Companies and Allied Matters Act, 1990 (the Companies Act) is the principal law regulating the incorporation of businesses. The administration of the Companies Act is undertaken by the CORPORATE AFFAIRS COMMISSION (CAC), which undertakes the administration of the Companies Act.

2.1. Minimum Share Capital and Disclosures in Memorandum of Association

The minimum authorised share capital is N10, 000 in the case of private companies or N500, 000 in the case of public companies. The Memorandum of Association must state inter-alia that the subscribers “shall take amongst thema total number of shares of a value not less than 25 per cent of the authorised capital and that each subscriber shall write opposite his name the number of shares he takes.” The law permits and acknowledges the roles of attorneys and other relevant professionals in facilitating business transactions provided, of course, that this “agency arrangement is disclosed”.

2.2. Membership of the Company – Prohibition of Trusts

The Companies Act prohibits “notice of any trust, express, implied or constructive” and such shall not be entered on the register of members or be receivable by the CAC.

2.2.1Shares

All categories of company shares should carry one vote. Shares with “weighted” voting right are prohibited. All shares (i.e. whether ordinary or preferential) issued by a company must carry one vote in respect of each share.

Consequently, preference shareholders are entitled to receive notices and attend all general meetings of the company and may speak and vote on any resolution before the meeting.

2.3. Disclosures to be published in Company's correspondence and business premises.

Every Company is obliged to disclose on its letterhead paper used in correspondence, following particulars:

(i) Name of company/ enterprise;

(ii) Address;

(iii) Registration/Incorporation Number;

(iv) Names of Directors and Alternate Directors (If any).

In addition, the law requires companies/enterprises to ensure that the Certificate of registration be displayed in conspicuous positions at their principal and branch offices.

 3. OPERATIONS OF FOREIGN COMPANIES IN NIGERIA

A non-Nigerian may invest and participate in the operation of any enterprise in Nigeria. However, a foreign company wishing to set up business operations in Nigeria should take all steps necessary to obtain local incorporation of the Nigerian branch or subsidiary as a separate entity in Nigeria for that purpose. Until so incorporated, the foreign company may not carry on business in Nigeria or exercise any of the powers of a registered company.

The foreign investor may incorporate a Nigerian branch or subsidiary by giving a power of attorney to a qualified solicitor in Nigeria for this purpose. The incorporation documents in this instance would disclose that the solicitor is merely acting as an “agent” of a “principal” whose name(s) should also appear in the document. The power of attorney should be designed to lapse and the appointed solicitor ceases to function upon the conclusion of all registration formalities.

The locally incorporated branch or subsidiary company must then register with the Nigerian Investment Promotion Commission (NIPC) before commencing formal operations. The new company may also apply to NIPC for other investment approvals (e.g. expatriate quota) and other incentives.

3.1. Exemption to the General Rule

Where exemption from local incorporation is desired, a foreign company may apply in accordance with Section 56 of the Companies Act, to the National Council of Ministers for exemption from incorporating a local subsidiary if such foreign company belongs to one of the following categories:

(a) “Foreign companies invited to Nigeria by or with the approval of the Federal Government of Nigeria to execute any specified individual project;

(b) Foreign companies which are in Nigeria for the execution of a specific individual loan project on behalf of a donor country or international organization;

(c) Foreign government-owned companies engaged solely in export promotion activities; and

(d) Engineering consultants and technical experts engaged on any individual specialist project under contract with any of the governments in the Federation or any of their agencies or with any other body or person, where such contract has been approved by the Federal Government.”

The application for exemption from disclosing certain details about the applicant is to be made to the Secretary to the Government of the Federation (SGF). If successful, the request of the applicant is granted upon such terms and conditions as the National Council of Ministers may think fit.

3.2. Representative Offices

Foreign companies may set up representative offices in Nigeria. A representative office however, cannot engage in business or conclude contracts or open or negotiate any letters of credit. It can only serve as a promotional and liaison office and its local operational expenses have to be in flowed from the foreign company. A representative office has to be registered with the CAC.

CHECKLISTOF STEPS FOR ESTABLISHING NEW COMPANIES IN NIGERIA WITH FOREIGN SHAREHOLDING

Stage A

1.  Establish partners/shareholders and their respective percentage shareholdings in the proposed company. 

2. Establish name, initial authorised share capital and main objects of the proposed company. 

3. EXCEPT in instances where the proposed company will be 100% owned by non-resident shareholders - Prepare Joint-Venture Agreement between prospective shareholders. The Joint-Venture may specify; inter-alia, mode of subscription by parties, manner of Board Composition, mutually protective quorum for meetings, specific actions which would necessitate share-holders approval by special or other resolutions. 

4. Prepare Memorandum and Articles of Association, incorporating the spirit and intents of the Joint-Venture Agreement. 

5. Foreign Shareholder may grant a power of attorney to its Solicitors in Nigeria, enabling them to act as its Agents in executing incorporation and other statutory documents pending the registration with NIPC (i.e. formal legal status for foreign branch/subsidiary operations). 

6. Conduct a search as to the availability of the proposed company name and, if available, reserve the name with the CAC.

7. Effect payment of stamp duties, CAC filing fees and process and conclude registration of the company as a legal entity. 

Stage B

Prepare Deeds of Sub-Lease/Assignment, as maybe appropriate, to reflect firm commitment on the part of the newly registered company, to acquire business premises for its proposed operations

Stage C

1. Prepare and submit simultaneous applications to the NIPC (on the prescribed NIPC Application Form) for the following: - 

- Registration and Expatriate Quota;

- Pioneer Status and other incentives (where applicable) 

2. The application to the NIPC should be accompanied with the following documents: - 

    * Original and duplicate copy of the duly completed NIPC Form;

    * Original copy of the treasury receipt for the purchase of NIPC Form;

    * A copy of the Certificate of Incorporation of the applicant company;

    * A copy of the Tax Clearance Certificate of the applicant company;

    * A copy of the Memorandum and Articles of Association;

    * A copy of treasury receipt as evidence of payment of stamp duties on the authorised share capital of the company as at date of application;

    * A copy of the Joint-Venture Agreement -UNLESS 100% foreign ownership is envisaged;

    * A copy of Feasibility Report and Project Implementation Programme of a company for its proposed business. It is advisable that quotations, letters of intent and other such documentation relating to industrial plant and machinery to be acquired by the company, be forwarded either as annexes or separately. In order to discourage the dissipation of administrative energy on speculative applications, the NIPC favours the applicant who has demonstrated positive intention to commence business as and when approvals are granted. Hence, the requests for evidence of acquisition of business premises and evidence of acquisition of the plant and machinery to be utilised in the company's business;

    * A Copy of Deed(s) of Sub-Lease/Agreement evidencing firm commitment to acquire requisite business premises for the company's operation. By implication, the ultimate NIPC approvals do incorporate approvals of the industrial site locations indicated in the application;

    * A Copy of training programme or personnel policy of the company, incorporating management succession schedule for qualified Nigerians;

    * Particulars of names, addresses, nationalities and occupations of the proposed directors of the company;

    * Job title designations of expatriate quota positions required, and the academic and working experience required for the occupants of such positions. It is pertinent to note that expatriate quota on a “Permanent Until Reviewed” (PUR) status is only accorded to a Managing Director, where the non-resident shareholders own a majority of the company's shares, and the authorised capital of the company is N5 million and above;

    * Copies of information brochure on foreign shareholder (if available) as testimony of international expertise and credibility of the foreign partner in the proposed line of business.

  Stage D

1. Having obtained the requisite NIPC approvals, the non-resident shareholder must act with despatch to import its foreign equity holding in the company. To ensure prompt importation of the foreign equity components, the NIPC may register company but defer approvals for Expatriate Quota and Pioneer Status and other applicable investment incentives, until evidence of capital importation is produced.

2. After obtaining Certificate of Capital Importation from the bank, the NIPC is to be notified of this fact with the supporting documentation, in order for it to resume processing of pending approvals that might have been deferred on such ground.

3. As soon as expatriate quota position are granted and the respective individuals to fill the quota positions are recruited, the company must embark on steps to obtain work permit and residency status for the expatriate employees and their accompanying spouses and children (if any).

Meaning of ‘NIPC Registration' and ‘EXPATRIATE QUOTA'

NIPC Registration confers permanent authorisation for the local operation of businesses with foreign investments either as branch/subsidiary of a foreign company or otherwise. 

Expatriate quota is the official permit to a company; conveying permission for the company to employ individual expatriates to specifically approved job designations, and also specifying the permissible duration of such employment. 

The expatriate quota forms the basis of work permits for expatriate individuals employed (whose qualifications must fulfil the criteria established for the particular quota position). Expatriate quota positions are usually granted for 2-3 years subject to renewal, E

EXCEPT in cases where companies qualify for and are granted “PUR” Quota (i.e. Permanent Until Reviewed) position. 

The Current Regulation on the Appointment of Foreign Directors

The promoters of business ventures in Nigeria are free to appoint directors of their choice, either foreign or Nigerian, and the directors may be resident or non-resident. The application to the NIPC must reflect the names of the proposed Nigerian and foreign directors (with an indication of resident and non-resident directors). The Registration Certificate consequently issued following such application usually reflects the respective names of the proprietors of the company, as well as the directors representing each proprietor or co-proprietor. 

Payments of foreign directors' fees are remittable in the same manner as dividends accruing to the foreign company. However, since such fees are taxed at source (5% as withholding tax), each foreign director's fees are remittable subject to satisfactory evidence that the taxable amounts on such fees have been paid.   

Pioneer Status (Tax Holiday) Advantages to a Company

The Industrial Development (Income Tax Relief) Act, Cap. 179 Laws of Nigeria, 1990, declares a number of industries as pioneer industries. Thus, any company whose products fall within the categorised industries could be conferred with Pioneer Status. 

This designation is not necessarily reflection that a company was pioneer per se in the industry, as several companies within the same pioneer industry classification could qualify for Pioneer Status. Where the activities of a company include the production of pioneer and non-pioneer products, the tax relief available on conferment of Pioneer Status would be restricted to income derived from pioneer products only. Under the current industrial policy, conferment of Pioneer Status accords a company relief from income tax liability for a period of up to 5 years(tax-holiday status). 

The criteria for granting Pioneer Status are related and/or based on the following considerations: - 

(i)  the amount of qualifying capital investment in a company(N5 million and above) must be verifiable by physical inspection and supported by a report of the Industrial Inspectorate Division of the Federal Ministry of Industry before a Pioneer Certificate is granted. 

(ii) The socio-economic advantages of a company's activities to the Nigerian economy as set out in its Feasibility Study is also an important consideration. 

Without prejudice to these conditions, NIPC is empowered to confer Pioneer Status and other investment incentives, in any other deserving circumstance as the Council of NIPC may approve in accordance with the provision of the Nigerian Investment Promotion Commission Act and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act in 1995. 

However in the case of portfolio investment in the capital market, the Securities and Exchange Commission (SEC) regulates the market.

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