ANGOLA

According to its Constitution adopted in 2010, last revised in 2021, Angola is a republic and unitary state with a presidential system. The Angolan government is formed by three separate branches, including legislative, executive, and judicial. The president, “the individual heading the national list of the political party or coalition of political parties which receives the most votes in general elections” (Art. 109), is the head of state and of the executive power, and the commander-in-chief of the Angolan Armed Forces. These three roles give the Angolan president a great range of political power, including the responsibility of appointing and possibility to discharge all ministers, provincial governors, as well as all judges of the court system. Legislatively, the Angolan National Assembly is a unicameral parliament of members that are elected under a “universal, periodic suffrage by national citizens aged over eighteen”.

The Constitution of the Republic of Angola (CRA) mandates that “public administration shall be structured based on the principles of administrative simplification” (Art. 199). Administrative decentralisation has become an important topic within Angolan civil society. The CRA states that Angola shall “respect the principles of the autonomy of the local organs of power and administrative devolution and decentralisation” (Art 8).

At the local level, composed of provinces and municipalities, the government is structured based on the principle of political and administrative deconcentration, and simplification of the administrative processes. (CRA, Art. 213; Law Nº. 15/16 of 12 September 2016; Presidential Decree Nº. 202/19 of 25 June 2019). The CRA recognises the “right and effective capacity of the local authorities to manage and issue regulations for local public matters” (Art. 214). It also recognises traditional authorities, and other specific forms of citizen participation” (Art. 213) but laws regulating these principles have not yet been published.

In May 2018, the Angolan Council of Ministers approved a legislative package with bills of Organic Laws on the Organisation and Functioning of Local Authorities (Autarquias Locais), Local Elections, Local Finance and the Transfer, Attributions and Competencies to Local Authorities, which aims to further deepen decentralisation and subnational governments’ autonomy. Apart from approving these six bills, the Council also gave responsibility to the Ministry of Territorial Administration and State Reform to carry out a public consultation regarding the legislation. In October 2019, the Angolan parliament passed the legislation into law (Law Nº. 27/19), which established the principles and rules for the organisation of autonomously governed local authorities (autarquias locais).

The CRA defines the autarquias locais as being elected corporate territorial bodies representing the respective local populations. While the current municipal administrators are appointed by the governor of their province, the presidents of the autarquia locais will be freely elected by the local population.

Although scheduled for 2020, local elections to choose the first representatives of autarquias locais, including the President, have yet to be organised. Based on the current legal framework, in Angola, subnational governments do not have any legislative power, making them completely dependent on the National Assembly for all policies and programmes. Municipal administrations are still highly financially dependent on the National Treasury and provincial delegations of the Ministry of Finance.

TERRITORIAL ORGANISATION
Municipal Level [1]	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
164 municipalities (municípios)		18 provinces (províncias)
Average municipal size: 200 404 inhabitants
164		18	182

[1] Name and number of sub-municipal entities:
518 communes
44 urban districts

OVERALL DESCRIPTION: Angola is “organised territorially into provinces and, subsequently, municipalities”. Municipalities are subdivided into rural communes (comunas) and urban districts in cities. Angola also has sub-municipal administrative levels, including villages, and neighborhoods (bairros), whose definition is a responsibility of the executive branch or Minister of Territorial Administration, when delegated by the president (Law 15/16 of 12 September 2016).

Angola is divided into 18 provinces and 164 municipalities, the latter comprising 518 communes, and 44 urban districts. The Law 18/16 of 17 October 2016 changed the political and administrative division of the Luanda Province, the capital of Angola, by expanding the area of the province and changing the status of some localities.

REGIONAL LEVEL: Provincial governors are currently appointed by the president of the republic, to whom they are politically and institutionally accountable. They are responsible for appointing and discharging municipal administrators and deputy municipal administrators (Presidential Decree 202/19). All provincial governors are therefore affiliated to the current governing political party.

In 2021, the Angolan president opened a public consultation process (Presidential Decree 104/21) on the alteration of the political-administrative division of five provinces, namely Cuando Cubango, Lunda Norte, Moxico, Malanje, and Uíge. The first three of these are geographically large but have small populations. Because of the allocation of 5 parliamentary seats per province, the new proposal will further shift the political weight of individual voters toward more remote regions of the country and away from the high-density urbanised areas. The consultation with citizens included the definition of the number of new provinces resulting from the change in the political-administrative division of municipalities, the establishment of border landmarks between provinces, the naming of provinces, as well as the definition of provincial capitals. So far, the results are yet to be published.

MUNICIPAL LEVEL: At the municipal level, the municipal administrator is the central government’s representative and is appointed by the provincial governor. Public administration functionaries are either politically appointed or hired through a regular government job application. In 2020, the National School of Administration and Public Policy (ENAPP) was established as the Single Recruiting Entity of Staff of the Central Administration of the State. ENAPP will manage the conduct of public tenders for the admission of employees to the Public Administration. The government intends to ensure the depoliticisation of appointments and introduce objectivity and impartiality into the public procurement of civil servants (Presidential Decree N 207/20).

The implementation of autarquias locais will not only affect the way in which local government bodies are formed but also how they function. Indeed, the main administrators of the autarquias locais, including members of the council assembly, chamber, and president, will no longer be politically appointed by members of the central government but locally elected by the people.

Recent decentralisation policies aim to transfer responsibilities from central and provincial to municipal levels. As noted by the non-government organisation ADRA - Acção Para o Desenvolvimento Rural e Ambiente (Action for Rural Development and Environment) and UNICEF, “delays in implementation can be attributed to the reluctance of some higher levels of government to relinquish their authority as well as the existence of some unnecessary overlaps and duplications of responsibilities causing delays and wasteful expense”.

According to the Presidential Decree 20/18 of 29 January 2018, provincial governors are responsible for the planning and management of education and teaching, healthcare, energy, transport and communication routes, spatial planning and urbanism, construction, conservation and maintenance of roads, environment, water, and basic sanitation, promotion of integrated development, heritage, science, culture and tourism, social action, leisure time and sports.

The new legal framework on autarquias locais assigns 15 main tasks and powers to municipal governments, ranging from energy, transport, and communications, education, and health to civil protection.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Municipal level
1. General public services (administration)	Public buildings and facilities; Supervision of public institutes and significant companies	Public buildings and facilities
2. Public order and safety	Support to central government to ensure public safety	Municipal police; Civil defense
3. Economic affairs / transports	Promotion and orientation of socio-economic development	Promotion of economic development; Energy
4. Environment protection	Some environmental protection	Some environmental protection; Sanitation
5. Housing and community amenities	Provincial planning	Municipal and urban planning; Housing provision
6. Health		Primary healthcare (medical centers)
7. Culture & Recreation		Sports facilities; Culture and science facilities
8. Education	Primary schools	Primary and secondary schools
9. Social Welfare	Social support	Promotion of social development

Scope of fiscal data: municipalities

Ministry of Finance

Availability of fiscal data: Low

Quality/reliability of fiscal data: Low

GENERAL INTRODUCTION: Three presidential decrees issued in 2018 define the subnational fiscal framework and the relationship with the central government: Presidential Decree 40/18 of 9 February, Presidential Decree 47/18 of 14 February and Presidential Decree 89/18 of 9 April.

Angola has highly centralised control of all government expenditure. However, the Law 27/19 of 25 September 2019, while establishing the principles and rules for the organisation and functioning of local authorities, further decentralises fiscal responsibilities and gives local authorities greater autonomy to collect local taxes.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure	94	1.5%	3.7%	100.0%
Inc. current expenditure	-	-	-	-
Compensation of employees	-	-	-	-
Intermediate consumption	-	-	-	-
Social expenditure	-	-	-	-
Subsidies and current transfers	-	-	-	-
Financial charges	-	-	-	-
Others	-	-	-	-
Incl. capital expenditure	-	-	-	-
Capital transfers	-	-	-	-
Direct investment (or GFCF)	-	-	-	-

EXPENDITURE: In 2020, total municipal expenditure amounted to USD 94 PPP/inhabitant, accounting for 1.5 % of GDP and 3.7% of total public expenditure.

Municipal expenditure has been increasing slightly in recent years, rising by around 15% between 2017 and 2020 and is expected to increase by an average of 10% in nominal terms in 2021 compared to 2020, according to current budget estimates. Nevertheless, they remain stable as a share of GDP, and are even declining as a percentage of total public expenditure.

DIRECT INVESTMENT: Municipal administrations are progressively gaining more responsibility to supervise local investment projects and programmes, as well as responsibility to elaborate specific local programmes. In 2019, the Government approved the Integrated Plan for Intervention in Municipalities (PIIM) aimed at financing the Public Investment actions (PIP), Development Support Expenses (DAD), and Basic Activities (Act). The PIIM empowers all 164 municipalities to implement a variety of social and infrastructural programmes to inhibit the rural exodus and promote more inclusive economic, social, and regional growth. In 2020, KZ 60 735 million (USD 381 million PPP or USD 11.6 PPP/inhabitant) was mobilised by the PIIM to finance local development projects.

ⓘ No detailed data available for this country

The Angolan General State Budget divides the country's expenses into four different groups, namely: expenses by economic nature (category), expenses by economic function, expenses by location, and expenses by programme. Around 16% of the general government budget is allocated to the territories. Although the breakdown of subnational expenditure by functional categories is not available, some information is available regarding its geographical distribution: in 2020, the bulk of territorial expenditure was centered on the province of Luanda (23.1% of territorial expenditure), followed by Bié (14.5%), Cuanza Norte (9.1%), Malange (6.5%), Cabinda (6.0%) and Benguela (5.9%). The province of Cunene had the lowest budget allocation for the year 2020 (1.7%), followed by Lunda Sul (1.8%) and Cuando Cubango (1.9%).

ⓘ No detailed data available for this country

OVERALL DESCRIPTION: Angola’s financing framework is managed by the Ministry of Finance, whose mission is to propose, conduct, execute, and evaluate public finance policy, as well as implement public investment policies. Through the General Tax Administration (AGT), the central government collects revenue for the State and guarantees customs control. Some of the taxes collected by AGT are shared between municipal governments and the central government.

Subnational governments are left with limited autonomy over local financing, despite the recent measures to devolve financial authority to local governments.

TAX REVENUE: The revenue of subnational governments comes from both shared tax revenues (personal income tax, group B corporate tax, property tax, etc.) and municipal fees of various kinds (fee for the use of public goods, connection to the sewage system, burial fees, appraisal fee for each construction project of any kind, etc.).

According to Presidential Decree 40/18, 70% of the personal income tax; 70% of the income tax on employees; 50% of the corporate tax B; 70% of the urban property tax; and 100% of the sale tax (except for the sale tax collected on imports) accrue to municipal administrations.

Since 2018, local governments have been granted new powers to administer and collect taxes and fees from several services provided by local administrations, thus improving their revenues. The Ministry of Finance created the “Portal do Munícipe'' to facilitate the digital collection of these taxes and fees and to ensure the return of revenues collected on public services provided by local administrations to local administrations themselves.

The new 2020 Property Tax Code (Law 20/20 of 9 July) provides for the levying of taxes on both urban and rural buildings and other forms of real estate. Local authorities are expected to cooperate in the assessment of the value of all buildings located in their jurisdiction and send the information to the Tax Administration. Property taxes are levied on both the value of and income from buildings, as well as a fee on the transfers of those properties. Regarding the recurrent property tax on the value of buildings, for property worth up to KZ 5 000 000, (~USD 30 000 PPP) a tax rate of 0.1% is applied; when the property value is over KZ 6 000 000, (~USD 38 000 PPP) the rate is 0.5%. For taxes on land reserved for construction, a 0.6% tax rate is applied; a 25% tax rate is applied to leased buildings; and 2% tax rate for transfer of immovable property. Subnational governments do not have any legislative power, so the tax rate is set at central government level.

GRANTS AND SUBSIDIES: Presidential Decree 40/18, issued in 2018, determines that a percentage of local revenue is channeled into a Municipal Support Fund, whose mission is to redistribute revenue to reduce municipal asymmetries. The percentage of municipal contribution to the fund is defined annually by both the Ministry of Finance and the Ministry of Territorial Administration and State Reform.

A significant innovation in 2019 has been the publication of national legislation (Presidential Decree 234/19 of 22 July) on participatory budgeting (PB), allocating the annual value of KZ 25 000 000 (~USD 157 000 PPP) to each municipality to implement participatory budgeting in their jurisdiction.

In Angola, the Participatory Budget is divided into the Citizens’ Budget and the Municipal Administration Participatory Budget. On the one hand, the Citizens' Budget is the amount of money that the head of the executive power assigns to the Municipal Administration Budget through the annual General Budget of the State. The Citizens' Budget comprises the following phases: presentation, analysis, and approval of proposals. This money serves to fund projects freely selected by local citizens. On the other hand, the Municipal Administration Participatory Budget is the budget whose elaboration and approval process is developed with the participation of the citizens. This type of budget comprises three different phases facilitated by municipal administrations and involving local citizens. The phases are: a) the survey of priorities; b) the preparation of proposals; and c) the final approval of the proposals. The country started to implement the PB in 2021 and 2022. These resources are mainly used to finance capital investments.

OTHER REVENUE: According to Presidential Decree 40/18, additional sources of revenue for subnational governments in Angola may include the following fees: advertising, markets, shops, fairs fees; licenses fees for activities on rural, agricultural, or forestry land, registration and licensing of domestic pets and other animals, public hygiene, as well as fees on traffic-related activities such as parking and driver's license.

ⓘ No detailed data available for this country

FISCAL RULES: In Angola, only the National Assembly and, in many cases, the president has the power to enact laws to change fiscal rules. Subnational governments are governed by the same budgetary and accounting rules as the central government. Subnational government budgets are allocated through the National Budget, which usually includes a section describing the budget allocated to provincial governments and local projects by different Ministries.

The new Local Financial Regime under the Portal do Municipe is intended to replace the Single Treasury Account in the future, giving municipalities more authority over the local financial system.

DEBT: Currently, the Ministry of Finance oversees all borrowing contracts, whether international or domestic, and manages the national debt. Subnational governments have no authority to incur debt. In the future, elected local autarquias should have greater financial autonomy and be able to issue debt instruments such as municipal bonds, if approved by the central executive authority.

TERRITORIAL MANAGEMENT OF THE CRISIS: Following the confirmation of the first positive cases of COVID-19, on 21 March 2020, the president created the Multisectoral Commission for the Prevention and Combat of COVID-19 to manage and coordinate the activities of the different state bodies and services around the containment of the COVID-19 pandemic. The Commission is coordinated by the ministers of State and Head for Security and Social Area together with ten other ministers including the Minister of Health and the Minister of Territorial Administration.

In 2020, more than eight presidential decrees were issued to manage the crisis. On 25 March 2020, the president declared a national state of emergency for 15 days, a measure that was revised, extended, and eventually discontinued over time. On 26 March 2020, Presidential Decree 82/20 was passed to define the exceptional and temporary measures to prevent and control the spread of pandemic nationwide. The decree put some restrictions on people’s freedom of movement, temporarily prohibiting movement and permanence of people on public roads, except for the necessary and urgent movements. The decree also established a national and provincial sanitary quarantine prohibiting the entry and exit of the country by any means, with exception of entry and exit of essential goods and services, humanitarian aid, and entry and exit of patients in case of extreme need and urgency. The provincial quarantine prohibited interprovincial circulation. To ensure public compliance, the use of Defense and Security Organs was authorised, including the National Army and Police forces. The Ministry of Health was given responsibility to create the conditions for civil requisition of new doctors and nurses and their subsequent incorporation to help manage the crisis.

Unlike African federal countries such as Nigeria, the management of the COVID-19 crisis in Angola was highly centralised around the Multisectoral Commission, making all provinces dependent on orders from Luanda. Subnational governments were obliged to help enforce not only the provincial quarantine, but also the national one especially in the border provinces.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: Presidential Decree 98/20 of 9 April approved "Immediate Measures to Relieve the Negative Economic and Financial Effects" caused by the pandemic. Various measures were taken to support businesses, including the extension of the deadline for the final settlement of industrial tax declaratory obligations for specific companies until 29 May 2020. In addition, the Agrarian Development Support Fund (FADA), the Development Bank of Angola (BDA) and the Active Venture Capital Fund (FACRA), were ordered to make credit lines available to finance various activities, including family farms, purchases from trade operators and the distribution of a range of national agricultural products, finance purchases of family cooperatives and small and medium agricultural entrepreneurs.

On the other hand, relief measures for households and the informal sector of the economy have been taken. Resources totaling KZ 315 million (~USD 2 million PPP) have been made available by the Ministry of Social Action, Family and Promotion of Women to start the first phase of the Social Cash Transfer Programme in May 2020 for 1.6 million vulnerable families. Provincial governments developed campaigns for the distribution of basic goods to guarantee food security for the most vulnerable families. Water and electricity distribution companies were prohibited from cutting off water and energy supply to customers with bill payment difficulties from April 2020.

UNICEF Angola played an important role in implementing emergency measures. It developed and implemented a response plan aligned with the 2020 WHO Global Strategic Humanitarian Response Plan (SRP), Country preparedness and Response Plans, and the 2020 UNICEF COVID-19 Humanitarian Action for Children appeal. The organisation has targeted over 700 000 people, focusing on coordination; risk communication and community engagement; infection prevention and control; continuity of health and nutrition care; continuous access to services (education and child protection); and social policy (cash transfer and social services referral).

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: In 2020, the government of Angola acknowledged that the effect of the COVID-19 pandemic was felt in every sphere of Angolan society, from the state to families. The drop in international oil prices due to the COVID-19 crisis has had a negative impact on the country's economy, as oil and its derivatives still account for more than 60% of the country's tax revenues and more than 90% of its exports. The economic effects on the Angolan macroeconomy also forced the central government to review and adjust the 2020 General State Budged, public financing, and spending to the new economic reality, with knock-on effects on subnational financing.

ECONOMIC AND SOCIAL STIMULUS PLANS: In May 2020, Angola launched "KWENDA", also known as “Social Protection Strengthening Programme - Social Monetary Transfers”, to distribute USD 420 million (current) to a total of 1.6 million families in situation of vulnerability in the 164 municipalities of Angola, through the attribution of a monthly income of KZ 8 500. The programme is coordinated by the Ministry of Social Action, Family and Women Promotion and executed by the Social Support Fund (FAS), which is to implement the initiative over three years in four distinct phases: Social Monetary Transfers; Productive Inclusion; Municipalisation of Social Action and finally, the reinforcement of the Single Social Registry.

USD 320 million of the USD 420 million budget is provided by the World Bank and the rest comes from the Angolan National Treasury. As of January 2022, around USD 23 million have been allocated to households; 314 000 cash transfers have been made, of which 59.1% made to women; 17 000 people in the fields of agriculture, livestock, fisheries, handicrafts, sewing, motorcycle taxis, and other activities are currently benefiting from the programme.