Angola approves executive instructions for the OGE 2027 Law Proposal and confirms approval of the 2024 State General Account, reinforcing public finance governance frameworks
Angola has approved new executive instructions for its 2027 State Budget Law proposal, tightening procurement rules for public contracts funded by international lenders. The measures, published in official documents this month, apply to all digital infrastructure projects backed by the World Bank and require companies bidding for government work to follow stricter transparency and compliance checks. The changes take effect on 30 October 2025, when the first tenders under the new regime open for submission.
The rules cover contracts worth up to $300m (£236m; €275m) across three sectors: universal digital access, secure public infrastructure, and economic diversification through technology. Every bid must now include a declaration of beneficial ownership, disclosing who ultimately controls the company selling the goods or services. The delivered cost of compliance falls on the bidder, not the government, and late submissions will be rejected outright1.
It comes after years of criticism over Angola’s public procurement system, which a 2018 audit found was riddled with irregularities. The National Public Procurement Service (SNCP) reported that only three of nine planned audits that year were completed, with the rest suspended or abandoned. The same report identified widespread non-compliance with existing laws, including missing annual procurement plans and unauthorised contract renewals2.
The digital acceleration project
The new instructions are tied to Angola’s Digital Acceleration Project (PADA), a five-year initiative launched in 2022 to expand internet access and modernise government services. The project targets four groups: citizens in remote areas, small businesses, public agencies, and students in technology fields. By March 2030, the government aims to have 400 companies using digital tools to deliver services, up from fewer than 50 today1.
Firms using digital tools
All PADA contracts must now follow World Bank procurement rules, which demand competitive bidding and prohibit electronic submissions. The government has also created a dedicated Project Implementation Unit (UIP) within the Institute of Administrative Modernisation (IMA) to oversee compliance. The UIP will hire a procurement specialist by 31 July 2026, with the role lasting at least 12 months and renewable based on performance1.
The specialist’s duties include drafting tender documents, evaluating bids, and training government staff in World Bank procedures. Every contract must be published on the public procurement portal, and all bidders must provide proof of past work on similar projects. The rules also require quarterly reports to the World Bank, detailing progress and any objections raised during the bidding process1.
Who the rules bind
The new regime applies to any company selling digital infrastructure, software, or training services to the Angolan government. This includes suppliers of recording equipment, broadband hardware, and cybersecurity tools. A recent tender for video production studios, published by the National Statistics Institute (INE), sets the template: bids must be delivered in person to a Luanda office by 10:00 local time on 30 October 2025, with no electronic submissions allowed3.
Who has to act
The rules also extend to subcontractors. Any company working on a PADA-funded project must disclose its beneficial owners, even if it is not the primary bidder. The World Bank reserves the right to reject a bid if it finds that the winning company is controlled by individuals or entities previously barred from public contracts1.
For importers, the changes add a layer of due diligence. Companies must now verify that their suppliers comply with Angolan procurement laws before shipping goods. The delivered cost of this verification—including legal reviews and background checks—falls on the supplier, not the government. The rules do not specify penalties for non-compliance, but the 2018 audit report noted that irregularities often led to contract cancellations and blacklisting2.
What the 2018 audit found
The 2018 audit of public contracts uncovered systemic failures in Angola’s procurement system. Of the nine audits planned that year, only three were completed, with the rest suspended due to missing documentation or suspected fraud. The report found that many contracts were renewed without proper authorisation, some exceeding the 48-month legal limit2.
Procurement audits planned for 2018
The audit also revealed that government agencies frequently skipped market research before awarding contracts, leading to inflated prices. In one case, a contract for office supplies was renewed four times without competitive bidding, costing the state an estimated $2.1m (£1.6m; €1.9m) more than necessary. The report recommended mandatory annual procurement plans and stricter oversight of contract renewals2.
The new instructions address some of these issues. All contracts must now be published on the public procurement portal, and agencies must submit annual procurement plans to the SNCP. The rules also require agencies to hire legal experts to review contracts before approval, a measure the 2018 audit called “fundamental”2.
The October deadline
The first tenders under the new regime open on 30 October 2025, when the INE will accept bids for video production equipment. The tender is a test case for the new rules, which require bidders to submit physical copies of their proposals to a Luanda office by 10:00 local time. Late submissions will be rejected, and the bids will be opened publicly the same day3.
The October deadline is the first of many. The government plans to issue tenders for broadband infrastructure, cybersecurity tools, and digital training programmes over the next 12 months. Each tender will follow the same process: physical submission, public opening, and mandatory disclosure of beneficial ownership. The rules also require bidders to provide proof of past work on similar projects, a measure designed to weed out inexperienced or fraudulent companies1.
The changes mark a shift in Angola’s approach to public procurement. The 2018 audit found that many irregularities stemmed from a lack of expertise among government staff. The new rules require agencies to hire procurement specialists and legal experts, and the UIP will provide training to ensure compliance. The government has also pledged to publish all contracts on the public procurement portal, a move that should increase transparency2.
What has not changed
The new instructions do not alter Angola’s existing procurement laws, which remain in force. The 2016 Public Contracts Law still governs contract renewals, market research, and the selection of bidders. The new rules simply add World Bank requirements on top of these laws, creating a dual system for projects funded by international lenders2.
The dual system for lender-funded projects
| Requirement | 2016 Public Contracts Law | New World Bank instructions |
|---|---|---|
| Contract renewals | Governs them, unchanged | Legal review before approval |
| Bidder selection | Competitive bidding, direct awards limited | World Bank competitive bidding rules |
| Beneficial ownership | Not required | Required from all bidders and subcontractors |
| Submission | Existing procedures apply | Physical copies only; no electronic |
The rules also do not change the way contracts are awarded. The government will still use competitive bidding for most projects, with direct awards allowed only in limited circumstances. The new instructions do, however, tighten the rules around subcontracting, requiring all subcontractors to disclose their beneficial owners1.
For companies, the biggest change is the added cost of compliance. Bidders must now conduct background checks on their suppliers, verify beneficial ownership, and submit physical copies of their proposals. The government has not said how much these measures will cost, but the 2018 audit found that compliance failures often led to contract cancellations and blacklisting2.
The new regime is unlikely to slow down Angola’s digital push. The government has set ambitious targets for 2030, including universal broadband access and 400 companies using digital tools to deliver services. The October tenders are just the first step in a five-year plan that could reshape the country’s economy. The question is whether the new rules will be enough to prevent the irregularities that plagued past projects.
Sources
- ↩ Term of Reference for Hiring of Procurement Specialist – Angola Digital Acceleration Project (P180693) https://c2a.portais.gov.ao/uploads/Td_R_Especialista_de_Aquisicoes_II_do_PADA_5a3d2f0f9c.pdf
- ↩ Annual Audit Report on Public Contracts – 2018 https://cms.hml.minfin.gov.ao/api/assets/portal-sncp/806c15eb-97c5-4f79-9c9c-ec19db6cdbd7/
- ↩ Institute of National Statistics – Angola https://www.ine.gov.ao/noticias/detalhes/MjUwOTg=