Overview
A custody account (conta de custódia) is a mandatory securities account required for any investor — domestic or foreign — seeking to hold and trade securities on the Bolsa de Dívida e Valores de Angola (BODIVA). Custody accounts are maintained within the CEVAMA (Central de Valores Mobiliários de Angola) central securities depository system and are opened through licensed custodian banks. The custody account is the foundational infrastructure through which investors access Angola’s debt and equity capital markets.
How Custody Accounts Work
The custody account functions as the investor’s record of ownership within CEVAMA’s book-entry system. All securities traded on BODIVA — including Bilhetes do Tesouro (Treasury bills), Obrigações do Tesouro (Treasury bonds), OTNR (fixed-rate bonds), OTX (FX-indexed bonds), and listed equities such as BAI, BFA, BCGA, and ENSA — are held in dematerialized form within the CEVAMA system.
| Feature | Detail |
|---|---|
| Depository | CEVAMA |
| Account type | Dematerialized book-entry |
| Opening requirement | Through a licensed custodian bank |
| Eligible securities | All BODIVA-traded debt and equity instruments |
| Applicable regulations | CMC regulations, BNA rules |
Account Opening Process
To open a custody account, investors must:
- Select a custodian bank: Choose from the commercial banks licensed by the CMC to provide custody services. Major custodian banks include BAI, BFA, BIC, Standard Bank Angola, and other institutions with CEVAMA participant status.
- Complete KYC requirements: Provide identification documents, proof of residency, tax identification numbers, and other know-your-customer documentation as required by BNA anti-money laundering regulations.
- Open a linked bank account: A kwanza-denominated bank account at the custodian bank is typically required for settlement of transactions and receipt of coupon or dividend payments.
- Receive CEVAMA registration: The custodian bank registers the account within the CEVAMA system, enabling the investor to participate in BODIVA market activities.
Foreign Investor Access
Foreign investors can access Angola’s capital markets through custody accounts, subject to additional requirements:
- Foreign exchange registration: Investments must be registered with the BNA to ensure eligibility for profit repatriation
- Tax registration: A tax identification number (NIF) issued by AGT is required
- CEOC considerations: Foreign investors should confirm the applicability of the CEOC (foreign exchange operations tax) and any available exemptions for capital markets transactions
- Custodian selection: Choosing a custodian with experience serving international clients is critical for efficient settlement and repatriation processing
Role in Market Development
The custody account system is central to the development of Angola’s capital markets:
- Investor protection: CEVAMA’s dematerialized system eliminates the risk of physical certificate loss or forgery
- Settlement efficiency: T+0 and T+1 settlement for government securities reduces counterparty risk
- Transparency: Centralized custody enables the CMC to monitor market activity and enforce compliance
- Retail access: The Portal do Investidor allows individual investors to open custody accounts and purchase government securities directly
Investor Considerations
The custody account is the gateway to Angola’s entire investable universe on BODIVA. Investors should evaluate custodian banks based on fee structures, service quality, FX processing capabilities, and experience with foreign investor requirements. Custody fees, settlement timelines, and the efficiency of dividend and coupon processing vary across providers and can materially affect net returns, particularly for shorter-duration instruments like Bilhetes do Tesouro where transaction costs are proportionally more significant.