Angola will promote stakes in its largest insurer and within the native unit of Commonplace Financial institution Group Ltd. this 12 months, because the oil-producing nation strikes forward with a privatization program to lift money and diversify the economic system.
The disposal of stakes in state-owned insurer ENSA – Seguros de Angola SA is going down now, whereas the sale of the holding in Commonplace Financial institution Angola ought to occur by November, Angolan Minister of State for Financial Coordination Jose de Lima Massano mentioned.
“We’re shifting forward with our privatization plan,” he mentioned in an interview within the capital, Luanda, late on Tuesday. “Our aim is to construct a market-based economic system.”
The federal government can be planning an preliminary public providing of Unitel SA, the southern African nation’s largest telecommunications firm, and the sale of a stake in Banco de Fomento Angola, the second-largest lender subsequent 12 months, mentioned Massano.
The 4 firms are among the many largest of just about 200 state-owned companies and property the federal government initially earmarked for disposal in 2019. A number of the gross sales have been delayed due to the coronavirus pandemic.
The minister didn’t present particulars of the scale of the asset gross sales. He additionally reiterated the federal government’s dedication to in the end promote 30% of state-owned oil firm Sonangol, however declined to offer a deadline for the disposal.
“Sonangol is a really large and strategic firm and is finishing up a so-called regeneration program,” mentioned Massano. “As soon as it completes that program it’ll then be capable to take different steps on this entrance as nicely.”
Massano, a former central financial institution governor who as minister oversees the federal government’s financial coverage, mentioned his authorities stays dedicated to phasing out gasoline subsidies, however doesn’t have a deadline to take action.
“We’ll act with a way of prudence,” he mentioned. “At this level we don’t have a timeline to finish this course of.”
Farming Focus
The minister additionally vowed to forge forward with efforts to diversify Angola’s economic system by investing in industries comparable to farming. Angola was a serious meals exporter earlier than a 1975-2002 civil battle, however now depends on crude for greater than 90% of its export income.
The federal government is constructing infrastructure to attach the countryside to the principle cities, offering credit score strains for farmers to extend output and has 2 million hectares of land out there for large-scale traders in agricultural manufacturing.
“Angola is already exporting a little bit of every thing: espresso, bananas and even non-alcoholic and alcoholic drinks,” Massano mentioned.
Authorities efforts to bolster native manufacturing ought to assist cool persistent inflationary pressures in Angola, strengthen the native forex, the kwanza, and stimulate financial development, he mentioned. Angola’s economic system is forecast to broaden 3.2% this 12 months from 0.9% in 2023, the minister mentioned.
“The oil sector will proceed to have a vital function in our economic system,” mentioned Massano. “However what we actually need is to develop the non-oil sector.”
{Photograph}: Signage for Commonplace Financial institution at their workplaces in Johannesburg in September 2020. Photograph credit score: Waldo Swiegers/Bloomberg
Copyright 2024 Bloomberg.
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