12 °c
London
Monday, August 15, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Opportunity insight: Angola privatisation program

CFA advogados Luanda by CFA advogados Luanda
August 27, 2019
in Africa, Angola, Industry and Commerce, Legislation, Privatisation
Reading Time: 3 mins read
1.1k 57
0
Understanding: Angola’s new investment law
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

The Angolan Government recently launched its privatizations program. This is an opportunity for investors and also a test for the Angolan economy.

The privatizations program for 2019-2022 was officially made public on August 5 when the Presidential Decree 250/19, of August 5, 2019, was publicized in the Official Gazette.

The program, named PROPRIV, is part of the plan of economic reformation that the Government is implementing since 2018 (the Government of João Lourenço is in office since September 2017), and is actually the third wave of privatizations of Angola. The first privatization initiative was between 1989 and 1994, during the civil war; the second privatization initiative was between 2001 and 2005, immediately after the end of the civil war and part of the rebuilding of the country in a time of peace and stability.

The Angolan economy is now undergoing a major transformation conducted under President Lourenço with the goal of making Angola a modern and attractive country to investment. As an illustration we highlight the following:

  • New Private Investment law, friendlier to private investment;
  • The introduction of a Competition Law, that for the first time sets the rules for competition;
  • The cancelation of some contracts with the State to end monopolies;
  • The simplification of procedures to incorporate companies;
  • The combat to corruption with already a few judicial decisions;
  • The increase of public tender procedures;
  • The implementation of measures to support local industry and agriculture;
  • The reinforcement of compliance regulations according to international standards.

Notwithstanding all these Angola is in recession and is expected to remain so until 2020. This is the opinion of latest forecasts from the Economist Intelligence Unit (EIU), that forecasts growth rates of -2.2% in 2019 and -1.9% in 2020; according to the same report on 2021 Agola is expected a growth rate of 2.5%, which will be followed by 4.1% in 2022 and 5.0% in 2023.

This Privatization Program serves several purposes: it is a way of generating extraordinary cash flow to the Satate; it aliviates the State of managing a heavy stated owned business sector with poor economic results; reinforces the private sector and opens the economy to new players; and calls for the investment of foreign investors that potentially bring resources, know-how, technology and innovation into Angola.

The Privatization Program includes 195 companies (State companies and partly owned by the State), grouped in the following segments: national reference companies; affiliates and assets owned by Sonangol; other companies and assets; and industrial companies in the ZEE (Zona Económica Especial Luanda-Bengo).

As to how the companies will be privatized, there are 4 possibilities: initial public offer (IPO) in the Angola Stock Exchange (BODIVA); auction held at BODIVA; public tender; and limited bid by pre-qualification. The Presidential Decree 250/19 offers guidance regarding the procedure to apply to each company and the calendar for the privatization of each company, but both the procedure and the calendar can be altered considering the situation of each company and the market conditions at the time of the final decision of the President regarding each company.

It is worth noting that for now some major companies in Angola are schedule to launch IPO and the procedure is to begin this year 2019 or in 2020 (BCI, SARL, ENSA Seguros, S.A., TV Cabo Angola, Lda.). This will be a hard test to the existing Securities Law and the regulations concerning prospectus of IPO. Furthermore, any investor, Angolan or foreign should consider the requirements concerning the identification of the ultimate beneficial owner and the disclosing of the origin of the resources for payment.

The success of the undergoing privatization plan depends partially on the interest of investors, mostly of foreign investors (those that already are operating in Angola and know the market and those that have never invested in Angola). Either way the foreign investor that resolves to buy shares or assets under the Privatization Program will need to decide which channel to use: a company incorporated in Angola, an investment fund existing under Angolan law, and investment account in Angola, etc.

This Privatization Program is both an opportunity and a test with the potential to change business in Angola.

Article by Rute Martins Santos, Co-managing partner of CFA Advogados

Related

Tags: 2020AngolaAngola privatisation programAngola Stock ExchangeAngolan lawBCIBodivaCFA AdvogadosCompetition LawEnsa SegurosFeatureinsightinvestment accountIPOJoão Lourenconew private investment lawOpinionPrivate investmentprivatizationPROPRIVRute Martins SantosSARLTV Cabo Angolaанголаأنغولاアンゴラ安哥拉
ScanSendShare456Tweet285Share80Pin103Send
CFA advogados Luanda

CFA advogados Luanda

CFA is a boutique firm founded in Luanda in 2012. It has a practice of high ethical standards advocacy, ensuring confidentiality, competence, effectiveness and efficiency in monitoring and meeting the demands of our customers. We are committed with the development of entrepreneurs operating in Angola and offer several services to them.

Related Posts

Agriculture

Largest fertiliser-producing countries in Africa and their output

by The Exchange
August 15, 2022
Financial Inclusion

The role of the youth in driving financial inclusion in Africa

by Emmanuel Chilamphuma
August 15, 2022
Energy

Zambia and Tanzania agree to revamp TAZARA, expand TAZAMA pipeline

by The Exchange
August 15, 2022
IMF, World Bank say Africa to get US$57B from official creditors in 2020
Finance

HAVAÍC backs FinAccess

by Africa Global Funds
August 15, 2022
Trade

Ethiopia expects US$1.8B revenue from coffee export this year

by FurtherAfrica
August 15, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Agriculture

Largest fertiliser-producing countries in Africa and their output

by The Exchange
August 15, 2022
0

Morocco tops the list of the largest-fertiliser producing countries in Africa. Other countries on the list are Egypt and Algeria....

Read more

The role of the youth in driving financial inclusion in Africa

August 15, 2022

Zambia and Tanzania agree to revamp TAZARA, expand TAZAMA pipeline

August 15, 2022
IMF, World Bank say Africa to get US$57B from official creditors in 2020

HAVAÍC backs FinAccess

August 15, 2022

Ethiopia expects US$1.8B revenue from coffee export this year

August 15, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,379 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?