(Ecofin Agency) - Angolan government plans to privatize 74 public companies within the next few years. This was indicated in a memo sent to investors as part of the country’s bond issue operation.
According to the document, this strategy aims in the long term, to reduce state contribution in a highly centralized economy. In this wake, the government plans to sell all its shares in the 74 companies in question. Although no official information about the companies’ identity was given, sources close to the matter indicated that the country's ports, the national airline TAAG, the trade and industry bank (BCI) and the insurance company Ensa should be selected.
The strategy is part of the national economic development and diversification plan initiated by President Joao Lourenço (photo). This should enable Africa's second-largest oil producer to reduce its interference in the economy to the necessary minimum, especially in the industry sector. It will help revive the country’s economy dominated by Soviet system influences since 1975 independence.
For the record, between 2013 and 2017, 29 Angolan companies had already been privatized, generating $23.4 million in revenue for the state, under the privatization law adopted in 1994. The new government has also indicated that it wants to update this law so that “future privatizations take place under a clear and competitive process”.
Let’s note that the Southern African nation plans to raise $3 billion through a bond issue whose process begins this month.
Moutiou Adjibi Nourou