03.09.2019

Desks: Angolan Desk

Privatisation Program Angola

On the 5th of August 2019, Presidential Decree No. 250/19 was published, approving the Privatization Program for the period 2019-2022 (PROPRIV).

The PROPRIV intends to restructure the Angolan State Public Business Sector and assure the Public Finance Sustainability Policy as defined in the National Development Plan.

The PROPRIV is endowed with a simple organic structure that will ensure coordination and collaboration between all the bodies that are involved in the privatization proceedings. PROPRIV should develop and implement communication strategies aimed at attracting internal and external investors, with consultancy provided by the World Bank.

In addition to shares in public companies owned by the Angolan State, other companies under Angolan law in which the State directly or indirectly holds a stakeholder position will be subject to privatization.

The PROPRIV seeks to reduce the weight of the Public Business Sector in the Angolan economy, increase the quality and diversity of services available to the population, ensure the sustainability of the National Development Plan and promote the liquidity of the National Treasury, having identified a number of assets to be privatized.

In this context, when selecting the companies to be privatized, certain requirements were taken into account:

  • The nature of the asset to be privatized;
  • The number of tax years with audited accounts, without reserves;
  • Turnover and the company's weight in the GDP;
  • The attractiveness of the company, with a focus on cash flow and results; and
  • The nature and volume of the preceding activities.


The 195 selected companies were classified in four distinct segments:

  1. 32 National Reference Companies;

  2. 50 Sonangol subsidiaries and active companies;

  3. 62 Other companies and assets; and

  4. 51 Industrial Units in the Exclusive Economic Zone.

These companies are duly identified in the PROPRIV, as well as the percentage of share capital held by the Angolan State that will be privatized, dividing them according to the privatization proceeding to be adopted. Thus, the privatization of the companies included in PROPRIV may take place according to one of the following procedures:

  1. Initial Public Offering (IPO);

  2. Public Auction through the Stock Exchange (PA);

  3. Public Tender (PT); and

  4. Public Tender Limited by Prior Qualification.

PROPRIV also mentions the factors that are considered critical to the successful implementation of the program, highlighting, the support of the political and social spheres, the quality of economic and competition regulation, and the liquidity of the capital market.

Among the 196 companies to be privatized, we highlight the 32 National Reference Companies that will be privatized through the sale of stakes and assets, which integrate various sectors of the economy and whose privatization procedure will start from 2019. These are:

Company

Field

Stakehold

Method

Procedure

Start date

ENSA SEGUROS, S.A.

Financial

100% (D)

SD

IPO

2019

CUCA

Industrial

1% (I)

SD

PT

2019

EKA

Industrial

4% (I)

SD

PT

2019

NGOLA

Industrial

1% (I)

SD

PT

2019

SGA (ENANA)

Transportation

100% (D)

SD

PT

2019

BCI, SARL

Financial

100% (D)

SD

IPO

2020

BAI, S.A.

Financial

8.5% (I)

SD

PT

2020

BCGA, S.A.

Financial

25% (I)

SD

SA

2020

SDZEE, S.A.

Economic

100% (D)

SD

SA

2020

ALDEIA NOVA, S.A.

Agriculture

59% (I)

SD

SA

2020

BIOCOM

Industrial

20% (I)

SD

PT

2020

TEXTANG II

Industrial

100% (D)

AD

PT

2020

SATEC

Industrial

100% (D)

AD

PT

2020

África Têxtil

Industrial

100% (D)

AD

PT

2020

NOVA CIMANGOLA

Industrial

28.13% (D)

SD

PT

2020

Sécil do Lobito

Industrial

49% (D)

SD

PT

2020

Mota Engil Angola,S.A.

Construction

20% (I)

SD

PT

2020

MS Telecom, S.A.

Telecom/IT

100% (I)

SD

SA

2020

Net One, S.A.

Telecom/IT

51% (I)

SD

PT

2020

UNITEL, S.A.

Telecom/IT

25% (I)

SD

PT

2020

TV Cabo Angola, Lda

Telecom/IT

49.27% (I)

SD

IPO

2020

MULTITEL, Lda

Telecom/IT

50% (I)

SD

SA

2020

BODIVA, S.A.

Financial

100% (D)

SD

IPO

2021

Banco Económico, S.A.

Financial

39.4% (I)

SD

SA

2021

Sonangapl, LDA.

Mineral resources

51% (I)

SD

IPO

2021

SONAIR****

Transport

100% (I)

SD

SA

2021

TAAG

Transport

100% (I)

SD

SA

2021

ANGOLA TELECOM

Telecom/IT

100% (D)

SD

SA

2021

Angola Cables, S.A.

Telecom/IT

50% (I)

SD

SA

2021

SONANGOL E.P.

Mineral resources

100% (D)

SD

IPO

2022

ENDIAMA

Mineral resources

100% (D)

SD

IPO

2022

ENCTA

Telecom/IT

100% (I)

SD

PT

2022

 

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