Angolan government promotes extensive privatization plan

The Angolan Government has launched a project that aims to privatize, between 2019 and 2022, 195 public companies, of which 32 are classified as national reference companies, namely in the Mineral and Oil Resources, Telecommunications and Information Technology, Transport, Finance, Hospitality sectors, Tourism, Agriculture and Industry.

According to the government, the Privatization Program (ProPriv), which comprises 195 state-owned enterprises, will contribute to increasing employment levels and the efficiency of companies in the country, “gradually reducing production costs” as stated at the launch of the program.

The Angolan Institute of State Assets and Equity Management (IGAPE) has ensured that workers in the 195 public companies that will be privatized “will participate in the corporate capital” through the Social Workers Fund.

“Regarding the forecast of the financial inflow that will result from the Privatization Program, we currently do not have an estimate of revenues, because it will result from an evaluation process of each company that will be subject to privatization,” said Angolan Finance Minister Archer Mangueira, on Tuesday (13) during the public presentation session of ProPriv, in Luanda.

Angolan Finance Minister Archer Mangueira

The proceeds are intended to finance programs that serve the country’s economic and social development, with a particular focus on advancing the productive sector. 15% of the revenues from the execution of the Privatization Program will be used to finance the State General Budget (OGE).

In addition to the 32 national reference companies, the Angolan Government will also privatize 50 companies classified as subsidiaries and assets of state oil company Sonangol, 51 industrial units of the Luanda-Bengo Special Economic Zone (EEZ) and the remaining 62 considered as other companies and assets.

The ProPriv action schedule includes the privatization of 80 companies/assets in 2019,91 companies/assets in 2020,20 companie/assets in 2021 and 4 companies in 2022.