Angola: Government rakes in €87M by privatising 23 companies

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Angola: Government rakes in €87M by privatising 23 companies

9:36 CAT | 24 Sep 2020

File photo: Lusa

The Angolan government on Tuesday said that it should earn 64 billion kwanzas (€87 million), with the sale of nine more industrial units, bringing the Privatisation Programme (Propriv) to a total of 23.

According to the secretary of state for finance and treasury and coordinator of the permanent technical group of Propriv, Osvaldo João, more than increasing revenues, the main objective of the programme is to create a robust, competitive business sector.

As part of Propriv’s implementation, Angola’s Institute for Management of Assets and State Participation (IGAPE) concluded the public tenders for the privatisation of the second lot with six industrial units located in the Special Economic Zone (ZEE).

The contracts for the award in favour of private entrepreneurs and business assets held by the state in the industry sector for the management and operation of these industries were initialled on Tuesday in Luanda.

On that occasion, IGAPE and private investors, winners of the public tender, also signed a contract for the termination of the right to manage three textile industrial units, Textang II, Satec and África Têxtil.

“Despite the difficulties they were facing, we believe that with this process they should gain new life in terms of production volume and job generation,” Osvaldo João said.

“In total, we will sign today [Tuesday] contracts of over 33 billion kwanzas (€44.8 million), this result will raise the revenue generated by the privatization of 23 assets under the Propriv so far, to 64 billion kwanzas (€87 million)” he said at the opening of the ceremony.

The contract to cease operation and management of the three textile units includes a purchase option that if exercised until the end of the contract will generate a total revenue for the state amounting to 268 billion kwanzas (€264 million).

Propriv has 195 entities and/or public assets to be privatised until 2022, from the telecommunications, industry, banking, oil, mineral resources, aviation and insurance sectors, among others.

According to the government, this second privatisation bid for units located in the EEZ provided for the sale of 13 industrial units, but despite the interest of several investors in the assets market, the proposals for the remaining six units did not reach the reserve values defined for the transaction.

Source: Lusa