Africa-Press – Angola. The Angolan State raised, from 2019 to the first quarter of this year, 869 billion kwanzas with the privatization of 84 assets, out of the 132 provided for in the Privatization Program (PROPRIV), the secretary of State of Finance and Treasury, Ottiniel dos Santos.
Ottiniel dos Santos, who presented these data at the end of the PROPRIV Technical Committee meeting, which reviewed the actions of the first quarter of 2022, said that the total amount that the Executive plans to raise, with the privatization of assets, when there are still 48 of the period 2019-2022, will depend on market conditions, competitors’ financial capabilities and deadlines for completion of processes.
The Privatization Program (PROPRIV) 2019/2022 was approved through Presidential Decree nº 250/19, of 5 August, with the aim of promoting the most favorable conditions for private initiative, private investment and the acquisition of know-how, skills specific for restructuring, as well as the resizing of the Public Business Sector.
According to the Secretary of State for Finance and Treasury, in the 84 companies already privatized there are some defaults in relation to financial services by the contractors, with a default ratio of 2.6 percent.
“At this moment, an in-depth study is being carried out, to understand the determinants of these non-compliances and propose to the technical committee what actions to apply, in case of non-compliance”, he noted, adding that, “although the number is still low, we must continue to follow up, so that companies can always be at the levels of compliance with the rules”.
Ottiniel dos Santos underlined that, in the first quarter of 2022, the privatization of 16 assets was foreseen, with only 14 companies having been implemented, with significant advances for the textile industry, with an excellent production capacity, in which a little more than 390 jobs.
The official highlighted that in the Special Economic Zone (ZEE), some divested companies have met productivity levels, as is the case with Emadel, which created more than 40 jobs and reached an average production valued at seven billion kwanzas. . In the Agro-industrial sector, the Camaiangala farm also stands out, which created more than 130 jobs, with a focus on promoting corn and soy production.
“These aspects were analyzed during the balance sheet meeting of the first quarter, which gave us a vision of the program for the implementation of privatizations and of the other assets that will be privatized”, he indicated. the ability to generate a positive aggregate for the national economy, with the creation of jobs and the increase of activity in the real sector of our economy”, he said.
BAI shares go public
The Angolan State’s shares in Banco Angolano de Investimento (BAI) will be sold on the stock exchange during the second quarter of this year. According to the Secretary of State for Finance and Treasury, the Capital Markets Commission approved the program admitted by the management of BAI and in the implementation phase.
From a formal and legal point of view, the official observed, “there are necessary conditions, so that the alienation of the participation that the State has in BAI, through Endiama and Sonangol, can happen”, because, “all the steps for the implementation take place normally, so that this operation can be carried out on the stock exchange, according to the milestones and procedures that are defined by the market”
In addition to the privatization of BAI shares on the stock exchange, the committee discussed at the meeting the privatization process of other key assets, such as the State’s participation in ENSA and Multitel.
In principle, ENSA’s privatization process must comply with the established deadlines, the period having been extended at the request of one of the bidders, so that a firm proposal can be obtained for analysis. “At the next meeting, we will have the final report on this process and, in addition to ENSA, we have foreseen, for the first quarter, the privatization of another asset (the Nosso Super supermarket chain)”, due to its nature not yet carried out, but which, everything indicates that this will occur during the second trimester.
In the Hotel sector, the Commission has several proposals for the sale of hotels under the control of the Sonangol group, which are in the Privatization Program. However, at the meeting some proposals were presented for the award which, after being analyzed, will be informed to those who enter the management of the hotels.
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