Africa-Press – Cape verde. The Government intends to carry out the privatization or concession of nine state-owned companies by the end of the first half of 2025, Finance Minister Olavo Correia said today in an interview with Lusa.
“We are working to have all this completed in 2024, at the latest in the first half of 2025”, in the case of more complex companies, such as Electra, he indicated, as an example.
The process began on January 10th with the launch of the Public Offer for Sale (OPV) on the Cape Verde Stock Exchange (BVC) of 27.44% of the shares held by the State in Caixa Económica.
However, the calendar does not just follow the Government’s wishes, “it will depend on market conditions”, especially since “the world is facing very deep uncertainty” and it is not known “what will become of the economy tomorrow”, he added, in an allusion to wars and other conflicts.
“We will be in the market looking for the best investors” who can reach the objectives as quickly as possible, said Olavo Correia, noting that the Government is open to the world, but without forgetting with whom Cape Verde has already been connected.
“It doesn’t matter [the origin], but it’s obvious that we have special partnerships with the European Union, we also have historical links with the United States, even through our diaspora”, relationships that the executive would like to see translated into proposals for competition by partners closer than others who “don’t know Cape Verde” or are “far from what Cape Verdean geography is”.
The model to be followed – IPO on the stock exchange, extended or restricted competitions – will be defined depending on the technical studies carried out for each public company, subject to analysis and consultation between government officials.
The processes of the nine companies advance in parallel, simultaneously.
As they are completed, they are taken to the Council of Ministers “which will decide, case by case, which is the best model [of privatization] given the process at hand, but also market conditions”, so that “ guarantee, from the outset, the success of the operation”.
“Within the legal framework, we are here to help make all these operations viable in the shortest possible time, because we have urgency”, said Olavo Correia.
The State “wants to be useful”, because “people who are in poverty, want jobs, they don’t have time to waste”.
The minister added that Cape Verde’s economy has a natural potential to grow 5% per year, but, ideally, this pace would double, to be able to respond to “job creation” and “combat extreme poverty”.
The privatization agenda is a way to get there, he said, by increasing the efficiency of state-owned companies that operate in “crucial” areas for the costs of economic activity (transport, energy, water, telecommunications, among others) and ending the risk tax for the State.
The State has concessions for maritime (CV Interilhas, Grupo ETE, Portuguese) and air (Bestfly, from Angola) connections between islands, as well as airport management (Vinci group).
The list of nine privatizations – in addition to Caixa Económica – includes CV Handling, which processes airport cargo and whose process is about to be scheduled for the Council of Ministers.
ENAPOR’s port operations are also on the list – a prior market consultation has already been approved, soon – as well as the pharmaceutical sector through Emprofac/Inpharma and the sale of the stake held by the National Airports and Air Security Company (ASA) and National Social Security Institute (INPS) at Cabo Verde Telecom.
The institutional reform and restructuring of the energy sector is part of the dossier, with the privatization of Electra, in the form of a split, with the sale of shares in two companies, one producing and the other distributing electricity, the Government said two months ago the last Public Business Sector Performance Report.
The restructuring of the Cabo Verde Naval Shipyards (Cabnave) and the stabilization of the operations of Transportes Aéreos de Cabo Verde (TACV) and its privatization are also part of the list, which also includes the company Água e Energia de Boavista.
“Cape Verde is a country of opportunities, but we cannot ignore that we are a small economy, in a global market. I always say that we are not the most beautiful woman at the party, therefore, we have to work to attract good investors, in a very competitive context”, concluded Olavo Correia.
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