Angola wants to privatize its diamond and oil giants

However, in a deep economic crisis, Angola needs new money to revive its economic machine. The authorities have therefore decided to privatize the diamond and oil sectors, two flagships in its economy.

Privatizations should take place by the end of 2021, according to Finance Minister Vera Daves Da Souza, who made it clear she wanted to go fast, but without rushing. These privatizations are a consequence of one severe economic crisis relating Angolabut is also part of a comprehensive program for state disconnection from the economic sphere.

The partial privatizations of the national oil company Sonangol and the diamond company Endiama will only take place after a restructuring of these two companies, to make them presentable and thus attract “quality” investors, according to the company. the term used by the Minister and reported by Bloomberg.

Radical transformation of the economy

These two companies are the jewels of the Angolan crown. Sonangol is the backbone of the economy of the other African oil producer, which for Endiame, if the diamond represents only 3% of the national wealth, the company, on the other hand, is a machine for producing cash. But with the crisis caused by the pandemic in Covid-19Angola needs money.

Although the IMF is in bed and has promised $ 3.7 billion, the country remains stuck in debt inherited from the old regime. More generally, since 2018, Angola and Joao Lourenço’s rulers have embarked on an ambitious privatization program aimed at radically changing a still managed economy.

Thus, 195 companies, banks, insurance companies, airlines or public facilities have been identified. And 30 have already been privatized.

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