Luanda should privatize its flagship economy by the end of 2021. This week, Finance Minister Vera Daves Da Souza announced. The national oil company Sonangol and the diamond company Endiama will be restructured to attract investors. Although in a deep economic crisis, Angola needs new money to revive its economic machine, but these privatizations are also part of a comprehensive program of state liberation from the economic sphere.
Angola’s Finance Minister Vera Daves Da Souza wants to go fast but without haste. The partial privatizations of Sonangol and Endiama will only take place after a restructuring of these two companies to make them presentable and thus attract “quality investors”. the Minister at our cronfrères of the Bloomberg Bureau. Because these two companies are the jewels of the Angolan crown.
Sonangol is the backbone of Africa’s second largest oil producer, while Endiame, while diamonds represent only 3% of national wealth, is an ATM. But with the crisis generated by the Covid-19 pandemic, Angola needs money.
The debts of the old regime
Although FMi is at his bedside has promised $ 3.7 billion, the country remains stuck in debts inherited from the old regime. More generally, since 2018, Angola and Joao Lourenço’s power management have embarked on an ambitious privatization program aimed at radically transforming a largely managed economy. Thus, 195 companies, banks, insurance companies, airlines or public facilities have been identified. 30 have already been privatized.
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