Last Updated on: 22nd November 2023, 08:48 am
Angola, a nation traditionally reliant on its oil-centric economy, is heralding a new era of economic diversification through its groundbreaking Privatisation Program, known as Propriv. Inclusion of Special Economic Zones (SEZs) forms a pivotal part of this ambitious initiative, poised to revolutionise Angola’s economic landscape.
Propriv represents a strategic government endeavor aimed at reducing the nation’s oil dependency and fostering economic resilience. This program has set its sights on reshaping the country’s economic framework by privatising state-owned companies and assets, with a focus on key sectors including construction, mining, public works, telecommunications, and information technology. The strategic pivot aims to attract both domestic and foreign private investments, stimulate economic vitality, and dismantle monopolistic structures that have impeded growth.
The initial phase of Propriv, spanning from 2019 to 2022, achieved the successful privatisation of 96 companies, raising an impressive $1.13 billion through various means, including public tenders and Initial Public Offerings (IPOs). This early success has laid the foundation for an expanded program, targeting the privatisation of 73 additional assets and companies by 2026.
Key entities included in the second phase of Propriv encompass insurance stalwart ENSA – Seguros de Angola, telecommunications giants Unitel and TV Cabo, and the Angola Development Bank. These strategic moves underscore a steadfast commitment to diversify and modernise Angola’s economic landscape. Furthermore, the impending privatisation of national institutions like TAAG (the national airline), Aldeia Nova (agro-industrial company), Endiama (diamond firm), and Sonangol (National Oil Company) will further amplify the program’s impact.
Propriv adheres to an expedited timeline, with the goal of finalising the privatisation of 31 assets by Q4 2023. This accelerated approach is complemented by plans to privatise 11 Sonangol processes, culminating in a complete exit from the company by 2027. Additionally, the inclusion of seven assets within the Luanda-Bengo Special Economic Zone underscores the government’s commitment to harnessing the potential of SEZs.
President João Lourenço’s election in 2017 marked a turning point for Angola. Acknowledging the imperative for diversification, his administration embarked on significant legal reforms and outlined a roadmap to expedite privatization efforts. This initiative, financed by the expansion of oil production and proceeds from state-owned enterprise sales, seeks to invigorate the private sector, enhance the business environment, and catalyse economic expansion.
Central to the success of Propriv is both foreign and domestic investment. The emphasis on attracting investments not only streamlines business processes but also nurtures private sector development. This, coupled with infrastructure investments and industry diversification, paves the way for sustainable economic growth and employment prospects.
Propriv’s international credibility is underscored by its alignment with the International Finance Corporation, a global development institution. This affiliation not only ensures a high standard of quality but also fosters confidence among foreign investors. As Propriv unfolds, it promises to align Angola more closely with free-market principles, fostering competition, reducing market entry barriers, and promoting efficient management practices.
In essence, Propriv lays the foundation for thriving markets within Angola. With abundant natural resources and a favourable climate, Angola occupies a prominent position in sub-Saharan Africa. Investors have the opportunity to participate in significant projects that not only benefit their enterprises but also contribute to the nation’s economic growth and socioeconomic development.
Angola’s voyage towards economic diversification underscores its commitment to a more stable, prosperous, and resilient future. As we anticipate the impact of SEZs within the Propriv framework, it is evident that Angola is poised for a transformative economic leap. The potential is vast, the opportunities are abundant, and the path ahead is promising.
