A privatisation programme has been underway in Angola since 2019. It is meant to be concluded by 2022 and is aligned with stated policies of diversifying the Angolan economy and attracting investment from inside and outside of the country.
This privatisation programme, designated as PROPIV, foresees the privatisation of 195 companies over a period of four years. These entities are directly or indirectly held by the Angolan State and operate in areas such as banking, industry, insurance, telecommunications, oil, mineral resources, transport or agriculture.
As most transactions worldwide, this ambitious process was delayed by the Covid-19 pandemic, which in fact enhances the relevance and timeliness of this article as, to date, only circa 30 state-owned companies have been sold.
Regarding the approval of a privatisation in Angola, PROPIV regulations (Presidential Decree no. 250/19, of 5 August, grounded on the Framework Law of Privatisations, Law no. 10/19, of 14 May), are quite extensive in identifying targeted companies, the percentage of capital held by the Angolan State, the estimated date for privatisation and the procedures to be adopted, which may be one of the following:
- Stock exchange market: Initial public offering or Stock exchange auction,
- Tendering process: Public tender or Limited tender with prior qualification.
Once the privatisation is approved, it may be completed through the transfer of the shares, capital increase with the entry of private entities or assignment of commercial exploitation and management rights, as the case may be.
This programme aims to foster private entrepreneurship, attract investment and promote productivity and innovation with a view to raising the long-term growth of the Angolan economy.
We recall that in case of foreign investors who intend to acquire stakes in publicly held companies through PROPIV, private investment rules shall also be considered, namely when it comes to the registration of an investment project with AIPEX (the national agency for private investment).
Should you require more details on the privatisation programme, the companies selected by the Angolan State or timelines, do not hesitate to contact us.
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