Privatizations in Angola net US$124 million

9 February 2006

Luanda, Angola, 09 Feb – Angola’s privatization program had, since 1989, already netted the state treasury US$124 million by the end of 2005, and involved 324 companies, the director of the country’s office for company restructuring (GARE), António Guilherme said Wednesday.

The Angolan government selected 545 companies for the privatization program, 357 of which were small enterprises, 137 medium-sized and 57 large companies.

In an extensive interview with Angolan newspaper Jornal de Angola, António Guilherme specified that the privatizations carried out in the first stage of the program netted US$103.1 million, of which the state has yet to receive some US$14 million.

In the second stage, which began in 2001 and is still underway, 33 companies have been privatized, almost all of which are medium-sized, and which netted US$21 million, and a further ten processes are still underway.

Guilherme admitted in the interview that the Angolan private sector, “has not developed as we hoped,” pointing out that around 90 percent of companies privatized in the first stage – which were all handed over to Angolan investors – “have not carried out investments.”

Despite this Guilherme said that, “the solution is not to help out” the companies which do not have the financial wherewithal to cover their commitments, considering that it is necessary to set up conditions for creating a strong business class in Angola. (macauhub)