Angola: Geocapital-Sonangol partnership to range from financial sector to entire Portuguese-language business world

3 November 2008

Macau, China, 3 Nov – The partnership between Geocapital and Angolan state oil company Sonangol began in the financial sector but may soon extend to the entire Portuguese-language business world, particulalry energy projects.

The first effects of the partnership between Sonangola nd Geocapital will be felt in the Portuguese banking market: Angolan state oil company Sonangol has a 10 percent stake in Portuguese bank Millennium Bcp and Geocapital’s Stanley Ho has a stake of around 3 percent, making the two a considerable “force” within the largest Portuguese private bank.

With the Geopactum (the joint company)/Banco Privado Atlântico deal, Geocapital is expanding its financial sector business to Angola, after Mozambique (49 percent of Moza Banco) and Guinea Bissau (60 percent of Banco da África Ocidental – BAO – in which is has as a partner Guinean businessman Carlos Domingues Gomes ).

In Brazil, it shares control of air maintenance Latin American market leader VEM with Portuguese airline, TAP Portugal.

It is also promoting the largest real estate project in Portugal, the Alto do Lumiar Urbanisation Plan, in Lisbon, and has important stakes in Portuguese companies such as electricity company EDP, which generates and distributes electricity in Brazil (Bandeirante Energia) and in Spain (Hidrocantábrico).

There is also important cooperation potential between Sonangol and Geocapital in Angola, as it recently announced it intended to invest some US$40 billion, by 2018, in producing biofuels in Portuguese-speaking Africa.

Before the partnership with state oil company, Geocapital had a partnership in Angola with Banco Angolano de Negócios e Comércio (BANC), owned by Kundi Paihama, where it was supposed to take on a “significant” stake, according to the Africa Monitor newsletter.

This financial institution was focused on the Chinese community and private sector investments, through loans and shareholdings. (macauhub)