Geocapital wants to increase its presence in the banking sector in Portugal, Angola, Brazil and East Timor

22 February 2013

Geocapital wants to complement its financial network in the Portuguese-speaking countries by increasing its presence in Portugal, Angola, Brazil and East Timor, said Diogo Lacerda Machado, director of the Macau-based investment company.

Geocapital currently has stakes in Mozambique’s Moza Banco, Banco da África Ocidental (Guinea Bissau) and Cape Verde’s Caixa Económica, as well as the project to set up East Timor investment bank Banco Timorense de Investimento, which may be altered.

In relation to investments in Portugal, this may be a good time to “buy at a discount” due to a crisis in the banking sector, but for Geocapital there is a “much higher risk of getting involved in banking than in some countries,” where it already operates, in Africa.

The solution, he said, may not “necessarily be a bank in Portugal that is owned by Geocapital,” but rather “ a logic of partnership” with a financial institute interested in investing in Africa, “where there are more interesting returns,” Lacerda Machado told Portuguese news agency Lusa.

In Brazil, where in 2005 it partnered TAP in the attempted acquisition of Varig, Geocapital is aware of the “very hard experience of Portuguese banks in trying to enter the market,” and that the solution may also include a partnership.

After an initial attempt to acquire a financial stake in a bank in Angola, Geocapital turned to a strategic partnership with Global Pactum and Banco Privado Atlântico, of which Angolan state oil company Sonangol, the biggest shareholder of Portugal’s Millennium BCP bank, is a shareholder.

In East Timor the project “has stopped somewhat” due to the new government and may even be remodelled.

Geocapital is a stake-holding company based in Macau and focused on investing in key economic sectors in Portuguese-speaking countries. (macauhub)