Angolan venture capital fund has US$240 million to support companies

22 January 2015

Angolan venture capital fund, Fundo activo de Capital de Risco Angolano, has 25 billion kwanzas (US$240 million) to support micro, small and medium-sized Angolan companies, announced the chairman of the supervisory board.

Sérgio Eduardo Serrão the funding was intended to be transferred gradually to finance companies from all sectors of the economy, with the exception of mining, real estate and construction.

The official acknowledged the low level of management of micro, small and medium-sized Angolan companies, as in many cases they are family-run, so the Fund also intends to change this scenario, either by investing capital or setting up a shared management scheme, which is not always well regarded.

“This is the difficulty we face, but already we are already changing this situation,” he said, explaining that the fund does not provide loans like banks, but invests capital and becomes a business partner for the company asking for their input, providing that fits with their financing conditions.

The chairman of the supervisory board of the Angolan venture capital fund gave assurances that participation in the management and the company’s capital is temporary, ranging from three to seven years.

Serrao noted that the venture capital fund was, “another tool that the government is making available to companies,” has a lifetime of ten years and may be extended for another five. (macauhub/AO)