Angolan government closes nine public companies

16 November 2015

Nine public companies in Angola in the agricultural, mining, fisheries and industrial sectors were extinguished this month under a set of presidential decrees published in the official gazette, according to state newspaper Jornal de Angola.

The companies that were closed were Empresa Regional de Abastecimento ao Sector Cafeícola (Procafé), Ermanal (Luanda), Empromar Kuroka, Empromar Kapiandalo, Fropesca, Farinol, Empresa Transformadora de Madeira (ETM), Alfaias Agrícolas (Alfag) and Empresa Mineira de Fosfatos do Zaire e da Mina Quartzo (Fosfang), all previously classified as “state economic units.”

Economy Minister, Abraão Gourgel, said last June that there were numerous public sector companies in Angola operating as monopolies, with reduced efficiency and competitiveness, which did not meet the needs of consumers.

“In a market economy model, the most capable and daring entrepreneurs are the driving force of economic reconstruction and modernisation of the national productive sector under state leadership,” said the Economy Minister.

A study conducted in 2006, at the government’s request, proposed restructuring of the Angolan public business sector, which currently covers 216 companies, involved keeping just 41 companies, while another 77 are to be privatised and 53 liquidated.

The study, prepared by CESO Development Consultants, a Portuguese consulting firm, was commissioned by the Ministry of Finance and presented in Luanda, together with the proposals of the preliminary draft of the Framework Law of the Public Business Sector, of the Statute of the Supervising Body,the Statute of Public Manager and its remuneration system. (macauhub/AO)