Proposed Law on the Basis of Privatisation of Angola submitted to parliament

26 July 2018

The proposal for a Law on the Basis of Privatisation will be submitted for the approval of the Angolan National Assembly, the Angolan Parliament, and was assessed by the Council of Ministers, which met on Wednesday in Luanda, in a session led by the President of the Republic, João Lourenço.

The statement issued at the end of the meeting said that the bill is the legal statute that establishes the rules and procedures to regulate the privatisation process, with a view to updating the respective regime to the socio-economic context of the country and in light of the Constitution of the Republic of Angola.

The proposal is intended to regulate the privatisation and reprivatisation processes of public companies, social holdings held directly by the State or other public entities, as well as other public assets, thus promoting a reduction of the state’s weight in the economy.

The prospectus for the issue of US$3 billion in Eurobonds last May, reported that the Angolan government intends to privatise 74 public companies in the medium term, especially in the industrial sector. Between 2013 and 2017 these companies provided the State with income of little more than US$23 million, but no list of companies was provided or a figure for the amount to be raised through their privatisation.

The privatisation and restructuring programme in the public sector will be prepared by the Institute for Asset Management and State Participation (IGAPE), which, as the name implies, will also manage the state’s financial assets and stakes, according to a presidential decree signed off in June.

Last February Lourenço created the Commission for Preparation of the Implementation of the Privatisation Process in Reference Companies, which was charged with presenting the programme to be executed by the government in this area, to increase efficiency and reduce the costs of the state sector. (macauhub)