Angola’s IGAPE expects the second phase of the sale of industrial companies to provide higher revenue

23 September 2019

The second phase of the process of selling industrial units in the Luanda/Bengo Special Economic Zone, which involves 25 companies, is expected to provide a more significant cash inflow than the first phase, which totalled US$16 million, a source from the Institute of State Asset Management and Participation (IGAPE) said.

The first phase, which ended at the beginning of September with the announcement of the winners, involved the sale of five industrial units from the EEZ, with the Angolan state securing significantly less than the initially projected US$67 million.

The IGAPE source quoted by daily newspaper Jornal de Angola said the first phase provided a “good indication” of what will happen in the second phase, and noted there are already many expressions of interest in the companies that will be sold.

“We’ll have a lot of competition,” he said, although he acknowledged that the amount collected in the first phase fell far short of starting prices for the packaging, hygiene and detergent, glue cement, glass and blanket factories purchased, respectively by Angoalissar, Azoria, Ecoindustry and Zeepack Angola.

The source admitted that most of the new owners fought for the value of the factories to take into account the obsolete state of the equipment, much of which had been at a standstill for about ten years and the investments required for their recovery. or complete replacement. (Macauhub)