Angolan government plans to use part of revenue from selling companies to pay arrears

18 October 2019

Part of the proceeds from the ongoing privatisation programme in Angola will be used to settle central government debts, Angola’s new finance minister Vera Daves said in a press conference in Washington on Wednesday.

The minister also said that the privatisation programme will also help to finance the infrastructure needed for companies being privatised to operate smoothly in sectors such as energy, transport and water as well as financing the restructuring of some of these companies, which are not in a position to be sold as they stand.

“These are companies that will still require funding for their restructuring, such as legalisation, asset valuation and accounting arrangements,” said Daves, who travelled to the US capital to attend the annual meeting of the World Bank and the International Monetary Fund, according to the Angolan Ministry of Finance.

Daves said the ongoing privatisation programme, “is ambitious and will benefit the country as it will mobilise the private sector for economic growth,” and added that the 195 companies in question are split into two subgroups – one of companies and assets that are idle or even at a standstill or companies that work below their potential do not employ many workers and do not produce much, and do not generate profits for themselves or tax revenue for the state.

Then there is another subgroup of operating companies, some of which are of significant size, she said, adding that although they are included in the privatisation programme they will not necessarily be sold in full, and the amount of capital to be sold may be 5.0 %, 10% or 50%. (Macauhub)