| Privatization Process to be Reinvigorated
ANIP NEWS, 07.11.2005
A new privatization agency will soon replace
the current “Gabinete de Redimensionamento Empresarial” (GARE).
The new entity will coordinate and implement all reorganizations
and privatizations of state companies and will have the authority
to plan and implement privatization processes. In addition,
the government will contract with an international technical
advisor to assist the new entity with the privatization process.
The new organization is part of a government effort to reinvigorate
the privatization of state enterprises.
Angola’s privatization program was initially launched in 2001,
when some 90 public companies were slated for partial or total
privatization. The largest number of privatizations occurred
in 2002, when privatizations generated about $14 million for
the State. Privatizations dropped precipitously in 2003, and
the process continued to suffer from delays, in part due to
the lack of financial capacity of interested potential investors,
many of whom were Angolan entrepreneurs who complained about
a lack of access to banking services that would permit their
participation in the process.
However, 2005 marked a re-invigoration of the privatization
process. In the first six months of 2005 eight public companies
were privatized, generating $20.5 million in revenue for the
State. The most noteworthy of these privatizations was the Hotel
Alameda, which generated $1.4 million.
As part of this new push, the Angolan government recently approved
the privatization of all beer manufacturers in the country.
Cuca, Nocal, Eka and N’gola will all be privatized in order
to stimulate productivity within these enterprises. In the case
of Cuca, Eka and N’gola, the government reserves the right of
retaining a small interest (4 percent in Eka, and one percent
each in Cuca and N’gola) but will also exert special veto rights.
The Government will not retain any interest in Nocal. Thirty
to fifty percent of the shares of these enterprises are reserved
for Angolan investors. In the case of Cuca Breweries, 50 percent
of its shares have been awarded to the “SOBA” consortium, while
“BIH” (formerly BGI) holds a 13 percent interest. Angolan private
entities hold a 36 percent interest and the State is retaining
a one percent interest. In the Nocal Group, BIH, which already
holds a 26.4 percent interest, will increase its participation
to the maximum 50 percent, while the remaining 50 percent interest
is reserved for Angolan investors. In Eka, the BIH group holds
a 46 percent interest, with private Angolan interests holding
a 50 percent interest and the State retaining the remaining
4 percent interest. The SAB-Mills Group, which produces Coca-Cola
locally, holds a 45 percent interest in N’gola, while 54 percent
of the remaining interest is reserved for Angolan participation.
The State is retaining a one percent interest.
Next in line for privatization will be the cement manufacturer
ENCIME in Lobito, in which the Portuguese firm of SECIL has
an interest.
ANIP
NEWS
Press-center of Angola Embassy in Russia
07.11.2005
Embassy of Republic of Angola, 2005
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