Angola’s Privatization Program faces headwinds amid COVID-19 crisis

Angola's Privatization Program, aimed at generating $160 million in revenue, has been facing challenges amidst the ongoing COVID-19 crisis. The program, initiated to transfer ownership of over 190 state-owned assets to the private sector to drive growth and create jobs, has struggled to meet its targets. In a recent interview with CNBC Africa, Rui Oliveira, CEO of BFA Asset Management, shed light on the current status of the program and the obstacles it has encountered. Oliveira highlighted that while some progress has been made in selling off real estate and manufacturing assets, key assets like the largest insurance company and shares in the financial sector are still pending sale. He attributed the program's slow pace to a combination of a fragile economy and global macroeconomic challenges affecting Angola. Oliveira emphasized the need for the government to consider packaging assets to attract risk-seeking investors in order to accelerate the privatization process. Despite the setbacks, Oliveira remains hopeful for a potential revival of the program in 2021, anticipating improved economic conditions that could support its success. He also noted that while current valuations may reflect fire sale prices, there is potential for better returns, especially in the financial sector, once key assets are sold. With significant challenges still ahead, Angola's government faces the daunting task of progressing the privatization program amidst a challenging economic environment. The success of the program is crucial for revitalizing the economy and creating job opportunities in Angola, making it a top priority for the government moving forward.