Co-Hosted by AIPEX and CACIAAS
Cape Town International Convention Centre
26 & 27 September 2019
Angola’s new Privatisation Programme has the world talking – it’s a hot topic that will generate special attention at the Angola-South Africa Agri-Business And Eco-Tourism Forum in Cape Town this month.
CAPE TOWN — An important part of the economic reforms contemplated by the Angolan government involves the privatisation of state-owned enterprises and the sale of stakes that the Angolan state directly or indirectly holds in enterprises. Last month the eagerly awaited privatisation programme (PROPRIV) was made public. PROPRIV includes assets in Angola as well as assets that are located abroad.
Kilson Kalanda, Managing Director of the Angola-South Africa Chamber of Commerce & Industry (CACIAAS), and co-host of the upcoming Angola-South Africa Agri-Business And Eco-Tourism Forum to be held on 26 and 27 September 2019 at the Cape Town International Convention Centre, explains what this means for Angola and Southern African countries in the bigger scheme of things.
Image: Kilson Kalanda, Managing Director of the Angola-South Africa Chamber of Commerce & Industry (CACIAAS), and co-host of the upcoming Angola-South Africa Agri-Business And Eco-Tourism Forum.
Why was it important for Angola to privatise its state-owned enterprises?
It is important for Angola to privatise these state-owned enterprises in order to speed up the growth of the Angolan economy, which has been dented since the fall of the oil price, as well as to reduce government monopoly in a free market where the private sector should thrive and Government become more focussed on providing basic infrastructure and a fiscal tax environment where private companies can thrive and grow.
What does this mean for the country?
It means that Angola for the first time will be on the path to be on the same level as other successfully established economies where the private sector is the majority shareholder of major national asset companies. It has already been proven by these good economies that there is more consistent growth and performance in an economy where the government is the minority owner of the economy. The other benefit for the country will be related to taxation. With better and more efficient tax collections, Government can focus simply on providing the basic infrastructure such as power, water and roads so that private companies can continue to thrive and grow their businesses. One of the reasons why the government is selling and privatising the assets is to recover billions in USD that will go towards covering the treasury deficit Government currently has in its reserves, as well as to decrease public debt (which is at its highest ever after the collapse of the oil price four years ago). In order to make the selling process transparent and fair, Government has hired the services of the World Bank to serve as a neutral consulting entity to screen and short-list potential buyers, local or from abroad, to ensure that these assets are not sold to only certain individuals or entities and that the prices paid are market related and not simply a giveaway to certain influential figures.
What does privatisation mean for trading across borders?
Privatisation is good news indeed for trading across borders because with this initiative, up to 80% of the business that will be conducted and traded between Angola and its regional neighbours, such as South Africa, will now be more influenced by free market forces of mostly private companies doing business together without too much of a political or governmental influence, which more often than not brings across certain bureaucracies and red tape that would at times slow down decision making and affect the quick flow of business.
How will tourism and agriculture benefit from this brave new decision?
There are about four big farm estates and some untouched national parks across the beautiful natural landscapes of Angola that the Government will now be selling to private companies so that they can build resorts and game reserves and conduct eco-tourism business. During the conference, the Ministry of Tourism of Angola will be able to present and detail some of these great opportunities. It is one of the highlights of the Angola-South Africa Agri-Business And Eco-Tourism Forum not to be missed!
How will South African companies interested in doing business in and with Angola benefit from PROPRIV?
We invite all South African businesses or investors interested in these great business opportunities in Angola to come and join us at our upcoming conference. These ones stand to benefit because the new Angolan president has made it clear that he wants a better and stronger business partnership with South Africa. CACIAAS is responsible for facilitating this process and making this vision and mission a reality.
Can you name some of the companies that will be privatised that will play a major role in creating opportunities for businesses in southern African countries as well as local Angolan companies?
Out of the 195 companies, there are plenty of good companies across all sectors that will be privatised, but I think the best ones, given South Africa’s proven strength and extensive know-how, are: the major four agriculture farms, Oil & Gas downstream & upstream, the National Airline Carrier (TAAG), BCI Commercial and Industrial Bank, Angola Telecom, MS Telecom, Textil Industry of Angola, Okavango Nature Resort, the Girasol Private Hospital Group and Calundula Water Falls Land districts.
How will the privatisation of SOE’s be portrayed at the upcoming conference? Will there be a big focus on this hot topic?
We are happy to announce that we have added this topic to the second day of our conference, which will take place on a wine farm in Stellenbosch. We have also invited Mrs Ana Paulo Zango, National Director of the Privatization Department to attend and as one of our key-note speakers to present to delegates and interested parties, for instance, in detail how this process will work. After her presentation, there will be time for questions, so the audience can engage with the Honourable Mrs Ana Paulo Zango.
What role will CACIAAS and the Angola Private Investment Agency and Promotion of Exports (AIPEX) play in linking South African companies to PROPRIV?
CACIAAS and AIPEX, arising from this conference, aim to create our own list of SA companies/investors from those who approach us during the conference with an interest in one of those companies on the list. After the conference, an execution plan will be formulated to see how best we can assist them in the process of being selected or shortlisted to bid or make a special offer to the Angolan Government.
You are also launching a trade and investment magazine. Please tell us more about this.
After the conference, Cape Media Corporation and CACIAAS will launch a quarterly magazine in English and Portuguese entitled CACIAAS Chamber of Commerce and Industry Angola & South Africa. This magazine will measure and monitor the actual business exchange of trade and investment between the two neighbouring countries, as well as serve as a verification tool and report on challenges, opportunities and business success stories between the two countries over the next 5 to 10 years. The magazine will also feature issues of the impact of economic growth between Angola and South Africa as well as other countries in the SADC region and elsewhere in the African Continent in line with the Africa Vision goals for 2030 and beyond.
Parties interested in attending and participating in the Angola-South Africa Agri-Business And Eco-Tourism Forum can contact Nqaba at email@example.com
For more information or any media related questions relating to Inaugural Agri-Business and Eco-Tourism Forum, Angola-South Africa, please contact RedLip PR:
Kelly van der Poll
+27 (0) 84 863 8741