Day: May 3, 2023

The International Monetary Fund (IMF) said Wednesday it will make the first post-financing assessment of Angola, worth USD4.5 billion.

This will be at the First IMF monitoring mission. The institution concluded on December 22, 2021 the sixth and final evaluation of the Expanded Financing Programme.

The post-financing monitoring programme allows the IMF to monitor the evolution of the country’s macroeconomic policies and the potential risks that impact on Angola’s capacity to receive its internal and external commitments.

This first Mission, expected to gather representatives from various ministerial departments, will be led by IMF senior official, Amadou Sy.

Also expected to attend the meeting are representatives from the State Asset Management Institute (IGAPE), the General Tax Administration (AGT),

the Ministries of Economy and Planning (MEP), Mineral Resources, Oil and Gas (MIREMPET).

Representatives of the National Bank of Angola (BNA), the National Agency for Petroleum, Gas and Biofuels (ANPG) Sonangol, the Petroleum

Derivatives Regulatory Institute (IRDP), as well as other private entities or entities regulated by private legislation, such as BPC and Económico banks, will also attend the event.

The Financing Programme was approved by the Board of Executive Directors of the IMF on December 7, 2018, with a duration of 3 years.

Initially, it provided for a financial package of Special Drawing Rights (SDR) equivalent to around US$3.7 billion.

The IMF approved an increase in access of 72% of the quota as an emergency funds, raising the cumulative access from 361% to 433% of the quota, at the request of Angolan Executive, due to Covid-19 pandemic.

The move aimed at strengthening the country in the fight against the pandemic and mitigating its health, economic and social effects, as well as ensuring the implementation of the lost reforms that were being developed.

The IMF granted Angola a corresponding disbursement of Special Drawing Rights equivalent to approximately US$765 million.

The initial funding was raised from US$3.7 billion to US$4.5 billion.

Source: Angola Press News Agency (APNA)

The minister of State for Economic Coordination Manuel Nunes Júnior Wednesday in Luanda spoke of the demand for the new assets available to the market by economic agents.

He said that the demand is due to the stability of the tax system and labour legislation reforms.

The minister was speaking at the closing session for the presentation of the extension of the Privatisation Programme for the 2023-2026 period, also stating that the demand would also reflect on stability achieved in financial and currency system.

He noted that the government would continue to drive political, economic and financial reforms in the country, in order to improve the business environment and make Angola an important centre for private investment in Africa.

The minister of State said that, with the privatisation process, many state assets that were abandoned and has been totally stagnant become now fully operational, providing jobs, paying taxes to the state and generating profits.

Manuel Nunes Júnior realçou o facto de as privatizações terem criado 2.763 postos de trabalhos directos, entre 1. 233 novos postos de trabalho e a manutenção de1. 530 postos de trabalho que poderiam estar em causa, “caso as empresas visadas não tivessem sido reconduzidas para um caminho de recuperação e de eficiência”.

Manuel Nunes Júnior highlighted the fact that the privatisations had created 2,763 direct jobs, between 1. 233 new jobs and the maintenance of 1. 530 jobs that could have been at stake, “if the companies in question had not been reinstated towards a path of recovery and efficiency.

According to him, the new owners, in general, made strong investments in the acquired companies so that they could produce “not with a greater dimension, but also in a more efficient way.

“Investments were made by the new owners in new equipment and production processes, leading to the technological modernisation of the companies and creating the foundations for them to be able to reduce their operating costs and become, more competitive,” he said.

He added that the first phase of this privatisation process is a basis for drawing lessons about what has already been done.

“All the mistakes, deficiencies and shortcomings recorded in the first phase should be removed now, in this second phase, based on the professionalism, rigour, zeal and commitment of the leaders and officials involved in the management of this programme,” he added.

The Government has extended the privatisation process of about 73 assets in the period 2023-2026, a lower number than the 93 companies registered between 2019-2022.

The forecast is contained in Presidential Decree No. 78/23 of 28 March that approves the extension of the execution period of the Privatisation Programme – PROPRIV, for the period in reference.

Source: Angola Press News Agency (APNA)