Angola: China Sonangol International Privatisation May Begin This Year

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Daniel Terungwa

The selling process of the oil company (Sonangol)’s stake in China International Holding (CSIH) may begin this year, according to the Privatisation Programme (Propriv) underway in the country.

China Sonangol International Holding which was created in 2004, has been based in Hong Kong, since September 6, 2012.

CSIH is owned by Dayuan International Development Limited (70 percent), with the Angolan company holding a 30 percent minority stake.

According to the privatisation schedule of the assets and stakes held by the oil company in Angolan and foreign companies, presented at a methodology seminar in 2019, this year, the oil company will also begin disinvestment at China Sonangol International Limited.

2021 programme also include the disinvestment process at Empresa Nacional de Combustíveis e Óleos S.A (ENCO), based in São Tomé and Príncipe.

Angolan oil company is expected to sell 70 assets, in a list of 195 companies and assets to be privatised by 2022.

Of this number, 50 are under direct control of its administration.

In addition to Angola, Sonangol’s assets and holdings are found in Portugal, the United States, France, the United Kingdom, Gibraltar, the Cayman Islands, Bermuda, Ivory Coast, Singapore, Cabo Verde and Panama.

Of the 195 assets and holdings in various branches, the provisional figure pointed to the sale of 36 assets and accumulated contracts till December.

The process allowed the collection of 355 billion kwanzas in privatisations.

In November 2020, the Secretary of State for Finance and Treasury and Coordinator of the Propiv Technical Group, Osvaldo João, on behalf of the Angolan State, announced very concrete steps in 2021 towards the privatisation of assets and holdings.

The state expects the companies to have their started privatisation processes of 195 assets and participations, to be launched in this period of 2022.

Among the privatised firms, through public tender, include 13 industrial units located in the Special Economic Zone (SEZ) Luanda-Bengo, whose awards resulted in AKz 30 billion contracts.

In addition, 12 agro-industrial enterprises were awarded in public tender, including two silos and a tomato processing plant in Dombe Grande in Benguela.

Just two contracts of the above-mentioned establishments, raised a total of 2 billion Kwanzas.

The remaining nine assets were not awarded in electronic auctions or for other rules of procedures in the Privatisation Law.

The list of companies to be privatised include the “giants” TAAG – Angola Airlines, ENSA – Angola Insurance, Bodiva – Angolan Securities Exchange, and other companies in the transport sector, mining resources, telecommunications, as well as the financial sector.

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