March 13, 2020 / 09:25 AM / By FDC Ltd / Header Image Credit: Business Times Africa Magazine
The Angolan economy has been rather tepid, with declining oil output leading to lower government revenue and economic depression.
Following these unfavourable events, the government has decided to privatize its key assets by 2022, in a bid to boost local manufacturing and production.
In line with this, a 30% stake in the states oil company, Sonangol will be sold from April 2020 to 2027.
Owing to the mismanagement and high level of debt in the oil sector, Angola named Isabel dos Santos a suspect, as she was chair of Sonangol during the period 2016-2017. The former chairperson of Sonangol, Carlos Saturnino, was sacked last year due to heavy debt and domestic fuel shortages.
President Joao Lourenco in an effort to reinstate confidence in the oil sector has begun operational reforms, like the sale of government holdings in the country's main assets to private companies and individuals.
The draw-in of private investors in the oil sector will increase operational efficiency and the country's oil revenue.
The oil sector accounts for about one-third of the country's GDP and 90% of exports, therefore, further expansion of the oil sector will drive economic growth.