Dr Ricardo Soares de Oliveira comments on Angolan privatization

Ricardo Soares de Oliveira was interviewed by Radio France Internationale (22 May) on the recently announced Angolan privatization programme.

For the first time in almost two decades, the Angolan government is aiming to sell thirty of its ninety-odd state-owned enterprises (SOEs). Ricardo commented that the privatization of state assets could be a step towards diversification and a general stimulus to the non-oil economy of one of the world’s most oil dependent states. However, Ricardo made reference to the wild privatization of the 1990s, when more than 400 state-owned enterprises were taken over by ‘regime cronies’, and argued that the key question pertains to the transparency of the upcoming process.

Ricardo also noted that, while some important SOEs are tipped for privatization, including two state banks and the national insurer, the key SOEs in the oil and diamond sectors will remain in state hands and under the de facto management of President dos Santos. This suggests that this privatization round is a tactical rather than a strategic shift by the government, with no root and branch revision of its interventionist approach or stranglehold over revenue-generation.

You can listen to the interview (in French) by clicking here.