Experts urge caution in companies privatization

Galvão Branco recommends caution, safeguarding the interests of shareholders and suggests that some companies should simply be liquidated because they have no viability, while Fernando Pacheco affirmed it is not a good idea, from a strategic point of view, to privatize TAAG.

Angola plans to privatize more than 74 companies in the medium term. Overall, the Government intends to sell its entire stake in these companies, most of which operate in the industrial sector. The information appears in the prospectus for the issue of "eurobonds" of US $ 3 billion, at 10 and 30 years and with interest rates above 8.2% per year - made by the Angolan State in May of the current year.

The Government has not officially disclosed the names of the institutions to be privatized. However, last May, the President of the Republic, João Lourenço, announced, while in Brussels, that the process of organizing the total or partial privatization of certain large and medium-sized public enterprises is underway.

On that occasion, as OPAÍS reported, the Head of State, who was speaking at the opening of an economic forum between Belgian and Angolan businessmen, did not mention the name of the companies, only stating that they had already been selected and pointed out that they were organizations related to the oil, telecommunications and "other" sectors. He guaranteed that the process would be transparent and that the candidates would all have equal opportunities. He said that, in due course, the timing and terms and conditions of access would be known to those interested.

For the engineer and companies consultant Galvão Branco, some processes must be treated with caution, safeguarding the interests of the shareholders. He explained, for example, that it was necessary to reassess the fixed assets of the companies in question so that they could be privatized or sold at fair value.

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