[2019-09-09] Privatisations in Angola cover energy and water sector

Source: Macauhub

The Angolan government is considering the transfer of exploration and management rights of companies in the energy and water sector, the chairman of the State Asset Management Institute (IGAPE) announced this weekend.

Valter Bastos said that at least one of the 21 companies in that sector would be privatised under the ongoing process of restructuring the public business sector.

The IGAPE chairman spoke on behalf of Finance Minister Archer Mangueira at the closing session of the first Angolan Congress on Corporate Governance, promoted by the Ministry of Energy and Water, on Thursday and Friday.

“In the Energy and Water sector we have one company to be privatised, but we are studying with the ministry the possibility of establishing contracts for exploration and management rights,” said the chairman of IGAPE, quoted by the Jornal de Angola newspaper.

Of the 84 companies that are 100% state-owned, he recalled, 21 are under the supervision of the Ministry of Energy and Water, all with direct impact on people’s lives, ranging from the producer to electricity distributors, and the transmission company, along with water collection and supply companies.

“With its current size and diversity, the public business sector is difficult to be well governed,” said Valter Barros.

The privatisation programme, he said, “will remove from the public domain what should not be part of the state business sector.”

Bastos also said that there will be a need to introduce corporate governance reforms in public companies that survive the privatisation process, which include reviewing the members of the board, appointment criteria, compensation and performance appraisal.