Angola launches Sovereign Wealth Fund
The Angolan government has announced that it is to establish a Sovereign Wealth Fund. The fund which is currently worth an estimated $5 billion will concentrate on providing investments in projects to develop agriculture, water, power generation, transport and hotels for the tourism industry. Angola is currently Africa’s second largest producer of crude oil after Nigeria.
The press report in Luanda Digital is as follows:
“The Angolan government announced on Wednesday, October 17, it will launch a sovereign wealth fund with the aim of promoting socio-economic development, lessen the impact of price volatility of raw materials and create wealth for future generations.
The Sovereign Wealth Fund of Angola (FSDEA) will be managed by an administration of three members, led by Armando Manuel, economic advisor in the area of President Eduardo dos Santos and invest in profitable businesses, both nationally and internationally. FSDEA In the statement refers this fund, worth 480 billion kwanza, will invest in financial assets and projects in infrastructure, tourism, hospitality and other industries with growth potential. With this background, Angola intends to control the high price volatility of raw materials such as oil, which led the country to apply for a loan to the International Monetary Fund (IMF), for about three years. The intention of launching this project was announced in 2008 by Eduardo dos Santos, although Parliament has just approved the law for its creation last year.”