ANGOLA - Finance
President of the Board of Directors, BODIVA
Prior to starting his duties as President of the Board of Directors of BODIVA in 2014, António Furtado held various public positions, including economic and social adviser to the Office of the Prime Minister from 2001-2010, national director of the Treasury from 1990-1994, vice-minister of finance, from 1994-1995, and governor of the National Bank from Angola from 1995-1996, among other positions. He graduated in economics, with a specialty in accounting and finance, from Agostinho Neto University.
Seeking to introduce robust capital markets in Angola, BODIVA works to prepare and assist private companies wishing to list on the stock market.
The launch of the Privatization Program (PROPRIV) appears to be crucial for the full activation of a stock exchange market in Angola. What effects will this program have on the stock exchange in the medium and long term?
I believe the effect will be extremely positive, as every privatization plan in neighboring nations has favored operations through capital market in Zambia, Namibia, South Africa, and Nigeria as well as Portugal in the 1980s. Therefore, I do not expect Angola to be different. The privatization program foresees the sale, via the securities market, of several relevant assets, in particular the banking, telecommunications, and fuel distribution sectors. As an example, we point to the sale of Banco de Comércio e Industria via an Auction on the Stock Exchange on December 17, 2021. For 2022, we expect to conclude at least two or three more operations that represent real opportunities for investors, namely, non-resident investors. However, BODIVA’s goal is to become a platform to finance the economy, especially in the private sector, so that it has all the tools companies require to buy assets that were in the hands of the state. The stock market appears as a mechanism through which private businesses can have access to the necessary financial resources to acquire these assets through PROPRIV. In 2022, BODIVA will start its privatization process. Today, 100% of BODIVA’s capital is owned by the state, though the goal has always been to deliver it to the private sector. This is part of our strategic plan for the next five years. However, our activities are also focused on identifying and preparing programs for private companies that wish to enter the market, as there are a set of factors that a company must fulfil in order to participate in the stock market in terms of corporate governance and financial reports. The preparation program helps companies achieve the proper level of excellence and is being developed in partnership with Euronext Academy. We identify a group of companies and prepare them for these challenges, including corporate governance, financial reporting, equity story, and so on. We are doing our part to reshape the business landscape within the framework of PROPRIV’S main goals and objectives.
What are the main challenges and goals for BODIVA this year?
We are eagerly working to promote the stock market. We currently working with the public debt and ETFs in the secondary market, but we want more. We are collaborating closely with the government to improve the macroeconomic aspects of Angola. We are currently facing a transition period toward a market economy in which it is difficult for companies that are traditionally run by families to have their books audited and made public by other organizations. Hence, one problem that we face is corporate governance; staying in touch with these companies and presenting the advantages and benefits is mandatory to achieve our most immediate goals. Today, credit to the economy is basically run by banks. Therefore, we want to find an alternative through which credit to the economy is also run by the market itself. In countries around the region, credit to the private sector represents around 20-30% of GDP. We must reverse the scenario in Angola. In two to three years, we want to have an important role in becoming a complement to the banking system and not a competitor. This is our challenge for the future, as well as the privatization of BODIVA itself. Lastly, in 2022 we will develop a guarantee fund for non-institutional investors, a fund that will protect investors dealers or brokers act in an incorrect way and cause any damages to the investor. If this happens, the fund will cover the investor to repair damages caused by market players. Our overall goal is to deliver a safe and transparent stock market. There are opportunities in Angola; the moment is now, and the path is through the stock market.
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