PROPRIV seek for the privatization of a group of 195 companies

Law no. 10/19, of 14 May, the Basic Law for Privatizations, created a new and modern legal regime for privatizations and reprivatizations in Angola, establishing as an indispensable condition for the realization of them a previous approval by the Executive of a Privatization Program, which constitutes a programmatic document, identifying the entities of the public business sector that must be the object of privatization, within an indicative time horizon, according to the objectives that are defined.

It is in this spirit that the Privatization Program (PROPRIV) for the 2019 -2022 period was approved by Presidential Decree 156/19, of the 20th of August. This Program thus constitutes one of the main fronts in the process of implementing a new development paradigm, based on an active presence of the private sector in the main sectors of the economy.

PROPRIV provides for the privatization of a group of 193 companies, of which 32 are classified as reference companies. The disposal of assets under the program will follow several modalities and procedures.

The procedures to be adopted for the privatization of companies are public tenders, public tenders by prior qualification, auction on the stock exchange and initial public offer. It should be reiterated that the concept of Privatization defined in the Privatization Basis Law, No. 10/19, of 14 May, allows for various types of privatization, namely, the sale of shares representing the share capital, an increase in the share capital open to the subscription of entities the sale of assets or the assignment of the right to operate and manage.

The program aims to: promote the country's growth, by reducing the state's participation in the economy, promoting private investment that enhances job creation and increasing tax collection, as well as promoting greater availability of products and services to all citizens, among other benefits for each Angolan.

PROPRIV marks a change in the alienation paradigm of assets owned by the Angolan people. It is being implemented with principles and mechanisms that ensure rigor and transparency, seeking to guarantee the interests of investors, but also of all employees of the companies on the list, seeking to create a context in which the various companies and assets have better conditions to fulfill their social function.


The program is carried out by the Permanent Technical Group (GTP) whose coordination is the responsibility of the Secretary of State for Finance and Treasury (SEFT), Dr. Osvaldo João, and integrate Directors and staff of IGAPE, Sonangol and other entities involved in the Privatization Program.


Basic Law of Privatizations


Public Procurement Law


Decree 156/19 - Approves the Privatization Program


Invest in the future. Invest in Angola.

Angola is one of the countries with the greatest growth potential in several growth areas in southern Africa. A country with more than 3 million hectares of arable land and more than 1,650 kilometers of coastline, in addition to immense mineral resources. It has one of the most interesting population growth rates on the continent, with a mostly young population.

There are several sectors that offer investment opportunities with high rates of return, namely, sectors of fisheries, agriculture, health, transport, manufacturing, minerals, energy, among others.

PROPRIV offers investment opportunities in several areas described above, capitalizing on the investment conditions provided by the Angolan authorities with the aim of creating a good environment for all investors.

Why invest in Angola

Angola is determined to attract investment and improve the business environment
High internal market potential
Diversity and abundance and natural resources
Important location as a gateway to southern Africa
Socio-economic stability with a young and cohesive population

For more information on specific opportunities access the list of assets and participations included in PROPRIV
Find out how to invest in Angola by consulting the Investment Guide - Angola Now
Consulte as condições especiais para investimento no AIPEX website

Investment Guide - Angola Now


AIPEX website



On 22 September, the State Assets and Participations Management Institute (IGAPE) signed contracts for the award of 9 assets included in public tenders for the privatization of industrial units located in the Special Economic Zone (ZEE) and 3 textile units located in three provinces of the country. The overall value of the award contracts is KZ 34 billion.

The signing session was chaired by Osvaldo João, Secretary of State for Finance and Treasury and Coordinator of the Permanent Technical Group of PROPRIV, and took place under strict observance of the rules for preventing and combating Covid-19.

The sale of assets results from Public Tenders Nos 1 and 3, both launched by IGAPE in the 2nd quarter of 2020, under the Privatization Program. Of the 10 assets, 6 were permanently sold to Angolan companies and the remaining 3 were awarded under the regime for the right to operate and manage textile industrial units to an Angolan company (IEP) and an entity in Zimbabwe (BAOBAB).

For the 2nd wave of privatization of assets located in the Special Economic Zone, contracts worth approximately 19 billion Kwanzas were signed, corresponding to the following awards:

GALVAGANG – Indústrial de Galvanização a quente Anglobal – Comércio, Indústria e Serviços, Lda 1,885,414,410.00
VEDATELA – Indústria de Vedações de Arames Ferpinta – Angola, Lda 4,500,000,000.00
INDUPLAST – Indústria de Sacos de Plástico Anglobal – Comércio, Indústria e Serviços, Lda 1,022,548,478.00
MANGOTAL - Indústria de Torres Metálicas Emadel, Lda 6,607,816,020.00
ABSOR - Indústria de Absorventes Nelt Angola, Lda. 2,343,890,632.00

As already mentioned, for the textile industrial units Textang (Luanda), Comandante Bula, ex-SATEC, (Kwanza-Norte) and África Têxtil (Benguela) the objective was to adopt the modality of termination of the right to exploit and manage. This modality, under the terms of the Basic Privatization Law, provides for the payment of a fixed annual amount, a variable component depending on the revenues to be generated and a purchase option at the end of the contract period under conditions to be contracted between the parties.

Thus, the global value of the fixed component is about 16 billion Kwanzas, which will be paid annually between periods of 8 to 15 years, as shown in the table below. If investors decide to exercise the call option, the total sale value of the three units will be 268 billion Kwanzas.

Textang II IEP 875,323,500.00 6% 59,000,000,000.00 8o ano
SATEC BAOBAB 310,946,383.83 5% 104,311,490,000.00 Entre 10o e 15o ano
Áfrical Têxtil BAOBAB 267,931,890.38% 5% 104,311,490,000.00 Entre 10o e 15o ano

BAOBAB Coton Group, based in Zimbabwe, won the tender for the assignment of the right to explore and manage the Comandante Bula units, formerly SATEC, (Kwanza-Norte) and Africa Textile (Benguela). Regarding Comandante Bula, ex-SATEC, the fixed annual amount is about 311 million Kwanzas, to be paid over a period of 15 years, with variable payments of 5% on the amount annual revenue.

The investor will be able to exercise the call option after 10 years and until the end of the contract, with the purchase value estimated at more than Kwanzas 100 billion, less the amounts paid up to the moment the call option is exercised.

As for Africa Têxtil, whose right to exploit and manage has been awarded to IEP, the fixed annual value is about 268 million Kwanzas, for a period of 15 years. The variable component calculated on annual revenues is 5%. The call option may be exercised after 10 years, with the value of just over 100 billion Kwanzas, less the amounts paid up to the moment the call option is exercised.

The Textang II industrial unit, located in Luanda, was awarded to the company IEP. The annual fixed component of the contract is 875 million Kwanzas to be paid over an 8-year period. Variable payments will be 6% of the annual sales value. The call option will be exercised over 8 years, with the value set at 59 billion Kwanzas.