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Angola’s government, led by President Joao Lourenco, intends to list Unitel, the country’s largest telecom company, in an IPO this year. The government acquired shares from Isabel dos Santos, Africa’s first female billionaire.
Secretary of State for Finance and Treasury Ottoniel dos Santos revealed that Angola plans to sell a portion of Banco de Fomento Angola, the country’s second-largest bank, on the stock market later this year. In total, 26 state-owned businesses and assets are scheduled for sale in 2024.
“Our focus is on finding a mechanism to accelerate the privatization process of the state’s indirect holdings in these entities through the stock market,” dos Santos said in a statement. This decision is consistent with Angola’s desire to capitalise on rising demand for riskier emerging-market assets, which is being driven by expectations of US interest rate decreases.
Dos Santos, who has long been accused of corruption, particularly during her father’s presidency, has been entangled in legal fights, including a recent setback in which a London judge froze £580 million ($734 million) of her assets due to Unitel debt defaults.
In November 2022, the Angolan government took a 50% stake in Unitel from dos Santos and her late father’s associate, Leopoldino Fragoso do Nascimento, thereby nationalizing the telecommunications company.
This privatization campaign follows Angola’s broader anti-corruption initiative, which has received international accolades but has also been criticized for apparent political prejudice. Critics say the program unfairly targets political opponents while ignoring corruption inside the ruling party.
A London judge froze £580 million ($734 million) of dos Santos’ assets in December 2023 due to a legal dispute with Unitel SA. The freeze order, which is related to defaulting on debts of approximately €325 million ($410.5 million) and $44 million ($55.6 million), adds to the accumulating legal problems against dos Santos.
As Angola positions itself on the global stage, the planned Unitel IPO and stake sale in Banco de Fomento Angola demonstrate the government’s commitment to promoting economic growth, attracting foreign investors, and addressing long-standing concerns about corruption and financial mismanagement.
