Angola

Nurturing our future.

Armando Manuel, MScEconomic Affairs Advisor to the President of

Angola;Chairman of Angola Sovereign Wealth Fund - FSDEA

DisclaimerThis presentation does not fully reflect the views of Civil

House of the President of Angola nor the FSDEA. I am alone responsible.

Prior to 2003, mainly dependent from external borrowing to cover current expenditure;

2003 External Debt 64% GDP, tem years later 19,5%;

2004 Significant shift in Public investments Mainly roads, bridges railways Apart from the littoral towns, schools, hospital

and public buildings all destroyed; Considerable number of refugees

Lack of human capital; Inflationary pressures; Issues on absorption capacity

Still Challenges of today and tomorrow; Short term Credit, (commerce; issues on Real

State); Core inflation; Oil, electricity and H20 Subsidies

Good News 2010 – Law enforcement (new constitution,

public probity, new public tender law) phasing up of quasi-fiscal; Decision to start a considerable investments in

power plants, water, ports, housing…; Setup of a number of instruments to foster

private investments (SME’s) Oil Fund created as budgetary account;

Allocation of 100 barrel day; Specific mandate of economy diversification

Domestic and regional investments;▪ Gas power plants, (2) Fertilizers plant, (3)Ports, (4) Air-

ports, (5) mining –iron, copper…Hotelling etc… Financial investments abroad (capacity of

absorption) A budgetary incorporated approach; A fine –tunning Macroeconomic

coordination

The Official Launch PresentationOctober 17, 2012

• 50 thousand oil barrels per day;• Fiscal Stabilization function at last stance• Clear split between Sovereign Wealth Fund

and Excess oil price Fund;• Clear split between social economic

impact projects form financial viable projects;

Commitment to Transparency & Accountability

Committed to operating in a transparent and responsible manner adhering to the industry best practices as stated in the Santiago Principles; Assets of $5bn and projected to grow consistently year on year from sales of oil and through performance of its investments;

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The FSDEA Mandate

The Fundo Soberano de Angola (FSDEA) is an investment institution dedicated to the economic and social development of Angola by generating wealth for the country’s future generations

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Galvanizing Economic Development

•The infrastructure and hospitality sectors are two of the first sectors targeted for investment, as they represent significant wealth creation opportunities across Sub Saharan Africa and also offer the potential for a higher growth multiplier for the Angolan economy.

•Future infrastructure investments focus areas with immediate development needs –the natural resources and materials supply chain, agriculture and key utilities including water, electricity, petroleum and gas.

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Governance & Fiscal Policies tights

• Direct dependency from the President;• Advisory Board formed by the Minister of Finance,

Economy, Planning and the Governor of Central Bank; • Fiscal Board;• External auditor;• Belongs the group of Indirect Public administration,

subject to report and accountability under Budget Law– Requirement to present quarter reports to the

Ministry of Finance– Requirement and part of overall public account

presented to the parliament.

• Currently – In process of appointing Investment managers,

custodians and consultants;– Setting up of all technical framework to

communicate with Managers;– Fine-tuning of investment and risk policies

• Expectations:– In short run- to pursue a very conservative

approach based in fixed income, less risky assets and moderated returns;

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THE FUNDO SOBERANO DE ANGOLA

Hilton Pattaya – Received Awards for Design Excellence

Transparent & Accountable

Investment Growth Potential

Social & Economic Development

Thank you!