Fundo Soberano de Angola

Angola Sovereign Wealth Fund
Native name
 Fundo Soberano de Angola
Sovereign wealth fund
Predecessor Fundo Petrolifero de Angola
Founded 17 October 2012 (2012-10-17)
Headquarters Luanda, Angola
Area served
 Worldwide
Key people
 José Filomeno dos Santos
AUM US$ 5 billion (endowment)
Owner Government of Angola
Website fundosoberano.ao

The Fundo Soberano de Angola (FSDEA) is the sovereign wealth fund of Angola.[1][2] and member of the International Forum of Sovereign Wealth Funds and therefore has signed up to the Santiago Principles on best practice in managing sovereign wealth funds.[3] The FSDEA is meant to play an important role in promoting Angola’s social and economic development and generating wealth for its people. The fund was rated by the SWFI in February 2015 with a ranking of 8 out of 10.

History

On 20 November 2008, Angola’s President, José Eduardo dos Santos, announced to establish a special commission to build the foundations for a new sovereign wealth fund "to promote growth, prosperity and social and economic development across Angola." In 2011, the fund was ratified and established as "Fundo Soberano de Angola." It replaced the former Fundo Petrolífero de Angola (Oil for Infrastructure Fund).[4] At inception it was the second largest investment fund in Sub-Saharan Africa after Botswana's Pula Fund, having had an initial capital of US$5 billion.[5] It is also envisaged that it will receive supplementary funding each year equivalent to the sales value of 100,000 barrels of oil per day (5.6% of the total daily petroleum output).[6] The value of this volume may be about US$3.5 billion every year.[7]

Corporate Governance

The fund has pledged its adherence to the Santiago Principles and will aim to be rated on the Linaburg-Maduell Transparency Index in 2014. It will also be subject to an annual performance assessment by the Angolan Parliament. In November 2013, Deloitte was appointed as the independent external auditor.[8]

Based on an investment policy that was approved in June 2013, the FSDEA aims to generate wealth for future generations and support Angola’s social and economic development.[9] The FSDEA was also recognized as a transparent SWF sovereign wealth fund by the SWFI (Sovereign Wealth Fund Institute) in February 2015 with a ranking of 8 out of 10, which is a significant milestone for the fund. Fundo Soberano de Angola is committed to operate transparently, responsibly and in full compliance with the laws and regulations of Angola and the countries where it will make future investments.

Board of Directors

Advisory Council

Job Graça (left) and Paul Toungui in April 2004.

Investments

Half of the funds will be invested in alternative investments mainly in agriculture, mining, infrastructure and real estate – with particular focus on hospitality – in Angola and the continent. The remainder of the portfolio will be allocated to high quality cash and fixed income instruments, issued by sovereign agencies, global and emerging equities as well as further alternative investments around the globe. A maximum of 7.5% of the portfolio may be used for social development projects in areas such as education, income generation access to clean water, health care and energy .[8]

On 30 March 2016 the FSDEA announced to be financing 10 projects in health, education, water supply and entrepreneurship in the provinces of Cabinda, Bengo, Huambo, Bié, Cunene, Benguela and Kwanza Norte valued at US$12 million. Also, the “Kijinga” programme has been launched, aimed at the reconstruction of the old “Super” soap factory.[15]

References

  1. ↑ Candido Mendes & Colin McClelland (17 October 2012). "Angola Starts Sovereign Wealth Fund With $5 Billion". Bloomberg News. Retrieved 22 November 2013.
  2. ↑ "ANGOLA LAUNCHES US$5 BILLION SOVEREIGN WEALTH FUND". Angola Today. 17 October 2012. Retrieved 22 November 2013.
  3. ↑ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
  4. ↑ O’Neill, Dominic (November 2012). "Angola fund launch leaves questions unanswered". Euromoney. Retrieved 22 November 2013.
  5. ↑ POLGREEN, LYDIA (17 October 2012). "Angola Fund Set to Invest Oil Revenue in Businesses". New York Times. Retrieved 22 November 2013.
  6. ↑ dos Santos, José Filomeno (November 2012). "Priority for infrastructure: Angola fund sees bright future" (PDF). OMFIF. Retrieved 23 November 2013.
  7. ↑ Mcgroarty, PATRICK (26 February 2013). "Angola Wealth Fund Is Family Affair". The Wall Street Journal. Retrieved 22 November 2013.
  8. 1 2 McClelland, Colin (11 November 2013). "Angola Names Deloitte to Audit $5 Billion Sovereign Wealth Fund". Bloomberg. Retrieved 23 November 2013.
  9. ↑ "Angola's New Sovereign Wealth Fund". 4 July 2013. Retrieved 4 July 2013.
  10. ↑ Thomson Reuters Foundation (2013-11-12). "INTERVIEW-Angola wealth fund head denies plan to succeed president, his father". Trust.org. Retrieved 2014-08-03.
  11. ↑ "Angola names president's son to chair $5 bln sovereign wealth fund". LISBON: Reuters. 21 June 2013. Retrieved 23 November 2013.
  12. ↑ https://web.archive.org/web/20130922221128/http://www.swfinstitute.org/public-investor-100/jose-filomeno-de-sousa-dos-santos/. Archived from the original on September 22, 2013. Retrieved November 27, 2013. Missing or empty |title= (help)
  13. ↑ "Angola to name new head of $5 bln wealth fund after cabinet reshuffle". Reuters. 7 May 2013. Retrieved 22 November 2013.
  14. ↑ McClelland, Colin (7 May 2013). "Angola’s Finance Minister Change Boosts Fund, Control Risks Says". Bloomberg News. Retrieved 22 November 2013.
  15. ↑ "Sovereign Fund of Angola supports social projects in seven provinces". AngolaHub. Retrieved 30 March 2015.
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