NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, April 15, 2015

The Fundo Soberano de Angola (FSDEA) has announced the launch of five dedicated investment funds that will target high growth industries while promoting economic and social development in Angola and the Sub-Saharan region.

With an initial investment volume totalling USD $1.4 billion over the next three- to-five years, these vehicles will be dedicated to making investments in venture capitals in the sectors of mining, timber, agriculture, healthcare and structured capital through a separate mezzanine fund. In addition, the Fund also announced the establishment of a commercial entity that is focused on setting up micro-business incubators for national entrepreneurs.

José Filomeno dos Santos, Chairman of the Board of Directors of FSDEA, stated: “The new sectors targeted for investment by the Fundo Soberano de Angola represent sectors with high potential for investment, with several non-financial benefits, such as additional employment and vocational training.

“Following the capital preservation strategy deployed primarily by the Fund since January 2014, these new allocations will promote socio-economic development and generate revenues for future generations of Angolans.

“Given the current difficult fiscal context, these investments are extremely opportune because they can support the economic development required to reduce state reliance on crude oil revenues.”

Mining

With Africa’s vast mineral deposits offering important potential for mining companies, the FSDEA’s Mining Venture Capital Investment Fund will invest USD $250 million in this sector over the next three-to-five years. With a focus on Sub-Saharan Africa, and mainly in Angola, which itself has one of the richest sub-soils in the region, investments will be considered across the entire project development curve from exploration to upgrading and expansion.