Eduardo Vieira, President of Angolan stockbroker Novacao Corretora de Valores
As the former minister has said, we strongly anticipate that there will be a stock exchange up and running in the next 12 months. The Government has set new goals and targets for the economy and the stock exchange is part of their strategy. Our economy looks set to grow by a good 9%, it is sustainable growth and fuelled by our rich natural resources.
We need the capital market because companies fully rely on the banking system, finance is very expensive, and there is not enough for the current demand. A capital market would promote a culture of savings and investment. Angola has only 2 pension funds, one for mining firms, one for some oil companies, with 25% invested into Angolan government bonds and the rest into international money markets.
According to the official planning, the stock market will be driven initially by privatizations of some of our big companies, possibly including Sonangol. Suitable Angolan companies would be ready for dual-listings, both within SADC and internationally.
There is also very good scope for private equity investments in Angola.
Geoff Musikiwa – JSE Africa Board: contributions will be covered in separate story.