Angola’s sovereign fund allocates another $1.4 billion to Africa projects

josefilomeno

Angola’s sovereign wealth fund announced the allocation of $1.4 billion to five new vehicles that will invest in sectors such as mining, timber, agriculture and healthcare within the country and elsewhere in Africa, Reuters reported. Vehicles focused on mining, timber and agriculture will each have $250 million to invest, while a healthcare fund will have $400 million and a fifth Mezzanine Investment fund “is being set up to provide financing to entrepreneurs who do not have access to traditional debt funding, with a further $250 million”.

According to the agency, FSDEA chief José Filomeno dos Santos (photo) declared that the investments aim is to ease Angola’s fiscal dependence on oil export revenues at a time of weak energy markets.

“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,” Reuters quoted.

“The new vehicles follow the launch of two similar structures late last year, set up to back infrastructure and hotel projects across sub-Saharan Africa with $1.6 billion of the FSDEA’s money. This means the FSDEA has committed around 60 percent of the $5 billion it was endowed with by the Angolan government”. (Source: Reuters)

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