Universo - Sonangol EPUniverso is produced by Impact Media Custom Publishing. The views expressed in the publication are not necessarily those of Sonangol or the publishers. Reproduction

Universo

INSIDE:oil and gas news

MARCH 2011

Leapingahead

Sonangol 35th anniversary sparkscelebrations around the globe

WINGED WONDERS: how birds are boosting tourism

TRAINING FOR SUCCESS:

why studying abroad is a good career move

BANKING: when growth is a pathway

for investment

CLASS ACT: building a new

future for schools

MARCH 2011 3

CONTENTS

2 SONANGOL UNIVERSO

Universo is the international magazine of Sonangol

Board MembersManuel Vicente (President),

Anabela Fonseca, Mateus de Brito, Fernando Roberto, Francisco de Lemos,

Baptista Sumbe, Sebastião Gaspar Martins

Sonangol Department for Communication & Image

DirectorJoão Rosa Santos

Corporate Communications Assistants

Nadiejda Santos, Lúcio Santos, Cristina Novaes, José Mota,

Beatriz Silva, Paula Almeida, Sandra Teixeira, Marta Sousa

Publisher Sheila O’Callaghan

EditorJohn Kolodziejski

Art DirectorGarry Lyons

Sub EditorRon Gribble

Advertising DesignBernd Wojtczack

Circulation ManagerMatthew Alexander

Project ConsultantsNathalie MacCarthy

Mauro Perillo

Group PresidentJohn Charles Gasser

Universo is produced by Impact Media Custom Publishing. The views expressed

in the publication are not necessarily those of Sonangol or the publishers.

Reproduction in whole or in part withoutprior permission is prohibited.

This magazine is distributed to a closed circulation. To receive a free copy:

[email protected]

Circulation: 17,000

The Universo team while in Luanda stay at:

www.hotelrouxinol.com

Davenport House16 Pepper Street,London E14 9RP

Tel + 44 20 7510 9595Fax +44 20 7510 9596

[email protected]

Cover: Sonangol

6 TRAINING FOR SUCCESS Angolans are returning home from theirstudies abroad and are taking up increasingly important positions in theoil sector, proving the success of the government’s Angolanisation policy

12 WINGED WONDERSBirdlife enthusiasts and biologists arecombining to put Angola’s beautiful andlargely unvisited interior on the map.Eco-tourists are showing an interest infollowing their lead

22 CLASS ACTA Huambo carpentry factory is expandingoutput of much-needed school furnitureby using an innovative wood treatmentprocess which will make full use of localforestry plantations

30 BANKING ON ANGOLA’SFUTUREAngola’s banking sector is expanding rapidly. A leading banker gives Universoan exclusive interview about the industry’scourse of development

INSIDE THIS ISSUE

SONANGOL NEWS

Our second edition brimswith good cheer as Sonan-gol not only celebrated its

35th anniversary but also announced buoyant provisional2010 earnings. Sonangol marked the occasion with charitable donations,sporting and cultural events as wellas by holding parties across theglobe from Luanda to London,Houston and Singapore.

More good news stories contained in this issue include ‘Training for Success’ which looks at the rising proportion of Angolans taking up important positions in the oil industry.

Banking is a booming activity inAngola. We survey recent progressand interview a director of BAI, thecountry’s leading bank.

Central Angola’s industrial revival continues apace and we lookat an innovative Huambo furniturefactory, which uses new technologyto upgrade existing timber reserves.

Lastly we reveal some of thelargely unknown delights of thecountry’s ecology – a prospectiveniche for eco-tourism – in our storyon rare Angolan birds.

4 ANGOLA NEWS BRIEFINGAngola’s President Jose Eduardo dosSantos makes his first state visit to SouthAfrica; President dos Santos lays thefoundation stone for the Cazenga regen-eration project in Luanda; Angolan GDPgrew at record rates through 2010; Angola pledges infant mortality cut;farm output rises; Angola runners-up inCHAN 2011; Road-race record

5 FIGURED OUTA brief glance at Angola in numbers

38 SONANGOL NEWS BRIEFINGAngola subsalt exploration; palm-oil fuel project;Superleague Formula gets underway; Angola LNGproject moves forward; deal with Cuba signed; Sonair expands operations; Sonangol takes interestin construction firm

40 SONANGOL 35TH ANNIVERSARYA run-down of Sonangol’s 35th anniversary celebrations and details of the company’s 2010 preliminary results

44

12

6 30

22

Kam

ene

Trac

a, M

ich

ael M

ills,

Car

los

Mo

co,C

apu

a. E

sso

Angola was the world’s fastest-

growing economy in the last

decade, its GDP increasing by 11.1 per

cent between 2001 and 2010. A study in

The Economist magazine citing IMF

data found Angola in pole position,

followed by China (10.5 per cent growth

over the same period), Myanmar (10.3

per cent), Nigeria (8.9 per cent) and

Ethiopia (8.4 per cent). Angola grew the

most between 2004 and 2008, peaking

at over 20 per cent in 2007, thanks to an

increase in oil exports and high levels of

direct foreign investment.

MARCH 2011 5

6,8001,000

4 SONANGOL UNIVERSO

Angola news briefingSouth Africa state visit

Figuredout

The Angolan government has pledged to reduce the country’s infant and maternal mortality rate by 50 per cent over the next twoyears. Deputy Minister of Health Carlos AlbertoMasseca made the commitment at the NationalForum on the Eradication of Poverty held in Luanda in January. The minister said there wereplans to build new hospitals and improve localhealth services, and focus on improving sanitation in a bid to reduce diseases such aspolio and cholera.

Years of conflict and poor infrastructure haveleft Angola with one of the highest child-mortalityrates in the world, although government spend-ing in recent years is starting to have an impact.

Health pledge

km of roads currently being rebuilt

bank branches in Angola by 2013

7.6%President dos Santos has laid the first stone to launch a major inner-city regeneration project in the Angolancapital Luanda.

The project will run in four phases, with 20,000 homes being built in the first two years in the Cazengadistrict, currently home to 1.8 million people.There will be a mix of apartments and houses forpeople currently living in unsuitable conditions in that part of the city.

The regeneration area covers close to 40 square kilometres and will include new water, electricity and sanitation infrastructure, as well as local services.

Cazenga regeneration

million – Japanese investment intoa new textile factory in Luanda

Ethiopian running legend Haile

Gebrselassie won the 55th edition

of Angola’s São Silvestre year-end race,

setting a new course record time of 28

minutes and 5 seconds and taking the gold

medal. The 10-kilometre event takes place

in the capital Luanda every year on Decem-

ber 31. Kenya’s Josphap Menjou came sec-

ond followed by 15-year-old Ethiopian

runner Bonsa Diba Direba. Ethiopians took

all three medals in the women’s race. Dire

Tune won the gold, Almaz Ayana Eba the

silver and Rehime Redir the bronze. Kenyan

Grace Momanyi, who won in 2007, 2008,

and 2009, came fourth.

Get

ty

$20010,000

25new electricity substations to bebuilt in Luanda by 2012

Government’s growth forecast forAngolan economy in 2011

Get

ty

An

go

p

President José Eduardo dos Santos made his first statevisit to South Africa in December, underlining the his-toric and economic ties between the two countries. Thepresident led a large delegation of top government min-isters to Pretoria to meet his South African counterpartJacob Zuma to discuss bilateral co-operation. Accordswere signed in the areas of public works, infrastructuredevelopment, telecoms, information technology, energyand agricultural co-operation.

A declaration of intent on the use of finance facilitieswas also signed, paving the way for new South Africancredit lines for Angola. The first, from the DevelopmentBank of South Africa, will be worth $255 million andmanaged in Angola by Banco Africano de Investimen-tos. The funds will be used for development and infra-structure projects. Further credit lines from theIndustrial Development Corporation and the ExportCredit Insurance Corporation mean the total couldreach $3 billion, said Angola’s Foreign Affairs MinisterGeorge Chicoty.

Business leaders from both countries met on thesidelines to discuss opportunities in Angola.

President dos Santos, who travelled with his wife AnaPaula, made a short trip to Robben Island to see theprison where former president Nelson Mandela spent18 years. In recognition of his personal contribution tothe South African liberation struggle, dos Santos wasbestowed the Order of the Supreme Companion of O.R. Tambo (Gold), the highest honour that can be givento a non-South African citizen. The order is named afterthe late Oliver Tambo who was the African NationalCongress’s president-in-exile for many years.

Get

ty

Fastest growthGovernment investment in agricultural

projects is starting to pay off with in-

creased yields during 2010. Cereal crops reg-

istered a rise of 125,000 tonnes (12 per cent

up on 2009), according to the Ministry of

Agriculture, Rural Development and Fishing.

Production of green and root vegetables

were also up significantly on the previous 12

months, while fish caught off Angola rose by

3 per cent to over 180,000 tonnes.

In terms of rural development, 20 new health

posts were built serving more than 18,000

families and a further 16,000 families bene-

fited from new water and energy supplies.

Road-run record

Green shoots

Angola’s national soccer team succumbed0-3 to Tunisia in the final of CHAN 2011,the African Cup of Nations for home-basedplayers on February 25. The runners-upposition was the first major achievement of recently-appointed coach Lito Vidigal.Rogerio Silva, chairman of the AngolanOlympic Academy, described the second-place as “extraordinary”.

Angola beat Sudan 4-2, the competition’shost nation, on penalties in the semi-finalafter disposing of Cameroon in similarfashion in an 8-7 quarter-final shoot-out. In the group stages, Angola beat Rwanda2-1 and drew 0-0 with Senegal. Angola also drew 1-1 with eventual champions Tunisia.

Achievement

kilometre fibre optic network completion due this year

MARCH 2011 7

SUCCESSNew generations of Angolans are training abroad and returning home to aid the country’s reconstruction bytaking up key positions in the now buoyant economy.Universo looks at some of their experiences

Pin

toro

ux

6 SONANGOL UNIVERSO

RETURNING ANGOLANS

More career opportunities for men and women

- Yvette Moco, Transocean

My generation is leaving a pe-riod hitherto lived by othergenerations in Angola. Never

before have we had so many opportunitiesin terms of availability of jobs and careerprogression,” said Yvette Moco, human re-sources manager at Transocean, the largestoil-drilling contractor in the country.

Moco, who graduated in Sociology andFrench at Manchester University, said: “It was a great experience studying in theUK as it gave me the opportunity to developanalytical as well as interpersonal skills. Ialso had the opportunity to make manyfriends of different nationalities and get toknow different cultures. But, above all,that’s where I grew up to become a respon-sible adult and shaped my personality interms of management style. It definitelyprovided me with the necessary skills to getinto the oil industry.”

Moco’s work is not restricted to herhomeland. She is probably the first and theyoungest HR manager in charge of threedifferent locations in Africa. Apart from Angola, she has responsibility for Gabonand the Republic of Congo.

AngolanisationMoco’s career aspirations, along with thoseof many others, are supported by the gov-ernment’s Angolanisation policy of raisingthe proportion of Angolans in companyworkforces.

Owing to shortages of specialistlabour, oil companies operating in Angolahave long been dependent on expatriates

TRAINING FOR

to perform not only highly-skilled work butalso many basic roles. This is now chang-ing, especially at the top-end of companyhierarchies as multinationals seek to meetgovernment targets.

Besides providing jobs for local people,there are also powerful economic incen-tives for the Angolanisation process. It isextremely costly for companies to bring inforeign workers.

Apart from Luanda being one of themost expensive cities in the world for expa-triates, there are also the added costs of flying personnel in from abroad on amonthly basis, sky-high hotel rates and in-flated salaries to consider.

An independent oil industry analysttold Universo that expatriate rig-workerscould easily cost a multinational in excessof $200,000 a year when long-distancetravel and accommodation costs weretaken into account, compared to around athird that amount for a local hire.

“In straight economic terms, an oilcompany incurs significant savings if it re-places an expat by an Angolan. The criticalissue is that the Angolan must be technically capable and have good English language skills since the language of com-munication in the industry, especially off-shore, is English,” he said.

“Safety is the top priority. Floating pro-duction, storage and offloading [FPSO] ves-sels operated in Angola produce at rates ofsome 250,000 barrels a day. The oil is highlyflammable so there is no room for mistakes,” he stressed. C

arlo

s M

oco

�

MARCH 2011 9

Esso

Esso

8 SONANGOL UNIVERSO

The benefits to multinationals are notonly financial. Greater local staff numbersimprove the company’s communicationand cultural understanding of the host nation, and vice-versa, making operationssmoother.

Angolans certainly see the benefits interms of career opportunities and promo-tions, travel and access to high salaries in awidening pool of available jobs.

“Due to the Angolanisation process ofthe oil industry, we are now seeing morecommitment from companies and, as aconsequence, more career opportunitiesfor both men and women. That said, we stillhave a lot of work to do in terms of devel-oping people but we are on the right track,”said Transocean’s Moco.

Her own future is on track and sheaims to continue to develop as an HR pro-fessional and specialise in the area of reward and talent management.

Claudio NarcisoEsso reservoir engineer Claudio Narcisoagrees that career opportunities are growing. “I can only speak for Esso Angolabut I believe the situation is the same forother multinationals in the oil sector. AtEsso Angola, by year end 2010, a total of 49Angolans had reached supervisory andmanagement roles”, he said. According toEsso, in 2009 Angolans were performingaround 45 per cent of the overall leadershippositions in Esso Angola.

Narciso is reserves co-ordinator forEsso Angola Block 15 where his main role isto maximise the economic recovery of oiland gas. He now operates at Esso’s high-tech headquarters overlooking the bay indowntown Luanda.

In a two-and-a-half-year assignmentin Houston, Texas, Narciso spent sixmonths working on reservoir surveillancein a 40-year-old field to experience

situations Angolan fields may encounter ina few decades from now.

Regardless of Angolanisation, Narcisosaid opportunities for career progressionwould always exist, but were dependent onbusiness needs and mostly on an employee’s performance. “We should neverforget that excellent performance is the keyto one’s success and is very important forthose who want to assume positions ofgreater responsibility in the future.”

Narciso thoroughly recommends international training assignments. “A pro-fessional doesn’t just gain technical skillsbut also leadership skills and knowledge,which are extremely important for furthercareer prospects.”

His career agenda includes puttingsomething back into society. He also sees amentoring role for himself. “My currentplan is to grow professionally, and even tobecome one of the leaders of the company

Excellent performance key to ‘individual success’says Claudio Narciso

Sara Cruz, production operator,trained in Canada

RETURNING ANGOLANS

�

MARCH 2011 11

Alb

ero

Ju

liao

10 SONANGOL UNIVERSO

LEILA LOPES is another Angolan student tasting life by studying abroad. She is notonly a student of Business Management in Britain but also has a possibly distracting alternative career path diversion.

Benguela-born Lopes was voted Miss Angola at the end of last year and will represent the country in the Miss Universe competition in Brazil next September.

in the future, in order to contribute to theexcellent growth Esso has had. I also have amoral duty to share what I’ve learnt so farand help the younger engineers achievetheir goals,” he said.

Sara CruzSara Cruz, a production operator trainee atEsso, currently working aboard a giantFPSO, spent 13 months training at Canada’sSouth Alberta Institute of Technology(SAIT).

Cruz listed the benefits of trainingabroad: “It broadens one’s view by continu-

ously developing in the industrial global village that is the oil sector. It gives you theopportunity of working across different cul-tures and improving your level of English,the essential business language.

“It also gives you the capacity of know-ing how to overcome cultural differences inorder to achieve smooth, efficient and effective results in any multinational industry,” she added, noting that mostequipment, technology and processes areimported in Angola.

“It makes one feel much more secureand valuable by gaining knowledge fromcountries that have been running specifictypes of operations for a longer period oftime,” she said.

Cruz echoed Claudio Narciso’s adviceto young Angolans thinking of studyingabroad. “Go for it, because it’s a remarkableexperience,” she urged. “The skills theylearn will allow them to move further intheir careers, have better incomes and consequently a better quality of life.”

However, would-be students shouldonly go abroad if they are willing to make

some sacrifices. “There’s no gain withoutpain,” Cruz warned. “Students must be prepared to be far away from the comfort oftheir families in a totally new environment.

“What I missed most about Angolawere our sunny days, lovely beaches, ourrich food and our friendly cultural environ-ment in which we believe that friends, relatives and neighbours are all a large fam-ily,” remembered Cruz who comes from Luanda’s Sambizanga district.

All the interviewees stressed that the main thing they missed while beingaway were their families. But Cruz addedthat despite the difficulties, studyingabroad added value to the Angolan labour market.

Hedson CristovãoHedson Cristovão, a 25-year-old health andenvironmental safety officer at Sonangol,trained in Brazil. The leading Lusophoneand soccer-playing country was a goodchoice for this lover of football.

“The positive side for me was to haveacquired another culture, I am Angolan but

apart from having graduated in Brazil Ihave gained a different kind of recognitionhere in Angola,” he said.

Born in Luanda’s populous and impov-erished Cazenga district, Cristovão went tostudy abroad by a fortuitous route. He toldUniverso that his study grant followed thedirect interest of the President of Angola.Along with two brothers and a sister, hecaught President José Eduardo dos Santos’seye when they were reciting poetry at an official event.

The Cristovão children learnt theirlines by heart and acted as a chorus whenaccompanying their father at ceremoniesheld at the National Assembly and otherpublic ceremonies involving foreign dignitaries.

The application and discipline shownby Cristovão’s family in their performancesso impressed the president that the young-sters were offered educational grants by hisphilanthropic foundation Fundação Eduardo dos Santos in 2000.

Cristovão eventually studied in Brazilat the University of Lins in São Paulo’s richfarming interior. “My future plans are to im-prove the quality of life in my country andhelp the company where I work to grow,” hesaid.

Cristovão would also encourage An-golans to go and study abroad. “From mypoint of view, Angolan institutions don’t yethave sufficient credibility and structure tobe able to compete with the quality of education in other countries,” he said.

Several initiatives to improve the over-all quality of Angola’s educational systemare going some way to meet these short-comings. More teachers, 60,000 in total, arebeing hired to fill places in state-sector education in 2010 and 2011. There is also anambitious nationwide school-rebuildingplan underway.

More specialist oil-sector training isavailable at the expanding National Petro-leum Institute (INP) at Sumbe in KwanzaSul province. The INP was set up by the government in 1983. According to INP di-rector Domingos Francisco, 249 techni-cians completed courses there in 2009 and560 trainees enrolled in 2010.

Oil companies also use the facilities offered by INP. There, Esso Angola technical

Trainingabroad gives youthe opportunityof working across different cultures

“”

trainees receive an intensive six-monthEnglish proficiency course. This meetsmost work requirements and is followed byan additional six months on specific tech-nical English, maths and science trainingprovided by Canada’s SAIT. Thirty-one Essotrainees began this training in 2009.

The Esso trainees follow this with one-

year specialist courses in Canada and afinal year initial work assignment with on-the-job training at one of Esso Angola’soffshore facilities in Block 15.

Esso estimates that it invests more than $300,000 in each trainee to Level 1technician status. Some 400 Esso Angolaemployees were trained locally in 2009. �

RETURNING ANGOLANS

Car

los

Mo

co

Kizomba ‘B’, one ofClaudio Narciso and

Sara Cruz’s workplaces

Esso

BIRDLIFE ENTICES ECO-TOURISTS

12 SONANGOL UNIVERSO MARCH 2011 13

�

WINGEDWONDERSAngola’s wide-ranging, often thrilling, birdlife is attracting rising numbers of eco-touristsand birders. As newly rebuilt roads provide easier access to remote areas, opening upnew tourism opportunities, Universo casts an eagle eye over recent birdlife projects

Photos by Michael Mills


With its diverse climate andlandscape, ranging fromdesert in the south to tropical

jungle in the north, Angola is a paradise forbirds and even more so for birdwatchers.

It has the sixth-longest bird list inAfrica with more than 900 species. Angolaalso has one of the continent’s most impor-tant “skin collections” – preserved bird bod-ies used for further study.

Once only a destination for the hardi-est of ornithologists, Angola is now openinga new door to eco-tourism and scientific re-search projects, aided by government in-vestment and extensive post-warreconstruction.

“Angola has beautiful scenery, a goodvariety of habitats and an interesting collec-tion of endemics, that is birds only foundthere,” explained bird enthusiast and Afro-tropics specialist Nik Borrow. “It deserves tobe up there with some of the other majorbirding countries and, as word gets aroundabout Angola, I think more and more bird-ers are going to want to visit.”

Borrow, a Briton who runs birding tripsacross Africa, first visited Angola in 2005and is due to return in October this year tolead a 17-day tour for BirdQuest, based inLancashire, UK, through eight provinces.Although remembering some difficult lo-gistics and driving conditions from his firstvisit, he is optimistic things have improvedsince then.

“My overriding memory was that it wasa very hard country to travel around,” hetold Universo. “But I believe there havebeen substantial improvements, which isgood. And it is definitely worth the effort tosee the birds and also take in the scenery.There are some very beautiful places: Tun-davala in Lubango is just stunning and theKalandula Falls in Malange are amazing.

“Diversity is one of the real beauties ofAngola. It goes through the tip of the Congo

Gabela Akalat

Pulitzer’s LongbillGabelaBush-shrike

Monteiro’s Bush-shrike

rainforest, through the Miombo [plateausavannah woodland], right down into theNamibian desert, so it’s a fascinating collec-tion of habitats within a fairly small areaand that makes it very interesting.”

Back in 2005, Borrow was luckyenough to spot all but two of Angola’s en-demic species. This time around he is hop-ing to complete the list by seeing Pulitzer’sLongbill, listed as “endangered” by the In-ternational Union for Conservation of Na-ture (IUCN), and Swierstra’s Francolin, onlyrediscovered in Angola in 2010.

Most of the people on Borrow’s tourwill be there for pleasure and to tick offtheir own world bird lists. But there is also aserious side to cataloguing species andmonitoring habitats because Angola, whichfor many years was a no-go area for scien-tists, is now putting a new emphasis on re-search and conservation.

Michael Mills, a South African, first vis-ited Angola in 1993 and is currently in-volved in several conservation projects,including one at the sloped Kumbira Forestin Kwanza Sul and another at Angola’s high-est peak, Mount Moco in Huambo.

Working with local and internationalresearchers, Mills is cataloguing bird life,assessing habitats, collecting specimensand helping on a nursery project for re-planting vegetation.

As well as creating a database, theteam is trying to conserve what is there byworking with the local population tocounter traditional but harmful practicessuch as logging and slash-and-burn farm-ing. “From the moment I first went to An-gola, I realised something needed to bedone urgently about bird conservation,”said Mills. “The Kumbira Forest is the mostimportant location for bird life in Angola,but it is under serious threat and so are thebirds that live there.”

Many people fled to the forest during

Deserves to be up there with some of the other major birding countries-more and more birders are going towant to visit.“

”


MARCH 2011 1716 SONANGOL UNIVERSO

the war and started to farm. This destroyedbird and other habitats, putting the long-term future of the forest at risk, he said.

Kumbira – known as a scarp forest be-cause it is on a steep slope formed by ero-sion or faulting – is home to four species onthe IUCN global-conservation concern list.The threatened four include Monteiro’sBush-shrike, only found in Angola andCameroon, and deemed “data deficient”because not enough is known about thespecies to decide on its conservation status.

The other three are found only in An-gola and the IUCN considers them at risk:the Gabela Bush-shrike, the Pulitzer’s Long-bill and the Gabela Akalat, which has notbeen seen for several years. This elusivebird prefers the rapidly disappearing low-lying vegetation in the Kumbira Forest.

In September last year, Mills and histeam spent three weeks at Kumbira. Theirfocus was on the four endangered birds andthey studied their habitats, vegetation, dis-tribution and numbers. They also spoke tothe local government administrator atConda about the possibility of using someland for a nature reserve, mapped nearbycommunities and looked at some of the so-

cioeconomic factors that may influence future conservation initiatives in the area.

Equally critical as Kumbira Forest isMount Moco, Angola’s highest point, at2,620 metres. Located in Huambo province,at the heart of the country in an area knownas the central highlands, the slopes of Mocoare home to some of Angola’s largest re-maining patches of Afromontane forest.

The mix of dense Miombo forest and

protea-rich grasslands, enjoying a wet summer and almost year-round mist, is a perfect place for birds and the insects andgrubs they feed upon.

It is here that Borrow and his group willbe hoping to spot a number of Angolan en-demics, including the elusive Swierstra’sFrancolin, the Angola Slaty Flycatcher and alocal variety of the Yellow-bellied Waxbillknown as Bocage’s Waxbill.

However, like Kumbira, Mount Moco’sbirding habitats are also under threat aspeople living nearby are increasingly cut-ting down the trees for fuel and construc-tion. “The forest is so small that even takingaway just a few trees has a big impact, par-ticularly as it leaves open spaces which areat bigger risk from bush-fires,” said Mills.

As in the case of Kumbira, Mill’s team isinvolved in a number of projects promotinglocal community awareness about preserv-ing the environment. “Some people theretell us that the forests will last for ever andwill never run out,” he said, “but others re-alise they are having to walk further eachyear to collect firewood, and can see thestream nearby is running much lower at theend of the dry season because there is less

Bird conservationistMichael Mills



water run-off from the trees.”According to Mills, there’s a need to

find a balance for the community, which formany years has relied on the natural envi-ronment for survival but now needs toadapt to the changing reality.

“It’s all about sustainability and that’swhat we are trying to communicate, to usethese resources in a sustainable way so theywill last for future generations,” he said.“We have given people more fuel-efficientstoves and are helping them find alterna-tive construction material.”

Although Mills’ focus for now is on col-

lecting bird data and conserving habitats,longer term he believes Mount Moco defi-nitely has potential for eco-tourism.

“Angola is a very diverse and beautifulcountry,” he said. “But until now there havebeen problems with infrastructure and itcan be a very expensive destination. Thereis a lot of potential, particularly for expattourism for the many foreign oil workerswho live in Luanda and might want to ex-plore the country on their weekends andtime off.

“Mount Moco is only a few hours’ drivefrom Huambo so there is scope for regular

visitors. That’s something that could reallybenefit the local population if it were donein the right way.”

Much of Mills’ work is being donejointly with the Higher Education Institu-tion for Education and Sciences inLubango, home to Africa’s third-largestbird-skin collection.

A major project is the creation of anelectronic database of the collection, whichthey hope to expand across the continent.

“It’s not been easy,” said Mills. “You canimagine all the faded handwritten labels indifferent languages. It’s taken a lot of timeto decipher the entries, but we have moreor less completed inputting. Now we arejust tidying up and doing checks.

“The idea is that we can make this in-formation available for everyone to use asa resource and we hope by taking these firststeps we can attract more interest and moreresearchers to Angola.”

For Nik Borrow, the fact that Angola’srecords are still a work in progress adds tothe thrill. “I get a major kick out of seeingthese rarely-documented species. Going toplaces like Angola and Somalia, where Ihave just been, you feel you can actuallysignificantly contribute to ornithologicalknowledge, and that makes it really excit-ing,” he said. �

Bird conservation work in Angola depends onfinancial support from organisations and indi-viduals such as CGG Veritas, The A. P. Lev-entis Ornithological Research Institute, TheRufford Small Grants Foundation, The Con-servation Leadership Programme, TheClancey Fund of the Percy Fitzpatrick Insti-tute of African Ornithology, Julian Francis,The International Turaco Society and TheConservation Fund of the African Bird Club

Infrastructure improvementsare unlockingAngola’s eco-tourismpotential

Spectacular landscapeprovides varied habitats

Bird monitoring in theMount Moco reserve



One of the fathers of Angolan ecologyand conservation is Brian Huntley, arenowned conservation scientist whohas worked across Africa and until re-cently headed the South African Na-tional Biodiversity Institute.

Huntley has played a major role inshaping environmental sensibility andresearch in Angola. His work includesthe development plans for existing andnew protected areas, as well as closelyexamining wildlife populations in thesouthern Namibian desert right up tolush Cabinda rainforest in the north.

Huntley’s research has resulted in28 separate reports on the conservationand management of biodiversity in An-gola, many of which serve as the basisfor mapping and current scientific re-search.

Although officially retired, for thepast year Huntley, Emeritus Professor atthe University of Cape Town, has beenworking with the United Nations Devel-opment Programme (UNDP), developingan environmental programme for An-gola in partnership with the Angolangovernment.

A large part of this is about creatingthe Angolan Protected Area ExpansionStrategy (APAES) to preserve criticalareas of natural interest.

There are 11 target areas, mainlymoist lowland, escarpment and mon-tane forest systems, covering a total of11,800 square kilometres.

Huntley told Universo: “There’s avery narrow window of opportunity left

If you are interested in supporting further bird conservation work in Angola,please contact Michael Mills on [email protected]. Payment for photographsused in this article has beendonated to the Kumbira andMount Moco Projects.For more information on projects and bird tours:www.mountmoco.orgwww.birdsangola.org.www.birdquest.co.ukwww.birdlife.orgwww.birdingafrica.com

The following birds are endemic to Angola and manyare listed by InternationalUnion for Conservation of Nature (IUCN) as endangered or critical.

Grey-striped Francolin Francolinus griseostriatus

Swierstra’s Francolin Francolinus swierstrai

Red-crested TuracoTauraco erythrolophus

Red-backed Mousebird Colius castanotus

Gabela Akalat Sheppardia gabela

Angola Cave-chat Xenocopsychus ansorgei

Pulitzer’s Longbill Macrosphenus pulitzeri

Angola Slaty Flycatcher Dioptrornis brunneus

White-fronted Wattle-eye Platysteira albifrons

Gabela Bush-shrike Laniarius amboimensis

Braun’s Bush-shrike Laniarius brauni

Monteiro’s Bush-shrike Malaconotus monteiri

Gabela Helmet-shrike Prionops gabela

Ludwig’s Double-collared Sunbird Cinnyris ludovicensis

Golden-backed Bishop Euplectes aureus

Francisco Maiato is part of the newgeneration of Angolan botanists. The28-year-old is working on various con-servation projects across the countryincluding Mount Moco in Huambo andKumbira Forest in Kwanza Sul.

A graduate in biology from theScience Faculty at Agostinho NetoUniversity, Maiato is based at theherbarium of Higher Education Institu-tion for Education and Sciences inLubango, where he also teaches.

The institution is also home to An-gola’s 40,000-strong bird-skin collec-tion. Part of Maiato’s job iscontributing to a new electronic data-base of plant specimens, to preserverecords for future generations.

Originally from Huambo, Maiatosaid his love of nature came from hisfather who was an agronomist. “I havealways had a great fascination withnature,” he said. “My father was cer-tainly a major motivation, but I have

also had an excellent opportunity oftraining with some of the best botanyspecialists from South Africa.”

Maiato said he loved his timespent at Mount Moco and felt proud tobe part of the work going on there.“Despite some difficulties, like thehigh altitude and the winds, the natu-

ral environment is fascinating and itoffers an opportunity for bird watch-ing. “I really enjoy being there, talkingand working with the local populationand being able to understand that al-though they perhaps comprehend lit-tle of what we are doing, they have agreat affection for the place and thebirds and they feel the need to protectthem.

“The work we are doing there isextremely important because it willhelp conserve this important ecosys-tem for the birds and classify MountMoco as a priority area for bird con-servation in Angola.”

His favourite bird is Ludwig’s Double-collared Sunbird, which is endemic to Mount Moco. “This birdcaught my attention for its beauty andthe bright colours around its neck,” he said. “Although its status is critical, you can still often see it atMount Moco.”

Local Knowledge

New nature conservation areasin Angola to identify and protect impor-tant areas such as those which haven’tyet been developed or inhabited. Oncedevelopment starts, it’s much more dif-ficult to protect an area.”

As part of his APAES work, thisyear Huntley will be travelling to a re-mote part of Lunda Norte, one of thetarget areas, for a mapping exercise.

“It’s a very important area,” he ex-plained. “It has the largest lake in An-gola, white-water rivers, gallery forestsand extensive woodlands, and the land-scapes are stunning and almost com-pletely devoid of human occupation. Itis in pristine condition, barely visited byhumans and will be perfect for a na-tional park.”

The Lunda Norte team will be madeup of mostly Angolan students, hand-picked by Huntley who is passionateabout furthering homegrown scientificresearch.

“For many years, perhaps as manyas 30, there have been very few An-golan scientists and very few who havestudied their own environment, whichhas led to some serious gaps in localknowledge” he said. “But I am quite en-couraged by a new generation of An-golan graduates who are showing newenthusiasm for finding out more abouttheir own country.

“Many have been lucky enough tohave been educated abroad or have hadthe chance to travel – but they are cer-tainly more willing to go into the bush todiscover their own country.”

In Huntley’s view, it is importantthat Angolans become interested intheir own environment because it willfoster a greater sensibility in the future.

“There are several generations whofor various reasons are not familiar withenvironmental sensibility, and until nowthere has been a lack of political will toconfront the issue.”

He added that much work was re-quired to help Angola protect its valu-able natural resources – but he said theoutlook is increasingly positive.


Gabela AkalatGabela Bush-shrike

Francisco Maiato

A FURNITURE FACTORY’S REVIVAL


�

CLASS ACTSteam trains once puffed over Angola’s central highlands, fuelled by logs from specially planted eucalyptus forests. Now the steam age has passed but the wood has gained a new role as raw material for much-needed school furniture to serve newgenerations of pupilsi s

tock


Cap

ua

i sto

ck

HabiTec has not been content withbuilding a utilitarian factory for itsschool furniture. Instead it is addingextra value by introducing new tech-niques to upgrade the quality of thetimber it uses.

Thanks to a technology transferdeal with a major South African eu-calyptus timber company, HabiTecis using a kiln-drying process thatproduces hardwood with greater re-sistance and durability for use injoinery, furniture manufacture andconstruction.

Following the example of theSouth African company’s long-run-ning sustainable forestry policy,HabiTec has impressive green cre-dentials. The Angolan company in-volves the local communities whereit operates and has created its ownnurseries. It plants two new euca-lyptus saplings for every piece offurniture produced.

HabiTec also benefits from apartnership with Angola’s ForestryDevelopment Institute (IDF), whichis also proactive in reforestation.

Andrade Moreira Bahu, head ofIDF in Huambo province, announcedthe planting of 100,000 saplings inthe region between November 2010and February in 2011. The trees areeucalyptus, cedar and pine. Thesaplings will not only replaceforestry felled for a low economicreturn such as charcoal, but alsohelp reduce soil erosion.

Forestry technology andsustainabilty

project provides a new purpose for thesethousands of hectares of forestry.

HabiTec has 45 employees, includingseven administrative staff. Manual jobs in-clude sawing-machine operators, mechan-ics and maintenance teams. Another 500workers on temporary contracts are em-ployed during the year to assemble and dis-tribute the factory’s output.

Ambitious growthAccording to Felisberto Capamba,HabiTec’s managing director, installed capacity at the factory is 200 units a day ofdesks, chairs, chalkboards and other piecesof educational furniture.

The company has an arrangementwith the Angolan government to produceschool furniture worth about $30 millionover the next five years for its schools-reha-bilitation programme. This amounts to40,000 units produced every six months.Many provincial governments and otherstate agencies have also shown interest inHabiTec’s products and services, said Ca-pamba.

In order to gain manufacturing know-how, raise production standards as well asefficiency, HabiTec has forged a partnershipwith a leading foreign eucalyptus furniture-maker.

The furniture-maker’s identity, with-held for competition reasons, has suppliedand installed machinery at the HabiTecplant and also advises on personnel train-ing. The aim is for HabiTec to emulate thatcompany’s successful production model inother countries.

The future looks bright for enterprises

Lobito

Benguela

Huambo

Kuito

Alto Catumbela

Catchiungo

Ukuma

A T L A N T I C

O C E A N

ANGOLA

0

0

50 100 km

50 miProvincial boundary

Provincial capital

Town, village

Benguela railway

Forestry

project

Huambo, perched high on An-gola’s central plateau, is hometo a fledgling furniture industry

now playing a key role in furnishing localschools. Taking advantage of ample sup-plies of eucalyptus trees, the furniture fac-tory run by HabiTec Social Enterprise isnow producing high-quality desks, chairsand other wooden fittings to meet theneeds of the country’s expanding schoolsystem.

Around 80 per cent of Huambo’sschools along with their equipment andfurniture were destroyed during the coun-try’s long civil war, but since peace returnedin 2002 there has been an exciting rebirthin educational provision with pupil num-bers rocketing, handing HabiTec a hugeand urgent market for its products.

Angola’s eucalyptus forests stretchalong its railroads and were originally cre-ated to supply wood to power steam loco-motives in the absence of other local fuels.Steam trains along the Benguela Railwaycrossing Huambo and central Angolaceased to run in the 1970s, effectively end-ing mass timber consumption.

A revamped Benguela line will reopenin late 2012, but the wood-guzzling loco-motives have been replaced by moderndiesel engines.

Meanwhile, the abandoned eucalyptustrees, left untended, have grown higher andgained greater girths, enhancing their suit-ability for furniture-making.

Angola has 148,000 hectares of non-native tree plantations, mainly eucalyptus,with over a third of the total belonging tothe Benguela Railway Company. HabiTec’s


HabiTec has 45 employees, includingseven administrative staff. Manual jobsinclude sawing-machine operators, mechanics and maintenance teams


such as HabiTec in seeking to serve Angola’seducational sector. “We aim to improveproductive capacity, focusing on schoolfurniture as the government has estab-lished targets to improve the quality ofteaching and reduce illiteracy. In order todo this, there needs to be physical schoolinfrastructure – and quality school furni-ture is the basis of this programme,” saidCapamba.

The government’s construction prior-ities include rebuilding and equippingthousands of war-damaged schools and ithas set aside $16 billion for education in its2011 budget.

Educational provision is booming asAngolans slake their thirst for learning. Thenumber of pupils enrolled in schools morethan doubled to 5.74 million in 2008 from2.56 million in 2002.

This figure is set to increase even moresharply as Angola targets its programme ofEducation for All by 2015, with an ambi-tious benchmark of cutting the current rateof illiteracy from more than 50 per cent to16.5 per cent.

Minister of Education, Dr. PindaSimão, has said that to meet this need30,000 new teachers were recruited in 2010to breathe new life into the school system,and a further 30,000 will be recruited thisyear. HabiTec’s contribution will be helpingto supply a more attractive and comfort-able teaching and learning environment.

Social enterpriseHabiTec, founded in 1998, is a social enter-prise aiming to contribute to the rebuildingof Angola.

Parent company Development Work-shop (DW) is a highly respected non-gov-ernmental body active in Angolan socialprojects for 30 years. As international fund-ing ebbed after civil war ended, DW trans-formed some of its projects intocommercially-based companies, managedunder the umbrella organisation HabiTecSocial Enterprise.

The country faces the challenge of re-building its social, physical and productiveinfrastructure. HabiTec has clearly identi-fied the economic and social sectors whereits know-how can be most effective. Its fur-niture factory is just one area where thecompany is engaged not only in creatingjobs and replacing imports, but also in pro-viding a growing population with access tobasic services and educational opportuni-ties through investing in local productivecapacity.

The government offers support toHabiTec through credit lines grantedthrough the Angola Development Bank andhas also given incentives for local industrial production. HabiTec’s ties withthe public sector are also evident in its closeco-operation with Angola’s Ministry of Pub-lic Administration, Employment and SocialSecurity, as well as municipal authorities.

We aim to improve productivecapacity, focusingon school furnitureas the governmenthas established targets to improvethe quality ofteaching

“

”

Training keyThe human element in projects such asHabiTec is fundamental, so training is amajor ingredient in its success. In this areathe United Nations Development Pro-gramme has played a decisive role throughits subsidiary African Management Services(AMSCO), which aims to make Africancompanies globally competitive, profitableand sustainable.

AMSCO finances training at HabiTec tothe tune of $30,000 a year. It has strength-ened HabiTec’s personnel by identifyingpeople showing enterprise and managerialpotential, and then training them. It hasalso supported the training of factory tech-nicians.

Felisberto Capamba led the initialprocess of creating HabiTec as a legally con-stituted company, drawing up the businessplan and developing its administration. Thesecond step, he said, was appraising themarket to see how the furnishing industrywould operate within it.

This involved a deep understanding ofthe state’s policy on rebuilding Angola’s in-dustrial capacity. A further step was to ex-amine the possibilities of obtaining localand international finance for the companyand to seek partnerships.

“In getting involved in this process, Idid it with great satisfaction because I wasprepared for the challenge,” said Capamba.“Considering my training in administration


Training has strengthenedHabiTec’s potential

Cap

ua

Felisberto Capamba


and company management, longyears working at DW, and the fact mytraining was in part the fruit of thepolicy and my career at DW, my com-

mitment could be in no other way.”

Water projectApart from schools, other social infrastruc-ture such as water supplies and housingwere destroyed during the civil war. To repair this damage, HabiTec also meetsequipment and expertise demands in thesekey areas.

The government’s Water for All programme seeks to double the number ofpeople with access to affordable water by 2015. It aims to build village and munic-ipal water-supply systems as well as guar-antee sustainable maintenance to 80 per cent of the country’s rural and peri-urban communities.

To go some way to meet governmentneeds in this area, HabiTec also oversees awater-sector project, HabiAgua, whichaims to improve access to water by buildingwells and selling water pumps, pumpspares and well-construction material.HabiAgua also trains local communities inthe management, operation and mainte-nance of their water-supply equipment.

Home helpPresident José Eduardo dos Santos hasmade a commitment to build 1 millionhouses for social needs by making land,sites and services available for individualowners, and supplying hardware for low-cost construction. Complementing thispolicy, another HabiTec entity, HabiTerra,

provides settlementplanning, land registra-tion and land allocation services to provincial governments, addressing anacute need for these services for millions ofAngolans who were displaced during thewar years. �

Managing director Felisberto Capamba

HabiTec’s dynamic administrator,Huambo-born Felisberto Capamba,38, developed a career in adminis-tration as part of the team of vet-eran NGO, Development Workshop.

“Today, the main task is to consolidate the enterprise,strengthen partnerships, identify potential clients, reach targets andmake our processes effective andefficient,” he said.

Equally important, he added, is“to maintain the enter-prise’s social visionand contribute to theindustrial developmentof the country”.


High technology helps meet demand

Cap

ua

MARCH 2011 31

BANKS

Angola’s soaring economy hasbeen exciting the interest of foreign investors since peace

returned some nine years ago. Nowhere isthis more in evidence than in the boomingbanking sector.

Luanda, the capital, is now the third-largest financial centre in Sub-SaharanAfrica, after Johannesburg and Lagos. Host-ing 20 commercial banks, compared to justsix in 1999, the metropolis currently hasaround a further ten more banks awaitingoperating licences.

South Africa’s Standard Bank recentlyopened a branch in Luanda, becoming thefirst non-Portuguese foreign bank to offerfull banking services in Angola.

Meanwhile, the first private equityfund exclusively for Angolan investmenthas been launched and brokers are nowmoving in ahead of the opening of Luanda’sstock exchange – Bolsa de Valores e Deriva-tivos de Angola (BVDA).

Domestically, banks have enjoyedstrong growth with significant branch expansion.

Electronic card payments rose by 88per cent between 2008 and 2009, according to the “Angolan Banking Sector

Banking onAngola’s future

Angola’s financial sector has taken giant strides in recent years, attracting foreign players and expanding services throughout the

country. Now it is eyeing opportunities further afield


financialsector will be a real motor forgrowth“

”

Analysis,” a report published by KPMG in December 2010.

KPMG noted that while the economyslowed during 2009, the banks had contin-ued to enjoy substantial profitability withcommercial assets increasing by nearly athird, deposits by 64 per cent and credit by59 per cent. The report’s analysis of cost toincome ratios also found Angolan banks tobe among the best in the world.

“Although this is a young sector, it’samazing to watch how quickly it is evolving,both in terms of growth indicators and inmaturity of its regulatory framework,” saidSikander Sattar, board director at KPMGAngola.

The positive feeling around the sectorcomes as Angola picks itself up after atough two years of slowed growth and liq-

uidity pressures caused by the global finan-cial crisis. The country’s gross domesticproduct (GDP) enjoyed an average annualgrowth rate of 16.9 per cent between 2004and 2008, peaking at over 23 per cent in2007, but the fall in the price of oil, thecountry’s main export, led to the economyflat-lining in 2009.

Brighter outlookEconomic activity picked up in 2010, al-though less than had been hoped. Govern-ment growth forecasts were reviseddownwards for the year from an initial near7 per cent to a more modest 2 to 4 per cent.However, the outlook for 2011 appears de-cidedly brighter.

The London-based Economist Intelli-gence Unit (EIU) expects Angola’s growth tooutpace that of both South Africa and Nige-ria in the coming years and for its GDP toaverage a very healthy 7.4 per cent a yearbetween now and 2015. “It’s obvious thatgrowth is returning to Angola, and I believethe financial sector will be a real motor forthat growth,” said Edward George, an EIUsenior economist, who sees StandardBank’s entry into the banking market as asignificant step for attracting more diversi-fied foreign investment into the country,particularly from South Africa.

Pedro Pinto Coelho, chief executive atStandard Bank in Angola, certainly hopesthis is the case. “Standard Bank is presentin seven countries in Africa and sevencountries outside of Africa. We know An-gola well and we know the difficulties manyinternational investors have in understand-ing Angola,” he said. “What we’re trying todo is ensure that investors get to know An-gola better and have more confidenceabout investing there,” he added, acknowl-edging that there has been some hesitancedue to negative publicity.

Exchange start-up Meanwhile, with renewed hopes that thestock exchange may start operating in 2012,several brokers and asset managementcompanies are setting up new offices in Luanda.

Among them is Imara Securities An-gola, part of Imara Holdings, a Botswana-listed investment-banking group with �

Edward George, an EIU senior economist

Corbis

MARCH 2011 33

BANKS


operations in several African countries andadditional associations in the UK andUnited Arab Emirates.

Anthony Lopes Pinto, Imara SecuritiesAngola managing director, is extremelybuoyant about the country’s financial sec-tor potential and believes it could one dayeven rival South Africa.

“We are in Angola pre-emptively witha view to broking on the stock market oncethat opens,” he told Universo. “In the mean-time, we are focusing on corporate financeactivities, acting as a broker for local com-panies in terms of raising capital and alsobrokering acquisitions. These are simpletransactions we can focus on until the cap-ital markets get started.”

Another key development for Angola’sfinancial sector is the launch of the AngolaPrivate Investment Fund (FIPA), run byfund management company Angola Capi-tal Partners.

The idea for the project came from thestate-owned Norwegian Investment Fundfor Developing Countries (Norfund).

“Norfund had been eyeing Angola fora while because it saw a lot of opportunitiesin the country’s non-oil sector and businessopportunities for private equity opera-tions,” said FIPA’s managing director TiagoLaranjeiro.

Promoting the fund in partnershipwith Norfund is Angola’s largest commer-cial bank, Banco Africano de Investimentos(BAI). The two have made a joint commit-ment of $15 million to the First Close, theinitial round of a financing agreement valued at $28 million.

The other founding investors are theEuropean Investment Bank, the Danish In-dustrialisation Fund for Developing Coun-tries and Angolan bank Banco PrivadoAtlântico (BPA). Speaking as the fund pre-pared for its Second Close, Laranjeiro said:“So far, there has been great acceptance be-cause the SME [small and medium enter-prise] sector was starving for this kind ofinstitution which could help them out withlong-term financing.”

Also hoping to enter this new lucrativeasset market is Portugal’s Espírito Santo In-vestment (ESI), which has applied for a li-cence to operate alongside its Angolancommercial banking subsidiary Banco Es-pírito Santo Angola (BESA).

“Our strategy is to be innovative andtry to enter into new markets. We are theonly asset management company in thecountry right now and we are positioningourselves to be a broker company for whenthe stock exchange is launched,” saidManuel Reis, ESI managing director.

Investment callReis echoed FIPA’s Laranjeiro in calling formore ways to bring foreign direct invest-ment into Angola’s non-oil sector, espe-cially into areas such as infrastructure andindustrial development.

Bringing new direct foreign invest-ment into the economy is also firmly on theagenda of Angolan banks. BAI has overseasbranches in Cape Verde and Portugal andrecently opened a representative office in Johannesburg, the first Angolan bank todo so.

Building on its South African ambi-tions, BAI announced in December that itwould be managing a $255 million creditline from the Development Bank of South-ern Africa and the African DevelopmentBank.

The credit line, signed during AngolanPresident José Eduardo dos Santos’s visit toSouth Africa, was the first of its kind be-tween the two countries and will financeinfrastructure and development projects. Itmirrors a model used by Angola and theChina Development Bank.

Another bank also spreading its wingsis BPA. Despite opening only in 2006, BPAalready has a branch in Portugal, dealingsin Brazil and China, and plans to launchoperations in the United States by 2013.

“With a multi-geographical presencein various continents, we intend to increasethe capacity of attracting financial re-

sources to be invested into Angola,” saysBPA chairman Carlos José da Silva, “and in-crease technical assistance to strengthenthe international expansion of nationaleconomic groups to help them act proac-tively overseas.

“We want to create pathways for in-vestment into key areas of the Angolaneconomy and opportunities for partner-ships for investment in electricity, energy,infrastructure and manufacturing. Theseare all long-term sectors, vectors for thesustainability of the country.”

Overseas expansionCarlos Rosado, an economist at theCatholic University of Angola, agrees thatoverseas expansion of Angolan banks isvital for the growth of the country and its fi-nancial sector. “While the banking sectorhas benefited from the growth of the An-golan economy, I think it’s now importantfor Angolan banks to start looking beyondAngola,” he said.

“Some have started with Portugal andSouth Africa, but they should also be look-ing at neighbouring countries such asNamibia because I think that the future forAfrica is regional integration, trading be-tween countries. If regional integration im-proves it will create lots of opportunities forAngolan banks.”

As Angola’s financial sector has grownin size, so too has its regulatory framework.During 2010, several new laws and reformswere brought in by the country’s centralbank, Banco Nacional de Angola (BNA),aimed at streamlining operations and offer-

ing more security for investments.These include new anti-money laun-

dering legislation, a new risk-managementdepartment, plans to overhaul the coun-try’s tax system and several other consoli-dation programmes.

Measures have also been introduced toreduce the liquidity pressures felt in 2009after the fall in the price of oil. These in-clude restricting foreign exchange transac-tions above $100,000 (a fifth of the previouslimit) and a new requirement for foreign oilcompanies to use local banks for theirtransactions with subcontractors and staff,a move which some say could inject asmuch as $10 million into the Angolan bank-ing system.

“This new legislation is going to signif-icantly increase the amount of transactionsand actual assets being held in accounts inAngola, which I is going to be quite a bigfactor in contributing towards futuregrowth,” said Imara Securities Lopes Pinto.

Reflecting on the various changeswithin the BNA during 2010, its newly ap-pointed governor José de Lima Massanotold reporters in Luanda that reform wouldcontinue to dominate the year ahead, andrepeated a government pledge to reduce in-flation, which hit 16 per cent in November.

“The year 2011 will be demanding andintense, but we have the commitment andcollaboration,” he said. “Sustaining the na-tional economy means maintaining asound, efficient and competitive financialsystem, engaged and committed to the de-velopment and welfare aspirations of soci-ety as a whole.” � Source: Angolan Banking Association – 2010

We want tocreate pathwaysfor investment intokey areas of the Angolan economyand opportunitiesfor partnerships

“”

ANGOLA BANKING SNAPSHOT

Commercial banks 20Bank branches 720Employees 11,000Net assets $4.3 billion

BAI’s downtown HQ

New banks add light to Luanda

BAI (Banco Africano de Investimentos)BFA (Banco Fomento Angola)BIC (Banco BIC)BPC (Banco de Poupança e Crédito)BESA (Banco Espírito Santo Angola)Others

25.1%

19%12.8%

15.1%

9.5%

18.5%

GROSS DOMESTIC PRODUCT

ANGOLA GDP GROWTH

2005

Ann

ual g

row

th (p

er c

ent)

2006 2007 2008 2009

20.618.6

23.3

13.0

2.4

Source: Ministry of Finance, Ministry of Planning

25

20

15

10

5

0

BPA chairman Carlos José da Silva

Bra

zuk

Ltd

MARCH 2011 35

BANKS

Money, money, money-it’s a growth business

You have won several prestigious international awards – what is it about

BAI that stands out?BAI’s reputation is based on its good financial performance and the solidity of itsfunds, strategy and business model. Basedon these factors, the bank has managed toretain and strengthen its relationship withstrategic clients who have the greatestgrowth and have contributed most to theeconomic development of the country.

BAI enjoyed a 66 per cent rise in netprofits between 2008 and 2009 – whatwas the main driver behind that? BAI has always adopted a conservativestance in relation to its risk exposure andbeen managed in a very prudent and sus-tainable manner. This has enabled BAI togrow by 112 per cent in 2008 and 39 percent in 2009, which reflects net profits of$166 million in 2008 and $231 million in2009. These results are sustained by BAI’sexcellent client portfolio, by its range ofproducts and by a business model adaptedto each business sector by a skilled bankstaff. These factors have enabled the bankto achieve a good financial performanceand increase banking income by 63 percent in 2009.

Are you expecting such strong results for 2010?According to the IMF, Angolan GNP is expected to grow by 4 per cent in 2010 (2per cent more than in 2009) while growth of5.5 per cent is projected for 2011. Despitethe slowdown of the growth rate since 2009,the Angolan economy has benefited from

Banco Africano de Investimentos (BAI), Angola’s largest bank, is enjoying high levels of growth and profitability. Universo asked executive director Inokcelina dos Santoswhat lay behind BAI’s star performance

the increase in the price of oil on interna-tional markets. This has enabled it to stabilise its net international reserves (NIR)since the fall at the beginning of the 2009 fi-nancial year. This stability has provided thegovernment with room for manoeuvre inorder to meet its financial commitmentsand has increased general liquidity.

This situation has benefited the bank-ing sector and led to an increase in the vol-ume of bank deposits and to an increase inthe volume of credit granted. Accordingly,and despite the fact that there are still somevestiges of the international financial crisis,the forecasts for a better year in 2010 aresatisfactory.

You were among the first Angolanbanks to offer telephone and internetbanking – has this been a success?Yes. BAI’s electronic banking services gaveour clients an alternative form of access tobanking services. These services, particu-larly SMS [text messaging] banking, haveenabled BAI to be nearer to its clients as aconsequence of the major market penetra-tion achieved by mobile services. In 2010,15.18 per cent of BAI’s clients had access toelectronic banking. The number of BAIclients using SMS banking increased from0.34 per cent in 2008 to 9.43 per cent in2010, while the number of users of internetbanking increased more than 311 per centbetween 2008 and 2010.

There has been a lot of reform withinthe Angolan central bank in the past18 months – how do you think this willimpact the commercial banking sectorin Angola?


Banco Nacional de Angola has imple-mented a number of measures to improvethe performance and reduce the risk of theAngolan financial system. The main measures that have had a direct impact oncommercial banks in Angola were the reduction of obligatory reserves, new compulsory foreign-exchange exposurelimits, the approval of the Anti-MoneyLaundering and Terrorism Funding Lawand the opening of the Central Risk Office.

These measures required commercialbanks to be more cautious in the manage-ment of their liquidity, which resulted inmore sustainable growth and greater finan-cial solidity. They had no negative effects onmost commercial banks, which have continued to play the role of market dynamisers and funders, in line with theprogramme for the development and reconstruction of the country.

Since being licensed in 1996, BAI is nowAngola’s largest bank; do you continueto keep expanding within Angola?BAI intends to retain its position as themarket leader in Angola by offering prod-ucts and financial solutions that stimulatethe economic and social growth of all themarkets in which it does business. BAI willalso continue to support the government’sefforts to diversify the economy.

You have operations in Cape Verde andPortugal, business in São Tomé andBrazil and a representative office in Johannesburg – do you have furtherplans for international expansion?BAI will continue to strengthen its ability tobecome a preferred conduit for interna-

tional trade and foreign investment in andfrom Angola, by adapting its strategies toeach market. BAI monitors the evolution ofthe market, particularly in relation to coun-tries such as China, the United States andthe United Kingdom, which, because oftheir commercial relations with Angola,merit the bank’s particular attention.

We therefore, seek to create a permanentpresence in those markets with significantcommercial and financial relations withAngola.

What is the main role of your Johannesburg office (as you are not offering banking services there)?The main role of the representative office inJohannesburg is the creation of platformsfrom which to access the South Africanmarket, the identification of lines of creditto fund new projects, the establishment ofstrategic partnerships with companies thatwish to invest in Angola, and also to be abase for the training of bank staff and BAI’srelations with corresponding banks.

What will BAI’s role be in the DBSAcredit line signed between Angola andSouth Africa?DBSA together with a banking syndicate isgoing to provide BAI with a $255 million

line of credit to fund projects in the indus-trial sector within the ambit of the Angolangovernment’s growth plan for the sector.This line of credit is expected to be guaran-teed by the government, and BAI will be theinvestors’ access point to the funding.

When the Angolan stock exchangeopens, will BAI be listing?The growth rates expected for the Angolanbanking sector give us reason to believethat it is inevitable that the banks must gopublic if we want an evolved and transpar-ent banking sector. However, the openingof BAI’s share capital to the public does nothave to coincide with the opening of a stockmarket. Nonetheless, BAI is certainly in aposition to be listed on the stock market,which will enable it to expand its invest-ment-sourcing options, clearly benefitingits business. We also consider that listingthe bank on the stock exchange will also increase its market credibility. �

It is inevitablethat the banksmust go publicif we want anevolved andtransparent bankingsector

“”

MARCH 2011 37

NEWSSonangol news briefing

Exploration of deepwater

subsalt blocks off the

Angola coast has begun,

says Sonangol’s business director

Carlos Saturnino.

Announcing the start-up as “an

historic landmark”, he said explo-

ration of the subsalt layer was

different from normal offshore oil

drilling and involved greater

investment and technical complexity.

Subsalt is so named because

the oil deposits lie below a thick salt

layer. A similar subsalt exploration

area on the opposite side of the

Atlantic in Brazil has been

revealed to hold huge oil deposits.

The oil is located between 2,000

and 5,000 metres below the sea.

Oil companies selected to oper-

ate some of the Angolan subsalt

blocks include China Sonangol, BP,

Cobalt International Energy, Sonan-

gol Pesquisa & Produção, Repsol,

Total E&P Angola, Eni Angola, Cono-

coPhillips and Statoil ASA.

Meanwhile, Sonangol’s Starfish oil

exploration arm has begun gaining

subsalt experience in Brazil’s

Campos Basin off the coast of Rio

de Janeiro with its first drilling

campaign. Starfish’s pioneering well,

1STAR19RJS, will drill down 5,625m

at a sea depth of 853m.


Superleague revs upSuperleague Formula by Sonangol aimsto hold its motor races in venues furtherafield in 2011. Last year, it ran events be-yond Europe with two in Beijing andInner Mongolia, China. The organisersnow have venues in the Middle East,Latin America and Australia in theirsights for this year’s 12-round, 36-racecompetition.

Superleague Formula races 750bhpcars with V12 engines. While Sonangol

sponsors the league, leading soccerclubs lend their names to individualdriving teams.

The Anderlecht team, sponsored bythe Belgian football club, narrowly beatteam Tottenham Hotspur, backed by theEnglish Premier League club, to win theoverall winners’ prize of €1million for2010. Superleague Formula will have thesame total prize money of €5 million onoffer to competitors in 2011 as last year.

Palm-oil power Sonangol is exploring the idea of working withItaly’s Eni to jointly produce biodiesel in Angola. The proposed scheme aims to makeuse of abandoned palm oil plantations by pro-ducing fuel from the plants. Angola’s Oil Minis-ter, José Maria Botelho de Vasconcelos, said inJanuary that the Ministry of Agriculture wouldmap areas of the country suitable for supplyingthe palm oil.

Many countries are increasingly addingbiodiesel to diesel in heavy vehicles, especiallyurban buses, to reduce pollution. Brazil, for example, also uses biodiesel for its large fleetof railway locomotives. The biodiesel can oftenbe conveniently produced and used in remoterural areas a long way from oil refineries.

Biofuel has the further advantage of being arenewable, sustainable product and cuts theuse of fossil fuels.

Onwards and upwards

Bra

zuk

Ltd

Sonangol has acquired an interest in Escom, the dynamic property, construction, oiland mining company. The Angolan oil giant purchased the stake in Escom from Portugal’s Grupo Espírito Santo (GES), one of the largest private investors in Angola.Escom is involved in an ambitious building project alongside its existing 25-flooriconic building, Luanda’s tallest, which dominates the city skyline and overlooks Kinaxixi Square and the Miramar district. Escom’s project involves constructing threemore tower blocks of a similar height.

Subsalt treasure hunt

Sup

erle

agu

e

Raising the roofConstruction of the giant Angola

liquefied natural gas plant at Soyo,

Northern Angola, is on track to start

operations in early 2012. A major

milestone was reached with the recent

placing of a 930-ton roof on a huge

storage tank with a capacity of

159,000 cubic metres. The tricky con-

struction operation was achieved by

using an inflatable balloon, which

gradually pushed the steel roof

upwards and into place.

The LNG plant will eventually host

four of the massive tanks, each with

the capacity to fill a gas-tanker ship-

ment. The Angola LNG project, which

will produce 5.2 million tons of liquid

gas a year, is jointly owned by Sonan-

gol (22.8%), Chevron Gulf Oil Com-

pany (36.4%), and BP, Eni and Total

which each hold 13.6%.

Cuban deals Sonangol E.P. signed a produc-

tion-sharing agreement on December 8

with Cuba’s Comercial Cupet for two off-

shore blocks in the Gulf of Mexico. So-

nangol will operate blocks N23 and N33,

north of Pinar del Rio province.

Sonangol already has partnerships

with Cuba in an onshore block in Angola

as well as in Venezuela’s Orinoco region.

In the Venezuelan enterprise, local state-

oil concern PDVSA has 60% while

Sonangol and Comercial Cupet each

have 20%. The Venezuelan fields are ex-

pected to produce 94 million barrels of

oil over five years.

SonAir spreadswings

Sonangol’s aviation arm SonAir has

obtained certification to operate as an

airline in Angola from local licensing

authority, National Institute of Civil

Aviation (INAVIC). SonAir can now op-

erate anywhere in Angola and is only

the second company to gain the li-

cence, after national airline TAAG.

Superleague Formula by Sonangol – Fixtures 2011Round Venue Date

1 Monza Italy April 16/17

2 Algarve Portugal May 7/8

3 Assen Holland June 4/5

4 Nürburgring Germany June 18/19

5 Navarra Spain July 2/3

6 Zolder Belgium July 16/17

7 Donington UK August 6/7

8 Ordos China September 11/11

9 Beijing China September 17/18

10 Non-European October

11 Non-European October

12 Non-European November

MARCH 2011 39

Sonangol staff around the world joined together on February 25 to celebrate thecompany’s 35th anniversary


35th ANNIVERSARY

Off-road motor racecelebrates Sonangolanniversary

Sonangol subsidiaries and depart-ments across four continents held celebratory anniversary events

ranging from sports competitions to galalunches.

In Luanda, after the formal announce-ment of company results and the presenta-tion of a $50,000 cheque to the winner ofthe 2011 Sonangol Literature Prize, morethan 5,000 staff members enjoyed a lunchat the Talatona Cultural Centre.

Managing director o Sonangol’s Lon-don operations, José Paiva, hosted a lunchfor staff where traditional Angolan food wasserved. Later, guests were treated to theatri-cal and musical performances by artistsfrom Angola and São Tomé and Príncipe, aswell as a show of capoeira, theAngolan/Brazilian martial art.

Back in Luanda, more than 120 peopletook part in a race from Ponto Final on theIlha, the long sand spit which shelters Lu-anda harbour, up to the front of Sonangol’sheadquarters on Rainha Ginga Street.

The winner of the men’s race wasAlexandre João from Interclube who com-pleted the course in 25 minutes 58 seconds.He was followed by teammates DomingosMuholo (26 min 15 sec) and Lourenço An-tónio (26 min 18 sec).

The women’s event was won by JoanaBaptista, a member of Clube Ara da Gabelafrom Kwanza Sul, with a time of 34 minutes

Globaleventsmarkbirthdaybash

�

Sonangol Asia toasts the company’s birthday

Qu

imb

aya


35th ANNIVERSARY

55 seconds. Madalena Domingos fromPrimeiro de Agosto was runner-up clocking36 minutes 53 seconds, and Isabel Vicente,from Cafanda FC do Bengo came third witha time of 38 minutes 15 seconds.

In the staff race (which followed ashorter route from the naval base to PontoFinal on Ilha), Tomás Faria and AdelinoMarcelo (both from logistics) took the topspots. Meanwhile, Rosa Mingas from the fi-nance directorate won the women’s race forthe second year running, with Domingas deMiranda (refining) and Antónia Silva (P&P)coming second and third.

During his presentation of the com-pany’s results, president Manuel Vicentestressed that Sonangol has an importantsocial responsibility to the country. Thiswas highlighted by a visit to patients at Lu-anda’s Psychiatric Hospital to make a dona-tion of various educational materials andfoodstuffs.

Antónia de Sousa, the hospital’s direc-tor, thanked Sonangol for its donation andsaid it would greatly help the 322 patientsin its care. She said many of those it lookedafter were from low-income families whowere unable to provide their sick relativeswith financial support. �

“For 35 years our presentfor Angola is a better future”

Sonangol celebratory road race

London parties

A Sonangol birthday present to ahome for the elderly

At Sonangol USA, theyblow out the candles

Qu

imb

aya


35th ANNIVERSARY

Sonangol president Manuel Vicente expressed pride in the company’s achievements on its 35th anniversaryand confidence in meeting the targets for 2015. Boardmembers also spoke of their hopes for the future.

Manuel Vicente:“All of us here today feel very proud for having taken part inall that we have achieved,” said Manuel Vicente. “Going forward, the biggest challenge will be to maintain the stan-dards we have reached and to go on to even greater achieve-ments. We have completed the vision cycle up to 2010 andnow we have set out our vision for 2015. Our challenge is toachieve those targets.”

Mateus deBrito“Sonangol has achieved a lot, particularly in itshuman resources, in-creased production andstronger organisation,” saidMateus de Brito. “As far asthe challenges ahead areconcerned, we have tomaintain this performanceand do much better. Sonangol also has a big in-ternational portfolio. Rightnow, we are drilling our firstwell in Brazil. We are alsopresent in the United Statesand at two fields in Iraq. Wehope that we will start tosee some results from theseat the end of this year inorder to begin productionby 2015/2016.”

Fernando Roberto“Our job is to do the best for employees, the company and the country and I, like all themembers of the board of Sonangol, am very satisfied with our achievements at this35th anniversary,” said Fernando Roberto.

“I have worked for Sonangolsince 1978 and I am very satisfied with the company’s developments. Now we are entering into a new era and I believe that the big challenge willbe to improve our competenceand human resources in explo-ration and development and inour management of the new refinery and natural gas.”

Gaspar Martins“We all feel proud ofbeing part of a com-pany that has beencontributing to the de-velopment of thiscountry all this time,”said Gaspar Martins.“In terms of chal-lenges, the first is tocomply with the newvision for 2015, butalso to maintain thiscurrent level of achievement and maybe increase it. We aremoving from a company that was previously only involved inoil, into oil and gas, and maybe in the future into other forms of energy. It is also important to maintain the credibility of the company, especially as we are now going to operate outside Angola.”

Franciscode Lemos“To have a companyworth close to $25 bil-lion, to grow withinthe oil and gas valuechain, and to havepreserved the com-pany’s status are thebiggest achievementsthat we have made sofar,” said Francisco de Lemos.

“The challenge is tobecome a major na-tional oil company.The world is glob-alised; no one can work alone, no country can be alone. Sowe, as you can see, are redirecting our strategy and moving to-wards more overseas projects.As many companies come into Angola, we will try to conquer our own space overseas. That will be our challengefor the next 20 years.”

Anabela Fonseca“I have been in Sonangol for 14 years now and have seen incredible growth in that time,”said Anabela Fonseca.

“I came from the Ministry of Petroleum, and I feel I havegrown up myself inside Sonangol. In terms of perspec-tives or the future, they areamazing. The refining projectand the trading subsidiaries aretwo things under my supervi-sion that I would really like toput in place in the next four to five years.”

Baptista Sumbe “In the last 35 years the first greatachievement was the increase inoil production. In fact, we wentfrom producing 300,000 barrelsper day – when I started workingfor the company – to close to twomillion barrels nowadays,” saidBaptista Sumbe. “Also, we have the internationali-sation of Sonangol. Going beyondcrude oil, we are also in the tradingside worldwide. We are in America,in Europe and in the Far East,which is a great achievement.”Another big achievement, he said, was the segregation of the corebusiness of Sonangol into different business units so that results can be maximised. “We have also seen a big increase in our contributions to the country.Our partnership with the government has been boosted so that wecan contribute more to the development of the country, helping toreduce poverty and overall improve the living conditions of Angolan people.“The biggest challenge will be human resources. We need to investmore in training people. The company has grown very quickly in ashort space of time, and when you consider that it takes around 15years to train a good technician, we’ve not had time to catch up yet.”

Thechallenge s aheadA

ll p

ho

tog

rap

hs

by

Kam

ene

Trac

a


Sonangol’s solid showing in 2010Manuel Vicente, Sonangol’s board president, announced another successfulyear’s performance with profits topping $3 billion, a fitting way to mark thecompany’s 35th anniversary on February 25

Today is a special day. We havebeen in existence for 35years, which is a milestone

along our great journey. Today we seekto clarify the company’s achievementsover the last year,” Manuel Vicente toldSonangol’s annual press conference.

In terms of operational perform-ance, he said, Angola produced a totalof 640,628,590 barrels of oil, represent-ing an average daily national output of1,755,146 barrels. As part of thatamount, Sonangol produced314,239,197 barrels.

Vicente said that last year the av-erage price of a barrel of oil was $77.90.Angola’s liquefied petroleum gas out-put totalled around 6.89 million bar-rels, of which Sonangol producedapproximately 2.86 million barrels.

The company also produced1.481 million tonnes of refined prod-ucts and imported over 3 milliontonnes, he revealed.

Ups and downsVicente noted that Angolan oil pro-duction last year fell compared to2009, with crude oil output declining 3per cent and natural gas falling 8 percent. “But in terms of the revenues weare expecting, there will be no reduc-tion [in 2010] thanks to rises in theprice of a barrel that we experienced,”he said. * Provisional data. Source: Sonangol

Manuel Vicente outlines thefigures for 2010

In spite of the impact of the world financial crisis, Sonangol, retained its financial record, saw a rise in profitsand registered a moderate level of debt

35th ANNIVERSARY

Output of refined products alsosaw a reduction of 20 per cent, in spiteof the sale of refined products rising 4per cent as a result of the 10 per centincrease in imports over the past year.

“In terms of financial indicators,we registered sales worth $21.9 billionand had an EBITDA [earnings beforeinterest, taxes, depreciation and amor-tisation] of $3.88 billion, and we arehoping to have a net profit of approxi-mately $3 billion,” said Vicente.

“I would like to repeat that theseare provisional results which have notyet been audited,” he cautioned. Inspite of the impact of the world finan-cial crisis, Sonangol, retained its finan-cial record, saw a rise in profits andregistered a moderate level of debt, he said.

Rates of return grew moderatelyin relation to the previous year, re-maining in double digits. “We haverecorded in these preliminary resultsasset returns of 11.26 per cent and re-turns on our own capital of 20.63 percent, and invested capital returns of15.41 per cent,” said Vicente.

“Another obligation of the com-pany is its responsibility to the state.The total amount made over to thestate was $8.3 billion, of which $1.7 bil-lion was in oil taxes, and around $6.6billion from concession-holder rev-enues,” he added. �

SONANGOL 2010 KEY NUMBERS*

$3 billion net profits

$21.9 billion sales

$77.90 average oil price

$8.6 billion payments to state

1.75+ million barrels average dailyoil output (Angola)

640.6 million barrels – annual totaloil output (Angola)

314.2 million barrels – Sonangol’spart of total output

MARCH 2011 47

TRAINS


There are concerns about the lack ofqualified Angolan engineers in thecountry – do you share these concernsand what is your proposal for resolvingthe problem?We congratulate the Order of Engineers forraising this issue. This is a reality we experi-ence day in, day out, and we often find our-selves asking why our society is producingonly lawyers and economists and not engi-neers. We are already implementing meas-ures to try to overcome this. At a companylevel we are creating several programmes toaccelerate a resolution to this anxiety.

Face to face with the pressSonangol’s board members fielded a series of questions from journalists on subjectsincluding human resources, oil production, refining and international investments. The first were taken by president Manuel Vicente

These days it is not just a problemunique to Angola; it is a problem the worldover, as large numbers of young people arenot studying mathematics and sciences.What we need to do is to set up pro-grammes to raise awareness and encourageour young people to embrace maths andphysics. We share the sentiment of theOrder of Engineers and we would like towork with them to address this gap.

Is Sonangol buying any Portuguese debt?No, Sonangol has never bought any Por-

tuguese debt. But we are in the market. If itwere a good deal, then we would buy it, butthere is no direct intention just now to buyPortuguese debt.

There has been some talk about a part-nership with PetroSA, especially in rela-tion to the new refinery in Lobito. Canyou clarify this?There have been conversations betweenthe two companies and we have signed var-ious memoranda of understanding. Therehave been contacts, yes, and ideas ex-changed, but there are no concrete negoti-ations with PetroSA.

Are there any plans to reduce fuel subsidies again in 2011 and therefore increase the price?

This is something that is up to the executive[the state]. We would actually like the mar-ket price to increase, but, as you know,where petrol and diesel are concerned,there is a fixed-price system. Last year, theexecutive decided to reduce the subsidiesby 20 per cent. We are going to lobby to re-duce this further, but the decision remainswith the executive. If I were making the de-cision, I would do it right away, even today.

Is it true that Sonangol is going toexplore for diamonds in Zimbabwe?Sonangol is not exploring for diamonds inZimbabwe. But Sonangol has an associa-tion, a joint venture, with a Chinese com-pany called China Sonangol, and it doeshave diamond concessions in Zimbabwe.

How do you think the Middle East crisiswill affect the oil industry?Yesterday the market closed at $114 for abarrel of Brent Crude, and I saw a scenarioon a television news channel predicting abarrel price rising to $220. I don’t know ifthis is good for anyone. It must be said,however, that at this moment there aregains to be had, of course, but it is also amoment for reflection and it must be a per-manent reflection. We don’t know when thiswill stop. A big crisis in the Middle East I be-

lieve overall brings negatives for the wholeworld. When you have political stability,there are better consequences. We hopethat the worst scenario does not happen,but on the other hand there are some gainsto be had and there’s no doubt about that.

Can you tell us more about the proposals for an Angolan sovereignwealth fund?This is something that is being led by theexecutive; it’s not for Sonangol to create asovereign wealth fund. This is for the stateto do. As you know, there is a commissionthat is working on this and one of our col-leagues, Dr de Lemos, is part of this com-mission. This week the executive created afund for electricity, but when it is going tocreate this oil fund I don’t know. It is a deci-sion for the executive, not for Sonangol.

What are Sonangol’s plans in terms of diversification?This company has a boss; that boss is thestate, which has an executive, and we arehere to serve the boss of the company. Thecompany has firstly a social objective. It’snot up to me to analyse what we can do orwhat we cannot do. If the powers say “do it”,then I do it because I have to. If I don’t do it,then it is time for me to leave and I should

start writing my resignation letter.The state has its concerns and priori-

ties. An example of this is the nationalhousing programme. The government be-lieves the critical mass is here within So-nangol to develop this programme, so it hascalled upon us to put this in motion.

Questions to Francisco de LemosCan you give details about Sonangol’s investments?At this moment, Sonangol has total share-holdings worth around $20 billion. A sub-stantial part of these investments are of avaried nature and more than half are heldin its subsidiaries. These investments, ex-cluding those in the oil sector, are made upof several components: some dividends,some financing and some income fromloans etc. Overall these investments havebrought in close to $650 million.

In Portugal, our principal investmentsare in Millennium BCP and in Galp. In Galp,it is an indirect investment but in Millen-nium the investment is direct. Last year,dividends from Millennium were 15 centsper share in the first quarter and, if I am notmistaken, closer to 19 cents during the sec-ond quarter. For that reason we had a sub-stantial increase of investment income

A big crisis in the Middle East overall brings negatives for thewhole world. Whenyou have politicalstability, there are better consequences

“

”

35th ANNIVERSARY

Members of the boardmeet the press


Cape Verdean writer and historianJoão Lopes Filho, winner of this year’sSonangol Literature Prize, was presented with a $50,000 cheque by board member Anabela Fonseca during the company’s anniversarycommemorations.

After thanking Sonangol for itssupport for literature, Lopes Filho an-nounced that he would be using theprize money to set up a foundation topromote culture and philanthropy inhis native Cape Verde. Later, he signedcopies of his book Percursos & Desti-nos (Routes and Destinations), writtenunder the pseudonym OsagyetoMoisés, which tells the story of thejourney of Cape Verdean cultural andsocial development.

The Sonangol literature competi-tion has been held a dozen times sinceits creation in 1987. This year was thefirst time writers from other Por-tuguese-speaking African countrieswere invited to take part, promptingsubmissions from Cape Verde,Mozambique, São Tomé and Príncipe,and Guinea-Bissau.

Honourable mentions went toLaço de Aço Lasso (Tie Steel Lasso), byAngolan writer Jordão Augusto Tra-jano, and Filho do Planalto (Son of the

from Millennium BCP, exclusively throughthe distribution of dividends.

Galp achieved profits of approximately€250 million and has an average rate of div-idends of 50 per cent. These are very long-term investments, so to know their finalvalue one needs to know the accumulateddividends, which will be calculated at theend of the year. In the case of GALP, whenthe investment was made five years ago theprice of buying a share was around 4 cents.Now each share is worth 15 cents, so youcan imagine the size of the financial poten-tial if Sonangol decided to sell its stake.

Sonangol has created a new subsidiary to manage real estate – can you give more details about thisgroup and its functions?Sonip was set up in 2009 as a result of thespring cleaning we carried out in the com-pany. We decided that the segmentation ofour assets and real estate could be directeddifferently to overcome deficiencies andmake improvements in their management.As you know, the housing problem is a na-tional one and Sonangol, which employsclose to 5,000 members of staff, was alsolooking for a way to find solutions. In2001/2 the housing co-operative Cajueirowas set up. Sonangol needed to meet its ob-ligations to find a solution to the housingproblem and Sonip was set up primarilybased on these two fundamental ideas.

In May last year, the executive took the

decision to mandate Sonangol to develop asubstantial part of the national housingprogramme. At this point it became neces-sary for a total restructuring of Sonip for itto be prepared to manage the responsibilityof building 130,000 homes around thecountry, including those for Sonangol em-ployees.

It is a big challenge and, as our presi-dent Manuel Vicente has already said, it isfeasible to get it done within the deadlinesset. The only difference is that we need towork harder and we need more resourcesbecause the allocation we have at the mo-ment is not enough to ensure good delivery.

What is the value of Sonangol’s liabilities?Sonangol has liabilities amounting to $11billion. This is made up of short-term treas-ury bonds worth slightly over $4 billion,and also long-term banking bonds thathave an average term of six years. Theselong-term debts are worth approximately$7.4 billion. Our short-term liabilities arethe bonds that mature within a year and aremade up essentially of our tax obligationson the sales made during the month of De-cember and in the first half of January.

Questions to Anabela FonsecaWhat is the situation with the plannedrefinery in Lobito?More than two-thirds of internal consump-

tion is supported by imported refined prod-ucts – that is why we are continuing withthe Sonaref project to construct a refineryin Lobito.

This is quite a large investment and inorder to recruit some partners into thescheme we have slowed things downslightly. We also needed to look again at thebasic engineering and to revise some costsinvolved. But the project still continues.

We believe that by May – if the programme we have set out is achieved –the plans will go again to the MinisterialCouncil to be updated, and then we canstart building work. The revision is aimed atreducing the costs involved in the project.

Questions to Gaspar MartinsIndia’s Oil and Natural Gas Corporation(ONGC) has expressed interest in buy-ing Exxon Mobil’s stake in Block 31 –can you give more details about this?Several companies have shareholdingstakes in Block 31, including Exxon Mobil,but no decision has been taken aboutwhether these companies will stay as theyare, and Sonangol can use its right of refusalon the block and keep the existing share-holder structure.

It is clear that India could be interestedand we need to make a decision to see whatadvantages there could be. If it were just acase of attributing the share to ONGC, thenit should be attributed, but there are prosand cons.

When will there be a new bidding roundfor oil blocks?On January 24 we made the announcementabout the bidding for subsalt and offered 11blocks for exploration. This process is at thestage of final negotiations. I believe that bythe end of 2011 we will have all the contrac-tor groups set up, with the possibility tostart exploration of this new geological levelwhich has been so productive in Brazil. Webelieve that with the similarities that existbetween Brazil and Angola, we will alsohave positive results. The preliminary workhas been done; we are now just waiting tobegin the exploration work.

What is the situation with Block 18

where there have recently been someproduction problems?This question is about the FPSO [floatingproduction, storage and offloading vessel]Great Plutonio in Block 18. This FPSO hashad operational problems that are quiteconsiderable. We have been working withthe operator to find ways to minimise theproblems in order to guarantee that opera-tions continue. At this moment it is produc-ing at less than 50 per cent of capacity.Repair work is ongoing and we believethese problems will be resolved. It will closein April, which is part of the planned phaseof repairs, to enable us, by May or June, toget back to the production levels that theoperator BP said it would deliver.

Questions to Mateus de BritoSonangol has plans to internationaliseits portfolio. Can you tell us about that?I would like to start with Cuba where wehave signed a contract with Cupet to ex-plore and develop two blocks in the Exclu-sive Economic Zone. They are the blocksN23 and N33. We are going to begin ourseismic activities at the end of April.

Regarding Venezuela, a tripartite con-tract has also been signed between Sonan-gol, Cupet and PDVSA to develop andproduce in two fields, Miga and Melones.These will deliver 20,000 barrels of oil a dayover a period of five years, and will have afinal total production volume of 94 millionbarrels.

Regarding Iraq, we have a contract todevelop and produce in two fields, Qayaraand Najmah. We are currently in the pro-curement phase and also doing some seis-mic surveys and constructing a logisticsbase. We think that by the end of the yearwe will have some results from these fields.

I would like to take this opportunity tosay that we are also in Brazil. We are cur-rently drilling and prospecting in the Cam-pos Basin and also prospecting in theSantos Basin. In addition, we also have astake in the Gulf of Mexico. The only Africancompany with operations in the UnitedStates. We have 11 concessions there and we are currently waiting for the licence to start drilling and to be able to prospect. �

35th ANNIVERSARY

The winner of the twelfth Sonangol Literature Prize was guestof honour at the 35th anniversary celebrations in Luanda

Plateau), by Marcelo Panguana fromMozambique.

The judging panel was made upof Corsino António Fortes andCornélio Caley from Sonangol,Manuel Muanza from the AngolanUnion of Writers, Frederico Gustavodos Anjos from São Tomé andPrincípe, Francisco Conduto dePinapela from Guinea-Bissau, CarlosParadona from Mozambique, and An-tónio Fernandes da Costa on behalf ofthe Angolan Ministry of Culture.

Praising Sonangol for the initia-tive, the panel said the prize was an“incentive for aesthetic creation andscientific production, as well as an ex-change of experiences” between thecultures of the countries taking part.

Prize money to launch cultural foundation


THE GLOBAL PICTURESONANGOL:

USASonangol USA is responsible for market-ing and commercialisation of Sonangol’soil and gas in the United States.

Houston

Gulf of Mexico

London

Lisbon

Luanda

São Tomé

Rio

Singapore

Havana

Cape Verde

Soyo

Lobito

Offshore

Portugal Sonangol has invested in companies here including Millen-nium BCP and Amorim Energia.

UKSonangol UK is responsible formarketing and commercialisation ofSonangol’s oil and gas in the UK.

SingaporeSonangol Asia is responsible formarketing and commercialisationof Sonangol’s oil and gas in theAsian market.

Hong Kong

Hong KongChina Sonangol engagesin oil, gas and mineralsinvestment and explo-ration, crude oil tradingand large-scale nationalreconstruction projects.With the headquarter office in Hong Kong, thecompany also has branchoffices in China, Africaand Latin America.

Iraq

IraqSonangol bought exploration rightsfor the Qayara and Najmah fields innorthern Iraq in December 2009 andsays it has received many offersfrom international companies fordevelopment of the sites.

BrazilSonangol plans to invest $1 billion in the nexttwo years, working with Brazilian operatorStarfish.

CubaSonangol P&P is starting exploration in Cuba in two blocks,and hopes to start technical activity, principally seismic studies, by the end of April 2011.

Gulf of MexicoSonangol P&P, the first African oilcompany to be operating in theGulf of Mexico, is working withCobalt Energy and Total.

São Tomé and PríncipeSonangol São Tomé and Príncipe iscurrently working to develop theislands’ airport and port.

AngolaLuanda – Sonangol headquarters. Base for Sonangol P&P,SonAir, Sonangol Logistica, Sonangol Distribuidora, SonangolShipping, Sonangol Investimentos Industriais Lda, Sonip,MSTelcom and Essa.

Soyo: Sonagás is involved with the Angola LNG project.

Lobito: Sonaref is developing a new refinery.

Offshore: Sonangol P&P has concessions and operational interests in various production and exploration blocks onshore and offshore and in deepwater and ultra deepwater.

Cape VerdeSonangol Cabo Verde

Documents

Universo - Sonangol EPUniverso is produced by Impact Media Custom Publishing. The views expressed in the publication are not necessarily those of Sonangol or the publishers. Reproduction