PDF Format - Sonangol Limited - Oil Trading Services


PDF Format - Sonangol Limited - Oil Trading Services





Engineering success






Cross-border conservation


Thought for food


oil and gas news


Universo is the international

magazine of Sonangol

Board Members

Francisco de Lemos José Maria

(President), Mateus de Brito, Anabela

Fonseca, Sebastião Gaspar Martins,

Fernando Roberto, Baptista Sumbe,

Raquel Vunge

Sonangol Department for

Communication & Image


João Rosa Santos

Corporate Communications Assistants

Nadiejda Santos, Lúcio Santos, Sarissari

Diniz, José Mota, Beatriz Silva, Paula

Almeida, Sandra Teixeira, Marta Sousa,

Hélder Sirgado, Kimesso Kissoka


Sheila O’Callaghan


John Kolodziejski

Art Director

Tony Hill

Sub Editor

Ron Gribble

Circulation Manager

Matthew Alexander

Project Consultants

Nathalie MacCarthy

Mauro Perillo

Group President

John 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

without prior permission is prohibited.

This magazine is distributed to a closed

circulation. To receive a free copy:


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Cover: Viewgene

Brazuk Ltd

A note of


Angola’s remarkable economic growth is much more than just

a building boom. Important quality-of-life changes are also

under way, often going unnoticed by many.

One case in point is Luanda Bay’s shoreline makeover.

As well as the project’s obvious success in removing traffic bottlenecks

and opening up the improved leisure area to all, the removal of waste

water and other pollutants provides cleaner water and sweetersmelling

air as well as an improved sea-life habitat.

Walkers now delight in the sight of densely-packed shoals of fish

turning the water into a bubbling cauldron as they leap and feed on

small fry. Priceless.

Another overlooked quality upgrade in Angola’s everyday life is in

its service industries. Qualified younger people, many trained abroad,

now offer services matching those of any developed economy.

Recently having to set up a mobile broadband connection – an

essential item for any visiting businessman – a visit to a small, innercity

mobile phone shop was rewarded with helpful, speedy service

from the staff, delivered with smiles. Hugely satisfying.

Angola is getting there, and not just in the built environment!

John Kolodziejski



President honours Congo Kings; Gove Dam

restarts; Cacuso rail link; Palancas Negras

football team through to finals; Angola polio

victory commemorated; Cabinda’s ports get

$1 billion-dollar investment



Partnership in high technology and training


What tickles Angola’s tastebuds



Providing for Luanda’s growth and leisure


The new sovereign wealth fund


A vast cross-border conservation area takes shape


Talisman Sayovo gains gold again


Sonangol and Maersk oil find; ZEE latest; new

fuel depot at Kuando Kubango; Sonangol Starfish

returns Brazil block; Team Schlesser denied World

Cup win; Sonangol grants 500 scholarships; Rio

Oil and Gas


Sonangol Ltd turns thirty



© Photographer: Jens Görlich © CGI: MO CGI GbR

Lula Ahrens

Brazuk Ltd

Leslie Crookes

Henrique Malungo, courtesy of BP Angola






Angola news briefing Angola news briefing

Palancas Negras

through to finals

■ Angola’s national side, the Palancas Negras, beat Zimbabwe 2-0 in

Luanda in October. Both goals, scored in the first five minutes, came

from team talisman and former Manchester United player Manucho. The

Palancas turned around a 3-1 defeat suffered in the first leg match in

Harare and qualified thanks to their away goal.

The result means Angola go through to the finals of the Africa Cup of

Nations for a fifth successive campaign. The AFCON finals will be held in

South Africa in 2013. The Palancas’ win was the team’s second victory in

three matches for their Uruguayan coach Gustavo Ferrín who took over

in July.





Congo Kings

■ President José Eduardo dos Santos has laid a

statue foundation stone commemorating the kings

of the once powerful ancient Kingdom of the Congo

which included parts of present-day Angola.

The act took place at M’banza Congo in Zaire

province, where the government aims to raise the

status of the city to an UNESCO World Heritage

Site and help make it an historic tourist attraction.

Minister for Culture Rosa Maria Martins da Cruz

e Silva said the statue was also a tribute to King

Dom Antonió the First, who ruled Congo 1661-

1665. M’banza Congo was then the main city on

the west coast of Africa and had a population of

44,000 including around 4,000 Europeans.

Cacuso rail link

■ Rail company Caminhos de Ferro de Luanda (CFL) is to

build a new branchline off the Luanda-Malange route to

serve the rich agribusiness lands around Cacuso.

Two main sites will benefit: Biocom, where an

ambitious sugar and ethanol complex has been ramping

up production to meet Angola’s sugar needs and has

the prospect of producing biofuel as well; and Pungo

Andongo, a huge irrigated farming area producing a large

range of agricultural products.

Gove Dam restarts

■ President dos Santos reopened the Gove Dam in

Huambo province at the end of August. The 60MW

hydropower plant on the River Cunene had been off-line

for over 20 years. The revamp means more power for

industry in Huambo and Bié provinces. There are around

120 industries in Huambo, and the dam’s energy is likely to

boost interest in a new greenfield industrial park at Caála.


ports bonanza

■ Over $1 billion is to be invested in Cabinda province

ports over the next five years, says Transport Minister

Augusto da Silva Tomás. He made the announcement

during the opening ceremony of the new pier at

Cabinda port, which he said was just the starting point

of a larger programme.

The minister revealed that construction of a new

deepwater port would go ahead at Caio, also in

Cabinda province: “We are doing our best so that the

port gains an important role in the group of national

and neighbouring countries’ ports, namely those

in the two Congos.” He added that the investment

was proof of the Angolan government’s strong

commitment to development and better wealth

distribution in the country.


$5 billion

start-up pot for Angola’s sovereign wealth fund

Angola polio


■ In August, Angola commemorated a year without any new polio

cases being reported. In 2010 there were 33 cases and just five in 2011,

while in the 12 months to August none were reported. The last case

registered was that of a 14-months-old child in Uíge province in July

2011. The success is attributed to improved disease surveillance and

mass polio vaccination campaigns, along with greater access to safe

water, sanitation and hygiene.

20 million tonnes


number of Angolan airports totally upgraded by 2014

Brazuk Ltd

Rob Byron

annual future output from Kassinga iron ore mine

Angola in numbers

100,000 tonnes

Bengo’s banana crop for 2012/2013

15 million

annual passenger capacity at new Luanda Airport hub


Martin Lehmann





The most obvious evidence of Germany’s presence

in Angola is the array of high-quality vehicles on its

roads. However, economic interchanges between

the two countries are taking place in other, often

less visible areas. Universo takes a closer look




ngola is well aware of Germany’s

well-deserved global reputation

for reliable, quality engineering.

Luanda’s police use Audi cars

to patrol the streets, while other imposing

German vehicles such as BMWs and

Mercedes-Benz grace Angola’s newlyrebuilt

roads from Cabinda to Cunene.

President José Eduardo dos Santos

expressed his own confidence in German

engineering prowess during the visit

of Chancellor Angela Merkel in July

last year when he said her country

would be the preferred partner in Angola’s

energy projects.

“I informed her that Angola will build

three large power dams over the next

few years and the electromechanical

equipment used in these powerproduction

plants would be of German

origin,” the president said. The equipment,

mainly turbines, would be worth around

€1 billion, he added.

Germany’s Voith and Siemens are seen

as the likely beneficiaries of this verbal

agreement, given that Voith supplied

the turbines for the recently upgraded

Cambambe Dam near Dondo.

The first of three dams slated to use

the German equipment is the country’s

largest power project, the 2,067 megawatt

Laúca Dam in Kwanza Norte province.

Construction work began in June and the

dam is expected to come on-line in July 2016.

President dos Santos described the

joint declaration of common intent during

Chancellor Merkel’s visit as “written in

letters of gold in the history of relations

between the two countries”.

The chancellor was the first German

head of government to visit Angola.

She agreed to a “wide-ranging political

partnership” between the two countries,

which included the creation of a bilateral

commission charged with developing

political, social, economic, cultural,

scientific and educational relations.

Training and education

President dos Santos also indicated there

would be a German role in developing

much-needed training and education to

aid Angola’s industrialisation. Education,


President dos Santos alongside Chancellor Merkel during her 2011 visit to Angola Lufthansa flies to Luanda twice weekly

he said, was key to enabling all Angolans

to take part in the life of Angolan society.

He pointed out to journalists that when

Angola achieved independence there had

been a 98 per cent illiteracy rate. “That

data is the starting point, and although

much improved since, there is still a lack of

qualified personnel in sufficient numbers,

which is the condition for getting value

from Angola’s potentially rich land.”

Germany’s ambassador Jörg-Werner

Marquardt agrees that one of the greatest

constraints on social and economic

development is a shortage of skilled workers.

“We give a great deal of support to

professional training because we believe

that without qualified people we won’t

have sustainable development,” he told

Jornal de Angola.

Consequently, one of the main thrusts of

Germany’s co-operation efforts in Angola is

vocational. Its aim is to help build Angola’s

human capital to aid industrialisation and

economic diversification as well as socioeconomic


Vocational training, widely viewed as

a key ingredient to Germany’s economic

success, is supported in Angola under

a bilateral government-to-government

agreement by the German Agency for

International Cooperation (GIZ) on behalf of

the German Federal Ministry for Economic

Cooperation and Development (BMZ).

GIZ has been working in Angola since

1995, initially helping in food security,

peace-building and rehabilitating the

physically handicapped. More recently,

German government support has

concentrated its efforts on aiding Angola’s

vocational education, training and

business development.

GIZ is addressing this problem through

helping reform vocational training under

the Ministry of Public Administration,

Employment and Social Security

(Mapess), notably in construction. One

of Germany’s success stories has been its

apprenticeship scheme; which combines

on-the-job learning with formal college

training. Just over half of Germany’s young

people go through this system. There are

more than 340 recognised professions

where this training qualification is a

condition of employment.

GIZ work in Angola includes capacitybuilding

for defining occupational

profiles, skill requirements, curricula and

test item development as well as training

for certain trades such as bricklaying and

installing domestic electrical wiring. The

organisation has done this by calling on

practitioners to contribute to and agree

on the requisite skills to be learnt.

GIZ has also held seminars aimed

at promoting small and medium-sized

enterprises in Angola. Germany’s powerful

Chancellor Merkel’s visit was

“written in letters of gold

in the history of relations

between the two countries”

German-backed trainees in Luanda

German companies

with offices

in Angola


GIZ-FormPRO copyright R.Maro


BAUER Angola

Bayer HealthCare


DHL Internacional (Angola)

Ferrostaal AG

GAUFF Engineering

GIZ International Services

Krones Angola

Kuehne + Nagel (Angola)


Nehlsen Ambiente Angola

Nokia Siemens Networks

Schenker AG


Siemens SA Angola


C Woermann Angola

Source: German Embassy, Luanda

© Photographer: Jens Görlich © CGI: MO CGI GbR


GAUFF’s activities in Angola


Water supply: exploration, storage,

transport and distribution

Waste-water: drainage, treatment,

and re-use of treated water and sludge


Solid-waste management


Urban transportation solutions

(roads, rails and parking)



Renewables (solar and wind energy)


Rural development and organisation

Dams and irrigation

Rural transportation

economy is mainly based on the small and

medium-sized companies which account

for 80 per cent of its GDP.

Angola-Germany trade

Angola is Germany’s third most important

market in sub-Saharan Africa. Bilateral

trade tripled to $1.5 billion last year,

rocketing from just $491 million in 2010.

The 2011 figure was atypical given that

German access to Libyan oil was blocked

and Angola thus filled the supply gap, but

in future Germany is expected to buy more

hydrocarbons from Angola given that the

Soyo liquefied natural gas plant is now up

and running.

While Angola currently sells mainly

crude to Germany, German exports to

Angola are much more diversified. Apart

from vehicles, German sales include oil

and gas-sector equipment for the offshore

industry, construction plant, high-tech

hospital apparatus, bottling and packaging

equipment, telecommunications,

electrical equipment, pharmaceuticals,


engineering-consultancy services and

water-supply systems.

GAUFF fast track

One of Germany’s most prominent

companies in Angola is Nuremberg-based

GAUFF Engineering. Founded by 81-yearold

patriarch Helmut P. Gauff, it has been

active in the country since 1995.

GAUFF started operations on the

continent in 1965 and has gained

experience in more than 30 African

countries. The company assists the

reconstruction and modernisation of

public and social infrastructure in Angola

with efficient “Fast Track Solutions”.

GAUFF’s main activities involve

engineering, procurement, and project

and operation management for public

and industrial infrastructure projects –

such as urban and rural roads, parking

areas, road and rail transportation,

bridges, water supply and waste-water

systems, hydropower, renewable energy

and rural development.

Pipe-laying in Lubango

As part of its Fast Track Solutions,

GAUFF offers close co-operation with

German banks, which can provide tailormade

long-term financing.

Since its arrival in Angola, GAUFF has

executed many engineering services for a

number of government ministries, such

as studies for improving Luanda’s urban

transport. Since 2004, GAUFF has been

active in designing and supervising the

reconstruction of long-distance highways

totalling more than 1,000km in different

Angolan provinces. A large part of these

highways benefited from GAUFF’s help in

arranging finance as part of its Fast Track

Solutions scheme.

The company has also been supporting

Luanda’s water-supply company EPAL

since 2003 in its planning and investment

for rehabilitating and extending urban

supply systems. As an EPPM (Engineering

Procurement and Project Management)

consultant, GAUFF is currently also

responsible for the first phase of the

development of the water supply and

Courtesy GAUFF Engineering

waste-water system of Lubango, with an

investment and finance package of €90

million. Lubango has a very fast-growing

population of around 1.2 million.

Apart from these activities, GAUFF

has also drawn up proposals for minihydropower

plants for decentralised

energy supplies to various provinces.

The company employs many

Angolans and offers them practical and

theoretical training based on the German

apprenticeship system, which is a very

important aspect in all the projects

The promotion of capable young

Angolan technicians together with other

German partners and universities is an

important objective in GAUFF’s strategy.

For many years, it has organised studies

for its Angolan employees in Europe.

To fulfil its social responsibility, the

GAUFF Foundation co-operates actively

with Angolan social foundations and

promotes and assists, among other

activities, several orphanages in Angola

and sports clubs in the provinces.

Angolan Orlando Ferraz (pictured

right) has been with GAUFF for seven years,

having spent a total of 17 years in Germany

where he studied at the Universities of

Bonn and North Rhine-Westphalia.

“The most attractive points in working

for a German company are those that

have to do with the virtues by which

the Germans are known: seriousness,

thoroughness in the execution and

Some prominent Germans

Albert Einstein – physicist

Johannes Gutenberg – inventor of the printing press

Felix Hoffmann – inventor of aspirin

meeting of commitments, and punctuality

in meetings as well as in meeting

timetables agreed in contractual clauses

– in other words, responsibility in their

approach,” he says.

During his long stay in Germany,

Ferraz was a leader of the Angolan student

community. Consequently, he travelled

throughout the country and got to know

all 16 federal states.

“Learning the language opened many

doors for me and made it easier to fit in

socially. It was a much smoother and

deeper relationship.”

Ferraz read widely in German and,

being passionate about music, appreciated

contemporary German artistes such as

Matthias Reim, Modern Talking and

Herbert Grönemeyer.

Ferraz said his favourite German dish

was Maultaschen, a kind of pasta envelope,

similar to ravioli, filled with minced meat

in hollandaise sauce or cream, as well as

the famous Nuremberg sausages.

Rudolf Diesel – inventor of the diesel engine

Karl Benz – inventor of the petrol-engine car

Adolf Dassler – inventor of Adidas sports shoes

“The attractions of working for a

German company are seriousness,

thoroughness and responsibility in

their approach” – Orlando Ferraz

Brazuk Ltd

DECEMBER 2012 11


Siemens Angola: areas of activity

Energy generation,

transmission and distribution

Water projects

Oil industry equipment

Gas turbines, compressors


Electrical and engineering

services and maintenance

Automation and instrumentation

Airport equipment






Siemens solutions shop

Germany’s Siemens, one of the world’s

leading engineering conglomerates, is

also present in Angola. The company had

a global turnover of €73.5 billion last year.

Angola accounted for a small but growing

part of this figure.

Siemens only re-established offices

in Angola in 2005 after an absence of

many years. Siemens Angola had sales of

€10.5 million in 2011 but its order book,

worth €15.8 million, pointed to growth.

The company offers a broad range of

equipment, engineering and related

services for industry, energy, healthcare

and infrastructure.

Current Siemens activity in Angola

includes power-generation and waterpumping

systems, notably for the important

offshore oil industry where Sonangol,

Chevron and Total are clients. Siemens

installed eight gas turbines to power Angola

LNG’s Soyo plant and has supplied an

11.5MW generator for Luanda’s refinery.

Its other high-profile projects in

Angola are a telecommunications network

operation in partnership with Nokia and

the supply of a radiotherapy apparatus to

the Girassol Clinic. Siemens has supplied

airport, office and hotel-security equipment

and has also provided instrumentation for

the Catumbela cement plant near Lobito.

Siemens has become heavily involved

in supporting education and training in

Angola. “For Siemens, training engineers

and managers is a core preoccupation in

Angola and a contribution the company

can make to the country,” says Angolanborn

Jorge Tropa, chief executive of

Siemens Angola.

“It’s very challenging to be able to help

Angola find sustainable answers for the

future. It’s equally very gratifying for me

to create job places and give development

opportunities to people who by their

work ensure their own and their families’

sustenance,” he says.

Siemens trains engineers and clients

in the area of energy distribution,

instrumentation and maintenance of

turbines and electronic equipment, and

to this end its ATEC training academy

in Portugal has signed a co-operation

agreement with Angola’s Integrated Centre

for Technological Training (Cinfotec).

Siemens also recently made an

agreement with Angola’s Higher Polytechnic

for Technology and Science (ISPTEC) for cooperation

in developing human resources,

projects and technologies in engineering,

economics and management.

Looking ahead

Siemens is already highly involved in

Brazil’s pre-salt oil deposits development,

an area in which Angola is currently taking

its first tentative steps.

Chemtech, Siemens’ Brazilian specialist

engineering subsidiary, has a leading role

in contracts for engineering equipment

employed in exploiting Brazil’s pre-salt

deposits. The company’s training and

experience in Brazil will enable Angola

to prepare to meet the technological

challenges of exploiting its own pre-salt oil.

In order to facilitate this transfer of knowhow,

Siemens offers work experience for

Angolan engineers who want to attend

the Siemens corporate academy in Brazil

to improve their engineering skills and

project management.

Armed with this specialist training,

Siemens and its Angolan engineers will be in

a better position to win contracts and supply

services for Angola’s pre-salt ventures.

LSG – food for flight

Angola’s flagship airline TAAG was mindful

of German industry’s prompt and efficient

delivery of quality products when it chose

LSG Sky Chefs as its partner in producing

meals for its passengers.

The new company LSG, Sky Chefs

TAAG Angola started operations in mid-

July. Its owners are TAAG (35%), Germany’s

number one carrier Lufthansa (40%),

Angola Air Catering (20%) and Angolan

airports authority Enana (5%).

Initially the facility will serve just TAAG

operations and Lufthansa, which has two

flights a week to Frankfurt, but it will in

future cater for other airlines.

The $12 million unit at Luanda Airport

employs 200 people and has the capacity

to make between 6,000 and 7,000 meals a

day. The company not only prepares the

food but manages the whole logistics chain

involved in supplying airline meals, from

sourcing the food to packaging and placing

it on board planes.

Germany’s LSG Sky Chefs is one of the

world’s largest airline-catering companies

and last year produced about 492 million

meals for more than 300 companies

around the globe.

Saving value

Two German firms, Krones AG and

Ferrostaal AG, are fulfilling a crucial need

in converting Angolan raw materials into

consumer goods.

Krones AG boasts that a fifth of the

world’s bottles has been filled, labelled or

packaged on its machines. The company

is responsible for the canning and bottling

machinery at the Sequent Brewery, 35km

outside Luanda.


German companies are likely to benefit from Angolan dam contracts

Ferrostaal AG is responsible for the

Giasop fruit and tomato-processing

plant at N’gola Lombo, near Porto

Amboim in Kwanza Sul. This flexible

plant produces mango, passion fruit,

guava and pineapple nectar and also

tomato paste. Processing up to five

tonnes an hour of mangoes or tomatoes,

the plant can produce an hourly output

of 5,000 gable-topped cartons.

Storage and shipment of Angolan

foodstuffs, especially fruit and vegetables,

has been a bottleneck for the

country’s farmers. Companies such as

Ferrostaal provide an outlet for excess

fresh produce that might otherwise have

gone to waste. With the building of such

packaging plants, farmers, especially

small family holdings, can now step up

production confident that their efforts

will be rewarded. p

DECEMBER 2012 13


By Lula Ahrens

With Luanda’s numerous international restaurants, Angola’s own varied and

colourful cuisine is sometimes unjustly overlooked. In such a large and

culturally-rich country, the discovery of its food habits will always be an

adventure. Universo provides a taster

The visitor’s first introduction to Angolan food is

usually funge or pirão, bland but filling dishes

that serve as the base of most meals and are often

combined with fish, chicken or meat and sauce.

Funge de bombo, more common in northern Angola, is

a gelatinous, colourless paste made from corn or cassava

flour (fubá). The yellowish pirão, similar to polenta, is

made from cornflour and is more commonly eaten in the

south. During weekends, Angolan families typically sit

down to funge during the day and switch to grilled meat

and fish at night. But, as with everything else in Angola,

there is a lot more to discover.

Adventurous, experimental connoisseurs might want

to try Angolan specialities such as jinguinga – goat tripe

and blood –from Malange province; the Kwanza Norte

delicacy kifula – game meat served with boiled and toasted

palm-tree grasshoppers – or mafuma, frog meat from

Cunene. Those who prefer a safer start will love caldeirada

de cabrito, goat-meat stew with rice, traditionally served

on Angolan Independence Day (November 11), or kizaka,

the finely mashed, spinach-like leaves of the manioc plant

seasoned and mixed with ground peanuts.

Try mukua, the traditional Angolan dried fruit from the

country’s emblematic baobab tree, it is often used to make

ice cream. Cocada amarela (yellow coconut pudding),

made with sugar, grated coconut, egg yolks and ground

cinnamon, is less exotic but also delicious.

Historic overview

Five centuries of Portuguese colonisation heavily

influenced Angolan cuisine. In most restaurants,

Portuguese dishes such as seafood rice or bacalhau com

natas (cod with cream) will be popular and available.

Brazilian and other European influences have also had

their impact.

The roots of Angola’s major ethnic groups can be traced

in local cuisine. The coastal areas of Luanda, Benguela and

Namibe are known for their variety of seafood. Fish stews

including caldeirada de peixe and muzongue are made

from whatever is available, and served with rice.

Angolan fish stews such as calulu and mufete de

cacusso are believed to be excellent hangover cures that

work wonders even before the very first headache sets in!

A standard, superb condiment at an Angolan lunch

or dinner table is gindungu, a spicy sauce made of

chilli pepper, garlic, onion and sometimes brandy. Not

surprisingly, some believe that the sauce is an aphrodisiac.

In central Angolan villages, you will find steamed or

boiled green vegetables, peas, beans, cereals and game

meat. Traditional game meats consumed in parts of Angola

include veal, deer, wildebeest and warthog.

Typical Angolan ingredients generally include flour,

beans, rice, fish, chicken, egg, sweet potatoes, manioc

(cassava), yams, tomatoes, onions, peanuts, okra and

various spices such as chilli. Kizaka manioc plant leaves are


DECEMBER 2012 15


mostly consumed as cooked greens. Many

Angolans have chickens or goats running

around their properties, but cabrito (goat)

is only served on special occasions.

Beautiful, fresh and flavoursome

Angolan fruits, vegetables, potatoes and

herbs are sold in local supermarkets such

as Kero and Martal, as well as at open

markets and in the street.

In Luanda, you will often find that the

simplest local restaurants serve the best

food. On the southern side of Luanda’s long

protective peninsula, the Ilha, as you drive

from the city centre bay area, is the Chicala

neighbourhood. Here you will find one of

Luanda’s most well-known fish markets

(the other is on the Samba highway) as well

as two restaurants right next to each other.

Some of Luanda’s best grilled fish

is served right there for just $20 a head.

Clients choose their freshly-caught fish

from a bucket, after which it is gutted,

cleaned and grilled. The whole fish is

then served as a mufete de cacusso, with a

delicious sauce made of chopped onions,

baked bananas and sweet potatoes as

well as beans in palm oil (see recipe on

page 19).


Angola also produces a great variety of

drinks. Many of them are made at home

from bananas, potatoes and cassava skin.

Kissangua, a popular drink in the south, is

made from cornflour.

Mongozo, which means ‘cheers!’ in

the language of the Chokwe people, is a

beer traditionally made from palm nuts.

The Chokwe started brewing this beer

before colonial times. The fact that it is

exported to various countries, including

Belgium, Europe’s beer mecca, says a lot

about its quality.

Angola also produces an impressive

variety of homemade spirits such as the

Kwanza Norte provincial specialty capatica

made from bananas; the maize-based

caporroto from Malange; cazi or caxipembe

made from potato and cassava skin; cornbased

kimbombo; and the palm wines

maluva or ocisangua, made with palm-tree

juice, a northern Angolan favourite.

Gonguenha is made from toasted manioc

flour, while ualende from the province of Bié

can be made from sugarcane, sweet potato,

corn or fruits. Other beverages include the

homemade vodka kapuka, the honey-based

Lula Ahrens

ovingundu and homemade Angolan whisky,

whiskey kota.

Kissangua, a Southern Angolan

traditional non-alcoholic drink made of

cornflour, is sometimes used in indigenous

healing rituals. Angola’s oldest and most

celebrated commercial beer brand, of

course, is Cuca, which is brewed in Luanda.

Eka (brewed in Dondo, Kwanza Norte),

N’gola (Lubango) and Nocal (Luanda) are

also popular.

Angolans and their

favourite dishes

Engineer Ana, 33, studied in London, UK,

and moved back to Angola in 2004 to work

for an international oil company. One of

the things she enjoys most about being

back in Luanda is the food.

Walking past women selling vegetables

on the street, she says: “With the decrease

in landmine exposure and an increase

in farming, you see more and more

traditional leaves reappearing in the

market. I’m trying out traditional dishes

that I never even knew existed for instance,

a particular mushroom – turtulho - cooked

with peanuts. It’s from Malange.”

Luanda boasts fancy Portuguese,

Chinese, French, Brazilian, Cape Verdian,

Ethiopian and even Japanese restaurants,

and Ana visits them frequently. She

remembers that during the civil war food

was scarce. “There used to be a system

of food coupons, with people standing in

queues for hours. Even simple things like

apples used to be a rarity.”

Shipping co-ordinator Gildo, 33, was

brought up in Angola. He lived in South

Africa from 1996 until 2000, and then in

Canada until 2004.

“During the war, the food supply in

Luanda was very limited,” he recalls. “We

ate fried carapau, a mackerel-like fish, with

rice, funge or bean soup, and a few canned

foods. Dairy products, most other fish

types and fruit and vegetables were hardly

ever available.

“The roads weren’t safe, so you couldn’t

transport produce from the provinces to

Luanda. Bread was a luxury. Hundreds

of people used to queue for hours before

their local shop opened. Some put down

a stone, went back home and returned

later. Others would move the stone ahead.

People respected each other.”

At home, Gildo and his family used to

make omelettes with water and powdered

eggs, which they bought in 50 kilo bags.

Today, he enjoys a real omelette at Angolan

restaurant Jango Veleiro, on the Ilha.

“Aah... This is so much better than the

dried version. You knew it was egg, but it

was not the real deal,” he says.

“Sweets and desserts were almost nonexistent,

except during Christmas. But

people made homemade sweets such as

paracuca, which are sugar-covered peanuts

in a paper cone. You still see these quite a

lot, but they are no longer sold in paper.

“Pirulito is melted, hardened sugar

in paper with a little stick inside. You lick

it like an ice cream. One of my favourite

traditional sweets is what Angolans call

‘goats’ droppings’. It is condensed milk,

heated until brown, and turned into little

balls,” he says.

Ana also has sweet memories of

her Luanda childhood. “We used to eat

mukua ice cream (made from baobab

fruit), paracuca and doce de coco (dry

coconut pancake), all made and sold by

grandma. Yummy.”

Unlike most people, Gildo was not

impressed by South African cuisine and

missed Angolan flavours. “While we lived

there, my sister used to cook Angolan food

at home. Friends brought kizaka, dried fish

and even fubá whenever they visited.” p


Lula Ahrens

Lula Ahrens

Lula Ahrens











Lula Ahrens


250g cassava flour (fubá), 500ml water

Traditional method:

Boil a cooking pot of water and as soon

as it is bubbling remove it from the flame

and place the pot on the floor. Wrap a cloth

around the base of the pot and hold steady

with your feet. For perfect funge you need

twice as much water as cassava flour. Add

the flour to the hot water in one go and beat

energetically with a 35cm (or longer) funge

stick. The mixture thickens rapidly, so beat

it thoroughly or you will end up with lumps

rather than a smooth dough-like porridge.

Modern method:

Bring the water to the boil in a casserole dish.

Meanwhile, beat the cassava flour into a bowl

containing 500ml cold water until the mixture

is smooth and creamy. Add this to the boiling

water, whisking to combine the two. Stir until

the mixture is smooth. Then add a lid and

place in an oven pre-heated to 180°C. Bake

for about 45 minutes or until the mixture has

thickened to a dough-like consistency. This

will leave you with perfectly smooth funge

without all the hard work.


Mufete de Cacusso (from Bengo province)

Calulu, the alternative, is from Kwanza Sul


Fresh river tilapia, raw onion, palm oil, beans,

lemon, sweet potato, plantain and cassava

Preparation method:

Season the fish with salt and oil and then

grill in an oven or over a charcoal fire.

Making the sauce:

Chop the onion finely; add lemon juice,

water, salt, pepper and oil.

Cooking palm oil beans:

1 kg beans (approximately 2 lbs) 1 glass

palm oil, salt and if desired onion and garlic.

Cook the beans until tender. Add the palm

oil and salt. Simmer until the oil is hot, and

serve immediately with boiled sweet potato,

plantain and cassava.


1 chicken, 1 large onion, 2 cups of palm hash

(by-product of palm oil), 4 cloves of garlic, ½ kg

okra, tomatoes


Season the chicken with garlic, salt, black

pepper, lemon or vinegar. Add the chopped

onion, tomatoes and the palm hash. Place in

oven. When the chicken is almost done, add the

okra. When the okra is cooked, the muamba is

ready to be served. Accompany it with palm oil

beans, funge or rice.




Bengo province and its contiguous areas

completely embrace urban Luanda. Universo

looks at the region’s role in relation to the capital

and its impressive development prospects


ll major growing cities need

surrounding wide open spaces

not just for future expansion but

also as a contrasting, clean-air

escape for their inhabitants to enjoy in their

leisure time. Bengo province and its former

municipalities Icolo e Bengo and Kissama*

provide the teeming capital Luanda

with the relief of greenery and expansive

beaches city dwellers often crave.

The importance any city’s adjacent

recreation area plays in the physical and

mental wellbeing of its inhabitants cannot

be underestimated. The quality of life for

the 10 million people living in the largely

treeless Brazilian mega-city of São Paulo is

much improved by the access to pristine

beaches and mountainous rainforest

within an hour’s drive.

Life, too, for the inhabitants of England’s

grey, formerly smoky industrial capital

Manchester, would have been intolerable

without the easy journey to the clean air on

the surrounding moorland hills.

Bottlenecks uncorked

Driving out of Luanda in any direction

towards the Bengo region has often been

a time-consuming affair owing to the city’s

notorious traffic jams. These bottlenecks

are gradually being cleared, thanks to the


Brazuk Ltd


* Luanda province formally absorbed Icolo e

Bengo and Kissama in February “to address

the need to ensure greater efficiency in

the organisation and functioning of

institutions and services in the face of

urban growth”.



building of three major urban highways

heading north, south and east. As Bengo,

and the rest of Angola, becomes more

easily reached, its economic and tourism

potential is beginning to be realised.

Highways along the coast south from

Luanda towards Kissama and east towards

Icolo e Bengo and the Kwanza valley are

largely finished and are providing much-

improved access to the region.

However, the new highway heading

north from Luanda towards Caxito, Bengo’s

provincial capital, is only now approaching

completion after a complicated rebuild.

The vital northern coastal route takes

the lion’s share of Luanda’s heavy, slowmoving

port district traffic, carrying

thousands of trucks each day to the rest of

the country.

The road building has been a tough task,

hindered by difficult geology, unplanned

land occupation in densely-populated

districts and high flood risks, but this is now

being overcome after a large-scale drainage

scheme and the construction of a four-lane

highway. Soon traffic jams will ease and

Bengo will be under an hour’s drive from

Luanda city centre.


The Bengo region is reaping great benefits

from the government’s hefty investment

in new infrastructure over the past decade.

Located just beyond the uncongested, fastmoving

Luanda beltway, Bengo province,

Icolo e Bengo and Kissama are wellconnected

to each other and enjoy speedy

routes to the industrial region of Viana and

to the rest of Angola.

This combination of good road

connections and the availability of space

was crucial to the decision to site two of

Angola’s largest greenfield projects in

Bengo; one is Luanda’s new international

airport hub, the other is a new deepwater

port. Luanda’s new airport will have

capacity for 15 million passengers a year.

Located 40km from the city centre, between

Viana and Bom Jesus, the airport will have

20 international and 11 domestic gates.

Its two double runways will be capable of

taking the Airbus 380, the world’s largest

passenger airliner. Work began in 2008

and completion of phase one is expected

in December 2013.

Super port

The new port’s go-ahead was announced

in November 2011 and detailed studies

are underway. Victor Carvalho, general

director of Angola’s Maritime and Port

Institute, said the port, to be built just

north of the busy fishing village of Barra do

Dande, 45km north of Luanda, will be one

of the largest in Africa.

The new development will ease

congestion at the old downtown Luanda

port and give extra capacity to Angola’s

rapidly expanding import-export trade.

The existing port of Luanda has very limited

space for expansion and its road access has

suffered from congestion for decades.

Initial plans envisage a long pier to

be built on the north bank of the Dande

River. This ‘arm’ will reach the deepest

water and also shelter the new port from

the predominantly southern sea current.

The pier will enable the loading of up

to 25 million tonnes a year of minerals,

mainly iron ore from Kwanza Norte, and

could also handle imported fertilisers.

Other port areas will be dedicated to the

loading and unloading of sea containers

and general cargo, and for supporting

Angola’s burgeoning offshore oil industry.

Mineral resources

Bengo’s geology and mineral resources

have played a key role in Angola’s economy.

The country’s modern oil industry dates

from 1915 when the ‘black gold’ was first

drilled near Dande.

In more recent years, Bengo’s generous

store of mineral wealth has provided large

amounts of high-quality aggregates for

roadbuilding and construction materials.

Hundreds of trucks each day ply between

Bengo’s quarries and gravel pits to supply

Luanda’s myriad construction sites. Bengo

has deposits of kaolin, chalk, asphalt,

limestone, iron, feldspar, sulphur and mica.

Industrial enterprises

Bengo has a long history of industrial

development. Before independence the

province had sugar, cotton, plastics and

soap industries. In more recent years new

industries have chosen Bengo for their

businesses, thanks not only to the rapid

expansion of the oil industry but also to the

Angolan government’s efforts to diversify

the economy.

The government’s Luanda-Bengo

Special Economic Zone (ZEE) includes

Icolo e Bengo (now in Luanda province)

along with Dande, Nambuangongo and

Ambriz in Bengo. The ZEE also includes

Luanda’s main industrial focus, Viana, and

Cacuaco, which borders Bengo.

The ZEE was designed to boost the

industrialisation of the region to the north

and east of Luanda while absorbing labour

(14,000 jobs) and drawing residents from

the densely-populated conurbation to

its periphery.

The ZEE project, promoted by

Sonangol industrial arm SIIND has a target

of having 73 factories up and running by

2015. Enterprises operating in the zone

now number 17 and another nine units are

expected to start up by the end of this year,

reaching 53 units by 2014.

Angoflex, which runs Bengo’s largest

modern industry, started operations in 2005.

The company, a Sonangol jointventure with

France’s Technip, manufactures deepwater

steel-tube umbilicals for the oil industry.

Umbilicals are bundles of tubes, electric

cables and optical fibres which remotely

control and operate subsea equipment such

as wellheads.

Angoflex’s ‘spoolbase’, where umbilical

pipelines are literally rolled on to spools,

occupies a greenfield site just south of

Dande. It is one of the most advanced

industries of its kind in Africa. Around

400 people (90 per cent Angolan) work on

site welding and processing steel tubing

into lengths of up to 3km. The tubes

are laid out on a pier and then wound

onto giant wheels mounted on ships.

The jointed umbilical pipelines are later

unwound and straightened at oil and gasproduction


Angoflex has the capacity to manufacture

300km of umbilicals a year. The

company already supplies BP and Total

for blocks 31 and 17 and has completed

export orders for Anadarko’s Jubilee project

in Ghana.

King banana

The resurgence of Bengo’s once-thriving

agricultural sector is leading to a ren-

aissance in associated food-processing

industries. The undoubted kingpin of this

sector in Bengo is the banana. Afonso

Pedro Canga, Angola’s Minister of

Agriculture, says Angola is now selfsufficient

in bananas.

Bengo has a firm belief that its booming

banana output will soon make it one of

(Right) River Dande

Key raw materials for Luanda’s construction industry


Brazuk Ltd

Brazuk Ltd



Mark Clydesdale BZO

Carlos Moco

Angola’s leading exports. To promote its

bananas, Caxito held its first Banana Fair

in February. Exhibitors from the provinces

of Kwanza Norte, Bengo, Benguela, Zaire,

Uíge, Kwanza Sul, Malange and Luanda

attended the event.

Abrahão Pio dos Santos Gourgel,

Angola’s Minister of Economy, said the

country might start exporting bananas

within the next two years, judging by

the growth recorded of this product.

Conditions, he said, had been created to

ensure a continued increase of quality

through planting systems and improved

technical assistance.

Agrolider, the Angolan agribusiness

giant and Caxito Banana Fair prizewinner,

forecasts it will produce 100,000 tonnes of

the fruit in the 2012-13 growing season,

compared with 54,000 tonnes in the

previous harvest.

Part of Agrolider’s crop comes from

the 2,500-hectare Caxito Rega irrigated

farming area, located in a former sugar

plantation near provincial capital Caxito.

Caxito Rega a government-managed

initiative with 70 per cent state ownership

was established in 2008.

An existing irrigation system including

23km of channels was renovated. Some

1,600 hectares of Caxito Rega are cultivated

by private companies and the rest by

family farmers and individuals.

A major step was taken to process

produce at the site in August 2012 when

a factory was opened, initially to process

and pack dried bananas and tomato

paste and pulp. Financed by Germany’s

Deutsche Bank and installed by Spain’s

Incatema Consulting, the plant has the

capacity to process 2.5 tonnes of tomatoes

and 750kg of dried bananas an hour. The

165 staff operators were trained in Spain

and Angola.

The crucial role played by process

plants such as these is that they absorb

excess produce, especially from small

farmers. This gives them an incentive to

grow greater volumes and gain a more

secure income, and also reduces wastage.

A key component of the project was the

arrival of electricity from the renovation of

the Mabubas Dam in June 2012. The dam

now has 25.6MW capacity compared to

17.8MW two decades ago just before it

stopped operating. Mabubas is initially

also supplying Luanda and Caxito but will

later extend power deliveries to the rest

of Bengo. Until now the region had been

using expensive diesel generators to make

up for the energy shortage.

The fertility of Bengo’s soils is

impressive. Agrolider’s 350-hectare

farming operations in Caxito also produce

papaya, melons, water melons and

eggplants. The company plans to grow

dessert grapes, mangoes, oranges and

tangerines at the site. Agrolider has another

145-hectare plantation at Bom Jesus where

it produces bananas, mangoes and grapes.

Bengo’s attractiveness as a place to

produce and process fruit has not been

Angoflex spoolbase, Barra do Dande

lost on foreign companies. Ghana’s

ambassador visited the province recently

and said Ghanaian company Blue

Skies planned to produce mango and

pineapple concentrate for its juice brand.

The ambassador added that a Ghanaian

company was also considering setting up

a tyre plant in Bengo.

Coca-Cola has recently built a $36

million bottling plant at Bom Jesus

alongside the Kwanza River. The factory

not only has access to water but is well

placed for accessing Angola’s main

highways for its product distribution.

Tourism expansion


Another money-spinner shared by Bengo,

Icolo e Bengo, and especially Kissama, is

tourism. These areas can be reached easily

by new highways heading south and east

from the capital.

Kissama is home to Angola’s bestknown

and most accessible wildlife

park, while Icolo e Bengo contains the

historic birthplace of Agostinho Neto, the

country’s first president, at Kaxicane near

Catete, and the national Christian shrine

of Muxima. Both sites are picturesquely

located alongside a wide section of the

slow-moving Kwanza River.

Also on the river the church of Our

Lady of Muxima, reputedly a site of

miracles, dates from the 16th century and

is the object of pilgrimages, especially in

September, when the faithful camp around

the shrine.

Muxima township is also overlooked

by an imposing Portuguese colonial fort

which affords dramatic views over the

rich lands along the banks of the Kwanza.

The fort was the scene of fighting between

Dutch and Portuguese troops in the 17th

century when the two maritime powers

fought each other around the globe, from

Brazil to the Far East.

Access to Muxima was recently

enhanced by the building of a new

highway which includes Angola’s longest

bridge at Cabala. Better communications

from Luanda and the rest of the country

to Muxima facilitated the arrival of an

estimated 500,000 people to the shrine this

year. The Bishop of Viana compared the

DECEMBER 2012 25


popularity of the shrine to other Catholic

pilgrim sites such as Lourdes in France,

Fátima in Portugal and Aparecida in Brazil.

Travelling north from Luanda, visitors

enter Bengo province by crossing the Bengo

River. The visitor’s first impression of

Bengo is of its greenery, sparse population

and densely-reeded lagoons which contrast

sharply with nearby urban Luanda.

The area around the reedy marshland

lake of Panguila adjacent to the Bengo

River boasts a population of black storks.

These impressive birds use their wings as

a cloak to shade their eyes while hunting

their prey in the wetlands. Kingfishers and

a wealth of other birds are easily spotted

in the area, making it one of the most

rewarding haunts for ornithologists in the

Luanda region.

Bengo’s coastline and lakes provide

a variety of fish for tourists to savour. In

Kissama, the area around Cabo Ledo is

renowned for its lobster.


Kissama National Park is a favourite tourist

destination for Angolans and is especially

popular among expatriates seeking a taste

of the ‘real Africa’. The 10,000-squarekilometre

park with a 120km coastline

blessed with deserted beaches and a sea

heaving with fish and crustaceans, has

experienced a remarkable revival in its

animal populations over the past 12 years

Brazuk Ltd

The church of Our Lady of

Muxima, reputedly a site

of miracles, dates from the

16th century and is the object

of pilgrimages

since President José Eduardo dos Santos

reopened it.

Three decades of poaching had

decimated its wildlife stock, but today

tourists can again visit the park with a

very good chance of seeing several species

of animals.

The park owes its turnaround to

‘Operation Noah’s Ark’. This project involved

reorganising the park administration and

protecting the animal population by a

more professional group of rangers. It also

meant installing a 21km fence to separate

a small special-conservation area in the

extreme north of the park and bringing in

excess numbers of animals from Botswana

and South Africa. The conservation area

is centred on the 50-bed tourist camp and

restaurant at Caua.

The first batches of animals included 35

elephants, eight elands, 12 wildebeests and

12 kudus. Later these were joined by dozens

of giraffes, zebras and hundreds of ostriches.

Today all these populations are recovering

fast and attracting more park visitors.

The park also boasts a park-ranger

training school, suggested by the German

aid organisation GTZ. This helped train

former soldiers and provide a civilian career

opportunity. Around 140 rangers have been

trained to date with assistance from the

South African Wildlife College.

An outstanding role in Kissama’s

revival was played by former South African

soldier turned park director Roland

Goetz over a ten-year period. Angolan

Miguel Savituma, who underwent onthe-job

training as Goetz’s deputy and

also attended courses abroad has now

succeeded him.

Future plans involve extending the

special conservation area, securing it

against poachers and reintroducing more

wildlife such as roan and red buffalo. p

Angola’s longest bridge – Cabala

Muxima on the Kwanza Kissama’s rich red soils

Bengo’s iconic black stork


Brazuk Ltd

Brazuk Ltd

Teunis Bakker

Brazuk Ltd





Angola has launched a sovereign wealth fund and thus joined a

prestigious list of resource-rich nations, which includes Norway and

the United Arab Emirates. Universo reports k


Verkhovynets Taras


ngola has announced the setting up

of a sovereign wealth fund. Fundo

Soberano de Angola (FSDEA) will

have a starting pot of $5 billion

which will be channelled into a mix of domestic

and international investments, with a focus on

emerging Asian economies.

The idea behind the fund is to use Angola’s

oil revenues prudently, to ensure that the

wealth of today lasts longer so that the country

can enjoy the legacy benefits of its oil even

when the crude has stopped flowing.

By creating the FSDEA, Angola will also

have a secondary buffer of capital reserves

should the price of oil fall rapidly and create

liquidity pressures on the economy as it did

in 2009.

The public unveiling of FSDEA in October

is the culmination of four years of planning after

President José Eduardo dos Santos first showed

an interest in creating a sovereign wealth fund

back in 2008.

With headquarters in Luanda, the fund

will manage a diverse investment portfolio

made up of global private and public stocks,

bonds, foreign currencies, financial derivatives,

commodities, treasury bills and property and

infrastructure funds.

The sovereign wealth fund will be topped

up on a monthly basis by an amount equivalent

to the revenue from 100,000 barrels of oil per

day. FSDEA representatives say it will publish

all its accounts so that people can monitor the

money flow.

Switzerland-based Quantum Global

Investment Management, which already works

with Banco Nacional de Angola, Angola’s central

bank, has been appointed as the initial liquidasset

manager, although more financial houses

are expected to come on board in due course.

The FSDEA’s board of directors is made

up of its chairman Armando Manuel, who

is also Secretary for Economic Affairs in the

Angolan government, and two other members:

José Filomeno de Sousa dos Santos, a former

board member at Banco Kwanza Invest, and

Hugo Miguel Évora Gonçalves, previously of

Standard Bank.

“Angola is rich in natural resources, but

we understand that these are finite, so it is

imperative that the wealth they generate is used

to support the country’s social and economic

development,” said Manuel.


Armando Manuel

“Angola is rich in natural

resources, but we

understand that these are

finite, so it is imperative that

the wealth they generate

is used to support the

country’s social and

economic development”

– Armando Manuel

DECEMBER 2012 29


“As an investment institution operating

as a sovereign wealth fund, the FSDEA seeks

to secure long-term sustainable financial

returns that will positively impact the lives of

the people of Angola now and in the future.”

José Filomeno de Sousa dos Santos,

who attended the FSDEA’s launch, which

received international media coverage

from outlets including the New York Times

and CNN, said: “The launch of the FSDEA

is a historic moment for Angola, as the

government continues to transform and grow

the country’s economy.

“The FSDEA recognises that there

are still considerable challenges facing the

country. However, we are committed to

promoting social and economic development

by investing in projects that create

opportunities which will positively impact

the lives of all Angolans today and generate

wealth for future generations.”

He added, in a subsequent interview,

that the FSDEA would be paying particular

attention to emerging economies, especially

those in Asia. “We will be looking at emerging

economies as a very interesting target

because we believe that returns there are

very attractive. Going forward, in terms of

investments, we would look to always hire

the best investment capacity possible, and

Asia has a lot of potential.”

News of the FSDEA’s launch has

excited global markets and boosted Angola’s

already growing reputation as an African

economic powerhouse.

Africa sovereign wealth funds

In a statement, global ratings agency

Fitch, which in May upgraded Angola from

BB- to BB+, said: “Angola’s decision to set up

a sovereign wealth fund is positive news. It

reaffirms our view that government policies

are reducing the economy’s exposure to

movements in the oil price, and laying a

foundation for sustainable growth.”

The agency noted that the FSDEA could

contribute to a further upgrade if it were

coupled with a longer track record of prudent

fiscal and monetary policy management, and

that if the fund led to better management and

utilisation of windfall oil revenues it could

boost long-term GDP growth.

Although President dos Santos will

be ultimately responsible for deciding

investment policies, the FSDEA’s board is fully

autonomous and will oversee its own activities.

The FSDEA will also have a separate

fiscal council to ensure that all laws and

regulations are being followed and will be

subject to annual and independent audits.

For further oversight, a four-member

advisory board will be set up consisting of the

Minister of Finance, Carlos Alberto Lopes,

the Minister of Economy, Abrahão Pio dos

Santos Gourgel, the Minister of Planning and

Territorial Development, Job Graça, and the

governor of Banco Nacional de Angola, José

de Lima Massano.

Transparency has been placed at

the heart of the FSDEA, which will be run

according to the internationally-recognised

Santiago Principles, a code of conduct

developed by the International Working

Group of Sovereign Wealth Funds.

The principles are based on maintaining

a stable global financial system and the free

flow of capital and investment; compliance

with applicable regulatory and disclosure

requirements in the countries where

investments are made; making investments

based on return-related considerations; and

ensuring a sound governance structure that

provides for adequate operational controls,

risk management and accountability.

As well as investing outside Angola in

high-return long-yield funds, the FSDEA

will also spend money closer to home

to help support the country’s ongoing

infrastructure needs in areas such as

agriculture, water, power generation

and transport.

The FSDEA has also identified the need

to help promote Angola as a destination for

overseas investment. At the sovereign wealth

fund’s launch, it was announced there would

be a focus on the hospitality sector in a bid to

create more hotel capacity and improve the

skills of local labour in the industry.

There is a longer-term plan to create an

Angolan hotel school which the FSDEA hopes

will one day become the leading hospitality

establishment on the African continent.

For more information about the FSDEA go to

www.fundosoberano.ao p

Country Sovereign wealth fund name Assets $bn Inception Origin

Libya Libyan Investment Authority 65.0 2006 Oil

Algeria Revenue Regulation Fund 56.7 2000 Oil

Botswana Pula Fund 6.9 1994 Diamonds & minerals

Nigeria Nigerian Sovereign Investment Authority 1.0 2011 Oil

Gabon Gabon Sovereign Wealth Fund 0.4 1998 Oil

Mauritania National Fund for Hydrocarbon Reserves 0.3 2006 Oil & gas

Equatorial Guinea Fund for Future Generations 0.08 2002 Oil

Source: SWF Institute




Other leading sovereign wealth funds







01 Australia ....................................................................................................The Future Fund

02 Azerbaijan .................................................. State Oil Fund of the Republic of Azerbaijan

03 Botswana .............................................................................................................Pula Fund

04 Canada .................................................................... Alberta Heritage Savings Trust Fund

05 China ................................................................................. China Investment Corporation

06 Gabon ................................................................................ Gabon Sovereign Wealth Fund

07 Equatorial Guinea .................................................................Fund for Future Generations

08 Korea ................................................................................. Korea Investment Corporation

09 Kuwait .................................................................................. Kuwait Investment Authority

10 Libya ...................................................................................... Libyan Investment Authority

11 New Zealand .............................................................New Zealand Superannuation Fund

12 Nigeria ..............................................................Nigerian Sovereign Investment Authority

13 Norway ........................................................................ Government Pension Fund-Global

14 Qatar ........................................................................................Qatar Investment Authority

15 East Timor ............................................................................Timor-Leste Petroleum Fund

16 Singapore ...................................................................................Temasek Holding Pte Ltd

17 United Arab Emirates .....................................................Abu Dhabi Investment Authority

18 United States ............................................................................... Alaska Permanent Fund











DECEMBER 2012 31





One of the largest conservation areas in the world is taking shape

in Angola’s southeastern region. Universo eyes the developments

By Lula Ahrens

Wildebeest make a leap of faith



The Kavango-Zambezi Transfrontier

Conservation Area

(Kaza) is an extraordinary

intergovernmental effort to

create a wildlife park across huge swathes

of land where Angola, Botswana, Namibia,

Zambia and Zimbabwe converge.

The aim is to protect the biodiversity

and culture in this corner of southern

Africa without regard to borders.

Angola owns the second-biggest slice

of the proposed protected area, which at

444,000sq km is the size of Sweden. Kaza is

named after the two largest river systems

that drain the region, the Okavango

and Zambezi. The area is home to the

world’s biggest elephant population and a

wealth of other endangered plant and

animal species.

The project is not only about the welfare

of the flora and fauna. Kaza member

countries are expecting an explosion of

tourism in the area, which will hopefully

boost socio-economic development and

conserve local cultures.

Angola is responsible for the second-

largest section of the area, some

90,000sq km. This covers the Luiana Partial

Reserve, the Mavinga Partial Reserve, and

the Longa-Mavinga, Luengue, Luiana and

Mucusso hunting areas.

Kuando Kubango province forms the

project’s starting point in Angola. From

there, it crosses the border to Botswana

and continues towards Botswana’s

Okavango Delta.

“The vast wilderness of Angola’s Luiana

and Luenge national parks and adjacent

areas with near-pristine wildlife habitats

offers unexploited tourism development

potential,” Kaza director Dr Victor

Siamudaala told Universo when asked to

name Angola’s most vital contribution to

the project, adding that “Angola’s unique

culture and cuisine, too, are particularly

attractive to tourists.”

Official birth

The first steps of the Kaza project date

back to the 1990s, with the establishment

of the Okavango Upper Zambezi Tourism

Initiative funded through the South African

Development Community. The project

failed to take off and was succeeded by

others, until the foundation stone of the

current Kaza scheme was laid in December

2006 when the five member countries

signed a memorandum of understanding.

Its formal establishment took place in

August 2011 when the leaders of Angola,

Botswana, Namibia, Zambia and Zimbabwe

signed the Kaza Treaty in Luanda, at the

closing ceremony of the 31st SADC (Southern

African Development Community) Summit.

“For five countries to come together

and decide to mutually conserve

their natural resources in a

sustainable way and benefit local

communities and eventually reduce

rural poverty is truly admirable”

– Dr Victor Siamudaala

Kaza was officially launched in March

2012 at the Namibian town of Katima

Mulilo. The project is jointly administered

by the governments of the five partner

countries and is supported by various

international donors. The co-ordinating

role of Kaza rotates biannually between

the five nations.

“For five countries to come together

and decide to mutually conserve their

natural resources in a sustainable way and

benefit local communities and eventually

reduce rural poverty is truly admirable,”

said Dr Siamudaala.


One of the most spectacular aspects of

the Kaza project is that it will harbour

the largest contiguous population of the

African elephant (around 250,000) on the

continent. Southern Africa’s elephants

face two important issues: poaching –

they are much sought after for their ivory

– and overpopulation in areas where they

infringe on farmland.

Botswana drew up a plan in 1990, which

put the maximum number of elephants

the country could handle at 60,000. But

because culling was controversial and

Botswana wanted to avoid international

condemnation, it allowed numbers to grow.

There are now some 150,000 elephants

in Botswana, which are in dire need of

an alternative habitat. Zambia, and in

particular the Angolan province of Kuando

Kubango, offer a way of diluting these

populations through Kaza ‘transfrontier

corridors’ or protected tracts of land.

Angola’s 199,049sq km Kuando

Kubango province will make up a major

portion of the reserve. After four decades

of independence and civil war, which

ended in 2002, it had only around 140,000

people living there. The conflict took a

heavy toll on the province’s wildlife, as

elephant ivory was sold to buy weapons

and other wild animals served as food

for soldiers and farmers. Now Kaza offers

Kuando Kubango a promising new future.

With its continuing landmine clearance

campaigns, the province could provide a

vast new home for Botswana’s superfluous

elephant population.


Mark Clydesdale BZO

Simon Greig


Eland antelope, a native of the Okavango region


The Khoisan

Kuando Kubango province is also home to

Angola’s Khoisan community, descendants

of Sub-Saharan Africa’s first inhabitants,

often referred to as ‘Bushmen.’ They offer

a prime example of the cultural wealth the

Kaza area holds.

Right in the middle of the Namibe

Desert lies a large area with Khoisan cave

paintings, some of which can be traced

back to the Stone Age. They are considered

among Angola’s most beautiful prehistoric

collections of cave art.

Sadly, the Khoisan are at risk of

extinction. Only a few populations still

survive in southwest Africa. Recent

estimates show that of the 100,000 Khoisan

left on the African continent, barely 5,000

live in southern Angola.

In Angola the Khoisan are supported

by the Association for Environmental

Conservation and Integrated Development

(Acadir) and are funded by USAID, the US

Agency for International Development,

which focuses on family income, water

supply and the sustainable management

of natural resources.

Acadir projects cover the municipalities

of Cuangar, Calai, Dirico, Menongue

and Savate in Kuando Kubango. The

organisation aims to improve the often

marginalised Khoisan communities’

access to housing, drinking water,

education and legal documentation as well

as tackling poaching and deforestation. At

least 725 Koishan have reportedly already

benefited from these efforts through

donations of cattle, ploughs and seeds.

More information

Cultural treasures

The Khoisan are not the only community

receiving ongoing support. It is estimated

that up to 2.5 million people live within

the Kaza area. The partner countries want

these communities to benefit directly from

the Kaza initiative, even if the number one

objective is saving the plant and wildlife.

“The Kaza area is not aimed

at exploiting any given culture or

community,” said Dr Siamudaala. Quite

the contrary: “It provides a platform for

communities to benefit from tourism.”

Many other communities in the Kaza

area, apart from the Khoisan, tend to

be vulnerable, suffering higher levels of

poverty, illiteracy, underdevelopment

and declining agricultural productivity.

As a result, they inadvertently place a

great strain on the sustainability of their

natural resources.

Kaza efforts focus on ending

community conflicts with wild animals,

which sometimes damage cultivated land

during their migrations, resulting in loss

of livelihoods and sometimes even in the

killing of humans.

According to Kaza, tourist development

can provide these communities with

alternative sources of income. Kaza acts

as a watchdog for community rights and

management of natural resources and

their agreements with the private sector.

Kaza also oversees their generation of

income from development projects. All of

this helps the partner countries’ efforts in

reaching their United Nations Millennium

Development Goals.

If you would like more visual information on what the Kaza project entails, watch the award-winning documentary

Creating a Climate for Change. This 35-minute film on the impact of climate change in southern Africa was cofunded

by the Open Society Initiative for southern Africa and first shown at the UN Convention on Climate Change

in Durban in 2011. It illustrates how locally-driven solutions can be devised and successfully implemented in

some of the worst affected areas, and devotes quite some time to the Kaza area project.


Kaza efforts focus on ending

community conflicts with wild animals,

which sometimes damage cultivated

land during their migrations, resulting in

loss of livelihoods and sometimes

even in the killing of humans

Okavango-Zambezi: home to the nomadic Khoisan


Eric Lafforgue

Leslie Crookes


An African leopard lounges in a tree

Portrait of a waterbuck A hippo at sunset

Gerrit de Vries

Natural wealth

The total Kaza area will include 36 national

parks, game reserves and community

conservation areas. It boasts stunning tourist

attractions such as the Okavango Delta

in Botswana, which is the largest Ramsar

(wetland of international importance) site

in the world.

It is home to the Victoria Falls on the

Zambezi River between Zimbabwe and

Zambia, a UNESCO World Heritage site

and one of the seven natural wonders of

the world. Kaza encompasses one of the

world’s largest salt flats, the Makgadikgadi

Pans in Botswana, covering an area

almost the size of Portugal, in the midst

of desert, and Lake Kariba in Zambia and

Zimbabwe, the world’s largest artificial

lake. In addition, the region comprises

various types of woodland, grassland and

wetlands, supporting its high biodiversity.

Elephants are not the only ones who

will profit from the wildlife corridors. Kaza

is home to Africa’s charismatic Big Five:

elephant, leopard, rhino, buffalo and lion.

Other rare, vulnerable and endangered

wildlife species in the area include the

cheetah, black rhino, African wild dog,

sable and roan antelope, puku, oribi,

honey badger and wattled crane.

The cape vulture, major populations

of buffalo, hippo, lechwe, eland, zebra,

wildebeest, waterbuck and bushbuck can

also be spotted in the area, as can the

sitatunga, hunting dog, spotted hyena, and

numerous other southern African animal

species. White rhino may be found in small

numbers in the Okavango Delta area.

Kaza also boasts at least 3,000 plant

species, 600 southern African bird species,

2,645 flora species, 128 species of reptiles, 50

species of amphibians, almost 300 butterfly

species and a great variety of sea mammals.

Tourist magnet

Not surprisingly, given Okavango-

Zambezi’s many assets, the region is set to

be southern Africa’s top tourist destination.

Ecotourists can indulge in discovering the

region’s plants, trees and wildlife. Kaza’s

tremendous diversity of ethnic groups

along with the promotion of indigenous

knowledge, and the establishment of

cultural villages and national heritage

sites, will no doubt entice cultural tourists

as well.

Numerous lodges and camping sites

already exist across Kaza, mostly along the

Okavango and Zambezi rivers. New tourist

accommodation will be built, especially

in south-east Angola (including Kuando

Kubango) and western Zambia. The

Angolan Ministry of Hotels and Tourism

has already given the go-ahead for

accommodation work in Kuando Kubango.

Dr Siamudaala told Universo that

the Kaza countries are streamlining their

visa requirements for the region. “Where

possible, they will develop a tourist visa

system limited to the Kaza area in order to

allow for seamless travel of tourists within

the area,” he said. p



Okavango delta

Jiri Haureljuk

Henrique Malungo, courtesy of BP Angola




Members of Angola’s Paralympics squad received a warm welcome in

Luanda on their return from London 2012. Team talisman José Armando

Sayovo stunned the competition with a majestic display


ngola’s national Paralympics

team returned to Luanda

from the 2012 Paralympics

in September, bringing the

nation the present of a memorable gold

medal win by charismatic blind athlete

José Armando Sayovo.

Sayovo won gold in the 400-metre

distance race and followed this up with

a bronze medal in the 200 metres for

visually-impaired athletes (class T11)

in the Games held in London between

August 29 and September 9. Remarkably,

he also narrowly missed out on another

bronze medal in the 100 metres, having

to settle for fourth place.

“The Olympics are the highest point

in the career of an athlete. Fortunately I

reached this point in the competition,”

said Sayovo.

The other runners making up Angola’s

Paralympic contingent – Octávio dos

Santos, Esperança Gicasso and Maria da

Silva – fell short of medal places but gave

good accounts of themselves, surpassing

personal records during the competition.

Sayovo told the Angolan press that a

memorable highlight of the trip was the

support he received from the Angolan

fans when he entered the Olympic

Stadium in London.

Track record

Sayovo’s triumph was the athlete’s

third consecutive appearance at

the Games. His total tally is now

eight medals and record times in

the 100, 200 and 400 metres won

during the last three Paralympics.

What makes Sayovo’s achievement

in London even more impressive

is the fact that the man from

Catabola, Bié province, is now a

40-year old veteran athlete.

Sayovo currently leads the world

Paralympic ranking in the 200 metres and

400 metres for visually-impaired athletes,

according to the International Paralympic

Committee. In the 400-metres category,

Sayovo tops the list of 30 athletes with a

time of 50.75 seconds, while he shares a

time of 22.84 seconds with Brazil’s Daniel

Silva in the 200 metres.

Sayovo was awarded a prize of

two million kwanzas ($20,951) by the

Angolan Ministry of Youth and Sport in

recognition of his feat. Sports Minister

Gonçalves Manuel Muandumba said

Sayovo was one of Angola’s greatest

sportsmen and a symbol of Angolan sport

who continued to raise the country and

its flag beyond its borders.

Deputy Sports Minister Albino José

da Conceição said that Paralympic sport

was a living example of the government’s

investment in its social-inclusion policy.

José Sayovo “makes us feel citizens of the

world with his achievements”, he added.

Sayovo’s future


The Angolan Paralympic Committee has

put forward Sayovo’s name to the United

Nations for a possible role as a ‘good-will

ambassador’ in promoting the cause of

the disabled.

The next Paralympic Games will be

held in Rio de Janeiro in 2016. The big

question for Angolans is: will Sayovo be

there? Nobody is betting against another

Sayovo appearance at the age of 44; after

all, he surprised almost everyone by his

success this time around. p

Henrique Malungo, courtesy of BP Angola

Henrique Malungo, courtesy of BP Angola

DECEMBER 2012 41

Sonangol news briefing Sonangol news briefing

Sonangol and

Maersk oil find

Sonangol E.P. and partner Maersk Oil Angola announced another oil discovery

in Block 16 (Cabinda) in early October. The deepwater Caporolo-1 well showed

a flow of up to 3,000 barrels per day in tests. “It’s the second discovery made in

this block after Chissonga-1. The Caporolo-1 well was drilled at a sea depth of

1,235 metres and reached a total depth of 5,508 metres,” said Sonangol. Maersk

is the block operator and has a 65% stake, while Sonangol P&P owns 20% and

Brazil’s Odebrecht Oil & Gas Angola has the remaining 15%. Sonangol E.P. is the

concession holder.

Sonangol Starfish

returns Brazil block

Sonangol Starfish Oil & Gas and OGX Petróleo have returned their

licences to drill in two shallow offshore blocks to Brazil’s National

Petroleum Agency (ANP). The blocks in the Santos Basin were

deemed not as productive as the ones in deeper water. Sonangol

Starfish returned its stake in Block BM-S-60 after a long drilling

campaign that proved three times more expensive than estimated.

Oil and gas were found but not in commercial quantities. Sonangol

Starfish now aims to concentrate its efforts in north-east Brazil in

the Potiguar (Rio Grande do Norte) and Recôncavo (Bahia) basins,

according to Brazilian oil website Macaé Offshore.

James Jones Jr

ZEE latest

■ Two more industrial units have been

added to the Sonangol-supported special

economic zone (ZEE) in the Viana-Bengo.

One unit, Indústria de Ferragens Lda, will

manufacture 95,000 security locks of four

different types and employ 102 workers.

The second unit will produce galvanised

products and have a staff of 29.

The total number of enterprises now

operating in the zone stands at 17 with

a total workforce of 3,000. Another nine

units are expected to start up by the end

of this year. The scheme’s target is to

have 53 units fully operational by 2014.

New fuel depot at

Kuando Kubango

Oil Minister José Maria Botelho de Vasconcelos inaugurated

a new Sonangol fuel depot in Kuando Kubango province on

August 25. He was accompanied by Sonangol E.P. board

president Francisco Maria and other board members.

Sonangol’s latest addition to its supply network will benefit

provincial capital Menongue and other municipalities in the

fast-developing region of south-east Angola.

The fuel depot has storage capacity of 4,500 cubic metres,

made up of 2,000m 3 of diesel, 1,000m 3 of petrol and 1,500m 3

of aviation fuel. The facility also has storage space for 200

metric tonnes of LPG, enough to fill 4,000 12kg canisters a day.


Rio Oil and

Gas Expo

Sonangol participated in the giant Rio Oil and Gas Expo and

conference held in Rio de Janeiro in September. More than 500

exhibitors were present at the Riocentro Exhibition & Convention

centre located in the western district of Barra da Tijuca, the

planned site of Brazil’s 2016 Olympic Games.

The main theme of the Sonangol stand was the

internationalisation of the company’s operations, so subsidiary

Sonangol Starfish Oil & Gas was the focus of attention. Joaquim

Leite da Costa, president of Sonangol Starfish, said the event

surpassed expectations and gave greater exposure to Starfish,

and was also an excellent opportunity for promoting Sonangol

around the world.

Sonangol grants

500 scholarships

Sonangol E.P. has made 500 scholarships available for

degree studies abroad for courses in geosciences, engineering

and technology as well as applied social sciences. The

objective is to meet the future needs of Angola’s oil industry

for qualified personnel. Angola’s Higher Polytechnic Institute

of Science and Technology (ISPTEC) will manage the selection

process of candidates.

Team Schlesser

denied World Cup win

■ Team Sonangol Schlesser recorded another win in the twowheel-drive

category race in the Baja Poland cross-country rally

championship in early September. However, a few weeks later

with the title within its grasp, the team failed to win the World Cup

2WD in the Pharaons Rally held in Egypt from September 29 to

October 6. Team Sonangol Schlesser was disqualified from the

rally on a technical irregularity because an air-intake duct was

deemed slightly too large.


Tony Hill




As London-based Sonangol Ltd approaches its 30th anniversary in February 2013, Universo

looks at its crucial role in marketing Angola’s oil and the aspirations of new CEO Sandra Júlio

Sonangol’s light, tastefullydecorated

offices, tucked away in

a side street in the shadow of the

world-famous Harrods department

store in London’s West End, have seen

huge changes over the past three decades

in the company and in Angola’s fortunes.

When Sonangol Ltd was established in

1983, it represented a largely unheard-of

company in world oil markets. It traded

low volumes of oil for low prices from a

country little-known but for conflict.

Today, Angola is in its tenth year of

peace, enjoys an upbeat economy with high

growth rates and has raised its oil output

tenfold. Sonangol’s London team deserves

particular credit for making a significant

contribution to improving the reputation

of the company and the country.

Sonangol Ltd is the front office of

Sonangol E.P.,” says trading and marketing

manager, Luis Neves, who has been in the

London office for eight years out of his

14-year Sonangol career. He took on his

present position in January 2012.

Neves says his job title is a little

misleading, as his role has more to do with

marketing than with trading. Marketing is

the core activity of Sonangol Ltd.

But, the London office’s functions also

go some way beyond this.

“We publicise Angola’s image and

we’re proud of our 30 years here. Sonangol

is seen as a good brand. Everybody knows

it now. We’re proud to be Angolan and

African,” he enthuses.

Another role the London office

performs, says Neves, includes facilitating

investment. Sonangol’s creditworthiness

helps financial institutions view Angola

and Angolan companies more positively.

This has proved especially important for

the nation’s economy. It has enabled Angola

to be seen as a country where one can do

business and also find trustworthy partners.

Sonangol Ltd’s finance manager,

Pankaj Agarwala, a 16-year veteran in

the London office, agrees. “The office

has played a huge role and has had a

great impact on Sonangol as a whole

and on Angola, as oil was, and still is, its

main source of earnings. Sonangol never

defaults on loans, and this has given the

company and Angola reputational gains.”

Neves also represents Sonangol on

OPEC’s economics commission, giving

further evidence of the company’s

improved international profile.

“It’s an honour and it gives Angola

more impact abroad,” he explains.

According to Neves, the challenges

ahead for marketing Sonangol’s oil will be

in the decline of purchases by what was

previously its largest client, the United

States. While China is now Angola’s largest

client and the US is in second place, the

latter’s likely self-sufficiency by 2030 could

dent international sales and hit oil prices.

In preparation for this, Angola must seek

alternative markets, he says.

How Sonangol’s

trading operations work

Two months before Sonangol sells its crude

oil, representatives of its offices meet and

decide upon the likely volume available

and their pricing strategy. A programme

is then produced with the prices, the

different oil ‘streams’ or oil quality types

for sale, and which of Angola’s terminals

will be used for loading. Approximate time

slots for the vessel to start the operation are

also given.

The role of the London, Singapore and

Houston offices is to oversee the contract

and the loading operation.

Once a purchase has been agreed,

the operator works out contract details:

the designation of a vessel for loading,

documentation, letters of credit and

demurrage details (penalties for delays).

Payment for the oil is due after 30 days.

It is up to the buyer to find and lease

a vessel to collect the cargo on an agreed

date. This can sometimes prove tricky as

crude tankers may be two to three weeks’

sailing time away from Angola and have

to be able to reach the terminals in time.

Tankers are costly to run, and failure to

meet a time slot can result in a hefty delay

fee for the buyer.

Each million-barrel cargo usually

takes around 24 hours to load. The oil is

sold for delivery on a schedule based on

an almost constant flow of oil through

Sonangol’s 15 terminals.

If Sonangol fails to honour the loading

time slot, then it may be hit by a contractual

demurrage fee. Sonangol’s role now is to

make sure the loading facility operates

promptly, efficiently and has space for

other loadings.

One operator skill is in matching the

buyer to a delivery date. The trader must

try to get the best possible price for the

oil. Market knowledge and experience is

essential as buyers are offered oil from

many producers and new fields in the

same region, so Angola must compete.

Angola has the advantage of geography

for its shipping operations, as it is on

the main route from the Middle East to

Europe. Here an empty tanker may often

be available on its return to the Gulf. This

can then be leased to pick up a lucrative

return cargo, known as ‘backhaul’. The

Sonangol is seen as a good brand;

everybody knows it’ – Luis Neves


Sonangol news briefing Sonangol news briefing

Luis Neves: Trading & Marketing Manager

Sonangol Ltd values

Customer satisfaction


Effective communication

Team working

Ethical conduct

Respect for diversity

Quality, Health, Safety

& Environment (QHSE)


tanker could then take Angolan oil to a

Far East customer and thus be closer to its

destination port, having earned an extra

fee on its way home.

Sonangol Ltd’s four-strong operations

team is led by Uíge-born manager

Solange Verdade. Verdade has been in

the oil industry for over 20 years, having

previously worked at Elf Aquitaine and

Sonangol’s US operations in Houston.

Verdade says her role is to make sure crude

loadings and discharge operations (of

refined products) run smoothly.

The main types of problems the

operations team have to deal with are

late vessel arrivals, low inventories and

mechanical failures.

“You have to be organised and active,

and be able to anticipate problems and

respond quickly,” she explains. “Touch

wood, there have been no big incidents.”

Sonangol’s offices in London, Houston

and Singapore ensure operations are

overseen 24-hours a day, seven days

a week. Operations teams are always

vigilant. “The task needs continuity, so

we don’t take all our annual leave in

one go. You can’t be offline too long,”

says Verdade.

Verdade’s British-born deputy, Stephen

Booth, has been with Sonangol for 12 years

and has a background in shipping design

and cargo inspection. He notes that Angola’s

expanding oil output has meant there are

now more cargoes to keep an eye on.

Another member of Verdade’s team is

operations coordinator Jorge Assis, who

hails from Benguela.

Assis started his career with Total

working as an offshore manager, optimising

production and logistics and ensuring safety.

“We make sure the contract is observed

correctly, protect Angola’s interests and

oversee the terminal-customer interface

and check that payment is made on the

due date,” he explains.

In his offshore days, Assis was involved

directly with much larger numbers of staff,

as many as 500, but now works in an office

with fewer than 30.

“The dimensions are smaller, but it’s of

much bigger importance for the company,”

he says with a smile.

Some company history

Former managing director José Carlos de

Castro Paiva played a key role in developing

Sonangol Ltd over nearly 30 years until his

retirement at the beginning of 2012.

Paiva says he faced three major

challenges on taking up his post, the

‘terrible trio’ of low oil production, low

prices and war. The company has left each

of these negative factors far behind.

Paiva remembers early days at

Sonangol Ltd when traded volumes were

relatively low and a barrel of oil fetched a

mere $6.70. Angola is now a medium-sized

producer and oil is currently hovering

above $105 a barrel, having peaked at $145

in 2008.

One of Paiva’s proudest achievements

was his contribution to helping soothe the

Angolan government’s financial problems

during the heroic period of the country’s

resistance to the military onslaught of

apartheid South Africa. “We did contribute

to keeping the country’s economy alive,”

he remembers.

Based on oil revenues, Sonangol was

able to raise finance on London money

markets from a figure of $200 million at

the beginning to $2 billion some years

later for the government’s treasury. “They

were tremendous deals and achievements

Solange Verdade: Operations Manager

Sandra Júlio

Sandra Júlio is a senior crude oil and LPG marketer at

Sonangol. She started working for Sonangol in 1996 as

a systems analyst, after graduating in Computer Science

at the University of Salford near Manchester. In 1997 she

was invited to work at Sonangol USA in Houston, Texas,

as a network administrator and assistant to the crude oil

operations manager. Before joining the team in Houston,

she participated on a training programme with Citizens

Resources in Boston, Coastal in Houston and Equator

Bank in Connecticut.

While working at Sonangol USA she was involved

in various projects, created the first Sonangol crude oil

operations database, and was involved in setting up the

new HQ in Houston. In 2003 she moved to London to work

for the crude oil operations department. In 2005, when

Sanha LPG started production, the company appointed

her to be part of the LPG marketing joint venture team

at Chevron to get experience in the business. After two

years she returned to Sonangol and helped establish

the LPG sector at the trading department, and started

marketing Angolan crude and LPG. She also participated

in a training programme for traders with BP and came

out as the top trainee. Sandra Júlio became the first

Angolan female trader inside Sonangol.

As a crude oil and LPG trader, she has been involved

in various marketing projects, contracts negotiations,

setting up the new gas department inside the company,

marketing crude oil and LPG cargoes and training new

employees to develop knowledge in marketing crude oil

and gas.

In January 2012 Sandra Júlio was appointed

president and chief executive of Sonangol Ltd.

Sandra Júlio: President & CEO

‘We want Sonangol to be

internationally recognised as a

successful and reputable oil and gas

trading and marketing company’

– Sandra Júlio

Adrian Safranek

DECEMBER 2012 47



Sonangol news briefing Sonangol news briefing

José Paiva: former Managing Director


Pankaj Agarwala: Finance Manager

Ceri Evans: Supply & Logistics Manager

as it was incredibly difficult to get finance

then,” he recalls.

Another source of pride for Paiva

has been the growth of Sonangol Ltd’s

reputation for professionalism and

transparency. It has always repaid its

London bankers, and they helped spread

the word about Angola’s creditworthiness.

The financial markets’ confidence

in Angola has risen exponentially and it

enjoys much more favourable interest

rates as its high-risk rating has long

since declined.

The company today is now one of Africa’s

outstanding oil producers. “Sonangol has no

African comparison. The market says that,”

Paiva points out enthusiastically.

Building a legacy

One of Sonangol Ltd’s ingredients to its

success has been the slow turnover of staff,

a sure sign of employee satisfaction. Paiva,

Ceri Evans and recently-retired trader

Andy Whitrow have clocked up more than

a quarter of a century each at the office,

and several younger members of staff are

already into their second decade.

A contented workforce generates

dividends at the client interface. Customers

are always happy to deal with the same

people as it helps build the trust involved

in any long-term relationship. Getting

the right people for the job on board in

the first place, and then keeping them,

has been very important for building the

company’s reputation.

Supply and logistics manager Ceri

Evans, who joined Sonangol’s London

operations in May 1983, describes his oilselling

task simply as “turning brown stuff

into green stuff”.

He brought a wealth of experience

to the office, having worked for BP for 14

years, ten of those on the marketing side.

Evans believes the most important

company legacy built up over the past 30

years, apart from selling as much oil as

possible, is its culture of client care.

“We look after clients; we recognise the

value of term relationships, behave as a

major and follow a deal to the letter. We’re

considerate and flexible in approach but

don’t lose focus on the process,” he explains.

“Clients talk to the same people in the

office, know their first names, and these

people do what they say they will do, and that

builds trust and gives an element of stability in

the relationship.”

Evans also believes the best preparation

for Sonangol Ltd’s future is to make

sure that it loses none of the knowledge

acquired over the past decades.

Looking to the future

The London office is now undergoing a

period of transition as a new chief executive

takes her place at its head and Sonangol Ltd

comes under the responsibility of Sonaci.

Sandra Júlio was appointed president

and chief executive of Sonangol Ltd at the

beginning of 2012, succeeding the longserving

José Paiva.

A tribute to the cohesion at the London

office is that Júlio herself was promoted

through the ranks of that office.

Júlio won a scholarship and joined a

Sonangol training scheme in 1991. She

studied Computer Science at Salford

University and also spent one year at

accountants Coopers & Lybrand’s Lisbon

office. Júlio was one of the four pioneers

to open Sonangol’s Houston office in 1997.

Her move to the company’s London

office came in 2003 on a rotation

Sonangol has become one

of Africa’s outstanding

oil companies’

– José Paiva

Why London?

London was the obvious first-choice site for Sonangol’s

first major overseas office. It is the world’s largest oil

trading market and a leading financial centre where

banks could be easily contacted to arrange credit for

its oil sales.

The city is also home to the world’s largest shipping

and insurance market and so plays an important role in

providing cover for oil tankers and oil operations.

In the early 1980s, around 85 per cent of Angola’s

oil sales were to the United States, but most of

these companies bought their oil via their London

branch offices.

An added advantage for Sonangol is that the

UK is in the same time zone as Luanda, so its

daily operations fit in well with the working day of

Sonangol’s head office.

For 14 years London was Sonangol’s only overseas

office. In 1997, as Angola’s oil production increased,

Sonangol USA was founded and opened offices in

Houston, Texas. This office was tasked with handling

new clients in the region.

Sonangol opened a Singapore office in 2003 to cater

for customers in the fast-expanding Far East markets,

especially China and India.

There has been a marked shift in Angola’s oil

markets: Demand in the United States is falling, China

has become Angola’s largest single customer, and

Angola is China’s leading supplier.

Sonangol Ltd in London and its sister offices in

Singapore and Houston have a mutually beneficial

relationship. Each provides operational advantages to

the others as they share their workload. Individual oil

operations enjoy round-the-clock support as the three

offices can serve them through three major time zones.

The offices have a flexible and informal relationship

with each other and between sellers and buyers, so no

one office assumes a geographic territory.

The workload of supporting contracts is fairly divided

between the three offices. Sonangol sells approximately

27 individual one million barrel-loads of oil a month, so

each overseas offices handles roughly nine loads a month.

Since October there has been an organisational

reshuffle at Sonangol, and the three international offices

are now under the umbrella directorship of Sonangol

Comercialização Internacional (Sonaci) headed by Ruth

da Costa David.

Quality coordination

Kevin Stearns, Sonangol Ltd’s office manager is a former

British soldier, and in his 15 years of service he was involved

in logistics operations. Stearns brings to the company a

mind-set of tight process discipline and observance that is

an essential ingredient for operational success.

Since London gained ‘sister offices’ in Houston

and Singapore, process uniformity in quality and

implementation has become even more important as the

three offices cooperate continuously. There are hand-overs

when overseeing individual ship loadings as part of their

24-hour service provision.

In order to attain service

uniformity, Stearns has

been heavily involved in

implementing a programme

of ISO certification. The aim

of certification is continuous

service improvement, and the

three offices are encouraged to

audit each other’s compliance

with process schedules to

attain this goal.

Sonangol Ltd gained

its first ISO certification

in 2009 and is currently

in the process of recertification

and upgrading to even

higher standards.

Kevin Stearns: Office Manager

DECEMBER 2012 49


Sonangol news briefing Sonangol news briefing

Sonangol’s consumers




Jorge Assis: Operations Coordinator






programme. Júlio later spent two more

years working in Chevron when the

innovative Sanha liquefied petroleum gas

project started up, this time for Chevron

as an LPG trader. Sanha, off the coast of

Cabinda, was the world’s first dedicated

floating LPG production, storage and

offloading (FPSO) facility.

Júlio returned to Sonangol’s London

office in 2007 when she was appointed

crude oil and LPG trader.

Sonangol Ltd’s environment has

changed markedly since its foundation

30 years ago and there are new challenges

ahead for the youthful Júlio as she leads the

company’s largest overseas office forward.

Júlio says it is a big advantage to have

known Sonangol Ltd well before taking

office as its chief executive. However, she

is conscious that the company will have

to face increasingly strong competition in

the future.

“So we have to keep up and improve












01 China..................................... 50.86

02 India ........................................ 8.77

03 Taiwan .................................... 5.10

04 US East Coast ........................ 4.53

05 US Gulf Coast ........................ 4.50

06 South Africa ........................... 4.11

07 Angola .................................... 3.45

08 US West Coast ....................... 2.91

09 UK ........................................... 2.81

10 Portugal .................................. 2.75

11 Canada ................................... 2.72

12 Spain ....................................... 2.71

13 Italy ......................................... 1.07

14 Peru ........................................ 1.00

15 France ..................................... 0.68

16 Holland ................................... 0.68

17 US Atlantic Coast .................. 0.67

18 Sweden ................................... 0.35

19 Thailand .................................. 0.32

our portfolio of clients, offer better services

and be proactive,” she says.

“Previously, Angola just sold its oil

assets. Now we want to trade other grades,

increase the volume of trading activity, not

only of Angolan oil grades but also other

non-Angolan grades”.

The result of this will be to have a larger

portfolio of oil grades to offer clients.

She points out that there is no problem

with Angola’s current grades as refiners are

more flexible, especially China and India,

which have a broad range of refineries.

There is a good demand for Angolan grades.

A Sonangol sea-change in recent years

has been the shift away from selling to

North American markets, which used to

take over 70 per cent of Angola’s oil, to

China as its main client.

The US is seen as a declining oil-import

market and one of Angola’s challenges is

to compete for new markets to replace it.

Júlio is adamant that London’s

Sonangol Limited





primacy as a location for Sonangol

Ltd is unlikely to be challenged in the

near future.

“It’s an important office and the

first overseas office of Sonangol. We’ve

been here since 1983. London is the

world’s largest oil trading hub and a

leading financial and business centre.

We’re in the same time zone as Luanda

and we’re central. We’re also near our

banks, financial institutions and clients,

since most trading companies have






‘International oil and gas trading

will invigorate Sonangol’s

marketing activity’

– Sandra Júlio

IT Department

representatives in London. I believe we

have better access to them in the UK. We

also have good professionals in-house.”

Sonangol Ltd has long been considered

the company’s front office and Angola’s

window on the world. This has proved

especially important for the country’s

economy. It has enabled Angola to be seen

as a country where one can do business and

also find trustworthy partners. It is now very

well respected, considered one of the best

African companies and a first-class supplier.



Sonangol Limited

Merevale House,

Brompton Place,

London SW3 1QE


Supply & Logistics


In the future, staff training, especially

of Angolans, is high up Júlio’s agenda. At

the moment she is the only Angolan female

that can trade oil and LPG.

Sonangol Ltd has only seven Angolans

out of its 27 employees. Júlio says

she would love to see more Angolans

gaining experience in the marketing and

trading business.

“I’d like to see more Angolans involved in

the crude-oil supply chain, from exploration

and production of crude oil to trading,

refining and retail markets,” she says.

With this in mind Sonangol Ltd, in

conjunction with Sonaci and Sonangol

associates, is preparing several exciting

training programmes for its new staff

including many Angolans.

“We also want to promote more

rotation among the Angolans working in

the trading units, so that they gain more

experience in other markets,” she explains.

Sonangol Ltd’s new chief executive

describes her mission as acting as an agent

for Sonaci to market and trade oil and gas

products while offering clients competitive

and value-maximising solutions.

“We want Sonangol to be internationally

recognised as a successful

and reputable oil and gas trading and

marketing company,” she says.

All the signs indicate that Sandra Júlio,

backed by her highly-professional team,

should maintain Sonangol Ltd’s legacy

and the company’s good reputation for

professionalism and transparency. p

DECEMBER 2012 51

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