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“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
30 SONANGOL UNIVERSO
04
18
Other leading sovereign wealth funds
12
07
10
13
06
03
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
09
02
14
17
05
16
15
01
08
11
DECEMBER 2012 31