The Fundo Soberano de Angola (FSDEA) is a Sovereign Wealth Fund wholly owned by the Republic of Angola. The Fund, established according to international governance benchmarks, will gradually diversify its investment portfolio across a number of industries and asset classes in accordance with its investment policy and guidelines. By pursuing investments that generate long-term and socially enhancing financial returns, the FSDEA will play an important role in promoting Angola’s social and economic development and generating wealth for its people.
Fundo Soberano de Angola Announces Third Quarter Investment Update
Research Unit Established to Develop a Domestic Investment Intelligence Hub for the FSDEA with an African Perspective
Luanda, 10 December 2014 – The Fundo Soberano de Angola (FSDEA) released today its third quarter investment update for 2014, which covers the period the 1st of July to the 30th of September 2014. According to the FSDEA’s balance sheet, the net value of the Fund stood at USD $4.95 billion.
In addition, the FSDEA is investing USD $1.1 billion in a dedicated Infrastructure Fund that will focus on equity investments in energy, transport and large industrial developments domestically and across the sub-Saharan African region.
“Commercial infrastructure projects in sub-Saharan Africa currently show unparalleled potential and resilience against the perceived risks associated to our continent. At the FSDEA, we believe that providing the necessary funding for the development of these assets shall enable the overriding goal of diversifying the Fund’s investment portfolio sustainably,” commented José Filomeno dos Santos, Chairman of the Board of Directors of FSDEA.
The FSDEA also allocated USD $500 million equity capital to a Hotel Fund for Africa, which aims to fulfil the significant undersupply of international standard hotel management capacity in the continent. This vehicle will be in a position to take up debt up to 50 per cent, potentially doubling its total investment capability.
Commenting on the launch of these funds, dos Santos also stated, “The capitalization of these vehicles is in line with the FSDEA’s policy to invest in sectors that remain shielded from global market volatility and provide sustainable high yield returns on investments that may ultimately preserve capital of the Fund for the benefit of the Angolan citizens.”
He added, “Beyond generating solid returns, the rationale behind creating these dedicated investment funds is that the infrastructure and hotel sectors hold substantial potential for job and wealth creation and stimulate local supply chains that positively impact the overall growth of the region’s economies.”
In the third quarter of the year, the FSDEA also created a dedicated research unit that shall set the foundations for developing an investment intelligence hub specialized on the Angolan economy. The establishment of this unit seeks to improve the quantity and quality of research data available on Angola and certain sectors of the continent, thereby addressing the challenges faced by academics, policymakers and analysts in interpreting the specificities of the African business landscape. By studying the real foundations of the Angolan economy, the FSDEA aims to secure insights to support its domestic investments, assess income and employment generation patterns and understand the true dynamic of an African economy from a local perspective.
Commenting on the task of this specialized unit, dos Santos, noted, “There is a scarcity of quality data on Africa in the public domain. So, by securing reliable statistics and analysis of Angola’s current investment context, our analysts can deliver valuable insights that enable informed investment decisions. We firmly believe that providing access to more reliable data can be a catalyst for driving sustainable social progress.”
The FSDEA’s research unit consists of eight investment analysts, who work in cooperation with the Angolan Government and specialized academics to generate regular intelligence on macro-economic issues, as well as sector and country specific analysis. This workgroup will enable the FSDEA, policy makers, government agencies, and international researchers to gain insights into the investment landscape of Angola – Africa’s third largest economy – and the overall region.
“This new unit represents the start of a wider FSDEA effort to develop research based investments, that are in line with its commitment to preserve capital, maximize long-term returns and develop commercial infrastructure projects that bear benefits for Angolan citizens.” concluded dos Santos.