Angola is set to privatize a 15% stake in its largest telecommunications company, Unitel, as part of its broader strategy to diversify the economy and attract private investment. This announcement was made by José de Lima Massano, the country’s Minister of Economic Coordination, during the World Economic Forum in Davos.
According to Massano, the privatization process will partially occur through the stock exchange, aligning with Angola’s commitment to creating a more market-driven economy. This move is part of the Propriv 2023-2026 program, which has earmarked several state-owned enterprises for privatization to encourage private sector participation and reduce dependency on oil revenues.
Unitel’s Journey and Government Ownership
Established in 2001, Unitel has been a key player in Angola’s telecommunications sector, with a dominant 80% market share and over 30 million subscribers at its peak. The company was nationalized in 2022 as part of President João Lourenço’s anti-corruption reforms, following the seizure of stakes held by Isabel dos Santos, the daughter of former President José Eduardo dos Santos.
Unitel’s privatization plans include reserving 2% of the shares for its employees, emphasizing inclusivity in the process. The government aims to position Unitel as a more competitive and innovative entity under private ownership, leveraging the expertise and investment of private stakeholders.
Broader Privatization Efforts
Unitel is among the largest of nearly 200 state-owned companies included in Angola’s privatization drive since 2019. More than half of these entities have already transitioned to private ownership. Other companies, including Banco de Fomento Angola and Standard Bank Group’s local unit, are also slated for privatization.
The government’s strategy has attracted significant interest from global investors, especially in sectors like telecommunications, banking, and energy. However, Angola plans to retain stakes in critical assets such as the oil company Sonangol and diamond firm Endiama to ensure stability and control over key industries.
Economic and Regional Implications
Unitel’s partial privatization mirrors similar moves in other African nations, such as Ethiopia’s decision to partially privatize Ethio Telecom, which debuted on the stock exchange in 2024. Such initiatives aim to modernize telecom infrastructure, foster competition, and improve service delivery.
For Angola, this privatization represents a significant step towards reducing reliance on oil revenues and building a diversified, investor-friendly economy. By integrating Unitel into the stock exchange, the government hopes to attract both local and international investors, boost transparency, and enhance market confidence in Angola’s economic reforms.
Leave feedback about this