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Angolan President highlights GEMCORP’s investments in the economy
The Angolan president today denied favoring companies that have been identified as linked to the regime, indicating that they have financed the state in some cases, contrary to what happened in the past with “protected companies”.
In an interview given to five media outlets, including four Angolans (Expansão, TV Zimbo, Jornal de Angola and the Country) and to Agência Lusa, who were asked to send two questions in advance, João Lourenço spoke in detail about the Estado relationship Angola with four companies (Gemcorp, Omatapalo, Mitrelli, Leonor Cart) that have been identified as privileged in terms of access to public contracts, pointing out the financing role they have played.
The government official also said that most of the public works contracts are not in the hands of these companies and that those who are in charge of most of the State’s works continue to be Chinese companies, both in terms of the number of contracts and the value they represent, pointing to examples such as the Caculo Cabaça dam (Cuanza Norte), the New Luanda Airport or Porto do Caio (Cabinda).
João Lourenço highlighted that the country has already had contracting companies from several countries – Brazilian, Portuguese, Chinese, and soon Turkish, and underlined that the executive also wants greater participation by private Angolan companies.
“But that they are not private companies that will seek money from Sonangol, Endiama, Sodiam (state-owned diamond companies), which will not seek money from public companies”, he joked, alluding to the legal proceedings involving family members and close associates of the former president and his predecessor, José Eduardo dos Santos.
And he rejected comparisons with what had happened before, as companies “which, in the past, were protected” and concentrated the business of the state “never financed the state with a penny”.
“Previously, on the contrary, they went to public companies, Sonangol, Endiama, Sodiam, even the BNA (National Bank of Angola) to seek money from the State under very unclear conditions, hence the reason for the processes that are underway”, he stressed.
He also said that the State receives financing proposals from companies around the world, many of which do not have credibility or have difficult conditions, while Gemcorp (based in London) and Mitrelli (of Israeli origin) have offered advantageous financing, which do not they use oil as collateral, an obligation that was discontinued in the case of Mitrelli.
The only exception is the line of financing that the Angolan state maintains with China, as João Lourenço assumed that he has not yet achieved the objective “of getting rid of the oil collateral”.
The head of the Angolan executive implemented projects and financing in the case of the four groups that have been considered privileged in their relationship with the State
In the case of Gemcorp, he said that, from 2016 to date, it financed the Angolan economy in 2.4 billion dollars, mainly in the areas of defense and security, health and energy and water, including projects to combat the drought, having also started the construction of an oil refinery in Cabinda.
“This project that Gemcorp is carrying out is a private project, it is not a public project, the Angolan State will not pay anything in the coming years to Gemcorp, this project does not constitute public debt”, he guaranteed, adding that Sonangol (state oil company) won 10% of that refinery free of charge.
About the Benguela group, Leonor Cart, which “started from nothing” and grew over the years, said that the “State did not put a penny” in its most recent food processing industry, and that the company has resorted to commercial banking to finance themselves.
The President said that the executive is committed to reducing the state’s presence in an economy that is too “nationalized” and has negotiated a credit line of one billion euros with Deutsche Bank to exclusively finance the private sector, with only Leonor Cart ” managed to prove that it is entitled to access this credit line” and added that “it is a shame” that more entrepreneurs do not use this line.
As for the Israelis, Mitrelli pointed out that, between 2012 and 2013, they granted a credit facility of seven billion dollars to the Angolan State, which were used to build housing (centralities) and, more recently, between 2020 and 2021, financed 1, US$7 billion to build the headquarters of the National Electoral Commission, hospitals, housing, football stadiums and the Science and Technology Center in Luanda.
About Omatapalo, he considered that it is “a large national company” that “is capable of carrying out large public works contracts”, and that “Angola should have four or five Omatapalos”, whose sources of funding, “in addition to of the works he does, are not illegal until proven otherwise”.
Therefore, he continued, “the State cannot do without a company like this, it is not to be fought, on the contrary, it is to be cherished, like all others that, through their work, demonstrate that they deserve this affection”, he said, stressing that Omatapalo has also helped to finance the State, starting works “without receiving a penny from the State”.
