From past experiences, and making the dream of SWF come true. Nurturing our future. Angola From past experiences, and making the dream of SWF come true.

Armando Manuel, MSc Disclaimer Economic Affairs Advisor to the President of Angola; Chairman of Angola Sovereign Wealth Fund - FSDEA Disclaimer This presentation does not fully reflect the views of Civil House of the President of Angola nor the FSDEA. I am alone responsible.

2003 External Debt 64% GDP, tem years later 19,5%; Some Background Prior to 2003, mainly dependent from external borrowing to cover current expenditure; 2003 External Debt 64% GDP, tem years later 19,5%; 2004 Significant shift in Public investments Mainly roads, bridges railways Apart from the littoral towns, schools, hospital and public buildings all destroyed; Considerable number of refugees Lack of human capital; Inflationary pressures; Issues on absorption capacity

Gross Domestic Real Growth

Growth driven from Oil sector

Fiscal Balance (GDP%)

Production and Oil Trends

Inflation and Real Effective X-rate

A time to adjust the pathway Still Challenges of today and tomorrow; Short term Credit, (commerce; issues on Real State); Core inflation; Oil, electricity and H20 Subsidies Good News 2010 – Law enforcement (new constitution, public probity, new public tender law) phasing up of quasi-fiscal; Decision to start a considerable investments in power plants, water, ports, housing…; Setup of a number of instruments to foster private investments (SME’s) Oil Fund created as budgetary account;

Allocation of 100 barrel day; Specific mandate of economy diversification Domestic and regional investments; Gas power plants, (2) Fertilizers plant, (3)Ports, (4) Air-ports, (5) mining –iron, copper…Hotelling etc… Financial investments abroad (capacity of absorption) A budgetary incorporated approach; A fine –tunning Macroeconomic coordination

The Official Launch Presentation October 17, 2012

50 thousand oil barrels per day; Fiscal Stabilization function at last stance Clear split between Sovereign Wealth Fund and Excess oil price Fund; Clear split between social economic impact projects form financial viable projects;

Commitment to Transparency & Accountability Committed to operating in a transparent and responsible manner adhering to the industry best practices as stated in the Santiago Principles; Assets of $5bn and projected to grow consistently year on year from sales of oil and through performance of its investments; Set the tone for a credible commitment to being transparent and accountable by acknowledging Africa’s tarnished reputation List actions to demonstrate commitment to establishing a new benchmark for Africa The Fund will be accountable to its sole shareholder, the Government of Angola, through a legally mandated performance review regime, including the annual reporting to parliament The FSDEA will appoint internationally recognized independent auditors The Fund is governed by a three-member board of directors and an independent Advisory Council, which includes the Minister of Finance, the Minister of Economy, the Minister of Planning and the Governor of the National Bank of Angola. Santiago Principles regarding governance, source of funds, purpose of investments, audit and publicity of results yearly are built into the FSDEA’s foundations. The decrees dealing with the investment policy and regulations will make the FSDEA fully compliant with the Santiago Principles

The FSDEA Mandate The Fundo Soberano de Angola (FSDEA) is an investment institution dedicated to the economic and social development of Angola by generating wealth for the country’s future generations Recognize that there are considerable challenges facing Angola but state there is a strong determination to make a difference in the daily lives of Angolans today and to build a more prosperous future Provide context for mandate by referencing the objective to make economic and social investments that will work towards closing the HDI Index rating gap Show FSDEA mandate of economic & social development Securing both a financial return and a high social return will be of equal importance to the FSDEA The Social Charter will address a number of key social challenges faced by Angolans such as access to clean water, availability of healthcare services, and shortage of specific skills required to participate in the dynamic economic environment created by the country’s strong GDP growth The Social Charter will ensure the FSDEA plays an integral role in nurturing the country’s future potential by providing the tools for Angolans to participate in the country’s economic growth in a manner that allows them to reach their individual aspirational goals Through the establishment of the FSDEA Social Charter, we will support existing government social programs, partner with leading international aid agencies and create an independent FSDEA programs The FSDEA recognizes that there are still considerable challenges facing the country; however, we are committed to promote social and economic development by investing in projects that create opportunities that will positively impact the lives of all Angolans today and to generate wealth for future generations Future FSDEA hospitality investments will also pursue a social return by addressing the urgent need for skilled local talent through the establishment of an Angolan Hotel School

Galvanizing Economic Development The infrastructure and hospitality sectors are two of the first sectors targeted for investment, as they represent significant wealth creation opportunities across Sub Saharan Africa and also offer the potential for a higher growth multiplier for the Angolan economy. Future infrastructure investments focus areas with immediate development needs –the natural resources and materials supply chain, agriculture and key utilities including water, electricity, petroleum and gas.

Governance & Fiscal Policies tights Direct dependency from the President; Advisory Board formed by the Minister of Finance, Economy, Planning and the Governor of Central Bank; Fiscal Board; External auditor; Belongs the group of Indirect Public administration, subject to report and accountability under Budget Law Requirement to present quarter reports to the Ministry of Finance Requirement and part of overall public account presented to the parliament.

Currently In process of appointing Investment managers, custodians and consultants; Setting up of all technical framework to communicate with Managers; Fine-tuning of investment and risk policies Expectations: In short run- to pursue a very conservative approach based in fixed income, less risky assets and moderated returns;

Transparent & Accountable Investment Growth Potential The Fundo Soberano de angola Transparent & Accountable Investment Growth Potential Social & Economic Development Hilton Pattaya – Received Awards for Design Excellence

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