1. 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.

2. 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.

3. 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

4. Gross Domestic Real Growth

5. Growth driven from Oil sector

6. Fiscal Balance (GDP%)

7. Production and Oil Trends

8. Inflation and Real Effective X-rate

9. 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;

10. 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

11. The Official Launch Presentation
October 17, 2012

12. 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;

13. 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

14. 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

15. 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.

16. 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.

17. 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;

18. 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

19. Thank you!