1. Ministry of Economy Institute for Public Sector Enterprises 1

2. The SOE Sector in Angola 2 1.The State Enterpreneurial Sector of Angola 2.The Institutional Framework 3. The Legislation 4.Future Perspectives

3.  In Angola, the SES is made of a significant number of (i) Wholy owned and (ii) Partially owned public enterprizes, in different economic fields  This is a direct consequence of the planning economic system that existed in Angola up until the end of the 80’s. SOE´s3 The State Enterpreneurial Sector of Angola

4. Sector Empresarial4 Wholly Owed SOE’s by Sector of Economic Activity The SOE Sector in Angola

5. Sector Empresarial5 Partly Owed SOE’s by Sector of Economic Activity The SOE Sector in Angola

6. Sector Empresarial6 Wholly and Partly Owed SOE’s by Sector of Economic Activity The SOE Sector in Angola

7.  Are created by a government (head of state) decree and its creation is a joint initiative of a line ministry and the shareholding ministry (Ministry of Economy);  It’s 100% owned by the state; And its Governance bodies is comprised of: 1. The Board of directors: with a maximum of 11 directors, including independent ones; 2. The Fiscal Boad: made of a chairmain and two additional members Sector Empresarial7

8.  Are created in accordance with the company (comercial) law;  In essence, they are business corporations in which the state has the majority stake and can be established along side with: (i) Other wholly owned Public Enterprises (PE’s); (ii) Subsidiaries of PE’s; (iii) Public (State) institutes; (iv) Private Companies; (v) Private individuals Sector Empresarial8

9. Its governance bodies consists of:  Anual General Meetings  Board of Directors  Fiscal Board Sector Empresarial9

10. The Institutional Framwork 10 1.The State Enterpreneurial Sector of Angola Sector 2.The Institutional Framework 3. The Legislation 4.Future Perspectives

11. Sector Empresarial11 The Institucional Framework We have a dual governance system of SOE’s:  Sectorial Oversight – exerted by the line Ministries in charge different sectors of economic activity  Ownership Function – exerted by the Economic Ministry, through the (i) GTSEP – Tecnical Office for the SES and (ii) ISEP – Institute for Public Sector Enterprises

12. Sector Empresarial12 The Institucional Framework Line Ministries Specific Role/Tasks:  Set the economic development policy for the oversighted sector of economic activity;  Regulate the economic sector of activity;  To evaluate the plans and buget proposed by the companies;  To take part on the evaluation of the performance of the management bodies of companies;  to take part on the nomination and firing of members of the management bodies of companies;  To request tecnical, economic and financial information regarding the activity of companies; Fonte: Lei 9/95 de 15 de Setembro

13. Sector Empresarial13 The Institucional Framework The Role of the Ministry of Economy (Shareholder)  Formulation, coordination e execution of the ownership policy of the state;  Proposing legislative and regulating measures for the management of the assets of SOE’s;  Proposing and coodinating the implementation of the privatization policy;  Proposing the approval of the legislation for the reestruturing process of the state entrepreneurial sector;  Participating in the monitoring and validation of the framework of PPP’s; * Fonte: Decreto Presidencial nº 1/11 de 3 de Janeiro

14. Sector Empresarial14 The Institucional Framework Ministry of Economy: Organizational Chart * Fonte: Decreto Presidencial nº 1/11 de 3 de Janeiro

15. Sector Empresarial15 The Institucional Framework Ministry of Economy - Technical Office for the State Entrepreneurial Sector (SES) Plays a strategic Role, specifically:  Preparation of policy proposal on the SES  Legislative proposals in the field of privatization  Performing studies on the SES * Fonte: Decreto Presidencial nº 1/11 de 3 de Janeiro

16. Sector Empresarial16 The Institucional Framework Institute for Public Sector Entreprises Plays a Tecnical Role:  Treatment of issues related to the SES and the processes of privatization and reprivatization  Monitoring and technical assistance to companies Decreto 37/09 de 13 de Agosto

17. Sector Empresarial17 The Institucional Framework Institute for Public Sector Entreprises  Evaluation of strategic, business and investment plans and anual and plurianual budgets;  Propose methods and standards for accountability and enforce the terms of accountability;  Propose management tools for the organization of inventory and assets of the public enterpreneurial sector Fonte: Decreto 37/09 de 13 de Agosto Specific Tasks

18. Sector Empresarial18 The Institucional Framework Institute for Public Sector Entreprises  “Opinion on the financial reports and statements;  Propose inspections to the financial activity of enterprises;  Keep up dated technical, economic and financial data;  Propose the necessary tools to ensure the effective management of state shareholdings Fonte: Decreto 37/09 de 13 de Agosto Specific Tasks (Cont.)

19. Sector Empresarial19 The Institucional Framework Institute for Public Sector Entreprises (Organizational Chart) Fonte: Decreto 37/09 de 13 de Agosto

20. Sector Empresarial20 The Institucional Framework Monitoring of State Owned Enterprises Department - Department of Management of State Holdings Control and Monitoring of SOE’s in each of the following 4 areas (domains) :  Governance;  Operations  Financial Reporting  Compliance

21. Sector Empresarial Público em Angola 21 1.The Angolan State Enterpreneurial Sector 2.The Institutional Framework 3. The Legislation Governing SOE’s 4.Future Perspectives

22. Sector Empresarial Público em Angola 22 The current legislation governing the SES is the following:  Law 9/95 Law of Public Enterprises  Decree n.º 8/02 Regulation to the Law of Public Enterprises  Law n.º 10/10 Amendments to the Law of Public Enterprises

23. Sector Empresarial Público em Angola 23 Under the restructuring process of the SES, the Government is expected to approve the following legal instruments:  Framework-Law of the SES – New law of the State Enterpreneurial Sector  Regulation of the framework law  The Statute (status) of Public Managers  Remuneration Statute of Public Managers

24. Sector Empresarial Público em Angola 24 1.The Angolan State Enterpreneurial Sector 2.The Institutional Framework 3. The Legislation Governing SOE’s 4.Future Perspectives

25. Sector Empresarial Público em Angola 25 Key Actions Developed by ISEP since its constitution:  Evaluation of the privatizations carried out from 1989 to 2009;  Evaluation of 53 strategic enterprises with the view of their restruction;  Improving the accountability of the public enterprises  Implementing the governing bodies of public enterprises  Reformulation of the mechanism of monitoring of public enterprises through the fiscal boards  Capitalization of Public Enterprises  Human capital formation of SES

26. Sector Empresarial Público em Angola 26 THE KEY CHALLENGES FACING THE SES  Increasing the effectiveness and efficiency of SOE´s;  Attracting, retaining and developing talents  Increase the quantity and quality of information on public enterprises

27. Ministry of Economy Institute for Public Sector Enterprises 27