Angola

Africa’s debt chickens return to restive roost

31 December 2020

Even before Covid-19, the continent faced a reckoning. Low commodity prices remove a major growth pillar, while mounting leverage rules out more foreign borrowing. With budgets and citizens under pressure from Angola to Zimbabwe, Africa Rising looks more like Africa Uprising.

Oil slump puts African states on devaluation hook

10 March 2020

Hydrocarbons account for 90% of exports in Nigeria and Angola, despite years of talk about diversification. With crude at $36 a barrel, they’re both in trouble. Speedy devaluation means inflation-related pain but should help make the shift to a greener, low-carbon future.

Hadas: Who deserves to be a billionaire?

29 January 2020

Probably not Isabel dos Santos. The Angolan ex-president’s daughter flourished while the country that produced most of her fortune struggled. But in the modern economy, all billionaires extract far more economic value than they add. Taxes are a better remedy than charity.

Africa’s richest woman is Angola’s trickiest issue

20 January 2020

The petrostate’s government is scrutinising the $2 bln business empire of Isabel dos Santos. Reports of nepotism clearly hurt the daughter of Angola’s ex-ruler. But proving graft will be hard, and seizing her stakes in local firms might hit the economy.

Angola’s answer to Aramco has similarly tricky IPO

9 October 2019

Like Saudi Arabia, the secretive African nation wants to float its state oil firm. With a possible $50 billion valuation, Sonangol is no minnow but years of delays suggest a 2022 listing deadline could slip. As with Riyadh, the long-term threat to oil gives good reason to hurry.

China and Africa struggle to kick debt habit

3 September 2018

President Xi Jinping pledged another $60 bln to the continent while warning against the kind of binges that have led countries to default. Yet Africa shows no sign of restraint, and China’s lending remains opaque. Accusations of debt-trap diplomacy are likely to linger.

Fosun can justify double dip in Portugal

10 January 2017

The Chinese investor is upping its stake in lender BCP from 16.7 pct to 30 pct. Fosun is supposed to be deleveraging, and the Portuguese bank still won’t be lavishly capitalised. Still, with BCP trading at 0.2 times book, the Shanghai-based group can argue it is not overpaying.

CaixaBank’s Portugal saga ends in messy trade-off

22 September 2016

The Spanish bank’s bid for BPI will proceed after the latter removed a voting cap on CaixaBank's 45 percent stake. Another issue - BPI’s problematic exposure to Angola - may be resolved, albeit by ceding control in the African unit. At least CaixaBank has a free hand in Portugal.

Lisbon supplies key to unlock Caixa’s BPI riddle

18 April 2016

The Spanish bank has launched a second offer for its Portuguese peer at a lower price.  Angolan investor Isabel dos Santos used a voting cap to block the last one, but the state may now scrap this. Despite a hit to capital, Caixa now has a light at the end of the tunnel.

CaixaBank’s BPI saga has potential silver lining

11 April 2016

The Spanish bank has reached a deal with Angolan investor Isabel dos Santos that could see BPI cut its exposure to the African state. It’s the key to a Caixa bid for all of BPI. Even better, the Spaniards may be able to take control of their Portuguese rival for a lower price.

Angola’s rare oil success isn’t fixing governance

30 August 2012

Unlike, say, Venezuela or Mexico, the African nation has doubled oil output since 2001. That has boosted GDP per capita, but corruption and human rights abuses are holding the economy back. Sadly for Angolans, the likely re-election of the 33-year president won’t change that.

Latam’s bad oil policies laid bare across an ocean

13 August 2012

Despite some tough regimes and far smaller reserves, Africa is set to overtake Latin America’s crude output this year. The unlikely reversal reflects investor-friendly approaches in the likes of Angola. It’s also the clearest sign yet of how misguided the Latin region’s course is.

Chevron’s two-state oil pact gives Africa hope

31 July 2012

The U.S. oil giant’s $2 bln deal with Angola and Congo is a diplomatic coup. It unites two of the largest producers on a continent gushing with resource disputes. With Africa supplying a quarter of the world’s new oil, anything that could help resolve other clashes is welcome.